The rise and fall of wine consumption in different countries
There is a country named Algeria in Nothern Africa. Despite being an Islamic nation, and therefore one which does not officially produce or consume alcohol, Algeria has a remarkably extensive area under vine. This vast acreage is mostly the product of Algeria's colonial occupation by France in the latter half of the 19th century and the first half of the 20th century. France's conquest of Algeria was slow, beginning with the occupation of the capital Algiers in 1830 and ending only when the last of the Toureg tribes were overrun in the 1920s. During this period of bloodshed and political turmoil the famous French Foreign Legion was created, a robust fighting force to support France's colonial aspirations.
In the 1870s, another robust invader influenced Algeria's vinous history: phylloxera. It had arrived in Europe via the Americas, laying waste to millions of vines in mainland France. For a nation with such a comprehensive vinous history and culture as France, this blow was crucial. The answer was to plant vines in the phylloxera-free sandy soils of Algeria. Such was the impact and success of this move that Algeria's vineyard grew by almost 1000% between 1870 and 1900, though Algeria was at one stage affected by the bug too. The majority of this increase was carried out by pieds-noirs (French nationals who had settled in Algeria) whose French vineyards had been wiped out by phylloxera.
When France ceded control of Algeria in 1962, almost one million acres (404,680ha) of the country was under vine and was generating a vast quantity of cheap, blended red wine to quell the thirst of the French people and their colonies. Once the French had officially left Algeria, the quantity of wine they imported across the Mediterranean halved, leaving Algeria with a massive surplus of wine and vines. Finding a crop which could match wine grapes for profitability and employment proved to be a struggle, so a huge area of vineyard was ripped up rather than replaced.
Nowadays Algeria is producing table grape rather than wine. They are no more become big producer of wine.
The causes of these changing trends
greater taste for it. What are the reasons that these major countries for wine suddenly the number of wine consumption is declining very much ?
In countries , such as France , Italy , Spain , people used to drink a lot of wine, but consumption habits are changing. Wine has stopped being a daily drink of alimentary use to become a hedonist product. Thus wine consumption has also become more occasional , although wine’s quality has improved. Consumers have changed their unconscious daily gulp to a deliberate option of drinking a far better wine for pleasure. It is not just a change of habit , consumers are fleeing from wine , and statistics prove it. When compared the rate of decline is even greater for cheap wines than for quality wines. In the U.S., it is different and they are starting from a lower level per capita, so they have a tendency to consume more and more, notably quality wine.
The future trends
The wine sector has undergone a series of deep transformations during the twentieth century, especially in the second half. A restructuring process occurred for several reasons. In order to understand these changes from the point of view of the supply, we should first bear in mind the demand, in other words, wine consumers, who have experienced similar or even greater changes in their habits and preferences and have participated to a large extent in causing the transformations in the sector.
This is not an isolated case, it is not a particular phenomenon of a specific country, but has taken place on a global scale. World wine consumption has fallen substantially since the 1960s, in a constant, regular way, in response to the changes that the world society has undergone in terms of food and way of life.
Traditionally, the main wine consumer is in the countries of the south of Europe (France, Italy, Spain, Greece), where the population drink wine as a part of the staple diet. This practise is the cultural legacy of thousands of years of “Mediterranean triad” (cereal, olive oil and wine), where grape juice has been a basic component of the diet and a very important source of calories.
A good example of the above is the Spanish case. This country, a traditional Mediterranean wine producer and consumer, is experiencing the new trends in a very marked manner.
provoked a big financing problem, taking on the investment to maintain the competitiveness and necessarily paying the members’ grapes at high prices, but a lot of vine growers sold the product on the markets.
As regards marketing strategies and advertisement, the cooperative wineries did not need these measures until the seventies, when they started to participate in regional, national and international festivals and trade fairs. Later they contracted advertisements in regional or national press and radio. Moreover, they started to make business trips for the direct promotion of the product, even worldwide. In the nineties these wineries carried out more modern strategies, such as direct promotion in shopping centres.
From the nineties to today the management teams of these Spanish cooperatives have definitely been professionals. There has been the application of a department structure and a technical skilled staff in the different aspects, such as management, production, sales, marketing, finances, etc. In addition, there is participation of external advisors for less professionalized aspects, such as legal issues, or the contracting of external audits to analyse the accountancy situations in enterprises with intense financing problems due to
The challenges facing the wine industry
Nowadays , wine is not only popular in some Europian countries. Even , in Asia , such as China , wine has become popular. That’s why many people wants to join wine industry since wine is high class and high income industry , but the problem is wine industry also needs high cost.
What is the challenges facing the wine industry ? The main challenge in wine industry is over production. In the last three years Spain, France and Italy’s wine production has increased by over 24 million hectolitres. According to figures from the International Wine and Vine Organisation, a bumper crop in Australia, Argentina and Europe has put global wine production at an estimated 287 million hectolitres (the highest since 1992). Most of this increase is attributable to France, Italy and Spain - the world's three largest wine producing countries.But , the number of wine consumption is declining every year , that’s why overproduction happened.
The other main challenge is that there simply aren’t enough grapes to meet future industry needs. This is in spite of two very good years (2012 and 2013) for industry supply. It’s clear that there haven’t been enough grapes planted domestically; the implication is more imports from foreign sources of grapes and bulk wine.
How are these challeges evolving
The overproduction is evolving because nowadays , many countries also wants to produce wine. Some of China people , they invest a lot in wine industry. They do not know how to spend money , and then they spend a lot for wine. They are import and export wine. And in my explanation above , France , Italy , Spain is producing a lot. But nowadays , there are some rules in many different countries about wine consumption. There is maximal number of wine consumption. That’s why the overproduction happens and happens again because of the declining of wine consumption but the increasing number of wine production.
The future opportunities of wine industry
Local or Regional Consumption Concept
The Local Production Local Consumption Model is about the local producers sell their products to local markets. Some producers sell fresh fruits and vegetables directly from the farms to the street or local markets. Others sell products after processing their fresh produce. The latter examples often include traditional local food which has taken root in the area and has been loved by local people for a long period of time.
The important of Local or Regional Consumption Concept is to reduce cost and more effisient. Because you do not need to import from other countries since you can produce by your ownself. The cost for production and transportation is also cheaper. And you do not need to wait so long for shipping the product. So the quality of product is better because the product is more fresh.
AOC Concept
AOC( Appellation d'origine contrôlée) has been the model for appellation and wine laws around globe. have developed around the concepts of "unique wines from a unique area". These systems have also developed into protected designation of origin across the European Union. The concept was developed as a way of certifying geographical indications for wine; however, today the AOC extends to many products including wine, cheese, butter, lavender, and lentils. The certifications and the process are controlled by an organization called the Institut national de l’origine et de la qualité) or INAO for short.
The AOC concept is based on the concept of terroir: “terroir” means “land” in France, and the term represents the idea that the land is the key factor in agricultural products and that the products should reflect the unique geography and climate of the land. In the case of wine, the term “terroir” means that the wine should reflect the unique qualities that the soil and climate impart onto the grapes–the “soul” of the grapes and the wine–and the wine should not reflect overhandling during the winemaking process. AOCs are regions whose grapes expected to reflect similar terroir (qualities) in their subsequent wines.
The AOC system is used by consumers as a buying guide. Understanding the requirements for each designation will ensure that the buyer understands exactly what he or she is paying for. But taste is always subjective. If you prefer the taste of a particular “lower” quality Vin de Pays to a “higher” quality AOC wine: then in your opinion, it is better! Do not let labels determine what wines you think are better. Taste always wins in the end.
The INAO guarantees that all AOC products will hold to a rigorous set of clearly defined standards. The organization stresses that AOC products will be produced in a consistent and traditional manner with ingredients from specifically classified producers in designated geographical areas. The products must further be aged at least partially in the respective designated area.
Under French law, it is illegal to manufacture and sell a product under one of the AOC-controlled geographical indications if it does not comply with the criteria of the AOC. AOC products can be identified by a seal, which is printed on the label in wines, and with cheeses, on the rind. To prevent any possible misrepresentation, no part of an AOC name may be used on a label of a product not qualifying for that AOC.
This strict label policy can lead to confusion, especially in cases where towns share names with appellations. If the town of origin of a product contains a controlled appellation in its name, the producer (who is legally required to identify the place of origin on the product label but legally prohibited from using the full town's name unless the product is an approved AOC product) is enjoined from listing anything more than a cryptic postal code. For example, there are a dozen townships in l'Aude that have Cabardès in their names, several of which are not even within the geographical boundaries of the Cabardès AOC. Any vineyard that produces wine in one of those towns must not mention the name of the town of origin on the product labels.
Packaging is an important thing because it’s protect the product , and it is important in terms of storage and hygienic handling of a product and it plays a key role in the marketing mix. Why it plays a key role in the marketing mix ? Because packaging itself , it is a clear picture of the product. Sometimes , packaging makes us interested to buy that product. Packaging is an arena where the producer can deliver the message of the product to the consumer.
For example : the supermarket wants the customers to but their products. Thus, the only way to get some consumers to notice the product is through displays, shelf hangers, tear-off coupon blocks, other point-of-purchase devices, and, last but not least, effective packages. In the packaging of the products , they can write buy 1 free 1 or something like that , so customers are interested to buy it. That’s why packaging it’s important. Let say you did not put the packaging well. Customers won’t look at your product.
Future looks for wine
Glass: Although glass containers have the disadvantage of being breakable and sometimes heavy, supporters claim the ‘feel’ of the product creates a favourable impression in terms of quality. For many purists and wine aficionados, glass is synonymous with ‘class’.
Tin and cans: Because they cannot be resealed, tins and cans have only a one-time purpose, as is demonstratedwith carbonated drinks and tinned food products. It is common these days for users to decant the contents, once opened, into Tupperware or similar pots. Beer in cans is often said to leave an ‘aftertaste of metal’.
Tetra: Like tins, Tetra cannot be reused once the contents have been consumed but the packaging is considered to be environmentally-friendly and easy to store. Wine in Tetra packs would not be welcome or seen as realistic by consumers.
Climate change is a very real threat that has many industries concerned over how their businesses with be affected. More importantly, it’s this changing climate that has and continues to push many industries into developing better ways to function that has less environmental impact as well as developing ways to function under altered conditions. Prior to making any change, businesses and industries must step back and take a look at their current environmental footprint, and how their business practices and procedures impact the overall health of the environment.
When considering the wine industry, there has been a lot of work focus on the micro-scale of within the winery or vineyard, and what sort of a carbon footprint or environmental impact is left after all is said and done. However, outside influences that also heavily contribute to the overall carbon footprint or environmental impact have largely gone ignored; factors by which if one really wishes to improve their overall environmental impact, they need to take into consideration. These outside influences include, but are not limited to, greenhouse gas emissions (think the emissions of machinery or transport vehicles), and total energy use (think all the gas, oil, or electricity that is used to create and distribute the product).
Sustainable & ethical production
Sustainable production is used to define systems of production that integrate concerns for long term viability of the environment, worker health and safety, the community, and the economic life of a particular firm. According to this vision of sustainable development, the model of industrial development becomes unviable (or unsustainable) from an environmental perspective as it does not allow a lasting development. The essential aspects are the depletion of natural resources (raw materials and fossil fuels), the destruction and fragmentation of ecosystems, the reduction in biodiversity and climate change due to greenhouse gas emissions.
Biological and biodynamic agliculture
Biological agliculture is about looking at the whole agronomic, environmental picture, nutritional and biological components of what constitutes a healthy soil.
Biological agliculture combines the best of conventional and organic farming with an emphasis on attaining naturally productive soils that display high levels of biological activity. The main purpose is to maximise the activity of soil microbes through the provision of good soil nutrition and structure, together with adequate supplies of energy, air and water.
Biological farming is using modern technology and new methods, but uses only those that do not interfere with natural systems and do not cause harm down the road.
Biodynamic agriculture is a method of organic farming originally developed by Rudolf Steiner that employs what proponents describe as "a holistic understanding of agricultural processes".One of the first sustainable agriculture movements, it treats soil fertility, plant
growth, and livestock care as ecologically interrelated tasks,
emphasizing spiritual and mysticalperspectives. Proponents of biodynamic agriculture, including Steiner, have characterized it as "spiritual science" as part of the largeranthroposophy movement.
The French paradox is the observation of low coronary heart disease (CHD) death rates despite high intake of dietary cholesterol and saturated fat. The French paradox concept was formulated by French epidemiologists3in the 1980s. France is actually a country with low CHD incidence and mortality. The mean energy supplied by fat was 38% in Belfast and 36% in Toulouse in 1985–86.More recently, in 1995–97, the percentage of energy from fat was 39% in Toulouse according to a representative population survey.
The French paradox implies two important possibilities. The first is that the hypothesis linking saturated fats to CHD is not completely valid (or, at the extreme, is entirely invalid). The second possibility is that the link between saturated fats and CHD is valid, but that some additional factor in the French diet or lifestyle mitigates this risk— presumably with the implication that if this factor can be identified, it can be incorporated into the diet and lifestyle of other countries, with the same lifesaving implications observed in France. Both possibilities have generated considerable media interest, as well as some scientific research. Besides that, consumption moderate of red wine also help them to have a good health and it gives good benefit for their heart too.
It has also been suggested that the French paradox is an illusion, created in part by differences in the way that French authorities collect health statistics, as compared to other countries, and in part by the long-term effects, in the coronary health of French citizens, of changes in dietary patterns which were adopted years earlier.
The Mediterranean Diet is a way of eating based on the traditional foods (and drinks) of the countries surrounding the Mediterranean Sea. The Mediterranean Diet is not a diet, as in “go on a diet,” even though it is a great way to lose weight or improve your health. Rather, it is a lifestyle – including foods, activities, meals with friends and family, and wine in moderation with meals. It has been studied and noted by scores of leading scientists as one of the healthiest in the world. Just as important, the Mediterranean Diet is full of wonderfully delicious, flavor-filled dishes and meals.
Maximise your intake of vegetables, peas and beans (legumes), fruits and wholegrain cereals.
Limit your red meat intake - fish and poultry are healthy substitutes.
Where possible, use mono-unsaturated olive oil or rapeseed oil in place of animal fat such as butter or lard.
Limit your intake of highly processed 'fast foods' and 'ready meals', where you cannot tell saturated fat and salt intake.
Eat no more than moderate amounts of dairy products, and preferably low-fat ones.
Do not add salt to your food at the table - there is already plenty there.
Snack on fruit, dried fruit and unsalted nuts rather than cakes, crisps and biscuits.
Drink (red) wine during meals, but no more than three small glasses per day if you are a man and no more than two small glasses per day if you are a woman.
Water is the best 'non-alcoholic beverage' (as opposed to sugary drinks), although health benefits have also been claimed for various teas and coffee.
What leadership characteristic does Jim Sinegal have ? What
challenges did Magic Johnson face in his private life and business
life ? Why is it important to understand your customer / consumer?
How do you that ?
1. Keeping their Immigrant Perspective: they stay true to their cultural perspective by continuously seeing and seizing opportunities that others don’t see and are fearless to take action even when the market disagrees (ie. launching the “Kirkland Brand” across multiple categories).
2. Employing a Circular Vision: Costco anticipated crisis and change in the retail industry as Wal-Mart’s low price strategy forced consolidation amongst the many retail outlets. As such, Costco’s circular vision help them reinvent a new retail distribution channel that focused on delivering value to its members through continuous innovation.
3. Unleashing their Passion: Costco pioneered the warehouse industry. Its passionate pursuit to create a community-minded and collaboration-driven approach focused on innovation delivers a new kind of value model.
4. Living Your Entrepreneurial Spirit: Costco’s leadership is all about the entrepreneurial spirit. They have worked the warehouse floors themselves and understand the specific needs of their members to keep the buying experience fresh, dynamic and new. Every visit to Costco is an entrepreneurial experience and their treasure hunt merchandising approach proves this to be true.
5. Working with a Generous Purpose: Costco is all about servicing the needs of others just as much as their own. They are meticulous about listening, learning, and implementing the ideas of their members and vendors voices. They share ideas to their partners to deliver momentous outcomes.
6. Embracing a Cultural Promise: From the time you walk into the warehouse location, you feel the promise that Costco is delivering to its culture. You always sense that it is delivering value in every aisle and with a promise that is consistent, honest and true.
Recently, there’s been a round of news stories focusing on various problems with the nation’s largest retailer, and one of its worst employers, Walmart. These problems range from national and international labor issues, to poor customer service, low-quality produce, empty shelves, and declining sales.
history. Unlike much of the rest of the retail sector, Costco keeps posting strong sales — according to the most recent quarterly report, sales are up 8% and earnings are up 19% compared to this quarter last year. Costco has also won praise as a socially responsible investment.
The entrepreneur sees opportunities because he sees the big picture, the chance to try something new, the market that no one else has seen. If you are an established business, or plan to start a new business in a crowded space, you’ve got to learn to think that way too. Costco Wholesale’s entrepreneurial ability to continuously reinvent itself has given it a powerful world-wide competitive advantage.
Many do not know the serendipitous beginnings of this warehouse industry king. Costco was officially founded in 1983 by two veterans of retail, Jeffrey Brotman and James Sinegal, but the first seed of Costco was sown three decades earlier by a man named Sol Price. In 1954, Price and a group of clients created FedMart, the nation’s first membership discount store, selling memberships for two dollars to government employees. Many of the basics of the now common warehouse model were determined with this early venture. Sol Price offered deep discounts on products in stores stripped of most fancy accoutrements. By 1975, when Price sold the chain to German entrepreneur Hugo Mann, the FedMart seed had grown to forty-five stores.
Mann and his executives quickly ousted Price from involvement with FedMart, and the wise Mr. Price responded by sowing again, making the same warehouse benefits available to the general public. Only a year later, in an airplane hangar in San Diego, California. Price Club was born as the world’s first wholesale warehouse club. With Price Club, Sol Price single-handedly grew a new industry and with it, a perpetual harvest of good fortune.
While it is true that Sol Price was the original entrepreneur, his protégé, James Sinegal, is the one responsible for experimenting with the original idea and making it really bloom.
While Price Club originally opened its doors only to business owners, memberships were soon offered to the general public to meet its great demand. Still, Sinegal remained keen on the notion that small businesses would play an important role in Costco’s perpetual harvest. He thus focused Costco on meeting their needs.
knew that if I could do business with Costco, I could meet the standards of almost any retail outlet in America.
I learned much of my own entrepreneurial attitude from the warehouse king. Costco demands the best from its suppliers and in this way is a strong model for sowing great entrepreneurial seeds. It insists that each of its vendors push the innovation envelope and become as efficient as possible. From packaging, sales, and marketing to shipping and inventory management, sowing entrepreneurial seeds in Costco soil yields a high level of productivity and effectiveness. That’s how a perpetual harvest is ensured.
That’s also how Costco gave my company instant credibility. Through its unyielding insistence on the highest quality to yield the best value for its members, Costco has indeed earned the trust of its members. That my products were sold in Costco thus ensured customers and other potential partners that the products were of the highest standard. This same trusted reputation has also allowed Costco to expand. While its core offerings of bulk consumer goods are still central to the company’s success, Costco has, over the years, added consumer and business services aimed at reducing costs while improving member care.
With offerings as diverse as merchant accounts, banking, and financial planning to Web development and group health plans, there is often little need today for members to venture anywhere else. Today, Costco holds the position of fourth-largest retailer in the United States overall, after Wal-Mart, The Home Depot, and Kroger. Costco is firmly entrenched as the number one warehouse club chain in terms of sales volume even though it has approximately two hundred fewer stores than its next closest competitor, Sam’s Club.
Wal-Mart maintains what is arguably the mightiest supply chain and distribution network on the planet; yet, against this muscle, Costco’s momentum of good fortune allows it to outperform Wal-Mart–owned Sam’s Club in per-store sales and overall sales. In addition, Costco remains number one among all U.S. retailers in customer satisfaction, according to the University of Michigan’s American Consumer Satisfaction Index (ACSI).
It is a safe bet that Costco’s good fortune will continue as it keeps innovating – like an entrepreneur. The result is a perpetual harvest that continues to benefit the company, its vendors, and its members.
It is important to understand your customers because your customers are the one that buy your products. If they are not satisfied with your products , they won’t buy it again and also they will tell their relatives the bad of your products and can make the other customers won’t buy your products. It is the power of mouth. If you are success to make your customers buy your products , your customers will tell something good about your products and the others will buy your products. Your sales will increasing a lot.
