Wine: A Global Business (2nd Edition)

Liz Thach and Jim Matz

ISBN: 978-0-9715870-3-8


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James Halliday


Chapter 1. The Landscape of New & Old World Wine
Denis Gastin and Mack Schwing

  • Defining New World Wine
  • The Drivers
  • The Key Players
  • The Old World Responds
  • Opportunities and Challenges
  • Conclusion
Chapter 2. Wine Business Strategy
Liz Thach
  • Defining Wine Strategy
  • The Wine Business Strategy Development Process
  • When, How Long, and Who Should Be Involved in Strategy Development
  • Prerequisite for Strategy Development Process: A Wine Business Concept
  • External Analysis Phase
  • Internal Analysis Phase
  • Strategic Development Phase
  • Strategy Implementation and Evaluation Phase
  • The Strategy Reassessment Phase
  • Conclusion
Chapter 3. The Business of Viticulture
Richard Thomas, Mark Greenspan, David Beckstoffer, and Liz Thach
  • Vineyard Selection
  • Planting the Vineyard
  • Preparing the Land
  • Vineyard Management
  • Important Issues in Viticultural Business
  • Vineyard Management at Beckstoffer Vineyards
Chapter 4. The Business of Enology
Linda Bisson, Roy Thornton, and Peter Gago
  • Business Decisions in the Winemaking Process
  • The Use of Multiple Labels in Winemaking
  • The Role of the Winemaker at Penfolds
  • New Technologies in Winemaking
  • Current and Future Issues in Enology
  • Conclusion
Chapter 5. Wine Supply Chain Management and Quality Control
Thomas Atkin and Jon Affonso
  • What Is a Supply Chain?
  • Determining Your Core Competencies
  • Commodity Strategy
  • Major Supplies in the Wine Industry
  • Quality Control Systems Impacting Supplies
  • Trends in Supply Chain Management
  • Conclusion
Chapter 6. Marketing and Branding Wine
Linda Nowak, Paul Wagner, and Jean Arnold
  • Defining Marketing and Branding
  • The Five Ps of Wine Marketing
  • The Importance of Branding
  • Conditions Favorable for Successful Branding
  • Know Thy Customer: Wine Consumer Segmentation
  • Wine Brand Positioning
  • Being Consistent With Brand Image
  • Characteristics of a Good Brand Name
  • Building Brand Loyalty
  • The Challenges of Taking a Brand International
  • A Tale of Two Brands
  • Summary
Chapter 7. Wine Distribution
Bruce Herman and Gary Long
  • Wine Distribution on a Global Basis
  • Wine Distribution Outside the United States
  • Wine Distribution in the United States
  • The Role of the Wholesaler
  • The Role of the Broker
  • Finding a Distributor and Broker for Your Wine
  • Working Successfully With Distributors and Brokers
  • A Day in the Life of a Distributor Sales Rep
  • Conclusion
Chapter 8. Professional Wine Sales
Armen Khachaturian and Elizabeth Rice
  • Defining Professional Wine Sales
  • Selling Wine in the Three Major Channels of the US Market
  • Creating the Annual Sales Plan
  • Implementing the Sales Plan
  • Evaluation and Revision to the Wine Sales Plan
  • Challenges in Selling Wine Internationally
  • Exporting Wine From the US to International
  • Destinations
  • Successful International Selling Tips
  • Conclusion
Chapter 9. Direct Wine Sales and Wine 2.0
Janeen Olsen and Josh Hermsmeyer
  • Advantages and Challenges of Direct Wine Sales
  • Channels for Direct Wine Sales
  • Compliance and Regulation Issues With Direct Wine Sales
  • The Advent of Wine 2.0
  • Conclusion
Chapter 10. Wine Tourism
Donald Getz, Jack Carlsen, and Liz Thach
  • Defining Wine Tourism
  • Benefits of Wine Tourism
  • Motivations of Wine Tourists
  • The Experiential Appeal of Wine Regions
  • The Wine Tourism Development Process
  • Case Studies in Wine Tourism
  • Conclusion
Chapter 11. Wine Media and Public Relations
Megghen Driscol, Tim Matz, and Tor Kenward
  • Defining the Role of Wine Media
  • The Importance of Wine Media
  • Role of the Wine Journalist
  • Wine Scores and Rating Systems
  • Defining Wine Public Relations
  • Public Relations Role
  • Relationship Between the Wine Reporter and the Public Relations Professional
  • Communication Vehicles
  • The Future of Wine Media and Public Relations
Chapter 12. Global Marketing and Exporting
Larry Lockshin and Tony Spawton
  • Key Trends in the Global Wine Sector
  • Success Strategies for Global Marketing
  • Definitions and Examples of Exporting
  • Examples of Three Australian Exporters
  • Tactics for Exporting
  • Export Readiness Checklist
  • Branding the Export
  • The Export Value Chain and Logistics
  • Conclusion: Future Predictions for the Global Wine Market
Chapter 13. Financial Aspects of Wine
Robert Eyler and Tony Correia
  • Financial Foundations
  • Net Present Value
  • Financial Decisions in Vineyard Projects
  • Real Estate Markets and Winery Investments
  • Winery Economics and Finance
  • Segment Analysis
  • Equity Versus Debt Financing, Mergers and Acquisitions
  • Conclusion: How Wine Financing Is Different
Chapter 14. Wine Accounting and Tax
Jeff Sully, Terry Lease, and Jon P. Dal Poggetto
  • Product Costing: Introduction
  • Produce Costing: Defining Cost Centers
  • Product Costing: Using Cost Centers
  • Costing the Vineyard
  • Costing the Winery
  • Tax Issues in the US Wine Industry
Chapter 15. Managing Human Resources in the Wine Industry
Liz Thach and Lillian Bynum
  • Wine Labor Issues Through the Centuries
  • Historical Impact on Wine Labor Issues Today
  • Common Employee Positions in a Vineyard/Winery
  • Defining Human Resource Management in the Wine Industry
  • Future HRM Issues
Chapter 16. The Legalities of Wine
Cyril Penn and Wendell Lee
  • The Historical Context of US Wine Legalities
  • Taxes and Compliance
  • Trademark and Label Issues
  • Farming and Land Use Issues in the US
  • A Global View on Wine Legalities
  • Trade Issues
  • Shipping Internationally
Chapter 17. Environmental and Social Responsibility Issues
Jeff Dlott, Karen Ross, Allison Jordan, and Kari Birdseye
  • Defining Sustainability
  • California Sustainable Winegrowing Program
  • Overview of International Sustainable Winegrowing Efforts
  • Sustainable Winegrowing Practices: The Next 5 Years
Chapter 18. Looking Toward the Future
Paul Dolan, Tim Matz, Liz Thach, and Richard Cartiere
  • From Supplier to Consumer Driven
  • Trend 1: Rising Interest in New Varietals From Around the World
  • Trend 2: Increased Environmental Concerns
  • Trend 3: Focus on Health and Responsible Drinking
  • Trend 4: Thirst for Innovative Products
  • Trend 5: Desire for Both Value and Premium Wines
  • Trend 6: Trust in ``Word of Mouth''
  • Trend 7: Increased Online Purchasing
  • Trend 8: Desire for Experiences Rather Than Possessions
  • Future Forecasts for the Global Wine Industry



List of Figures

1.1 Map of major New World wine countries
2.1 Major phases of strategy development process
2.2 The wine business strategy star
2.3 Example of strategic group map for luxury tannat winery
2.4 Generic wine industry value chain
2.5 Example of grape grower value chain
2.6 Five major strategies adapted to the wine industry
2.7 Example of contents of a strategy document
3.1 Cyclical nature of wine industry
5.1 Supply chain management
5.2 Supply chain decision matrix
5.3 RFID data flow system
6.1 US wine consumer segmentation by shopping behavior
7.1 Distribution process in US open and control states
7.2 Distribution channels
8.1 Three major sales channels for wineries
9.1 Direct wine sales channels
9.2 Social media components
10.1 Wine tourism development process
10.2 Lake Okanagan wine region
10.3 Blending seminar at Sandaford Winery
12.1 Global market shares of the major beverage categories
13.1 Average prices, grapes/ton, selected California districts
14.1 Vineyard accounting worksheet
14.2 Facilities allocation summary
14.3 Facilities allocation
14.4 Example of bottling information worksheet
15.1 The five categories of human resource management
16.1 The three-tier wine distribution system in the US
17.1 The three Es of sustainability
18.1 How consumers select wine in retail stores

List of Tables

1.1 New Versus Old World Wine
1.2 The major wine players
1.3 Top global wine brands
1.4 Top 10 world wine-producing countries
2.1 Top 10 wine selling companies
2.2 Levels of strategy within a wine business
2.3 Macroenvironmental analysis questions
2.4 Example of Porter’s fi ve forces
2.5 Critical success factors for grape growers
2.6 SWOT considerations for wine businesses
2.7 Steps 2 and 3 of SWOT analysis
2.8 A company’s MVV
2.9 The five strategies defined
3.1 Famous grape varietals in New World countries
4.1 Standard wine price categories
4.2 The crush process
4.3 The five “Ss’’ of wine appreciation
4.4 Sample bottling costs for standard 750-milliliter bottle
5.1 Common winemaking supplies
6.1 Defining wine marketing and branding
8.1 Checklist of decisions for annual sales plan
10.1 Benefits of wine tourism for wineries
10.2 Top 10 motivations of wine tourists
10.3 Wine tourism development partners
10.4 List of wine tourism programs
11.1 Three major wine scoring systems
12.1 Six major trends driving globalization of the wine market
12.2 Top exporters of wine in the world, 2003
12.3 Definitions of indirect and direct wine exporting
12.4 Major considerations when branding for export
12.5 Promotion strategies in wine export markets
13.1 Vineyard cost categories
13.2 Winery cost categories
13.3 Equity versus debt financing
13.4 Selected winery and vineyard property acquisitions, 2004–2007
13.5 Winery stocks and ticker symbols
14.1 Example of basic cost allocation method
14.2 Example of cost allocation by block
14.3 Example of cost allocation with different block techniques
14.4 Example of cost allocation based on block farming costs
14.5 Example of per ton calculation
14.6 Bulk wine cost summary
14.7 Example of capitalized interest
14.8 Comparative depreciable lives
14.9 LIFO calculation example
15.1 High-level job categories in vineyard/winery
17.1 The 14 chapter topics in the Code of Sustainability

Book Reviews

"This book offers an extensive overview of the global wine business.  A must-have for anyone who is interested in developing successful strategies to compete in the global wine marketplace.  Enjoy reading this book while sipping a glass of your favorite wine.Gina Gallo, Winemaker, Gallo of Sonoma

As the global wine industry evolves, it is imperative to have a basic understand of all the aspects of the wine business. This book will help you to start thinking strategically, as well as analyze all of the cost and efficiency issue that are necessary to be competitive in a global environment.” Bill Spence, General Manager, Matua Winery, New Zealand

Finally a resource that puts together all the different components of the business.  This book is useful to help develop employees who are new to the wine industry, or who want to enhance their general wine business and management skills.” Geraldine Flatt, Director of Human Resources, Gloria Ferrer Winery of the Freixenet Family of Wines