This dissertation aims to reveal the impact of the New World wines upon the UK market which necessitates an examination of all factors that might have strengthened the competitive position of the New World compared to the Old as well as the evaluation of current and past market figures and also broad primary research in order to affirm or query the findings.
The observation of leading author’s general view about New World wines has shown that the great differences between both worlds have started to blur as both regions are increasingly willing to learn from each other and to adopt the other’s wine producing and marketing methods which is particularly vital for all Old World suppliers performances.
A PEST analysis and an analysis of competitive advantages have revealed that the New World suppliers are generally better positioned to respond to current challenges and to perform successfully on the UK wine market.
The investigation of legal circumstances in terms of oenological practices and label requirements indicates that despite of the very strict appellation systems of the Old World both regions act under similar legal conditions and that the Old World has to cope with some minor legal disadvantages which are mainly due to traditional values and ideologies.
The comparison of the reactions of France and Germany as two selected Old World producers gave information that only France’s wine industry is really threatened by the New World and goes many ways to defeat or regain market share.
An observation of the application of wine brands has shown that this is undoubtedly one of the leading key factors of which the New World has taken much more advantage.
A blind wine tasting which emerged the New World as victorious in all comparisons and a comprehensive survey which investigated consumer purchase behaviour have, with some exceptions, largely underlined these current market findings.
The appearance of the New World has changed the market structure, the consumer behaviour, the face of wine and is certainly not only a trend but now the leading power on the market.
Table of Contents
1. INTRODUCTION
1.1 AIMS AND OBJECTIVES
1.2 REASONING FOR TOPIC CHOICE
1.3 HYPOTHESIS
1.4 RESEARCH METHODOLOGY
1.4.1 Data sources
1.4.1.1 Primary data
1.4.1.1.1 Questionnaire for the wine consumer
1.4.1.1.2 Interviews
1.4.1.1.3 Blind Wine Tasting
1.4.1.2 Limitations of primary data
1.4.1.3 Secondary data
1.4.1.4 Limitations of secondary data
1.4.2 Nature of data
1.4.2.1 Quantitative data
1.4.2.2 Qualitative data
1.5 REFERENCE LIST
2. LITERATURE REVIEW
2.1 INTRODUCTION TO THE FOUR LEADING NEW WORLD WINE SUPPLYING COUNTRIES
2.1.1 Australia
2.1.2 USA
2.1.3 South Africa
2.1.4 Chile
2.2 NEW WORLD WINES
2.2.1 Initiation of the New World wine boom
2.2.2 Keys to success
2.2.3 Style of the New World wines
2.3 ACADEMIC MODULE: PEST ANALYSIS
2.4 ACADEMIC MODULE: COMPETITIVE ADVANTAGE ANALYSIS BETWEEN OLD AND NEW WORLD WINE-PRODUCING COUNTRIES
2.4.1 EXISTING DOMESTIC MARKET POSITION
2.4.2 DOMESTIC MARKET GROWTH POTENTIAL
2.4.3 ECONOMIES OF SCALE / COST STRUCTURE BENEFITS
2.4.4 ADAPTABILITY TO INDUSTRY CHANGE
2.4.5 POTENTIAL TO ATTRACT FOREIGN INVESTMENT
2.4.6 SUMMARY
2.5 REFERENCE LIST
3. THE UK WINE MARKET
3.1 UK PER CAPITA WINE CONSUMPTION & UK WINE CONSUMPTION (MILLION HL)
3.2 UK IMPORTS OF STILL LIGHT WINE FROM MAJOR SUPPLIERS BY VALUE (MILLION US$) AND BY VOLUME (HL ´000) FROM 2003–2005
3.3 UK OFF-TRADE: ANNUAL TOTAL SALES VALUE IN MILLION £ AND MARKET SHARE IN % BY COUNTRY OF STILL LIGHT WINE
3.4 UK OFF- TRADE: ANNUAL TOTAL SALES VOLUME IN `000 HECTOLITRES AND MARKET SHARE IN % BY COUNTRY OF STILL LIGHT WINE
3.5 UK OFF-TRADE: BRANDED VERSUS OWN LABEL VOLUME SHARE IN %
3.6 UK OFF-TRADE: TOP 15 BRANDS ANNUAL SHARE BY VALUE AND VOLUME
3.7 UK OFF-TRADE (RETAIL): PRICING – NUMBER OF BOTTLES SOLD IN KEY PRICE RANGES AND AVERAGE PRICE PER 75CL BOTTLE BY COUNTRY
3.8 MOST FAVOURITE PLACES OF PURCHASE
3.9 SUMMARY
3.10 REFERENCE LIST
4. KEY ISSUES CONTRIBUTING TO THE NEW WORLD WINE PERFORMANCE
4.1 COMPARISON OF FRANCE AND GERMANY IN TERMS OF COUNTERMEASURES
4.1.1 Germany
4.1.1.1 Threat of the New World
4.1.1.2 Countermeasures
4.1.1.3 Comparison of German and New World wines
4.1.1.4 Conclusion
4.1.2 France
4.1.2.1 French perception of wine and labelling
4.1.2.2 Quality improvement
4.1.2.3 Marketing
4.1.2.4 Brand building and labelling
4.1.2.5 Adoption of New World techniques
4.1.3 Summary
4.2 WINE LEGISLATION IN TERMS OF WINE CLASSIFICATION, LABELLING REQUIREMENTS, OENOLOGICAL PRACTICES AND THE IMPORTANCE OF BRANDING WINE
4.2.1 Wine legislation in terms of wine classification/appellation
4.2.2 Wine legislation in terms of wine labelling
4.2.3 The power of branding
4.2.4 Wine legislation in terms of oenological practices
4.3 THE MODERN WINE CONSUMER
4.3.1 Consumer wine consumption influences
4.3.1.1 Women
4.3.1.2 Senior citizens
4.3.1.3 Personal disposable income
4.3.1.4 One-person household
4.3.1.5 In-home boom
4.3.1.6 More sophisticated consumer
4.4 THE CHANGING FACE OF WINE
4.4.1 Health benefits
4.4.2 Wine as a meal accompaniment
4.4.3 The rise of the brands and the influence of wine perception
4.4.4 Image as a snob drink is disappearing
4.5 REFERENCE LIST
5. PRIMARY RESEARCH FINDINGS
5.1 BLIND WINE TASTING
5.2 SURVEY WITH QUESTIONNAIRES
5.2.1 Analysed relationships
5.3 REFERENCE LIST
6. CONCLUSION
6.1 REVOLUTION OF THE UK WINE MARKET
6.2 THE NEW STATUS OF WINE AND THE PERSISTENT INFLUENCE ON THE CONSUMER
Objectives and Research Themes
This dissertation aims to analyze the growth of New World wines and their influence on the UK wine market. It investigates factors contributing to their competitive success, such as legislative frameworks, branding strategies, and changing consumer behaviors, while comparing these developments against the traditional strategies of Old World producers.
- Market performance analysis of New World versus Old World wine suppliers.
- Evaluation of branding, legislation, and oenological practice differences.
- Comparative analysis of German and French countermeasures against market share loss.
- Investigation into evolving UK consumer preferences, drinking habits, and attitudes toward wine.
Extract from the Book
2.2.1 Initiation of the New World wine boom
“The sheer speed at which winemaking has developed here simply takes the breath away.” Arkell about the rapid growth of New World wines viniculture (1999, p.6).
Allen et al. (1998) supported by Arkell (1999) see California as the initiator for the New World wine boom. When Robert Mondavi (a pioneer of the American viniculture) established a public tasting room and a colonial-style courtyard in his winery in 1966, he founded the cornerstone of the self-esteem for New World wines. Others followed his example and soon the Californian winemakers were proud of their wines instead of apologising for them, as reinforced at the previously mentioned blind wine tasting of Paris in 1976. They add that Australia was the second country to follow the lead of California by seizing the Californian wine style and exaggerating it with the use of more oak, more alcohol and more intensity of flavour.
Broadbent (1998) points out that the really new thing about the New World wines is precisely not that these countries are producing wine but how the wine is cultivated and pressed as well as the emergent worldwide trade, the collaboration and competition with European winemakers, and, moreover, the increasing interest of oenophiles in these wines.
Summary of Chapters
1. INTRODUCTION: Outlines the research scope, objectives, and methodology employed to examine the market impact of New World wines in Britain.
2. LITERATURE REVIEW: Analyzes the emergence of major New World wine producers and provides a theoretical framework including PEST and competitive advantage analysis.
3. THE UK WINE MARKET: Details market figures, consumption trends, and the dominant role of supermarkets and branded wines in the UK.
4. KEY ISSUES CONTRIBUTING TO THE NEW WORLD WINE PERFORMANCE: Examines strategies of France and Germany, legislative differences, and the shift in modern consumer preferences.
5. PRIMARY RESEARCH FINDINGS: Presents results from original blind wine tastings and consumer surveys regarding preferences and purchasing behavior.
6. CONCLUSION: Validates the hypothesis that New World wines have revolutionized the UK market and assesses future developments in consumer behavior.
Keywords
New World Wines, Old World, UK Wine Market, Wine Branding, Consumer Behavior, Competitive Advantage, PEST Analysis, Oenological Practices, Market Share, Supermarket Retail, Wine Consumption, Blind Wine Tasting, Wine Legislation, Globalisation, Brand Loyalty.
Frequently Asked Questions
What is the core focus of this dissertation?
The dissertation examines how New World wines have successfully penetrated the UK market, challenging traditional Old World producers through innovation, branding, and adaptability.
Which thematic areas are central to this study?
Key themes include market competition, legislative influences on winemaking, branding strategies, and the evolving profile of the modern UK wine consumer.
What is the primary research objective?
The goal is to prove or refute the hypothesis that New World wines have revolutionized the UK wine market and permanently altered consumer status and preferences.
What research methods were utilized?
The author combined secondary research with primary methods, including interviews with industry experts, a blind wine tasting, and a comprehensive consumer survey.
What subjects are covered in the main body?
The study covers the history of major New World suppliers, market statistics, a comparative analysis of European countermeasures, and an in-depth investigation into consumer drivers like health and branding.
Which keywords summarize the content?
Important terms include New World Wines, UK market, competitive advantage, branding, and consumer behavior.
How do New World winemakers differ in their legislative approach?
The research notes that New World regions generally enjoy more liberal legislation, allowing for greater experimentation in winemaking processes compared to the stricter appellation-based systems of the Old World.
What role do supermarkets play in this market shift?
Supermarkets are identified as the primary distribution channel for New World wines, utilizing aggressive discount pricing and heavy branding to secure high volumes and expand market reach.
How has the image of wine changed in the UK?
The author concludes that wine is moving away from a snobbish, elitist image toward becoming an accessible, regular consumer product, largely due to the efforts of New World producers to simplify labels and offer approachable taste profiles.
- Quote paper
- Johannes Landsperger (Author), 2007, The impact of New World wines upon the UK market, Munich, GRIN Verlag, https://www.grin.com/document/131734
