The impact of New World wines upon the UK market

Bachelor Thesis , 2007 , 106 Pages , Grade: 1,0

Business economics - Business Management, Corporate Governance

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.

Inhaltsverzeichnis (Table of Contents)

• ABSTRACT
• ACKNOWLEDGEMENTS
• TABLE OF CONTENTS
• APPENDICES
• FIGURES
• 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
• 7. BIBLIOGRAPHY
• APPENDICES

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This dissertation aims to investigate the impact of New World wines on the UK market. It examines factors that have strengthened the competitive position of New World wines compared to Old World wines, analyzes current and past market figures, and conducts primary research to confirm or question findings. The dissertation explores the blurring of differences between Old and New World wines, the adoption of each other's wine-producing and marketing methods, and the competitive advantages of New World suppliers. It also investigates legal circumstances, consumer behavior, and the changing face of wine in the UK market.

• The impact of New World wines on the UK market
• Competitive advantages of New World wines over Old World wines
• The blurring of differences between Old and New World wine production and marketing
• The changing face of wine in the UK market
• Consumer behavior and preferences in the UK wine market

Zusammenfassung der Kapitel (Chapter Summaries)

The introduction outlines the aims and objectives of the dissertation, the reasoning behind the topic choice, the hypothesis, and the research methodology. It details the data sources, including primary data from questionnaires, interviews, and a blind wine tasting, as well as secondary data. The chapter also discusses the nature of the data, including quantitative and qualitative data.

The literature review provides an introduction to the four leading New World wine-supplying countries: Australia, USA, South Africa, and Chile. It explores the initiation of the New World wine boom, the keys to its success, and the style of New World wines. The chapter also includes academic modules on PEST analysis and competitive advantage analysis between Old and New World wine-producing countries.

The chapter on the UK wine market examines UK per capita wine consumption, UK wine consumption, UK imports of still light wine from major suppliers, UK off-trade sales value and volume, branded versus own label volume share, top 15 brands, pricing, and most favorite places of purchase.

The chapter on key issues contributing to the New World wine performance compares France and Germany in terms of countermeasures to the New World threat. It analyzes wine legislation in terms of wine classification, labeling requirements, oenological practices, and the importance of branding. The chapter also explores the modern wine consumer and their consumption influences, as well as the changing face of wine, including health benefits, wine as a meal accompaniment, the rise of brands, and the changing perception of wine.

The chapter on primary research findings presents the results of the blind wine tasting and the survey with questionnaires.

Schlüsselwörter (Keywords)

The keywords and focus themes of the text include New World wines, UK wine market, Old World wines, competitive advantage, wine legislation, consumer behavior, branding, wine perception, and the changing face of wine.

• College: Edinburgh Napier University (Business Management)
• Grade: 1,0
• Author: Johannes Landsperger (Author)
• Publication Year: 2007
• Pages: 106
• Catalog Number: V131734
• ISBN (eBook): 9783640380138
• Language: English
• Tags: World