Increasing Globalization in industry: The idea of new world wine producer and old world wine producer has come from the demand and supply. Earlier Western Europe was the chief consumer of wine. Nowadays ‘THE NEW WORLD PRODUCER’ has shown a big hike in production and consumption of wine. France, Italy, Portugal, Spain were considered as old wine producers. Argentina, U.S, Chile, South Africa, Australia and New Zealand are known as new world wine producers.
Some characteristics of wine industry:
• Transfer of important equipments, machinery and technical knowledge to the area of production.
• Mergers and acquisitions leads to structural changes in wine market.
• Reunion of wine industry.
Beginning of 21st century witnessed rapid changes in international wine market. Over this time wine industry has taken a new level in the market. The free entry and exit of players in wine market leads to high competition in market. Hence companies face emerging need to rethink on their production, variety, innovation, pricing in order to compete with the competitors. Globalization holds a great importance in wine trade. Due to globalization only now countries are interlinked with each other which offers a huge and open market to all consumers. People now have more choices and comparsion in the market. It has also proved beneficiary in terms of reduction in trade obstacles, cost effectiveness, promoting countries towards international marketing. Globalization only made it possible to trade around the world as it was never before. Thanks to globalization which created a new approach to business and making business more export oriented.
Growth rate changes in long term industry: The study attempts to show rapid growth in export of wine in last a few years. There is 5.3 percent rise in global wine trade. Earlier, countries who produce wine consume most of the wine within their countries only but now they have started to export internationally. Now around one-quarter of wine are exported worldwide. Chief exporter of wine is U.S, New Zealand and Australia. Recent study has shown many changes in global wine industry like climatic conditions, demand and supply, price changes, cultivation of grapes and number of consumers.
Changes in buyers preferences: Globalization has not only brought changes in wine market and producers but also in type n breed of grape, there taste and aroma and wine flavors. Now buyers pay much attention on varieties of grape before buying it. The most preferred variety are merlot, cabernet and chardonny. These varieties have dynamism in production. According to Labys and Cohen (2004), these three varieties of wine have a very specific flavour and aroma which is very popular in consumers. After the success of these varieties producers started to plant other varieties like riesling, blanc, pinot, shiraz and many more. A survey has shown 91 percent of consumer buy wine of their own country and only 9 percent of consumer stick to a particular...