Ch 10

Question 1

Describe an estate producer

Answer 1

makes wine from grapes grown

• typically small scale
• greatest control in production
• fewer blending options
• domaine

Question 2

describe merchant producer

Answer 2

buys grapes juice, or wine either from either growers or from co-operatives

• contracts w/ suppliers and have greater control over source material
• can reject if not to standard
• common in EU - negociant

Question 3

describe a co-op producer

Answer 3

business owned by members

• growers deliver grapes to the winery they own
• growers has guaranteed buyer
• wine maker challenged not always in control of quality grapes supplied

Question 4

name 3 types of producers

Answer 4

1) co- opperatives
2) merchants
3) estates

Question 5

Market forces

Answer 5

determined by destination market’s willingness to pay

Question 6

retailers

Answer 6

• sold in shops or restaurants
• restaurants expect to generate more profit because of the
  1) occasion
  2) environment
  3) level of service

Question 7

taxes

Answer 7

___ are seen as essentially in control of consumption and or increasing the retail prices

• revenue for gov from alcohol industry
• can vary significantly from country to country

Question 8

transport distributers and sales

Answer 8

• producers have to rely on other business
• choose a partner that offers value and access to reliable sales
• majority of producers seek to sell wine outside winery / either domestically or internationally

Question 9

packaging

Answer 9

includes: 
bottle - shaped and heavy cost more
capsules
cartons
-cheaper to export wine in bulk and bottle it in the market where it is to be sold

Question 10

what are production costs of winemaking

Answer 10

• equipment and maintaining the winery
• eg. bottling can be shared
• time before released for sale and storage facilities
• stock can not generate profit right away

Question 11

what are production costs for growing grapes?

Answer 11

• land
• preparing soil
• buying vines
• trellis
• labor is the largest
• price of grapes

Question 12

what influences the cost of labor?

Answer 12

• steep slope lands when picking grapes increases cost

- may be mitigated by use of seasonal workers and mechanization

Question 13

production costs

Answer 13

___ is the result of grape growing costs and wine making costs