The Canadian Wine industry is a relatively small player on the worldwide market with a wine export value of approximately $54 million in 2013, making up just 0.15% of global wine exports. This is largely due to Canadian grape grower’s inability to compete with producers in countries with more favourable weather conditions for growing grapes. For example, in 2007 Canada used approximately 8,000 hectares of land to grow grapes compared to the EU’s 3.5 million hectares, 2.5 million of which were in France alone. Despite Canada’s land size, there are only a few regions where the climate allows for a long enough growing season for grapes to mature on the vine.
Wine production in Canada is concentrated in Ontario and British Columbia, as well as
…show more content…
Economies of scale are critical for low-priced wine production, but not essential for premium-priced wine production,making the premium wine product segmentation a well-suited niche for Canada’s wine industry. Ice Wine is produced from grapes that were left to freeze on the vine so Canada’s climate is an ideal environment for wine producers to capture the Ice Wine market. Given Canada’s susceptibility to bad weather, favourable conditions for Ice Wine grape production, and high cost/low production winery economic model, it is no wonder that the wine industry in Canada has grown steadily around the Ice Wine high-end product segmentation international niche market. Canadian wine exports totaled 42 million litres in 2013, valued at $54 million; of which 2.2 million litres was premium wine, valued at $36.3 million. Despite an apparent steady growth, the industry is heavily influenced by weather and Canada’s growing season so revenue decline can be seen in years where vineyards in Canada produced bad harvests due to weather restrictions. For example, in 2003-2005 Canada experienced severe cold weather conditions, particularly in Ontario, and grape availability was drastically reduced as a result. This had a significant impact on the wine industry in Canada as a whole as well as the export
Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.
The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.
The supply of grapes, apples, bulk wine and grape juice concentrate for Vincor’s wine products comes from a combination of sources. Privately owned vineyards (Canada, U.S., Australia) provide somewhere between 35% to 57% of the raw products needed to
The purpose of the report is how good BlackBerry run in the radio and television broadcasting and wireless communications equipment manufacturing industry in Canada in terms of revenues, market share, and the corporation’s Strength and weakness. Also, the report will analyze the BlackBerry’s three corresponding competitors’ market share in the hope of predicting the firm’s future performance.
The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.
In 2013, France’s Vinexpo predicted that Canada’s wine consumption, in the span of 10 years, will grow six times faster than the world average, surpassed only by China and the United States.
Scientists predict that climate change may shift production of the best wines from places like Napa Valley to vineyards in the Pacific Northwest and New England, locations that have traditionally been considered too cool for wine production (3). This would not only be devastating economically to the wine industry in Napa but also to the billion dollar tourist industry associated with grape growing and wine production in the Napa Valley.
This industry has seen very limited growth since 1986. Based on Exhibit 4 (C-271, the total wine consumption in the US) and Exhibit 5 (C-271, per capita wine consumption in the US) the wine industry is in the maturity stage. It could
Making wine is nothing else but a touch of passion, love and few drops of magic. From the first view, wine industry seems very artistic and secret at the same time. There is no doubt that hearing that Robert Mondavi Corporation is going to layoff 4% of its workforce ring the bell to the investors, at the same type the stock price dropping down dramatically makes an impression that the company is going through difficult period as the senior management is upon completing the reconfiguring future strategy. The big decision is whether to get back to original vision, and focus on the domestic market, which bring a 90% of revenues or continue diversification and keep on pursuing the vision of
The scope of the innovation expertise that New World wine producers have is value-chain wide in scope, and in-depth enough to completely re-order manufacturing, fermentation, distribution channel, pricing, marketing and customer service (Cholette, 2009). New World wine producers
Prohibition was a very interesting time in the history of Canada it was a very good time period for the country and also a bad time for the country. Prohibition all began to rise around the 1840's and the 1850's by temperance groups in Canada, this set the bases for prohibition because some people were starting to see the affect that alcohol had on a society. Prohibition actually only lasted for two years ( 1917 to 1920 ) through out the entire country, except Quebec they adopted the law in 1919 but they could still sell light beer, cider and wine. At this time the laws that were in place were that alcohol was prohibited in every place in Canada except Quebec.
California is home to the largest wine industry within the U.S., the California Wine Industry annually accounts for 93% of wine production throughout the entire U.S. California is the fourth largest wine producer in the world (Fruit of the Vine 1). The reason California is able to produce an abundance of wine is due to the fact that California does not have severely cold winters, however California does have hot and dry summers, which provide the various regions within the California Wine Industry ideal growing conditions (An Introduction to California Wine 8-9). These ideal weather conditions have allowed the California Wine Industry to yield a prodigious amount of revenue. The wine industry has also supplied California with an abundance of jobs; there are 150 possible jobs within the California Wine Industry. The wine industry has assisted California boast a large state economic impact. Although the state economic impact is large, it is still continuously growing due to the drought that has sparked new technological advancements for the California Wine Industry. The California Wine Industry has financially supported the state immensely, which has helped California still remain the “Golden Land of Opportunity.”
This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.
A Votre Santé (AVS) is a family owned vineyard and winery in the Napa Valley California Area. The small independent winery, owned by Kay Aproveche, was started as an extension of the family’s grape growing business. A Votre Santé processed generic white grapes and chardonnay grapes into three types of wine: regular Chardonnay ($16), Chardonnay-Estate ($22), and a Blanc de Blanc ($11). In 2010, and 11.1% profit margin was earned on sales of $848,000. Kay was concerned the 2010 profit margin had declined from the 14% profit margin in 2009. Contribution, decision, and product profitability analyses were performed to better help
The most important necessary inputs for the production of wine are grapes, bottles and labor. Concerning the grapes, there is an outstanding difference between the traditional wine producing countries for example in Europe (the south of France, Spain, Italy and Southeastern Europe) and big wine factories that operate as oligopolies like in the US and Australia. Due to the bond to traditions and the higher demand for quality in Europe most of the wineries here still stick to the original way of producing wine, including the growth of the grapes on the land around the winery, a so called vertical integration (which is often considered by producers where the supplier's price is too high or the offer is insufficient, in our case this trend results rather in traditional and cultural values than in financial ones). This eliminates the percentage of dependence on agricultural suppliers significantly, whereas concerning a big wine company the negotiation power of the supplier is quite high. These wine companies tend to have a low sensitivity towards the price they are charged, as grapes are a crucial component of wine production. However, in both cases the price of the grapes is always