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California wine cluster

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California wine cluster
KP
 Research and innovation center such as the university of
California (now
Department of
Friut studies) at
Davis for fighting diseases and introducing new technologies.  State run universities, like
U.C Berkeley,
UC Riverside,
Fresno State
 Distributors like
(SWS) because of its consolidation  Supermarkets like Walmart because of its consolidation KA

1.
2.






VP

Grape growing winemaking luxury, ultra premium, super premium, popular premium jug wines

“To lead the world wine market in terms of production, consumption, and exports”

KR







CR
 In off-premises level, wholesales and retailers plays active role in building wine brands,
 In on-premises level,
Wine-by-the-glass and winery sponsored dinners was way to reach costumers.  Wine Tour and
Tasting leads to increase in consumer education.  Ads on Wine
Spectator magazine,
60 minutes TV program by French
Paradox broadcast
CH
Off premises
• Winery (own wholesaling companies)
• Exclusive wholesaler
(5 states were
“control” states in which the state functioned as e.w)
• Retailer of table wine
On premise distribution through hotels, restaurants, bars, other vendors

Land from 8*12 to 4*4 spacing (Less available space for new vineyards), its price from
$28,000 to $100,000 per acre for wine planters
Equipment (by hand and mechanical methods)
Labor (Migrant laborers)

$Cost structure
FC



Land
Planting and development of land • PPE deprecation expenses CS

11% of adult aged 21 to 59 (on daily basis) accounts for 88 % of total consumption in the US.

$Revenue

VFC

VC






Bottling and Packaging
Sale and Marketing
Administration cost
Land
Wage ($6.80 to $8.40 p/h )

FR

VFR


Export promotion assistance program by
US Congress for trade shows and advertising in target markets

VR



Revenues from

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