Global Wine Wars
Global Wine Wars 2009: New World versus Old World
Executive Summary
The concept of wine-making was originally an art dominated by several European countries, mainly amongst the noble class, competing against one another for the highest quality wines. Traditionally set in their ways, from their methods of planting, to harvesting, to marketing channels and their consumers, the “Old World” wine-makers were unprepared for what was ahead of them as the “New World” growers joined in the struggle to appeal to the tastes of their consumers. As the New World began gaining ground, a rivalry arose between the New and Old World - the Old World set on its traditional ways which had been in practice for centuries, while the New World focused around maximization of crops and harvesting, as well as marketing to the changing consumer preferences - leaving the Old World in awe as the New World took over in sales and imports. With a shifting of palates and an economic recession which hit not only the consumer’s wallets, but also the grower’s vineyards, a continuous battle for leader in U.S. imports emerged as the preference for premium wines increased, leaving the U.S. out to dry with their high prices due to inherent domestic costs.
Meanwhile, Australia and France were able to tap into the premium and super premium markets, respectively. Since Australia had already taken charge of U.S. imports in the middle segment with their Yellow Tail brand, their entrance into the premium market was soon to come. Accordingly, France used its opportunity to gain market share of the super-premium market, as they were able to beat out all other countries in terms of import value.
Through this stiff competition between countries and their struggle for market share, we see plans such as Australia’s “Strategy 2025” far exceed expectations, many New World growers, including the U.S. forced to shift targets, and uprisings in the EU, protesting the government changes for wine-making.
Executive Summary
The concept of wine-making was originally an art dominated by several European countries, mainly amongst the noble class, competing against one another for the highest quality wines. Traditionally set in their ways, from their methods of planting, to harvesting, to marketing channels and their consumers, the “Old World” wine-makers were unprepared for what was ahead of them as the “New World” growers joined in the struggle to appeal to the tastes of their consumers. As the New World began gaining ground, a rivalry arose between the New and Old World - the Old World set on its traditional ways which had been in practice for centuries, while the New World focused around maximization of crops and harvesting, as well as marketing to the changing consumer preferences - leaving the Old World in awe as the New World took over in sales and imports. With a shifting of palates and an economic recession which hit not only the consumer’s wallets, but also the grower’s vineyards, a continuous battle for leader in U.S. imports emerged as the preference for premium wines increased, leaving the U.S. out to dry with their high prices due to inherent domestic costs.
Meanwhile, Australia and France were able to tap into the premium and super premium markets, respectively. Since Australia had already taken charge of U.S. imports in the middle segment with their Yellow Tail brand, their entrance into the premium market was soon to come. Accordingly, France used its opportunity to gain market share of the super-premium market, as they were able to beat out all other countries in terms of import value.
Through this stiff competition between countries and their struggle for market share, we see plans such as Australia’s “Strategy 2025” far exceed expectations, many New World growers, including the U.S. forced to shift targets, and uprisings in the EU, protesting the government changes for wine-making.