Vincor and the new World of wine
Case
possible acquisition of Goundrey Wines, Australia as part of the strategic internationalization plan developed in 2000 felt they had to look beyond region to be a major competitor biggest wine company in Canada, 4th largest in North America first time they try to be international, first experience
Global Wine Industry new world: U.S., Australia, Chile, Argentina old world: France, Italy, Spain
Australia leader of new world wine exporting
Top 10 wine exporters accounted for 90% of total exporting
France
world leader in wine production and 2nd in exporting
Italy old and established industry like France relied on appellation to control quality like France
2nd in wine production, leader in exporting
Australia good quality wine, costs low since the 1860’s industry was born, mature
6th for production, 4th in exporting (5.5% market share in exporting)
Chile developed 1979 (new)
10th largest producer, has 4.5% market share in exporting (ranked 5th)
Argentina low quality wine, but long history
5th highest producer but not in top 10 for exporting cannot export (ship) brands that could compete in the higher price classes (more then $100 per bottle)
All other countries could compete in shipping the higher price class wine
Major World Market growing industry, rose 2.2% in 2001, estimated to rise 1.2% in 2002, and projected to expand by 120 million cases by 2010.
Most growth expected to come from major wine consuming nations, US, UK, Australia, South Africa, China, Russia (latter 2 were less developed but expected to grow)
Half the value of all imports was purchased by three biggest importers: UK, US, Germany
France and Italy, top two in the world for per capita consumption, Italy had a small market for imported wines
Import market size for France is 12.4% compared to 2.4% in Italy
UK wine market “crucible”, small domestic wine production and good relations with wine producers around the world
UK number 7 for wine
possible acquisition of Goundrey Wines, Australia as part of the strategic internationalization plan developed in 2000 felt they had to look beyond region to be a major competitor biggest wine company in Canada, 4th largest in North America first time they try to be international, first experience
Global Wine Industry new world: U.S., Australia, Chile, Argentina old world: France, Italy, Spain
Australia leader of new world wine exporting
Top 10 wine exporters accounted for 90% of total exporting
France
world leader in wine production and 2nd in exporting
Italy old and established industry like France relied on appellation to control quality like France
2nd in wine production, leader in exporting
Australia good quality wine, costs low since the 1860’s industry was born, mature
6th for production, 4th in exporting (5.5% market share in exporting)
Chile developed 1979 (new)
10th largest producer, has 4.5% market share in exporting (ranked 5th)
Argentina low quality wine, but long history
5th highest producer but not in top 10 for exporting cannot export (ship) brands that could compete in the higher price classes (more then $100 per bottle)
All other countries could compete in shipping the higher price class wine
Major World Market growing industry, rose 2.2% in 2001, estimated to rise 1.2% in 2002, and projected to expand by 120 million cases by 2010.
Most growth expected to come from major wine consuming nations, US, UK, Australia, South Africa, China, Russia (latter 2 were less developed but expected to grow)
Half the value of all imports was purchased by three biggest importers: UK, US, Germany
France and Italy, top two in the world for per capita consumption, Italy had a small market for imported wines
Import market size for France is 12.4% compared to 2.4% in Italy
UK wine market “crucible”, small domestic wine production and good relations with wine producers around the world
UK number 7 for wine