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1. What are social factors affecting the demand for wine?
- Correct Answer: - changes in consumption habits
- changes in consumer preferences
- changes in reputation (region, producer, or individual wine)
- changes in spending patterns
2. What are production factors affecting the demand for wine?
- Correct Answer: - area under vine
- human factors (adoption of mondern techniques)
- natural factors (weather, climate change)
3. What factors have resulted in the loss of vineyard land, particularly in the EU?
- Correct Answer: - vine pull schemes
- EU restrictions on planting new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
4. Describe the vine pull scheme in Europe in the mid-1980's.
- Correct Answer: EU wine production was much greater than demand,
creating a surplus that came to be known as the 'wine lake'. National governments
,and then the EU itself paid growers to pull up poor quality vines, especially in
southern France, Italy and Spain, with the result that, for example, in the 1980s,
several hundred thousand hectares of European vines were pulled up.
5. What challenges exist when there is an oversupply of wine?
- Correct Answer: - prices fall
- unsold wine in tanks/barrels/bottles (producers are forced to sell this at very low
prices)
- search for new markets
- devaluation of brand image, can create lasting damage
-May need to distill into brandy
6. What challenges exist when there is an undersupply of wine? what is a common
factor that results in an undersupply?
- Correct Answer: - disappointed clients, strained business relationships
- financial penalties and canceled contracts from retailers
- issuance on allocation
- consumers turn to alternatives (especially in price-sensitive markets)
- common factor: bad harvest
7. Grape Growing Costs include:
- Correct Answer: - initial costs of establishing the vineyard
- ongoing costs of managing the vineyard and producing the grapes
8. What factors can increase vineyard land price?
- Correct Answer: - potential to produce hi Q fruit
- name of appellation
- scarcity of land (rarely coming on the market, or GI-limited)
,9. What are the costs of establishing a vineyard?
- Correct Answer: - land purchase price
- surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
- irrigation system
- weather protection measures
- animal pest protection measures
- machinery and equipment
10. What are the costs of vineyard management?
- Correct Answer: - labor (varies due to topography, organic/BD farming)
- machinery and equipment running costs (e.g. fuel and maintenance)
- vineyard materials (e.g. replacement vines and trellising)
- vineyard treatments
- water
- electricity
11. What are the costs of winemaking?
- Correct Answer: - labour (full-time & casual labor around harvest time)
- machinery and equipment running costs (e.g. fuel, electricity and maintenance)
- winery materials (e.g. sugar for enrichment, de-acidification agents, acid for
acidification, cultured yeasts, carbon dioxide or other inert gasses, fining and
filtering agents)
- bought-in fruit (*if a winery has to meet a low price-point, it could blend cheaper
varieties with a more expensive variety to reduce the production costs)
, - water
- electricity
12. What are the costs of maturation?
- Correct Answer: - storage space
- oak (new or used barrels, oak chips, staves)
- labor
- loss of cash flow
13. What are the costs of packaging?
- Correct Answer: - materials (e.g. bottles, closures, labels, cartons, and
pallets)
- bottling line
- labor
- design
14. What are the 4 ways of transporting wine? What are the benefits and
detriments of each?
- Correct Answer: - air: fast; expensive
- road: efficient for short journies, good for dealing with small bodies of water;
expensive for long journies
- rail: good for containers; bad for individual pallets
- sea: cheap and efficient for long distances; slow, need containers
15. What is the key advantage of bulk transport? What is the key disadvantage?
- Correct Answer: - lighter and less bulky than bottles
- only suitable for moving large volumes of the same wine