WSET DIPLOMA D2 EXAM
COMPREHENSIVE TEST PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
⩥ List major importation costs. Answer: - Duty
- Labeling laws compliance: e.g., ABV rounded to nearest whole or half
unit in EU, 1.5% variance in US; health warning in US
- Distributor fee
⩥ Explain "margin" in the context of importation distributor. Answer: -
The fee charged by distributor
- Quoted as percentage, calculated as the profit of the distributor divided
by distributor revenue
⩥ Normal range of margin for distributor. Answer: 5-25%
⩥ List major sales costs. Answer: - Property
- Labor
- Equipment and material
- Storage
- Delivery
- Margin at the point of sale
,⩥ List major property costs involved in retail sales. Answer: - Rent or
premise purchase
- Decorating and furnishing
- Running costs, e.g., maintenance, security, water, energy, insurance
- Optional in certain countries: property taxes and waste disposal
⩥ What is the normal range of margin for retailer?. Answer: - Specialist:
30-50%
- Bars and restaurants: up to 66.6%
- Fixed corkage fee
⩥ List major marketing costs. Answer: - Labor: in-house or external
marketing company
- Design and production of bottles and labels
- Marketing campaign: advertising and promotional materials, sample
bottles to tasting, retail promotions
⩥ List major types of legislation that can impact the cost of wine.
Answer: - Taxes
- Duties
- Trade barriers
- Subsides
,- Min pricing
- Labeling laws
⩥ What is a bonded warehouse. Answer: Importer can store the wine in
a bonded warehouse and only release it when someone wants to buy it
(who will then cover the cost of taking the wine out of bonds, including
duty payable
⩥ List ways to mitigate the effect of exchange rate fluctuation. Answer: -
Options
- Fixing price in the currency of importer at the date of ordering
- Buying currency to cover specific orders
- Enter a contract to fix the exchange rate
- Trading in USD/EUR
- Opening foreign currency account in local bank
- Opening account in overseas bank
⩥ Explain option. Answer: - Retailer take an option/reserve on a certain
amount of wine at an agreed price
- Producer must set aside the agreed volume of wine, and at an agreed
time, the retailer may decide whether or not to take it
- Producer may want to charge higher price
- Large retailers have negotiating power
, ⩥ When would opening a foreign currency account in a local bank make
sense?. Answer: - When all trades are in one currency such as EUR
- Not suitable where goods are bought in one currency and sold in
another
⩥ List major types of business engaged in the production of wine.
Answer: - Estates
- Growers
- Grower-producers
- Merchants
- Co-operatives
- Custom crush facilities
- Virtual winemakers/wineries
- Conglomerates
⩥ What is an estate producer?. Answer: It is an winery that produces
wines exclusively from their own vineyards (wholly owned or leased)
⩥ Cite advantages of estate producers. Answer: - Retain control over
entire process - choose final style of wine
- Total profit
- Marketing benefits: 'estate-bottled' authenticity, tell story
COMPREHENSIVE TEST PAPER 2026
QUESTIONS WITH ANSWERS GRADED A+
⩥ List major importation costs. Answer: - Duty
- Labeling laws compliance: e.g., ABV rounded to nearest whole or half
unit in EU, 1.5% variance in US; health warning in US
- Distributor fee
⩥ Explain "margin" in the context of importation distributor. Answer: -
The fee charged by distributor
- Quoted as percentage, calculated as the profit of the distributor divided
by distributor revenue
⩥ Normal range of margin for distributor. Answer: 5-25%
⩥ List major sales costs. Answer: - Property
- Labor
- Equipment and material
- Storage
- Delivery
- Margin at the point of sale
,⩥ List major property costs involved in retail sales. Answer: - Rent or
premise purchase
- Decorating and furnishing
- Running costs, e.g., maintenance, security, water, energy, insurance
- Optional in certain countries: property taxes and waste disposal
⩥ What is the normal range of margin for retailer?. Answer: - Specialist:
30-50%
- Bars and restaurants: up to 66.6%
- Fixed corkage fee
⩥ List major marketing costs. Answer: - Labor: in-house or external
marketing company
- Design and production of bottles and labels
- Marketing campaign: advertising and promotional materials, sample
bottles to tasting, retail promotions
⩥ List major types of legislation that can impact the cost of wine.
Answer: - Taxes
- Duties
- Trade barriers
- Subsides
,- Min pricing
- Labeling laws
⩥ What is a bonded warehouse. Answer: Importer can store the wine in
a bonded warehouse and only release it when someone wants to buy it
(who will then cover the cost of taking the wine out of bonds, including
duty payable
⩥ List ways to mitigate the effect of exchange rate fluctuation. Answer: -
Options
- Fixing price in the currency of importer at the date of ordering
- Buying currency to cover specific orders
- Enter a contract to fix the exchange rate
- Trading in USD/EUR
- Opening foreign currency account in local bank
- Opening account in overseas bank
⩥ Explain option. Answer: - Retailer take an option/reserve on a certain
amount of wine at an agreed price
- Producer must set aside the agreed volume of wine, and at an agreed
time, the retailer may decide whether or not to take it
- Producer may want to charge higher price
- Large retailers have negotiating power
, ⩥ When would opening a foreign currency account in a local bank make
sense?. Answer: - When all trades are in one currency such as EUR
- Not suitable where goods are bought in one currency and sold in
another
⩥ List major types of business engaged in the production of wine.
Answer: - Estates
- Growers
- Grower-producers
- Merchants
- Co-operatives
- Custom crush facilities
- Virtual winemakers/wineries
- Conglomerates
⩥ What is an estate producer?. Answer: It is an winery that produces
wines exclusively from their own vineyards (wholly owned or leased)
⩥ Cite advantages of estate producers. Answer: - Retain control over
entire process - choose final style of wine
- Total profit
- Marketing benefits: 'estate-bottled' authenticity, tell story
