6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
Science Chemistry
WSET Level 4 D2 2025 update| comprehensive question-
and verified answers (complete solutions) Exam |GRADE
A+!!
- When supply exceeds demand: price falls, consumer have
greater choice of
Describe what happens when cheaper alternatives. Producers lower price to remain
relative supply and competitive. Fall in prices lead to increased demand in
demand change the long run
- When demand exceeds supply: price increase,
consumers willing to pay higher for some wines; others
simply switch to another wine or a different alcoholic
drink
- Social
The general factors affecting - Economic
demand for wine - Legislative
- Political
- Change in consumption habits
List major social factors - Change in consumer preferences
affecting demand for wine - Change in reputation
- Change in spending patterns
- Rapid growth in the first part of 2000
- Fall after 2008 financial crisis as many consumers
Describe how global wine
reduce spending on non-essential products
consumption habits have - Slight decline in recent years and due to remain stable to 2021
changed since 2001 - Strong growth in sparkling wine sales
… 1/52
,6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
- USA
- France
Top five countries for total
- Italy
wine consumption in 2017 - Germany
- China
- Increasing globalization of the food and drinks industry
Explain the increasing wine
- Consumers more able and willing to embrace new tastes
consumption in USA in the
- Increases and improvement in wine production in the domestic
last 20-30 yr market
- Growing middle class showing wealth and status - move away
Explain the increasing wine
from local drinks
consumption in China
- Aspire to drink imported wine
- Bilateral trade agreement with Australia, Chile etc
- Younger people drinking less wine: old fashioned; less
time in bars, more on social media
Give possible reasons - Health concerns: mostly due to government campaigns, e.g., Loi
for falling wine Evin in France
- Changes in lifestyle: less time for longer meals, less lunchtime
consumption in traditional
drinking
wine-drinking countries
- Reduced availability of cheap wine: reduce over-
production, some consumers switch to cheaper
alcoholic drinks
- Rose and Prosecco become popular
List a few major changes
- Increased demand for lower-alcohol wines
in consumer
- Medium-sweet German wines and fortified wines going out of
preferences in recent fashion
years
- Good reviews from leading publications and critics
- Online influencers and KOLs
What factors could influence
- Presence in popular culture, e.g., films television
a wine's reputation?
series, music lyrics or celebrity lifestyle news
- Peer opinions
What are price-sensitive Markets where consumers are unwilling to pay more
markets? Give examples than the lowest price possible for the style of wine they
want to buy. E.g., Germany, UK
- Competition is fierce - reduce price or simply choose not to sell
What can producers do to
- Reluctant to pass on increases in production costs to consumers
retain customers in price-
- Try to build up 'brand loyalty'
sensitive markets?
- Consumers are increasingly willing to pay more for
Explain 'premiumization' individual bottles of wine, often because they are
… 2/52
,6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
buying less wine by volume
- Happens in USA even in UK
- Strength of economy
List major economic factors
- Fluctuations in currency exchange
that influence demand for
- Changes to the market
wine
- 2008 financial crisis: champagne demand falls,
Give examples in which the
Prosecco grew; trade wine for beer, cider etc
strength of economy affect
- Chinese economy growing: emerging middle class chasing
wine demand aspirational wines
In what kind of market does Price-sensitive market
currency
fluctuation have the most
significant impact on the
demand for wine?
When a wine-exporting - Increase wine price and losing sales
country's currency gains - Keep the price and lose profit
value compared to that of
the
importing country, what
can a producer do?
When a wine-exporting - Lower price and boost sales
country's currency loses - Keep price stable and improve profits for future investment
value compared to that of
the
importing country, what
can a producer do?
… 3/52
, 6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
What is one downside of Costs more to import equipment and supplies such as
weak currency on the part barrels, corks and yeast, which may offset additional
of the producer? profits
- New companies/products enter, others disappear
How does changes to the
- Opportunities for competition
market affect demand for
- However, if supply is limited, price increase is possible
wine?
- Laws prohibiting or limiting alcohol sale
- Government policies to reduce alcohol consumption
List major legislative and
- Taxation
political factors that affect - International trade
demand for wine - Wine laws
- Monopoly
Give examples of laws that - USA three-tier system
limit alcohol sale - Min drinking age
- Limit hours in the day for alcohol sale
- France: Loi Evin in 1991, restrict alcohol advertising
Give examples of
- Scottish: min unit price: GBP(75cl bottle with 12% considered to
government policies to
have 9 units)
reduce alcohol - Blood alcohol concentration (BAC)
consumption
- Reduce consumption
What are two impacts of
taxation on wine? - Major venue generator for many governments
- Sales tax (VAT in EU)
List types of taxes applied to
- Specific excise duties on alcohol, payable at the point of
alcoholic drinks
manufacture
- Minimum pricing mechanism
List one example in which In 2008, Hong Kong abolished excise duty on wine with
reduced tax has boosted the aim of becoming wine trading hub of East Asia
wine sales
What is tax on imported Custom duties / trade tariffs
goods called?
What non-member states South Africa and Chile
have entered into trade
agreements with EU?
An extreme form of protection in which a country bans
What is embargo
imports from or exports to a particular country
Geographical Indications (GIs): Protected
Give examples of wine laws
Denominations of Origin (PDOs) and Protected
… 4/52
Science Chemistry
WSET Level 4 D2 2025 update| comprehensive question-
and verified answers (complete solutions) Exam |GRADE
A+!!
- When supply exceeds demand: price falls, consumer have
greater choice of
Describe what happens when cheaper alternatives. Producers lower price to remain
relative supply and competitive. Fall in prices lead to increased demand in
demand change the long run
- When demand exceeds supply: price increase,
consumers willing to pay higher for some wines; others
simply switch to another wine or a different alcoholic
drink
- Social
The general factors affecting - Economic
demand for wine - Legislative
- Political
- Change in consumption habits
List major social factors - Change in consumer preferences
affecting demand for wine - Change in reputation
- Change in spending patterns
- Rapid growth in the first part of 2000
- Fall after 2008 financial crisis as many consumers
Describe how global wine
reduce spending on non-essential products
consumption habits have - Slight decline in recent years and due to remain stable to 2021
changed since 2001 - Strong growth in sparkling wine sales
… 1/52
,6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
- USA
- France
Top five countries for total
- Italy
wine consumption in 2017 - Germany
- China
- Increasing globalization of the food and drinks industry
Explain the increasing wine
- Consumers more able and willing to embrace new tastes
consumption in USA in the
- Increases and improvement in wine production in the domestic
last 20-30 yr market
- Growing middle class showing wealth and status - move away
Explain the increasing wine
from local drinks
consumption in China
- Aspire to drink imported wine
- Bilateral trade agreement with Australia, Chile etc
- Younger people drinking less wine: old fashioned; less
time in bars, more on social media
Give possible reasons - Health concerns: mostly due to government campaigns, e.g., Loi
for falling wine Evin in France
- Changes in lifestyle: less time for longer meals, less lunchtime
consumption in traditional
drinking
wine-drinking countries
- Reduced availability of cheap wine: reduce over-
production, some consumers switch to cheaper
alcoholic drinks
- Rose and Prosecco become popular
List a few major changes
- Increased demand for lower-alcohol wines
in consumer
- Medium-sweet German wines and fortified wines going out of
preferences in recent fashion
years
- Good reviews from leading publications and critics
- Online influencers and KOLs
What factors could influence
- Presence in popular culture, e.g., films television
a wine's reputation?
series, music lyrics or celebrity lifestyle news
- Peer opinions
What are price-sensitive Markets where consumers are unwilling to pay more
markets? Give examples than the lowest price possible for the style of wine they
want to buy. E.g., Germany, UK
- Competition is fierce - reduce price or simply choose not to sell
What can producers do to
- Reluctant to pass on increases in production costs to consumers
retain customers in price-
- Try to build up 'brand loyalty'
sensitive markets?
- Consumers are increasingly willing to pay more for
Explain 'premiumization' individual bottles of wine, often because they are
… 2/52
,6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
buying less wine by volume
- Happens in USA even in UK
- Strength of economy
List major economic factors
- Fluctuations in currency exchange
that influence demand for
- Changes to the market
wine
- 2008 financial crisis: champagne demand falls,
Give examples in which the
Prosecco grew; trade wine for beer, cider etc
strength of economy affect
- Chinese economy growing: emerging middle class chasing
wine demand aspirational wines
In what kind of market does Price-sensitive market
currency
fluctuation have the most
significant impact on the
demand for wine?
When a wine-exporting - Increase wine price and losing sales
country's currency gains - Keep the price and lose profit
value compared to that of
the
importing country, what
can a producer do?
When a wine-exporting - Lower price and boost sales
country's currency loses - Keep price stable and improve profits for future investment
value compared to that of
the
importing country, what
can a producer do?
… 3/52
, 6/6/25, 11:53 PM WSET Level 4 D2 2025 update| comprehensive questions and verified answers (complete solutions) Exam |GRADE A+!! Flashcard…
What is one downside of Costs more to import equipment and supplies such as
weak currency on the part barrels, corks and yeast, which may offset additional
of the producer? profits
- New companies/products enter, others disappear
How does changes to the
- Opportunities for competition
market affect demand for
- However, if supply is limited, price increase is possible
wine?
- Laws prohibiting or limiting alcohol sale
- Government policies to reduce alcohol consumption
List major legislative and
- Taxation
political factors that affect - International trade
demand for wine - Wine laws
- Monopoly
Give examples of laws that - USA three-tier system
limit alcohol sale - Min drinking age
- Limit hours in the day for alcohol sale
- France: Loi Evin in 1991, restrict alcohol advertising
Give examples of
- Scottish: min unit price: GBP(75cl bottle with 12% considered to
government policies to
have 9 units)
reduce alcohol - Blood alcohol concentration (BAC)
consumption
- Reduce consumption
What are two impacts of
taxation on wine? - Major venue generator for many governments
- Sales tax (VAT in EU)
List types of taxes applied to
- Specific excise duties on alcohol, payable at the point of
alcoholic drinks
manufacture
- Minimum pricing mechanism
List one example in which In 2008, Hong Kong abolished excise duty on wine with
reduced tax has boosted the aim of becoming wine trading hub of East Asia
wine sales
What is tax on imported Custom duties / trade tariffs
goods called?
What non-member states South Africa and Chile
have entered into trade
agreements with EU?
An extreme form of protection in which a country bans
What is embargo
imports from or exports to a particular country
Geographical Indications (GIs): Protected
Give examples of wine laws
Denominations of Origin (PDOs) and Protected
… 4/52
