WSET Diploma D2 Exam Ques ons and and answers
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What are social factors affec ng the demand for wine?
- changes in consump on habits
- changes in consumer preferences
- changes in reputa on (region, producer, or individual wine)
- changes in spending pa erns
What country has the largest wine consump on?
US
What are possible reasons wine consump on would fall?
- younger people drinking less wine
- health concerns
- changes in lifestyle
- reduc on in availability of cheap wine
What is a "price-sensi ve" market?
consumers are unwilling to pay more than the lowest price possible for the style of wine they
want to buy
What are economic factors affec ng the demand for wine?
- strength of the economy
- fluctua ons in currency exchange
- market changes (entry and exit of brands)
What are legisla ve and poli cal factors affec ng the demand for wine?
- laws prohibi ng sale of alcohol
- gov't policies to reduce consump on (loi evin, BAC, minimum unit pricing)
- taxa on (excise duty, categories)
- interna onal trade (rela onships, customs du es/tariffs, trade wars)
- wine laws (PDO, PGI)
What is the Loi Evin? When was it introduced?
, - introduced in 1991
- has greatly restricted the adver sing of alcoholic drinks and is considered a significant factor in
the reduc on in wine consump on in France
What is the An -Extravagance Campaign?
law in China prohibi ng the gi6ing to or consump on by government officials of luxury wines
and spirits
What are produc on factors affec ng the demand for wine?
- area under vine
- human factors (adop on of mondern techniques)
- natural factors (weather, climate change)
What factors have resulted in the loss of vineyard land, par cularly in the EU?
- vine pull schemes
- EU restric ons on plan ng new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
Describe the vine pull scheme in Europe in the mid-1980's.
EU wine produc on was much greater than demand, crea ng a surplus that came to be known
as the 'wine lake'. Na onal 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.
What challenges exist when there is an oversupply of wine?
- prices fall
- unsold wine in tanks/barrels/bo les (producers are forced to sell this at very low prices)
- search for new markets
- devalua on of brand image, can create las ng damage
-May need to dis ll into brandy
What challenges exist when there is an undersupply of wine? what is a common factor that
results in an undersupply?
- disappointed clients, strained business rela onships
- financial penal es and canceled contracts from retailers
- issuance on alloca on
Newest RATED A+ 100% VERIFIED CORRECT UPDATED
What are social factors affec ng the demand for wine?
- changes in consump on habits
- changes in consumer preferences
- changes in reputa on (region, producer, or individual wine)
- changes in spending pa erns
What country has the largest wine consump on?
US
What are possible reasons wine consump on would fall?
- younger people drinking less wine
- health concerns
- changes in lifestyle
- reduc on in availability of cheap wine
What is a "price-sensi ve" market?
consumers are unwilling to pay more than the lowest price possible for the style of wine they
want to buy
What are economic factors affec ng the demand for wine?
- strength of the economy
- fluctua ons in currency exchange
- market changes (entry and exit of brands)
What are legisla ve and poli cal factors affec ng the demand for wine?
- laws prohibi ng sale of alcohol
- gov't policies to reduce consump on (loi evin, BAC, minimum unit pricing)
- taxa on (excise duty, categories)
- interna onal trade (rela onships, customs du es/tariffs, trade wars)
- wine laws (PDO, PGI)
What is the Loi Evin? When was it introduced?
, - introduced in 1991
- has greatly restricted the adver sing of alcoholic drinks and is considered a significant factor in
the reduc on in wine consump on in France
What is the An -Extravagance Campaign?
law in China prohibi ng the gi6ing to or consump on by government officials of luxury wines
and spirits
What are produc on factors affec ng the demand for wine?
- area under vine
- human factors (adop on of mondern techniques)
- natural factors (weather, climate change)
What factors have resulted in the loss of vineyard land, par cularly in the EU?
- vine pull schemes
- EU restric ons on plan ng new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
Describe the vine pull scheme in Europe in the mid-1980's.
EU wine produc on was much greater than demand, crea ng a surplus that came to be known
as the 'wine lake'. Na onal 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.
What challenges exist when there is an oversupply of wine?
- prices fall
- unsold wine in tanks/barrels/bo les (producers are forced to sell this at very low prices)
- search for new markets
- devalua on of brand image, can create las ng damage
-May need to dis ll into brandy
What challenges exist when there is an undersupply of wine? what is a common factor that
results in an undersupply?
- disappointed clients, strained business rela onships
- financial penal es and canceled contracts from retailers
- issuance on alloca on
