WSET Diploma D2
Study online at https://quizlet.com/_c5b4bt
1. What are social factors affecting the - changes in consumption habits
demand for wine? - changes in consumer preferences
- changes in reputation (region, producer, or indi-
vidual wine)
- changes in spending patterns
2. Change in Consumption habit - increase rapidly first part of 2000
- fall 2008 global financial crisis
- last decade rise of rose and SP (3% 2002-2018)
- top 5 consumption : US, FR, IT, Ger, China
- Falling of consumption FR, IT
- Increase China (Growing middle class)
3. What country has the largest wine US
consumption?
4. What are possible reasons wine con- - younger people drinking less wine (UK youngs
sumption would fall? less times in bars but social media)
- health concerns
- changes in lifestyle (busy modern lifestyle). No Alc
at lunch
- reduction in availability of cheap wine switch to
other alc
- Changing Consumer Preference (Rose, Prosecco
in US higher , Fortified and sweet wine decrease)
- Change in Reputation
5. Change in Spending pattern - German and UK not willing to pay more than
lowest price for the style
- "Premiumisation" for USA and even UK pay more
for individual and less wine by volume
6. What is a "price-sensitive" market?
, WSET Diploma D2
Study online at https://quizlet.com/_c5b4bt
consumers are unwilling to pay more than the low-
est price possible for the style of wine they want to
buy
7. What are economic factors affecting - strength of the economy
the demand for wine? - fluctuations in currency exchange (early 21th weak
Peso)
- market changes (entry and exit of brands) Echo
Falls , Blossom Hill white Zinfandel
8. What are legislative and political fac- - laws prohibiting sale of alcohol
tors affecting the demand for wine? - gov't policies to reduce consumption (loi evin
1991, BAC, minimum unit pricing Scottish 0.5 GBP
per unit)
- taxation (excise duty, categories) Ireland more
duty on SP wine, 2008 HK no duty for wine "wine
trade hub of East Asia"
- international trade (relationships, customs du-
ties/tariffs, trade wars) EU have trade agreement
with SA and Chile NOT Australia, Early 2010 Argenti-
na trade restrictions for wine import also equip-
ment and land ownership
- wine laws (PDO, PGI)
9. What is the Loi Evin? When was it intro- - introduced in 1991
duced? - has greatly restricted the advertising of alcoholic
drinks and is considered a significant factor in the
reduction in wine consumption in France
10. What is the Anti-Extravagance Cam- law in China prohibiting the gifting to or consump-
paign? tion by government officials of luxury wines and
spirits
, WSET Diploma D2
Study online at https://quizlet.com/_c5b4bt
"Lavish Gifting" 2012
11. What are production factors affecting - area under vine (90% = vine for wine, China 2nd
the demand for wine? largest but 7-10 producer)
- human factors (adoption of mondern techniques)
relaxation of Irrigation, higher density planting
- natural factors (weather, climate change) 2017
frost, hail and high heat 14% fall compare 2016,
lower rainfall in SA and Cali , 95% in 2050 Chile
short of Irrigation
- Legislation (GI limit production in EU , AVA SA
wo no strict rules) PDO = less risk of downward
price pressure (SB NZ case) : Comite Champagne,
Sherry Consejo limit amount of wine) BTW 1970 Fr
introduced Vin de pays = more freedom no rule of
viticulture and vini Southern France is happy
12. What factors have resulted in the loss - vine pull schemes
of vineyard land, particularly in the - EU restrictions on planting new vineyards 1% of
EU? already planted (Fr, It rise again)
- conversion of vineyard land to other uses (Elgin to
Apple, US to Almonds, Silicon valley)
- abandonment of rural areas
13. Describe the vine pull scheme in Eu- 1980 EU wine production was much greater than
rope in the mid-1980's. 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, sev-
eral hundred thousand hectares of European vines
were pulled up.
Study online at https://quizlet.com/_c5b4bt
1. What are social factors affecting the - changes in consumption habits
demand for wine? - changes in consumer preferences
- changes in reputation (region, producer, or indi-
vidual wine)
- changes in spending patterns
2. Change in Consumption habit - increase rapidly first part of 2000
- fall 2008 global financial crisis
- last decade rise of rose and SP (3% 2002-2018)
- top 5 consumption : US, FR, IT, Ger, China
- Falling of consumption FR, IT
- Increase China (Growing middle class)
3. What country has the largest wine US
consumption?
4. What are possible reasons wine con- - younger people drinking less wine (UK youngs
sumption would fall? less times in bars but social media)
- health concerns
- changes in lifestyle (busy modern lifestyle). No Alc
at lunch
- reduction in availability of cheap wine switch to
other alc
- Changing Consumer Preference (Rose, Prosecco
in US higher , Fortified and sweet wine decrease)
- Change in Reputation
5. Change in Spending pattern - German and UK not willing to pay more than
lowest price for the style
- "Premiumisation" for USA and even UK pay more
for individual and less wine by volume
6. What is a "price-sensitive" market?
, WSET Diploma D2
Study online at https://quizlet.com/_c5b4bt
consumers are unwilling to pay more than the low-
est price possible for the style of wine they want to
buy
7. What are economic factors affecting - strength of the economy
the demand for wine? - fluctuations in currency exchange (early 21th weak
Peso)
- market changes (entry and exit of brands) Echo
Falls , Blossom Hill white Zinfandel
8. What are legislative and political fac- - laws prohibiting sale of alcohol
tors affecting the demand for wine? - gov't policies to reduce consumption (loi evin
1991, BAC, minimum unit pricing Scottish 0.5 GBP
per unit)
- taxation (excise duty, categories) Ireland more
duty on SP wine, 2008 HK no duty for wine "wine
trade hub of East Asia"
- international trade (relationships, customs du-
ties/tariffs, trade wars) EU have trade agreement
with SA and Chile NOT Australia, Early 2010 Argenti-
na trade restrictions for wine import also equip-
ment and land ownership
- wine laws (PDO, PGI)
9. What is the Loi Evin? When was it intro- - introduced in 1991
duced? - has greatly restricted the advertising of alcoholic
drinks and is considered a significant factor in the
reduction in wine consumption in France
10. What is the Anti-Extravagance Cam- law in China prohibiting the gifting to or consump-
paign? tion by government officials of luxury wines and
spirits
, WSET Diploma D2
Study online at https://quizlet.com/_c5b4bt
"Lavish Gifting" 2012
11. What are production factors affecting - area under vine (90% = vine for wine, China 2nd
the demand for wine? largest but 7-10 producer)
- human factors (adoption of mondern techniques)
relaxation of Irrigation, higher density planting
- natural factors (weather, climate change) 2017
frost, hail and high heat 14% fall compare 2016,
lower rainfall in SA and Cali , 95% in 2050 Chile
short of Irrigation
- Legislation (GI limit production in EU , AVA SA
wo no strict rules) PDO = less risk of downward
price pressure (SB NZ case) : Comite Champagne,
Sherry Consejo limit amount of wine) BTW 1970 Fr
introduced Vin de pays = more freedom no rule of
viticulture and vini Southern France is happy
12. What factors have resulted in the loss - vine pull schemes
of vineyard land, particularly in the - EU restrictions on planting new vineyards 1% of
EU? already planted (Fr, It rise again)
- conversion of vineyard land to other uses (Elgin to
Apple, US to Almonds, Silicon valley)
- abandonment of rural areas
13. Describe the vine pull scheme in Eu- 1980 EU wine production was much greater than
rope in the mid-1980's. 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, sev-
eral hundred thousand hectares of European vines
were pulled up.
