WSET Diploma D2 Exam COMPLETE
QUESTIONS AND ANSWERS | ALREADY
PASSED | 2025 LATEST!!
What are social factors affecting the demand for wine?
- changes in consumption habits
- changes in consumer preferences
- changes in reputation (region, producer, or individual wine)
- changes in spending patterns
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)
What country has the largest wine consumption?
US
What are possible reasons wine consumption would fall?
- younger people drinking less wine (UK youngs 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
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
What is a "price-sensitive" 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 affecting the demand for wine?
- strength of the economy
- fluctuations in currency exchange (early 21th weak Peso)
- market changes (entry and exit of brands) Echo Falls , Blossom Hill white Zinfandel
What are legislative and political factors affecting the demand for wine?
- laws prohibiting sale of alcohol
- 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 duties/tariffs, trade wars) EU have trade
agreement with SA and Chile NOT Australia, Early 2010 Argentina trade restrictions for
, wine import also equipment and land ownership
- wine laws (PDO, PGI)
What is the Loi Evin? When was it introduced?
- introduced in 1991
- has greatly restricted the advertising of alcoholic drinks and is considered a significant
factor in the reduction in wine consumption in France
What is the Anti-Extravagance Campaign?
law in China prohibiting the gifting to or consumption by government officials of luxury
wines and spirits
"Lavish Gifting" 2012
What are production factors affecting the demand for wine?
- area under vine (90% = vine for wine, China 2nd 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
What factors have resulted in the loss of vineyard land, particularly in the EU?
QUESTIONS AND ANSWERS | ALREADY
PASSED | 2025 LATEST!!
What are social factors affecting the demand for wine?
- changes in consumption habits
- changes in consumer preferences
- changes in reputation (region, producer, or individual wine)
- changes in spending patterns
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)
What country has the largest wine consumption?
US
What are possible reasons wine consumption would fall?
- younger people drinking less wine (UK youngs 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
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
What is a "price-sensitive" 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 affecting the demand for wine?
- strength of the economy
- fluctuations in currency exchange (early 21th weak Peso)
- market changes (entry and exit of brands) Echo Falls , Blossom Hill white Zinfandel
What are legislative and political factors affecting the demand for wine?
- laws prohibiting sale of alcohol
- 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 duties/tariffs, trade wars) EU have trade
agreement with SA and Chile NOT Australia, Early 2010 Argentina trade restrictions for
, wine import also equipment and land ownership
- wine laws (PDO, PGI)
What is the Loi Evin? When was it introduced?
- introduced in 1991
- has greatly restricted the advertising of alcoholic drinks and is considered a significant
factor in the reduction in wine consumption in France
What is the Anti-Extravagance Campaign?
law in China prohibiting the gifting to or consumption by government officials of luxury
wines and spirits
"Lavish Gifting" 2012
What are production factors affecting the demand for wine?
- area under vine (90% = vine for wine, China 2nd 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
What factors have resulted in the loss of vineyard land, particularly in the EU?
