WINE INDUSTRY LEADERS ( COMPARISON)
2000
Company Country Wines sales in Market Share
2000 (%)
E & J Gallo Winery U.S. $ 1.5 bil 26%
Foster’s Group Australia $ 818 mil 14.2%
Seagram Canada $800 mil 13.88%
Constellation Brands U.S. $712 mil 12.36%
South Corp Australia $662 mil 11.49%
Castle Freres France $625 mil 10.85%
Diageo Britain $ 590 mil 10.24%
Henkell & Sonlein Germany $ 528 mil 9.17%
Robert Mondavi U.S. $ 506 mil 8.78%
WINE INDUSTRY LEADERS ( COMPARISON)
NOVEMBER 2018
Company Country Market Share as
on
November2018
(%)
E & J Gallo Winery U.S. 3%
The Wine Group U.S. 1.5%
Treasury Wine Estate Australia 1.2%
Constellation Brands U.S. 7%
Vina Concha Y toro Chile 1%
Castle Freres France 1%
ACCOLADE WINES Australia 0.97%
Grupo Penaflor France 1%
Feco vita Co-op Argentina 1%
Key success Factors in the Global wine
Industry
Five key success factors of global wine industry:
1. A strong domestic market
2. Growth potential
3. Economies of scale advantage
4. Industry adaptability to change &
5. Potential to attract foreign investment.
Key success Factors in the Global wine Industry
(Contd.)
1. Strong domestic market:
purchasing and consumption of domestic wines.
2. Wine market expected to reach $450.59 bn by
2024, registering a CAGR of 5.8%, during (2019 -
2024).
3. Countries with larger firms have the advantages of
economic scale & scope to promote their wines.
Key success Factors in the Global wine Industry
(Contd.)
3. Industry adaptability to change;
cost saving production methods & new marketing
techniques.
4. Finally, wine consumption increased 8% in 2000 to
2018 encouraged by new consumer countries.
Strategy comparison; French wine makers Vs
Americans, Australian & Chilean
Production:
Other producers experiment with grape growing and winemaking technology.
But, French producers did not use innovation.
Cost of Production was cheap in other countries,
while in French it was expensive.
Technology:
Other countries experimented with various technologies (such as reverse osmosis)
But French believed RO technology is “removing the poetry of wine”.
Other countries developed process
like fermentation, Adding oak chips.
storing in huge, automatic SS tanks.
Strategy comparison; French wine makers Vs
Americans, Australian & Chilean
Distribution:
The Americans, Australians controlled the full value
chain.
But French only sold the wine to merchant trader, so they
didn’t control the full value chain.
Other countries, maintained strong QC.
But French QC was not up to the mark
Other countries had suitable and less expensive lands.
But French also failed to utilize land.
The Decline of the French Wine Industry
DISCOURAGE INNOVATION
TOO MUCH REGULATION
QUANTITY OVER QUALITY
TOO MANY PLAYERS
TOO CONFUSING
The Decline of the French Wine Industry
POOR MARKETING
LACK OF COMPETITIVE ANALYSIS
LACK OF PRICE VARIATION
DECREASING DRINKING HABIT
Fight Back-
French Wine Industry
Competitive Analysis
Customer Needs
Openness
Employee Satisfaction
Drinking Habit
Taste
Labeling
Conclusion
More dynamic and Customer oriented.
Regulation
Quantity Vs Quality
Foresightness, Poor Marketing
Gap – Top Vs Mid
