WSET LEVEL 4 D2 EXAM ||VERIFIED EXAM!!|| MOST
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What is the Anti-Extravagance Campaign? - Answer-law in
China prohibiting the gifting to or consumption by
government officials of luxury wines and spirits
What are production factors affecting the demand for
wine? - Answer-- area under vine
- human factors (adoption of mondern techniques)
- natural factors (weather, climate change)
What factors have resulted in the loss of vineyard land,
particularly in the EU? - Answer-- vine pull schemes
- EU restrictions on planting new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
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Describe the vine pull scheme in Europe in the mid-
1980's. - Answer-EU wine production was much greater
than 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, several hundred thousand
hectares of European vines were pulled up.
What challenges exist when there is an oversupply of
wine? - Answer-- prices fall
- unsold wine in tanks/barrels/bottles (producers are
forced to sell this at very low prices)
- search for new markets
- devaluation of brand image, can create lasting damage
-May need to distill into brandy
What challenges exist when there is an undersupply of
wine? what is a common factor that results in an
undersupply? - Answer-- disappointed clients, strained
business relationships
- financial penalties and canceled contracts from retailers
- issuance on allocation
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- consumers turn to alternatives (especially in price-
sensitive markets)
- common factor: bad harvest
Grape Growing Costs include: - Answer-- initial costs of
establishing the vineyard
- ongoing costs of managing the vineyard and producing
the grapes
What are social factors affecting the demand for wine? -
Answer-- changes in consumption habits
- changes in consumer preferences
- changes in reputation (region, producer, or individual
wine)
- changes in spending patterns
What country has the largest wine consumption? -
Answer-US
What are possible reasons wine consumption would fall? -
Answer-- younger people drinking less wine
- health concerns
- changes in lifestyle