WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
1. Describe what happens when relative supply and demand change: - When supply
exceeds demand: price falls, consumer have greater choice of cheaper alternatives. Producers lower price to remain
competitive. Fall in prices lead to increased demand in the long run
- When demand exceeds supply: price increase, consumers willing to pay higher for some wines; others simply switch
to another wine or a different alcoholic drink
2. The general factors affecting demand for wine: - Social
- Economic
- Legislative
- Political
3. List major social factors affecting demand for wine: - Change in consumption habits
- Change in consumer preferences
- Change in reputation
- Change in spending patterns
4. Describe how global wine consumption habits have changed since 2001: - Rapid
growth in the first part of 2000
- Fall after 2008 financial crisis as many consumers reduce spending on non-essential products
- Slight decline in recent years and due to remain stable to 2021
- Strong growth in sparkling wine sales
5. Top five countries for total wine consumption in 2017: - USA
- France
- Italy
- Germany
- China
6. Explain the increasing wine consumption in USA in the last 20-30 yr: - Increasing
globalization of the food and drinks industry
- Consumers more able and willing to embrace new tastes
- Increases and improvement in wine production in the domestic market
7. Explain the increasing wine consumption in China: - Growing middle class showing wealth
and status - move away from local drinks
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
- Aspire to drink imported wine
- Bilateral trade agreement with Australia, Chile etc
8. Give possible reasons for falling wine consumption in traditional wine-drink-
ing countries: - Younger people drinking less wine: old fashioned; less time in bars, more on social media
- Health concerns: mostly due to government campaigns, e.g., Loi Evin in France
- Changes in lifestyle: less time for longer meals, less lunchtime drinking
- Reduced availability of cheap wine: reduce over-production, some consumers switch to cheaper alcoholic drinks
9. List a few major changes in consumer preferences in recent years: - Rose and
Prosecco become popular
- Increased demand for lower-alcohol wines
- Medium-sweet German wines and fortified wines going out of fashion
10. What factors could influence a wine's reputation?: - Good reviews from leading publica-
tions and critics
- Online influencers and KOLs
- Presence in popular culture, e.g., films television series, music lyrics or celebrity lifestyle news
- Peer opinions
11. What are price-sensitive markets? Give examples: Markets where consumers are unwilling
to pay more than the lowest price possible for the style of wine they want to buy. E.g., Germany, UK
12. What can producers do to retain customers in price-sensitive markets?: -
Competition is fierce - reduce price or simply choose not to sell
- Reluctant to pass on increases in production costs to consumers
- Try to build up 'brand loyalty'
13. Explain 'premiumization': - Consumers are increasingly willing to pay more for individual bottles of
wine, often because they are buying less wine by volume
- Happens in USA even in UK
14. List major economic factors that influence demand for wine: - Strength of economy
- Fluctuations in currency exchange
- Changes to the market
15. Give examples in which the strength of economy affect wine demand: - 2008
financial crisis: champagne demand falls, Prosecco grew; trade wine for beer, cider etc
- Chinese economy growing: emerging middle class chasing aspirational wines
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
16. In what kind of market does currency fluctuation have the most significant
impact on the demand for wine?: Price-sensitive market
17. When a wine-exporting country's currency gains value compared to that of
the importing country, what can a producer do?: - Increase wine price and losing sales
- Keep the price and lose profit
18. When a wine-exporting country's currency loses value compared to that of
the importing country, what can a producer do?: - Lower price and boost sales
- Keep price stable and improve profits for future investment
19. What is one downside of weak currency on the part of the producer?: Costs more
to import equipment and supplies such as barrels, corks and yeast, which may offset additional profits
20. How does changes to the market affect demand for wine?: - New companies/products
enter, others disappear
- Opportunities for competition
- However, if supply is limited, price increase is possible
21. List major legislative and political factors that affect demand for wine: - Laws
prohibiting or limiting alcohol sale
- Government policies to reduce alcohol consumption
- Taxation
- International trade
- Wine laws
22. Give examples of laws that limit alcohol sale: - Monopoly
- USA three-tier system
- Min drinking age
- Limit hours in the day for alcohol sale
23. Give examples of government policies to reduce alcohol consumption: - France:
Loi Evin in 1991, restrict alcohol advertising
- Scottish: min unit price: GBP(75cl bottle with 12% considered to have 9 units)
- Blood alcohol concentration (BAC)
24. What are two impacts of taxation on wine?: - Reduce consumption
- Major venue generator for many governments
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
25. List types of taxes applied to alcoholic drinks: - Sales tax (VAT in EU)
- Specific excise duties on alcohol, payable at the point of manufacture
- Minimum pricing mechanism
26. List one example in which reduced tax has boosted wine sales: In 2008, Hong Kong
abolished excise duty on wine with the aim of becoming wine trading hub of East Asia
27. What is tax on imported goods called?: Custom duties / trade tariffs
28. What non-member states have entered into trade agreements with EU?: South
Africa and Chile
29. What is embargo: An extreme form of protection in which a country bans imports from or exports to a
particular country
30. Give examples of wine laws: Geographical Indications (GIs): Protected Denominations of Origin
(PDOs) and Protected Geographical Indications (PGIs)
31. How do GIs affect wine demand?: - Reputation
- Increase recognition and demand for wines from that region
- Allow price increase
32. How can wine laws negatively affect wine production?: - Many limitations such as grape
varieties, methods of production, maturation periods etc
- Slow to react to changes in consumer preferences
33. What factors in production could influence wine supply?: - Area under vine
- Human factors
- Natural factors
34. Which country has seen the biggest growth under vine recently?: China: now
second largest area under vine, seventh largest producer
35. What factors have resulted in the loss of vineyard land?: - Vine pull schemes
- EU restrictions on planting new vineyards
- Conversion of vineyard land to other uses
- Abandonment of rural areas
36. What is 'wine lake'?: By the mid 1980s, EU wine production was much greater than demand, creating a
surplus that came to be known as the 'wine lake'
37. Where have vine pull schemes mainly occurred?: - Southern France, Italy and Spain
- Australia, New Zealand, Argentina
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
1. Describe what happens when relative supply and demand change: - When supply
exceeds demand: price falls, consumer have greater choice of cheaper alternatives. Producers lower price to remain
competitive. Fall in prices lead to increased demand in the long run
- When demand exceeds supply: price increase, consumers willing to pay higher for some wines; others simply switch
to another wine or a different alcoholic drink
2. The general factors affecting demand for wine: - Social
- Economic
- Legislative
- Political
3. List major social factors affecting demand for wine: - Change in consumption habits
- Change in consumer preferences
- Change in reputation
- Change in spending patterns
4. Describe how global wine consumption habits have changed since 2001: - Rapid
growth in the first part of 2000
- Fall after 2008 financial crisis as many consumers reduce spending on non-essential products
- Slight decline in recent years and due to remain stable to 2021
- Strong growth in sparkling wine sales
5. Top five countries for total wine consumption in 2017: - USA
- France
- Italy
- Germany
- China
6. Explain the increasing wine consumption in USA in the last 20-30 yr: - Increasing
globalization of the food and drinks industry
- Consumers more able and willing to embrace new tastes
- Increases and improvement in wine production in the domestic market
7. Explain the increasing wine consumption in China: - Growing middle class showing wealth
and status - move away from local drinks
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
- Aspire to drink imported wine
- Bilateral trade agreement with Australia, Chile etc
8. Give possible reasons for falling wine consumption in traditional wine-drink-
ing countries: - Younger people drinking less wine: old fashioned; less time in bars, more on social media
- Health concerns: mostly due to government campaigns, e.g., Loi Evin in France
- Changes in lifestyle: less time for longer meals, less lunchtime drinking
- Reduced availability of cheap wine: reduce over-production, some consumers switch to cheaper alcoholic drinks
9. List a few major changes in consumer preferences in recent years: - Rose and
Prosecco become popular
- Increased demand for lower-alcohol wines
- Medium-sweet German wines and fortified wines going out of fashion
10. What factors could influence a wine's reputation?: - Good reviews from leading publica-
tions and critics
- Online influencers and KOLs
- Presence in popular culture, e.g., films television series, music lyrics or celebrity lifestyle news
- Peer opinions
11. What are price-sensitive markets? Give examples: Markets where consumers are unwilling
to pay more than the lowest price possible for the style of wine they want to buy. E.g., Germany, UK
12. What can producers do to retain customers in price-sensitive markets?: -
Competition is fierce - reduce price or simply choose not to sell
- Reluctant to pass on increases in production costs to consumers
- Try to build up 'brand loyalty'
13. Explain 'premiumization': - Consumers are increasingly willing to pay more for individual bottles of
wine, often because they are buying less wine by volume
- Happens in USA even in UK
14. List major economic factors that influence demand for wine: - Strength of economy
- Fluctuations in currency exchange
- Changes to the market
15. Give examples in which the strength of economy affect wine demand: - 2008
financial crisis: champagne demand falls, Prosecco grew; trade wine for beer, cider etc
- Chinese economy growing: emerging middle class chasing aspirational wines
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
16. In what kind of market does currency fluctuation have the most significant
impact on the demand for wine?: Price-sensitive market
17. When a wine-exporting country's currency gains value compared to that of
the importing country, what can a producer do?: - Increase wine price and losing sales
- Keep the price and lose profit
18. When a wine-exporting country's currency loses value compared to that of
the importing country, what can a producer do?: - Lower price and boost sales
- Keep price stable and improve profits for future investment
19. What is one downside of weak currency on the part of the producer?: Costs more
to import equipment and supplies such as barrels, corks and yeast, which may offset additional profits
20. How does changes to the market affect demand for wine?: - New companies/products
enter, others disappear
- Opportunities for competition
- However, if supply is limited, price increase is possible
21. List major legislative and political factors that affect demand for wine: - Laws
prohibiting or limiting alcohol sale
- Government policies to reduce alcohol consumption
- Taxation
- International trade
- Wine laws
22. Give examples of laws that limit alcohol sale: - Monopoly
- USA three-tier system
- Min drinking age
- Limit hours in the day for alcohol sale
23. Give examples of government policies to reduce alcohol consumption: - France:
Loi Evin in 1991, restrict alcohol advertising
- Scottish: min unit price: GBP(75cl bottle with 12% considered to have 9 units)
- Blood alcohol concentration (BAC)
24. What are two impacts of taxation on wine?: - Reduce consumption
- Major venue generator for many governments
, WSET LEVEL 4 D2 EXAM comprehensive questions and verified accurate
solution (detailed & elaborated) 2025 TEST!!
Study online at https://quizlet.com/_hz7cst
25. List types of taxes applied to alcoholic drinks: - Sales tax (VAT in EU)
- Specific excise duties on alcohol, payable at the point of manufacture
- Minimum pricing mechanism
26. List one example in which reduced tax has boosted wine sales: In 2008, Hong Kong
abolished excise duty on wine with the aim of becoming wine trading hub of East Asia
27. What is tax on imported goods called?: Custom duties / trade tariffs
28. What non-member states have entered into trade agreements with EU?: South
Africa and Chile
29. What is embargo: An extreme form of protection in which a country bans imports from or exports to a
particular country
30. Give examples of wine laws: Geographical Indications (GIs): Protected Denominations of Origin
(PDOs) and Protected Geographical Indications (PGIs)
31. How do GIs affect wine demand?: - Reputation
- Increase recognition and demand for wines from that region
- Allow price increase
32. How can wine laws negatively affect wine production?: - Many limitations such as grape
varieties, methods of production, maturation periods etc
- Slow to react to changes in consumer preferences
33. What factors in production could influence wine supply?: - Area under vine
- Human factors
- Natural factors
34. Which country has seen the biggest growth under vine recently?: China: now
second largest area under vine, seventh largest producer
35. What factors have resulted in the loss of vineyard land?: - Vine pull schemes
- EU restrictions on planting new vineyards
- Conversion of vineyard land to other uses
- Abandonment of rural areas
36. What is 'wine lake'?: By the mid 1980s, EU wine production was much greater than demand, creating a
surplus that came to be known as the 'wine lake'
37. Where have vine pull schemes mainly occurred?: - Southern France, Italy and Spain
- Australia, New Zealand, Argentina
