WSET Diploma D2 Practice Exam
Questions and Answers Latest
Version Graded A+
What are possible reasons wine consumption would fall?
- younger people drinking less wine
- health concerns
- changes in lifestyle
- reduces availability of cheap wine
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
- market changes (entry and exit of brands)
What are legislative and political factors affecting the
demand for wine?
- laws prohibiting sale of alcohol
- gov't policies to reduce consumption (loi evin, BAC, minimum
unit pricing)
- taxation (excise duty, categories)
- international trade (relationships, customs duties/tariffs, trade
wars)
- 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
,What are production factors affecting the demand for wine?
- 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?
- vine pull schemes
- EU restrictions on planting new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
Describe the vine pull scheme in Europe in the mid-1980's.
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?
- 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
What challenges exist when there is an undersupply of wine?
what is a common factor that results in an undersupply?
- disappointed clients, strained business relationships
- financial penalties and canceled contracts from retailers
- issuance on allocation
- consumers turn to alternatives (especially in price-sensitive
markets)
- common factor: bad harvest
What ar ethe 2 categories of grape growing cost?
- initial costs of establishing the vineyard
- ongoing costs of managing the vineyard and producing the
grapes
, What factors can increase vineyard land price?
- potential to produce hi Q fruit
- name of appellation
- scarcity of land (rarely coming on the market, or GI-limited)
What are the costs of establishing a vineyard?
- land purchase price
- surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
- irrigation system
- weather protection measures
- animal pest protection measures
- machinery and equipment
What are the costs of vineyard management?
- labor (varies due to topography, organic/BD farming)
- machinery and equipment running costs (e.g. fuel and
maintenance)
- vineyard materials (e.g. replacement vines and trellising)
- vineyard treatments
- water
- electricity
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
What country has the largest wine consumption?
US
What are the costs of winemaking?
- labour (full-time & casual labor around harvest time)
- machinery and equipment running costs (e.g. fuel, electricity and
Questions and Answers Latest
Version Graded A+
What are possible reasons wine consumption would fall?
- younger people drinking less wine
- health concerns
- changes in lifestyle
- reduces availability of cheap wine
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
- market changes (entry and exit of brands)
What are legislative and political factors affecting the
demand for wine?
- laws prohibiting sale of alcohol
- gov't policies to reduce consumption (loi evin, BAC, minimum
unit pricing)
- taxation (excise duty, categories)
- international trade (relationships, customs duties/tariffs, trade
wars)
- 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
,What are production factors affecting the demand for wine?
- 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?
- vine pull schemes
- EU restrictions on planting new vineyards
- conversion of vineyard land to other uses
- abandonment of rural areas
Describe the vine pull scheme in Europe in the mid-1980's.
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?
- 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
What challenges exist when there is an undersupply of wine?
what is a common factor that results in an undersupply?
- disappointed clients, strained business relationships
- financial penalties and canceled contracts from retailers
- issuance on allocation
- consumers turn to alternatives (especially in price-sensitive
markets)
- common factor: bad harvest
What ar ethe 2 categories of grape growing cost?
- initial costs of establishing the vineyard
- ongoing costs of managing the vineyard and producing the
grapes
, What factors can increase vineyard land price?
- potential to produce hi Q fruit
- name of appellation
- scarcity of land (rarely coming on the market, or GI-limited)
What are the costs of establishing a vineyard?
- land purchase price
- surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
- irrigation system
- weather protection measures
- animal pest protection measures
- machinery and equipment
What are the costs of vineyard management?
- labor (varies due to topography, organic/BD farming)
- machinery and equipment running costs (e.g. fuel and
maintenance)
- vineyard materials (e.g. replacement vines and trellising)
- vineyard treatments
- water
- electricity
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
What country has the largest wine consumption?
US
What are the costs of winemaking?
- labour (full-time & casual labor around harvest time)
- machinery and equipment running costs (e.g. fuel, electricity and
