WSET Diploma D2
1. 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
2. What country has the largest wine consumption?: US
3. What are possible reasons wine consumption would fall?: - younger people
drinking less wine - health concerns
- changes in lifestyle
- reduction in availability of cheap wine
4. 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
5. What are economic factors affecting the demand for wine?: - strength of
the economy
- fluctuations in currency exchange
- market changes (entry and exit of brands)
6. 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)
7. 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
8. What is the Anti-Extravagance Campaign?: law in China prohibiting the
gifting to or consumption by government officials of luxury wines and spirits
9. What are production factors affecting the demand for wine?: - area
under vine
- human factors (adoption of mondern techniques)
- natural factors (weather, climate change)
10. What factors have resulted in the loss of vineyard land, particularly in the
EU?: - vine pull schemes
- EU restrictions on planting new vineyards
, WSET Diploma D2
- conversion of vineyard land to other uses
- abandonment of rural areas
11. 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.
12. 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
-May need to distill into brandy
13. 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
14. Grape Growing Costs include:: - initial costs of establishing the vineyard
- ongoing costs of managing the vineyard and producing the grapes
15. 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)
16. What are the costs of establishing a vineyard?: - land purchase price
- surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
1. 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
2. What country has the largest wine consumption?: US
3. What are possible reasons wine consumption would fall?: - younger people
drinking less wine - health concerns
- changes in lifestyle
- reduction in availability of cheap wine
4. 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
5. What are economic factors affecting the demand for wine?: - strength of
the economy
- fluctuations in currency exchange
- market changes (entry and exit of brands)
6. 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)
7. 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
8. What is the Anti-Extravagance Campaign?: law in China prohibiting the
gifting to or consumption by government officials of luxury wines and spirits
9. What are production factors affecting the demand for wine?: - area
under vine
- human factors (adoption of mondern techniques)
- natural factors (weather, climate change)
10. What factors have resulted in the loss of vineyard land, particularly in the
EU?: - vine pull schemes
- EU restrictions on planting new vineyards
, WSET Diploma D2
- conversion of vineyard land to other uses
- abandonment of rural areas
11. 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.
12. 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
-May need to distill into brandy
13. 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
14. Grape Growing Costs include:: - initial costs of establishing the vineyard
- ongoing costs of managing the vineyard and producing the grapes
15. 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)
16. What are the costs of establishing a vineyard?: - land purchase price
- surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
