WSET Diploma D2
1. What are social factors affecting the - changes in consumption habits
demand for wine? - changes in consumer preferences
- changes in reputation (region, producer, or indi-
vidual wine)
- changes in spending patterns
2. What country has the largest wine US
consumption?
3. What are possible reasons wine con- - younger people drinking less wine
sumption would fall? - 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 low-
est price possible for the style of wine they want to
buy
5. What are economic factors affecting - strength of the economy
the demand for wine? - fluctuations in currency exchange
- market changes (entry and exit of brands)
6. What are legislative and political fac- - laws prohibiting sale of alcohol
tors affecting the demand for wine? - gov't policies to reduce consumption (loi evin,
BAC, minimum unit pricing)
- taxation (excise duty, categories)
- international trade (relationships, customs du-
ties/tariffs, trade wars)
- wine laws (PDO, PGI)
7. What is the Loi Evin? When was it intro- - introduced in 1991
duced? - has greatly restricted the advertising of alcoholic
, WSET Diploma D2
drinks and is considered a significant factor in the
reduction in wine consumption in France
8. What is the Anti-Extravagance Cam- law in China prohibiting the gifting to or consump-
paign? tion by government officials of luxury wines and
spirits
9. What are production factors affecting - area under vine
the demand for wine? - human factors (adoption of mondern tech-
niques)
- natural factors (weather, climate change)
10. What factors have resulted in the loss - vine pull schemes
of vineyard land, particularly in the - EU restrictions on planting new vineyards
EU? - conversion of vineyard land to other uses
- abandonment of rural areas
11. Describe the vine pull scheme in Eu- EU wine production was much greater than de-
rope in the mid-1980's. mand, 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, sev-
eral hundred thousand hectares of European vines
were pulled up.
12. What challenges exist when there is an - prices fall
oversupply of wine? - 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
, WSET Diploma D2
13. What challenges exist when there is an - disappointed clients, strained business relation-
undersupply of wine? what is a com- ships
mon factor that results in an under- - financial penalties and canceled contracts from
supply? 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 pro-
ducing the grapes
15. What factors can increase vineyard - potential to produce hi Q fruit
land price? - name of appellation
- scarcity of land (rarely coming on the market, or
GI-limited)
16. What are the costs of establishing a - land purchase price
vineyard? - surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
- irrigation system
- weather protection measures
- animal pest protection measures
- machinery and equipment
17. What are the costs of vineyard man- - labor (varies due to topography, organic/BD
agement? farming)
1. What are social factors affecting the - changes in consumption habits
demand for wine? - changes in consumer preferences
- changes in reputation (region, producer, or indi-
vidual wine)
- changes in spending patterns
2. What country has the largest wine US
consumption?
3. What are possible reasons wine con- - younger people drinking less wine
sumption would fall? - 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 low-
est price possible for the style of wine they want to
buy
5. What are economic factors affecting - strength of the economy
the demand for wine? - fluctuations in currency exchange
- market changes (entry and exit of brands)
6. What are legislative and political fac- - laws prohibiting sale of alcohol
tors affecting the demand for wine? - gov't policies to reduce consumption (loi evin,
BAC, minimum unit pricing)
- taxation (excise duty, categories)
- international trade (relationships, customs du-
ties/tariffs, trade wars)
- wine laws (PDO, PGI)
7. What is the Loi Evin? When was it intro- - introduced in 1991
duced? - has greatly restricted the advertising of alcoholic
, WSET Diploma D2
drinks and is considered a significant factor in the
reduction in wine consumption in France
8. What is the Anti-Extravagance Cam- law in China prohibiting the gifting to or consump-
paign? tion by government officials of luxury wines and
spirits
9. What are production factors affecting - area under vine
the demand for wine? - human factors (adoption of mondern tech-
niques)
- natural factors (weather, climate change)
10. What factors have resulted in the loss - vine pull schemes
of vineyard land, particularly in the - EU restrictions on planting new vineyards
EU? - conversion of vineyard land to other uses
- abandonment of rural areas
11. Describe the vine pull scheme in Eu- EU wine production was much greater than de-
rope in the mid-1980's. mand, 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, sev-
eral hundred thousand hectares of European vines
were pulled up.
12. What challenges exist when there is an - prices fall
oversupply of wine? - 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
, WSET Diploma D2
13. What challenges exist when there is an - disappointed clients, strained business relation-
undersupply of wine? what is a com- ships
mon factor that results in an under- - financial penalties and canceled contracts from
supply? 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 pro-
ducing the grapes
15. What factors can increase vineyard - potential to produce hi Q fruit
land price? - name of appellation
- scarcity of land (rarely coming on the market, or
GI-limited)
16. What are the costs of establishing a - land purchase price
vineyard? - surveying
- site clearance
- road building/access
- vines
- trellising
- drainage pipes/ditches
- irrigation system
- weather protection measures
- animal pest protection measures
- machinery and equipment
17. What are the costs of vineyard man- - labor (varies due to topography, organic/BD
agement? farming)
