The impact of New World wines upon the UK market

Table of Contents

1. INTRODUCTION

1.1 AIMS AND OBJECTIVES

1.2 REASONING FOR TOPIC CHOICE

1.3 HYPOTHESIS

1.4 RESEARCH METHODOLOGY

1.4.1 Data sources

1.4.1.1 Primary data

1.4.1.1.1 Questionnaire for the wine consumer

1.4.1.1.2 Interviews

1.4.1.1.3 Blind Wine Tasting

1.4.1.2 Limitations of primary data

1.4.1.3 Secondary data

1.4.1.4 Limitations of secondary data

1.4.2 Nature of data

1.4.2.1 Quantitative data

1.4.2.2 Qualitative data

1.5 REFERENCE LIST

2. LITERATURE REVIEW

2.1 INTRODUCTION TO THE FOUR LEADING NEW WORLD WINE SUPPLYING COUNTRIES

2.1.1 Australia

2.1.2 USA

2.1.3 South Africa

2.1.4 Chile

2.2 NEW WORLD WINES

2.2.1 Initiation of the New World wine boom

2.2.2 Keys to success

2.2.3 Style of the New World wines

2.3 ACADEMIC MODULE: PEST ANALYSIS

2.4 ACADEMIC MODULE: COMPETITIVE ADVANTAGE ANALYSIS BETWEEN OLD AND NEW WORLD WINE-PRODUCING COUNTRIES

2.4.1 EXISTING DOMESTIC MARKET POSITION

2.4.2 DOMESTIC MARKET GROWTH POTENTIAL

2.4.3 ECONOMIES OF SCALE / COST STRUCTURE BENEFITS

2.4.4 ADAPTABILITY TO INDUSTRY CHANGE

2.4.5 POTENTIAL TO ATTRACT FOREIGN INVESTMENT

2.4.6 SUMMARY

2.5 REFERENCE LIST

3. THE UK WINE MARKET

3.1 UK PER CAPITA WINE CONSUMPTION & UK WINE CONSUMPTION (MILLION HL)

3.2 UK IMPORTS OF STILL LIGHT WINE FROM MAJOR SUPPLIERS BY VALUE (MILLION US$) AND BY VOLUME (HL ´000) FROM 2003–2005

3.3 UK OFF-TRADE: ANNUAL TOTAL SALES VALUE IN MILLION £ AND MARKET SHARE IN % BY COUNTRY OF STILL LIGHT WINE

3.4 UK OFF- TRADE: ANNUAL TOTAL SALES VOLUME IN `000 HECTOLITRES AND MARKET SHARE IN % BY COUNTRY OF STILL LIGHT WINE

3.5 UK OFF-TRADE: BRANDED VERSUS OWN LABEL VOLUME SHARE IN %

3.6 UK OFF-TRADE: TOP 15 BRANDS ANNUAL SHARE BY VALUE AND VOLUME

3.7 UK OFF-TRADE (RETAIL): PRICING – NUMBER OF BOTTLES SOLD IN KEY PRICE RANGES AND AVERAGE PRICE PER 75CL BOTTLE BY COUNTRY

3.8 MOST FAVOURITE PLACES OF PURCHASE

3.9 SUMMARY

3.10 REFERENCE LIST

4. KEY ISSUES CONTRIBUTING TO THE NEW WORLD WINE PERFORMANCE

4.1 COMPARISON OF FRANCE AND GERMANY IN TERMS OF COUNTERMEASURES

4.1.1 Germany

4.1.1.1 Threat of the New World

4.1.1.2 Countermeasures

4.1.1.3 Comparison of German and New World wines

4.1.1.4 Conclusion

4.1.2 France

4.1.2.1 French perception of wine and labelling

4.1.2.2 Quality improvement

4.1.2.3 Marketing

4.1.2.4 Brand building and labelling

4.1.2.5 Adoption of New World techniques

4.1.3 Summary

4.2 WINE LEGISLATION IN TERMS OF WINE CLASSIFICATION, LABELLING REQUIREMENTS, OENOLOGICAL PRACTICES AND THE IMPORTANCE OF BRANDING WINE

4.2.1 Wine legislation in terms of wine classification/appellation

4.2.2 Wine legislation in terms of wine labelling

4.2.3 The power of branding

4.2.4 Wine legislation in terms of oenological practices

4.3 THE MODERN WINE CONSUMER

4.3.1 Consumer wine consumption influences

4.3.1.1 Women

4.3.1.2 Senior citizens

4.3.1.3 Personal disposable income

4.3.1.4 One-person household

4.3.1.5 In-home boom

4.3.1.6 More sophisticated consumer

4.4 THE CHANGING FACE OF WINE

4.4.1 Health benefits

4.4.2 Wine as a meal accompaniment

4.4.3 The rise of the brands and the influence of wine perception

4.4.4 Image as a snob drink is disappearing

4.5 REFERENCE LIST

5. PRIMARY RESEARCH FINDINGS

5.1 BLIND WINE TASTING

5.2 SURVEY WITH QUESTIONNAIRES

5.2.1 Analysed relationships

5.3 REFERENCE LIST

6. CONCLUSION

6.1 REVOLUTION OF THE UK WINE MARKET

6.2 THE NEW STATUS OF WINE AND THE PERSISTENT INFLUENCE ON THE CONSUMER

Objectives and Research Themes

This dissertation aims to analyze the growth of New World wines and their influence on the UK wine market. It investigates factors contributing to their competitive success, such as legislative frameworks, branding strategies, and changing consumer behaviors, while comparing these developments against the traditional strategies of Old World producers.

• Market performance analysis of New World versus Old World wine suppliers.
• Evaluation of branding, legislation, and oenological practice differences.
• Comparative analysis of German and French countermeasures against market share loss.
• Investigation into evolving UK consumer preferences, drinking habits, and attitudes toward wine.

Extract from the Book

Summary of Chapters

1. INTRODUCTION: Outlines the research scope, objectives, and methodology employed to examine the market impact of New World wines in Britain.

2. LITERATURE REVIEW: Analyzes the emergence of major New World wine producers and provides a theoretical framework including PEST and competitive advantage analysis.

3. THE UK WINE MARKET: Details market figures, consumption trends, and the dominant role of supermarkets and branded wines in the UK.

4. KEY ISSUES CONTRIBUTING TO THE NEW WORLD WINE PERFORMANCE: Examines strategies of France and Germany, legislative differences, and the shift in modern consumer preferences.

5. PRIMARY RESEARCH FINDINGS: Presents results from original blind wine tastings and consumer surveys regarding preferences and purchasing behavior.

6. CONCLUSION: Validates the hypothesis that New World wines have revolutionized the UK market and assesses future developments in consumer behavior.

Keywords

New World Wines, Old World, UK Wine Market, Wine Branding, Consumer Behavior, Competitive Advantage, PEST Analysis, Oenological Practices, Market Share, Supermarket Retail, Wine Consumption, Blind Wine Tasting, Wine Legislation, Globalisation, Brand Loyalty.

Frequently Asked Questions

What is the core focus of this dissertation?

The dissertation examines how New World wines have successfully penetrated the UK market, challenging traditional Old World producers through innovation, branding, and adaptability.

Which thematic areas are central to this study?

Key themes include market competition, legislative influences on winemaking, branding strategies, and the evolving profile of the modern UK wine consumer.

What is the primary research objective?

The goal is to prove or refute the hypothesis that New World wines have revolutionized the UK wine market and permanently altered consumer status and preferences.

What research methods were utilized?

The author combined secondary research with primary methods, including interviews with industry experts, a blind wine tasting, and a comprehensive consumer survey.

What subjects are covered in the main body?

The study covers the history of major New World suppliers, market statistics, a comparative analysis of European countermeasures, and an in-depth investigation into consumer drivers like health and branding.

Which keywords summarize the content?

Important terms include New World Wines, UK market, competitive advantage, branding, and consumer behavior.

How do New World winemakers differ in their legislative approach?

The research notes that New World regions generally enjoy more liberal legislation, allowing for greater experimentation in winemaking processes compared to the stricter appellation-based systems of the Old World.

What role do supermarkets play in this market shift?

Supermarkets are identified as the primary distribution channel for New World wines, utilizing aggressive discount pricing and heavy branding to secure high volumes and expand market reach.

How has the image of wine changed in the UK?

The author concludes that wine is moving away from a snobbish, elitist image toward becoming an accessible, regular consumer product, largely due to the efforts of New World producers to simplify labels and offer approachable taste profiles.