Wine War 2009

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Grape growing and wine making industry has been evolved since long.

Ancient to modern

civilisation had a custom to offer wine to living and the dead. Wine was made using grapes,

which were produced by planting vineyards. France, is well known for its wine, it was one of

biggest contributor and a major revenue source for France. Grape growing supported around 1.5

million families, Wine business accounted for one-sixth of France’s total trading revenue, and

became the country’s second-largest export. This industry was not regulated, there were no laws

to control the quality and output.

In 1971, Germany passed the law in order to regulate and this served as entry barriers for wine

suppliers.There were 65 classes which defined quality of wine, from sugar to color. These laws

also defined regional boundaries and set detailed and quite rigid standards for vineyards and

wine makers. This helped consumers and was codified and expanded to Appellation d’Origin

Controllée (AOC) laws of 1935. Italy also followed and made Denominazione di Origne

Controllate (or DOC) regions, each with regulations prescribing area, allowed grape

varieties, yields, required growing practices, acceptable alcohol content, label design etc.

The merchant to whom the wine was sold use to blend and package it in bottle. Transportation

was not much developed and wine use to get spoiled in transport. There were toll roads and

complex tax systems deterred ordinary person, only the rich can do this business, the probability

of loss was high.

It was only 18th century innovation such as cork stoppers, glass bottle, pasteurisation helped the

stability and longetivity of wine being transported. Although insignificant in both size and
reputation compared with the well-established industry in traditional wine-producing countries,

vineyards and wine makers had been set up in many New World countries since the 18th

century. In the United States, for example, Thomas Jefferson, an enthusiastic oenologist, became

a leading voice for establishing vineyards in Virginia and in Australia. There were other

countries like Chile and Argentina where wine became part of national cultures.In keeping with

the country’s central role in the rum trade One segment of the population followed a tradition of

drinking hard liquor. But another group reflected the country’s Puritan heritage and espoused

temperance or abstinence. As a result, in the pre-World War II era, wine was largely made by

and sold to European immigrant communities.

After the war, there were some factor which led other nations to grow in Wine industry.

1. Land: Suitable Land was less expensive and available , allowing the growth of much

extensinve wine yards

2. Technnolgy: Countries began to experiment with grape growing and wine making

technology.In Australia, controlled drip irrigation allowed expansion into marginal land and

reduced vintage variability

3. Innovation: Methods like night harvesting to maximize grape sugars, and innovative trellis

systems permitted vines to be planted at twice the traditional density.

5. Traditions : Some countries broke the tradtion of on-site labs to provide analysis helpful in

making growing and harvest decisions.They tried reverse osmosis technology to concentrate the

juice (or must), ensuring a deeper-colored, richer-tasting wine.


New World producers who built their marketing expertise in their home markets during the

1960s and 1970s, learned how to respond to consumer preferences for the simpler, more fruit-

driven wines those were easy to appreciate.

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My advice to french minister would be to use the capital to support wine industry instead of

destroying the land by uprooting the vineyards.The EU's initial response was to pay farmers to

uproot their vineyards, leading to 500,000 hectares being uprooted between 1988 and 1996. .

Increase in the duties on imported wine would also help the farmer to increase their share in

domestic market. Considering the fact Australian wine could not compete long term in low cost

battle Australian wine manufacturer should look for new market like China, India, and Middle

East.

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