7 Flashcards
Costs that can affect price of raw grape material
Labour demands of vineyard - easy or hard to harvest
Cost of labour /equipment
Degree of selection of grapes, more waste = less wine
Yields - higher yields = less quality, lower yields = better quality = higher costs
Supply and demand
Costs that contribute to the retail price of a bottle of wine
Cost of the liquid
Cost involved in the packaging
Factors that can affect winemaking costs
Equipment
Barrels - type, new/old, topping up
Aging - storage facilities, ties up capital
Co-operative
Institute that is joined by a number of members
Share winemaking facilities, equipment and sometime marketing costs
Wine can be blended from grapes from diff members
Marketed under name of cooperative
Wine can be returned to growers sold under their name
Cave cooperative, cantina sociale, winzergenossenschaft
Merchant
Negotiations
Buys in grapes and /or finished wine from growers/cooperatives
Less need for grape grower to invest in winemaking, ageing, bottling and marketing
Factors that affect the costs of packaging and distribution
Price of packing - weight, unusual packaging shape Transport - bulk shipping cuts costs Labour - retailers (large or small) Storage - holding stock ties up capital Selling environment - shop /restaurant
Wine price includes cost of
Wine Packaging Bottle closure Label Carton Transport from distribution to final location of sale