P5 Flashcards

Question

Innovation

Answer 1

Innovation is often referred to as new or exceptional ideas that have been transformed into practical reality often ushering in watershed change to an industry. Within the wine industry, innovation should be termed as those ideas that move the industry forward, that improve and enhance the quality of wine, be it pasteurization, mechanised viticulture or alternative packaging to glass. Innovation is also increasingly about minimising the environmental impact of the wine industry.

Answer 2

"culturally inherited, beliefs and behaviors based on historically established best practices “Practices that are rooted in a pre-scientific and pre-industrial world where the reasons why things worked were not necessarily understood.”"

Answer 3

deceittfully represented in some form-- Category of fradulent wine perpetuated through either a producer bottling wine purposely mislabeled (ie bulk wine merchant Rapheal Michel sold 5.53M cases of fake labeled Rhone wine from 2013-2016) or frauds such as Kurniawan's creationg of fake fine wine bottles.

Answer 4

Fine wines are an elite segment of the overall market. They are extremely high in quality, limited in availability, often age-worthy and traded in the secondary market because of their ability to appreciate over time. Market that is difficult to measure (estimated at $5B per AAWE) and includes the purchase or rare or collectible wines with the goal of selling at an appreciated price in the future. Includes a portion of retail sales, DTC allocation sales, as well as private sales and auction. The 2019 Auction Market: $438M. Dipped in 2020 ~9%. Viewed as appealing due to low long term volatility (due to limited supply) and arguably positive returns vs. stock index funds. Collectible, "passion assets" are illiquid and require appropriate storage, etc. Regional focus on: Burgundy (+10% auction sales in 2020 per Wine Market Journal Burgundy index), Bordeaux (though has declined), Cult Napa, Italian Blue Chips, Rhone, Champagne.

Answer 5

A term lacking a consistent or broadly applied legal definition, but in practice wine made from organic grapes using low intervention methods that shuns additives including sulfur dioxide. Aileeen: Wine produced using minimal intervention techniques in the winery. These usually encompass zero/minimal sulphur, use of indigenous yeasts, low or no oak influence (and can feature alternative maturation vessels), and often minimal/no fining or filtration. Usually produced with organic or biodynamic grapes.

Answer 6

a generalized behavioral trend supporting low intervention, artisanal wine production, marketing and sale in rebellion to the dominance of industrially produced wine. Those involved in producing, selling or buying natural wines (inc wine bars/restaurants) as well as journalists and "influencers".

Answer 7

Organized multi-day blind tasting contests during which judges award scores and medals based on quality assessment. Impact is often regional in nature.

Answer 8

A basic good, lacking differentiation such that it is interchangeable or largely fungible with other goods

Answer 9

sensory assessment method designed to overcome preconceptions and bias

Answer 10

novel entrants to the wine category; this includes younger consumers ("Gen Z" - less than 25 years' old), but also consumers of all ages in emerging or unestablished markets, as well as consumers in mature markets who had not been consuming wine, but are drawn in for a variety of reasons

Answer 11

Seeking out and celebrating the highest form, led by a group considered superior by others or by themselves, as in intellect, talent, power, wealth, or position in society.