SWOT analysis

D2 book definition:

See the next page onwards for some SWOT analysis I put together.
 BORDEAUX
Strengths Weaknesses Opportunities Threats
Reputation Rigidity of the Global provider of affordable premium Climate change –
classification system wine is a wider range of price points may affect the style
– confusing and that is popular
complex
High brand Perception it is old Good for ladder branding – customers Declining wine
awareness and stuffy and old able to trade up consumption in the
fashioned – hard to domestic market
reach young
consumers with this
image.
Blending enables Increasing demand Classification system offers credibility Global reduction in
approachable blends for lower alcohol and history alcohol consumption
– influences style, products as Bordeaux
quality and price, wines are often
maintains style higher abvs than they
were
History and a story Vintage variation Historic brand, attractive in new Affordable wine, with
emerging markets Bordeaux blends in
other markets, e.g.
South Africa
Vin de Bordeaux – Global warming offers the possibility Trade wars in the
promotional body of broadening the range of wines in future
the future (new grapes have been
added to the list of grapes allowed):
https://www.decanter.com/learn/new-
bordeaux-grapes-wines-420290/

Strong internal Tourism/education Brexit

market and sales https://www.laciteduvin.com/en
structure – La Place
de Bordeaux
Category for fine Counterfeit bottles
wine investment
Reduction in demand
for sweet wines.
Some sweet wine
producers in
Sauternes and Barsac
are having produce
more dry wines.

Strengths
Long history of the region –
good story to sell the wine.
Winemaking dates back to
the Romans in the 1st
Century AD
High quality perception as
global leader in the
production of very high-
quality Chardonnay and
Burgundy with winemaking
techniques that are followed
the world over.
Range of micro climates from
cool continental in the north
around Chablis to moderate
continental in the south
around the Maconnais
Category for fine wine
investment
Excellent soils for supporting
viticulture with good
drainage: predominantly
limestone
Wine tourism – popular area
for global visitors
Ladder branding. A producer
or merchant may actually be
able to provide wines at all
quality levels. E.g. Faiveley
offers Bourgon Rouge and
Premier Cru. Also Mercurey
Burgundy
Weaknesses Opportunites Threats
All available Plant remaining land in Frost can cause big loss in
vineyard land Maconnais. Good micro yield. This further reduces
has been climate as moderate supply in a high demand
planted on, continental, warmer market.
apart from than the north of the
perhaps a small region.
amount in the
Maconnais.
Vintage More development into Climate change has brought
variation caused emerging markets like about a shortening of the
by frost China and Korea ripening season. Per Jasper
damage. Morris, used to have 100
days ripening, now down to
85 to 90 days. Earlier
harvest. Less time for the
grape to develop complexity.
May adapt to more drought
resistant rootstock.
Complicated Develop more quality Pre-mox. Discovered in mid
business wines with Aligoté 1990s. Still not sure exactly
structure due to which has the potential what causes it but reducing
Napoleonic to create high quality SO2 and hyperoxidation
wine laws – wines and it has lower seems to help.
small plots. alcohol which fits in with
This is why a lot global demand for lower
of merchants alcohol. One premier
buy other cru vineyard is allowed
people’s grapes to make 100% Aligote:
Domaine Ponsot,
Aligoté, 1er Cru Clos des
Monts Luisants, Morey-
St-Denis,
Organic wine Further development of Can’t really develop much
growing is estates becoming own more as demand exceeds
difficult due to domaine. supply.
the small size of
plots.
Negociants
don’t have
much control
over the quality.

Strengths
Large area with a variety
of sites, terroirs and
grapes, different climates.
History of tourism and
gastronomy.
The melon grape is
uniquely suited to cool
climates
Land is much cheaper
than Burgundy
Close to Paris so a large
domestic market.
Biodynamic is developing
here fitting in with global
demand.
Style of whites, being
light bodied with
moderate alcohol fits in
with global trends
Range of prices
InterLoire promotes the
region
Loire
Weaknesses Opportunites Threats
Lack of awareness Lower alcohol than Frost and hail can lower
of the region. No other regions – fits in yields
soft branding of with global demand
Loire
Complexity of Improve marketing Climate change creates hot
labelling and and perception vintage sometimes – 2018
location through promotions in was a flabby
specialist wine
retailers
Frost and threat of Multiple varieties offer Reduction in global demand
fungal disease, more protection for sweet wine impacts on
particularly closer against global Loire with its range of
to the Atlantic. warming. sweet wines.
Weak marketing Can approach Competition from other
different markets as markets
wide range of qualities
and styles.
Vintage variation Could re-brand to Growers exiting the
reach a younger industry
demographic
Reds have uneven Could innovate on Seen as old fashioned.
ripening and can labelling and
show green – not packaging.
appreciated by
consumers
Fractured business Promotion of rose as
with 16 co-ops, this is a very popular
250 negociants and wine globally.
6200 growers
Limited availability
of labour
 Southern France
Strengths Weaknesses Opportunites Threats
Climate, dry long growing Hard to make Wine tourism helps to Climate change. An already
season money as high promote the region hot climate that can only
volume and low get hotter.
margins

Price, value Old vines with low Opportunities for new Currency fluctuation
yields and high wine makers as the
cost of production land is cheaper
Variety of grapes Hard to do soft Further development Drought and wild
brands, lack of of rosé segment
brand identity
Biggest variety of wine Focused marketing,
styles in France e.g. expand an already
successful wine brand
Picpoul de Pinot.
Targeting marketing
selling lifestyle like
Provence Rose
Ready markets – Further
promoted a lot through premiumisation, e.g.
tourism this has already
occurred in rose with
Chateau d’Esclan.

Co-operatives strong,
gives economies of scale
Brand identity through
Languedoc

Strengths
Further development of
dry style suits global
demand
Strong reputation
Brand Riesling – perhaps
slightly niche but a strong
brand.
Long history which can be
sold as part of the wine
story , e.g. Schloss
Johannisberg was
documented as dating
back to 817!
The wines can age,
especially Riesling
Suitable for on/off trade
Suitable for fine wine
offers
Good value for money
Complex range of terroir
including the outstanding
steep slate slopes of
Mosel
High quality: producers
like Eva Fricke
Germany
Weaknesses Opportunites Threats
Brand Germany Easy shipping to Select and limited appeal
has only emerged markets, e.g.
from a bad continental Europe.
reputation after
the post-war high-
volume period,
need to continue
to promote as a
quality brand.
Good value but Further fine wine Climate change could alter
limited supply development the profile of the wines
including bonded
offers
Sweet wines are Suitable for on and off Competition from global
affected by trade. Can develop market place
reduction in global trade business as good
demand food wines.
Crowded market, Expensive production – e.g.
particularly for Mosel where you often
Riesling. have to winch equipment
Complicated wine
law and labelling
that can confuse
the general
consumer
 Chile – came from Tim Atkin MW with some extras from me
Strengths Weaknesses Opportunites Threats
Major volume player Cheap prices. Develop the mid Over production in
globally Mass market market £10-£20 competing markets
image, av price is
$26 per case of 12.
Surplus wine after
big 2021 vintage
Strong and stable Small fine wine Use the full range of Climate change (forest fires)
economy with outside sector Chile’s terroirs
investment
Good volumes of the big Exports – 40% bulk Plant more varieties Trade dispute China.
four grapes Taiwan?
Geographically and Weak domestic Explore dry-farmed Bottle prices and availability
climatically diverse market – 80% areas with good of glass
exports. 16 litres rainfall
per capital
consumption
Many terroirs with more Over dependence Wine tourism Shipping costs
to explore on China - 505 of
total exports and
80% of cherries
Rebirth/development of Labour shortages – Link with South A lock on the bargain
the south 80% machine American cuisine basement
picked
Less dependent on four Lack of water. Promote younger, Political upheaval
largest companies MOVI, Maule had 800- independent
VIGNO, Chanchos, 1000 in 1990, now producers
Deslenguados 400 to 500 mm.
Drought and
climate change
Stylistic range including Over complicated Weaker currency and drop
orange wines, natural appellation system. in business confidence
wines, Lenga barrels,
Rauli and Pipeno wines
Warm dry climate – less
disease
Central Valley hot and dry
+ fertile so good for high
volume in expensive
wines. Can be machine
harvested
Marine influence that can
produce more elegant
mid-priced wines.
No Phylloxera so
ungrafted old vines
 Portugal
Strengths Weaknesses Opportunites Threats
Climate – hot in many Drought an issue Wine tourism. This Drought
areas some years already happens but
could be expanded.
Indigenous varieties – Hilly in areas so Do promotions Competition from other
point of difference hand harvest/hand through specialist markets, especially Spain
work in the wine retailers to tell and South of France.
vineyard which the story of the wine
increases the cost and the region.
Style range – from fresh Still associated
white to dense red wines with port
Reputation – good Overshadowed by
recognition in some Spain
areas, e.g. Douro
PDO rules relatively Vintage variation,
relaxed in some areas so especially Dao,
freedom – no caps on Vine Verde,
yields in certain areas Barraida
Tourism – helps sell wine Beneficio system –
creates restrictions
Exports going up and
home consumption is also
on the rise
Flat topography in some
areas (e.g. Alentejo)
Lots of VSP trellising –
good for machine
harvesting and easy to
irrigate

Italy
Advantages
Brand Italy
Italian food culture
Wide price range and styles
History, heritage, reputation
Warm climate, well suited to organic wnemaking
Wide variety of indigenous grape varieties (400-500)
Able to deliver large volumes
Good access to markets like UK, Germany, US
Vinitaly to provide good marketing
Disadvantages
Complexity of varietals
Rigidity of the DOC/DOCG system
Challenge to understand labelling
Size and difference in quality of certain PDOs
Low margin on commodity categories (Pinot Grigio)
Climate change risk
 Alsace - production
Advantages Challenges
Generally dry (due to Vosges Mountains to the west) Only moderate amount of rainfall, with no irrigation
and incidence of the dry Fohn wind. Fungal disease permitted, means that drought can be an issue in
low, high volume of organic production compared to some years.
rest of France
When rain does fall it tends to be in the summer,
which can disrupt flowering and fruit set
Dry autumns mean that grapes can be kept on the The main pests and diseases are powdery and downy
vine late so it is possible to produce a variety of grape mildew, the grape vine moth and, latterly, esca. Give
varieties and styles (dry, sweet) credit for citing the susceptibility of certain Alsace
grape varieties to certain diseases or hazards (e.g.
Gewurztraminer is susceptible to powdery mildew,
Pinot Gris buds early and can be susceptible to frost).
High levels of sunshine mean grapes can ripen well Some vineyards are on steep slopes (terraces in some
despite the northerly latitude areas) and require managing and harvesting by hand,
which increases production costs. Though these sites
are generally used for more premium wines anyway.
Varied topography (mosaic of terroirs) so it provides a
range of site climates. Hillside sites provide favourable
aspects (South, South East or South West) for better
sunlight interception and greater ripeness. Less
fertile, free-draining soils on these slopes so slow
vegetative growth and promotes ripening. Suitable for
high quality wines such as grand cru.
By comparison the flat plains nearer the Rhine provide
suitable conditions for producing less expensive wines.
Broadly speaking, the vineyards on the plain are on
deeper, more fertile soils, promoting more vegetative
growth (and therefore are more suited to higher
yielding grape growing for high volume wine). Ability
to machine harvest in these sites also reduces costs
The most planted grape variety, Riesling, is well-suited
to the climate – winter hardy (able to withstand cold
continental winters) and in need of a long growing
season to reach full ripeness (which Alsace can
provide with its dry autumns). Beneficially, it is able to
produce high quality wines even at relatively high
yields
All of the noble grapes lend themselves to being
produced in range of styles from dry to sweet –
permitting greater diversity than might otherwise be
the case.
Use of aromatic varieties, better suited to
fermentation and maturation in neutral vessels,
means producers can generally avoid the production
costs associated with buying new oak barrels each
year.

Alsace - marketing
Advantages Challenges
Varietal labelling is permitted – consumers can easily There has been considerable debate about whether
see what grape variety the wine is made from, which the delimitation of some grand cru vineyards was
does help give some indication of broad style overly generous and whether permitted yields are too
high, with some producers choosing not to use the

Varieties such as Riesling, Pinot Gris and Muscat are
relatively well known by consumers (though Pinot Gris
and Muscat are probably better known as Pinot Grigio
and Moscato).
Wide range of soils and expressions of grape varieties
such as Riesling planted on different soils may appeal
to highly involved consumers
Where practiced, organic credentials may be able to
be used in marketing
category. However, more recently, key producers such
as Trimbach or Hugel who initially rejected labelling as
grand cru have started to use the category.
Packaging – requirement for wines to be sold in a
flute-shaped bottle may help the wines stand out, but
does also mean (with a number of common grape
varieties) that they get confused with German wines.
Many producers make a large range of wines. Often
each of the noble varieties is made in a variety of
different styles, sweetness levels and quality levels.
This can perhaps be more difficult for consumers to
understand than a more limited range – i.e. it helps for
the consumer to be familiar with the producer and
their range.
Historically there has been little consistency about
fermenting to full dryness versus leaving small or
larger amounts of residual sugar. Buyers of the wines
have had to know the style of individual producers. An
increasing number of producers (though by no means
all) now include an indication of sweetness on the
back label. The region is in the process of agreeing a
standard approach to this issue.
Reputation is for white wines (plus sparkling and
sweet). While the quality of reds is improving, lack of
reputation for red wines may limit success in some
markets and with some consumers
Grape varieties such as Gewurztraminer and Sylvaner
may be slightly less familiar for most consumers on
export markets (this could be an advantage or a
disadvantage).