Sylvie Rivot, FMA, University of Mulhouse S.Rivot@uha.fr International Wine Economics Topic 2. Consumption, production, distribution Sylvie Rivot, FMA, University of Mulhouse S.Rivot@uha.fr

Consumption Main issues Rise of consumption But: Substantial numbers of drink option (non alcoholic drinks; wider choice of alcoholic drinks) Growing of low alcohol wines (health concerns)

France Consumption First producer Decrease in consumption for decades 1/3 non consumers. Traditionally drink wine with meals but lifestyle changes

Consumption France

Consumption France

Consumption Changes in consumption patterns

Production Main classifications Still wines Sparkling wines Fortified wines Sub-categories, for example for natural still wines: Standard/table wines (vin de table, vin de pays, or equivalent) Premium wines (AOC, VDQS, or equivalent) Super premium wines (high-priced Chateau bottled AOC) For each, sub-division in red, rosé, white.

Still wines Production 450 registrations in France, 300 in Italy, 75 in Germany, etc.

Production (market shares)

Crucial ratio quantity/quality Production Production costs (land value, bottling costs, financial costs transportation, variable pest control, etc., not included) Crucial ratio quantity/quality “the smaller the yield, the better the grape”

Production Time schedule of a wine-maker, making wine process (see document Smith at alii 2013, pp. 92-101)

Distribution Fragmented and complex, until very recently

Distribution Fragmented and complex, until very recently

Distribution Fragmented and complex, until very recently