BULK WINE
1. Bulk wine
a. What is bulk wine
b. Two things to do with bulk wine
2. Transporting bulk wine
a. Transportation cost
3. Bulk wine market
a. Economic function
i. Increase the number of wine products
ii. Decrease wine production cost
4. History of the bulk wine market
a. Prior to WWII
b. After WWII
i. Bulk wine producers
ii. Case-goods producers
iii. Hybrid producers
5. Organization of the bulk wine market
a. Direct search and brokered market
6. Suppliers of bulk wine
a. Bulk wine producers
b. Case goods producers
i. Unexpected increase in grape supply
ii. Unexpected decrease in wine demand
iii. Surplus blending wine
iv. Limited winery capacity
v. Low quality wine
c. Foreign producers
d. Grape growers
7. Demanders of bulk wine
a. Case-goods producers
b. Negociants
c. Retailers
8. Factors affecting price and quantity of bulk wine
a. Factors affecting quantity supplied
i.. Price of bulk wine
ii. Supply of grapes
iii. Foreign exchange rate
b. Factors affecting quantity demanded
i. Price of bulk wine
ii. Demand for packaged wine
PRIVATE LABEL WINE
1. What is private label wine?
2. Demanders of private label wine
3. Suppliers of private label wine
4. Effect of private label wine on U.S. wine industry
WINE ALCOHOL
1. Determinants of alcohol content
a. Grape sugar
b. Winemaking decisions
2. Alston et al. Study
a. 90,000 wine products, 1992-2007
b. Conclusions
i. Red wine has higher alcohol than white wine
ii. Wine from warm locations has more alcohol than cool locations
iii. New World wine has higher alcohol than Old World wine
iv. U.S. has highest alcohol in world
v. Alcohol has been rising over last two decades.
a. Worldwide 12.7% to 13.7%
3. Possible reasons for rising alcohol
a. Global warming
b. Winemaking decisions
4. Systematic labeling errors
a. 57% understate actual alcohol
b. 33% overstate actual alcohol
c. 10% correctly state actual alcohol
5. Why higher alcohol and systematic labeling errors?
a. Possible explanation
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