Post on 09-May-2015
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Evolution of the Wine Industry Globally
It’s a time to raise the toast in the name of the Greeks; where the history of the wine world can
be traced as early as 1000 BC. This period is attributed as the genesis of the wine invention and
making; embarking the wine production process in Sicily, Southern Italy and northern Africa to
France, Spain, and Portugal during 1500 BC. Later, it was spread in the Egypt around 3000-2500
BC, when it was colonized by Greeks; culminating the period of wine making industry
introduction and expansion in its truest sense.During the same time; the footsteps of the Greek
civilization was imitated by the emerged Roman Empire. They extended viticulture (a culture of
vine making) extensively in their colonized colonies like France; northern Europe and Great
Britain. It has been noticed by the first century AD; the wine production was dominated in the
Roman Empire wherever the climate and environment were suitable.
After the debacle of the Romans, the wine production was severely affected and went under
revival mode; supported by the monasteries, churches and cathedrals from Europe. They didn’t
take the initiatives only for its production; but also, for its improvement and the best cultivable
vineyards. Soon, they started reaping the fruits of their efforts and Europeans became important
players in the wine production and growth in the general market (Twelfth and the Fifteenth
centuries).The application of the new techniques became paramount in the mid-1600; where the
wine producers paid attention to mastering the art of maturing and improving wine. The drastic
rise in trade and colonized colonies led to an emergence of a new age of a large scale fine wine.
The innovation s which dominated the development of fine wine in the 17th century were the
storage of wine in airtight glass bottles instead of over used barrels; thorough grape and small
crop selection. These changes immensely helped in wine ageing longer and commanding a high
value.
Till the mid 19th century; it was a smooth sailing period in the production and consumption of
wine industry which was marred by an epidemic of phylloxera (infestation of vineyards) in the
decade of 1860’s in the major wine producing countries in the Europe region. This period greatly
affected the wine production for many decades beside the many social changes occurred in the
19th century Europe like anti0alcohol campaign. Furthermore, the US ban on alcohol till 1920’s
crippled European economy for worse, which was withdrawn in 1933.
The wine industry has undergone tremendous transitions post 1945 period. One of the major drivers of
the competitive advantage in the modern wine era was the growing economy resulting in an
increased consumer base beyond the European boundaries and traversed across developing
countries. The wine producers sprung globally laid emphasis on the high quality wine to meet the
needs of the new class of educated and demanding drinkers. The wines in the modern world
(20th century) evolved on the news way of wine making technological methods and innovations;
transiting from traditional to industrial process. The advanced wine making practice was based
on fermentation technique which can be easily monitored. The other new age technology like
refrigeration further helped the successful and consistent production of wide varieties of quality
wine in the warm countries of the New World.
This period was also witnessing an alarming deficit in the wine consumption among major
European countries unlike the yesteryears; for instance: in France, the average intake of wine per
person was accounted as 60 liters in 1990’s in comparison to 100 liters in 1970’s. The major
reasons can be pointed as variation in the societal attitudes, and other available affordable substitutes
of consumption hindering their imports market but boosted the export route. Inorder to meet
the rising trade of quality wine internationally; governments from many wine producing
countries adopted stringent regulations to bring awareness about the produced wines quality among
the consumers. Initiatives like description about the grape quality, the designated region of
production were made. The other significant change in the new age wine bottles were being
subjected to labeling. The New World labeling means entailing clear details about the varieties of
the grapes used in wine making against the prolonged European stress on wine’s geographical
location. Another point of difference from the European era was the New World produced
wines focused on the wide range of pricing, regions, place, winery and rating. The new wine agents also
laid great importance on the marketing strategies for increasing the wine demand. Few of the
tools adopted were preferences to the consumers taste; technology amalgamation with the new business practices;
aggressive advertising, and brand segmentation to build wine brands in the global market.
In short, improved technologies; new source of grapes plantation, marketing skills and emerged
academic expertise proved to be the turning point in the making of high quality wines of the
modern world in comparison to the Old world.
While focusing on the making of the high quality wines; the process is dependent on the various
factors, and begins with the selection of specific geographic environment and favorable climatic conditions
of wine production, which is called as the Terroir in French. This concept provides with the
desired characteristics to be an ideal viticulture site; which ultimately results in the growth of the
quality grapes. Climate is believed to be the most important step in the value chain in the modern
wine making and the key differentiator from the old wine world which has added advantage to
the wine producers to operate in an environment conducive for the consistent grape harvesting.
Unlike, in an old European era; wine being the agricultural product was restricted to the weather
conditions and unreliable source of supply. The next step evolves the harvesting of the grapes,
which are later crushed or pressed in the machine to extract the juices. After crushing stage; the
process of red wine making differs from the white wine making; as in the red wine production
involves no removal of the grape skin to add the coloring and flavor during fermentation. To
make the white wine composition one need to separate the skin and seeds from the must. Then,
yeast is added to the juices and the mixture is stored in tanks or barrels made up of oak or
stainless steel for fermentation. The stainless steel barrels help in providing the clean, natural and
accurate environment to the wine mixture whereas the oak barrels adds to the tannins and vanilla
favor from the woods resulting in complex flavored wine. During this process; it is essential for
winemakers to notice the separation of color, tannins and taste from the grape skin, and if evaluated the
wine has reached its optimum character, the skin from the wines can be removed. The red wine
are fermented till they turn dry or the sugar has been transformed into alcohol. But in the white
wine making process; there is a need to preserve some sugar levels to be referred as sweet wines.
The wine is then aged to reach its desired aromas, flavors or taste. In case of white wine; the
wine is aged for not more than a year and red wine is aged for one to three years. To achieve the
final stage of bottling; the wine needs to be cleared, stabled, and free of undue particles.
While reiterating from the advancements in the wine making industry; it can be drawn as the
fragmented industry spread across the globe in terms of its production sizes; locations and specialties. It is
interesting to note that the economies comprising the New World or outside Europe were
confined to domination by few major wine producers; though making consistent mark in the world wine
market. For example; 80% of the wine making in Australia was concentrated in the hands of four
firms; but in the year 2001, 50 % wines in UK and 21% wines in US market were exported from
Australia. This trend was a rare site in the late 1980’s; when 85% of the total wine distribution
throughout the world was dominated by 4 Europe nations (France, Italy, Portugal, and Spain).
The new wine producers grabbed their share of profits and the international shares of the Old
World producers got lessen by 13 % by 1997.
The recent developments in the industry clearly show the consolidation of the large conglomerates in the
international wine market. These big companies have adopted the trend to acquire small wineries and diversifying
their portfolios. For example: Foster’s Brewing from Australia acquired more than 20 wine
producers in the span of six years. After evaluating the current scenario; it can be concluded that
will be difficult for the new entrants to command the relevant position in an international arena
as the dominant wine makers continuously indicating towards their plans to spread their wings
and making their brand presence felt around the world. After an enormous success tasted by the
modern winemakers with their greater emphasis on new industry trends; it would be interesting
to keep a constant eye on what comes next.