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.