Globalisation of the world's wine markets

Abstract

Why does the wine industry attract so much attention? After all, it accounts for just 0.4 per cent of global household consumption, and vines over only 0.5 per cent of the world's cropland (of which barely one-third produce winegrapes). Moreover, globally it is not a growth industry in that world wine production and consumption have been declining slightly over the past two decades. But to millions of investors and hundreds of millions of consumers, this industry provides a far more fascinating product than its shares of global expenditure or GDP might suggest. Moreover, it provides an insightful case study of globalisation at ork that involves primary, secondary and tertiary sectors of the economy, because he global average cost of a bottle of wine is shared roughly as follows: 10 per cent o the grapegrower, 30 per cent to the winery, 37 per cent to transporters, wholesalers nd retailers, and 23 per cent to tax collectors (Wittwer, Berger and Anderson, 2002). Show more