Identify the players in the Californian wine cluster, who are they?
Main players are growers, vineyard owners, wineries and automated processing facilities. Moreover, there are many supporting players such as bottle, cork and barrel producers, CAGR, Research and Education Institutions which are addicted to improve wine production and services, Distribution Channels to business and direct customers, Bank for financing, Tourism Clusters for presenting, Government, wine magazines, restaurants and bars, food cluster, U.C Davis, producers of equipment which are used in production of wines and grapes. As types of those equipment, fertilizers, labeling machines, trucks, scissors, etc. can be listed. Government role is important, because taxation, production regulations, supports for exporting and production quotas all are in hand of government.
What are the reasons behind the Californian wine cluster success?
Two key factors in success of Californian wine cluster are price and taste. Those two are decision making factors for consumer. Firstly their price is cheap, because Californian wineries’ yield amount is high, tax amount for a bottle is low, production efficiency in the mean area is high, labor cost is low, there is no production quota by government and they are using automated systems for wine production which is more efficient. Those are the reasons that present low price opportunities. Taste comes with wisdom of years in production. Research facilities, wine production and gourmet schools, good quality grapes, fine barreling materials and supporting spices in wine make Californian wines’ taste better and better in years. As support elements, Californian Food and Tourism clusters are helping wine cluster as brothers and sisters.
Food cluster has many different kind of best chefs and restaurants which serve very best of dishes with wines which mixture of taste calls for new customers. Tourism cluster brings new possible customers to food cluster and wine cluster. Wine tasting tours and winery tours are big chances for presenting Californian wines to the rest of the world. Beyond all of those, California is in one of the strongest countries and government, trade unions, institutions, powerful people give support to wine clusters in presenting, producing and transporting. Other big competitors as Italy and France are stricken about regulations and taxation which bring Californian wine’s success.
How is the situation regarding the wine industry in France, Italy, Australia, Chile?
In competition, Italy, France, Australia and Chile are main actors against California, and old big players are France and Italy. In exporting, France takes the lead and Italy takes the second row. They are the closest ones to EU consumers which are main consumers and they are old player. Over passing decades, Australian and Californian wines have kept the quality up and caught France and Italy. As a result, especially French and also Italian wine price levels remained high besides of California and Australia. Also, French government put regulations for production amount and taxation.
Australia is a very fast growing wine producer and their price level and quality is very fine. Besides, many farmlands turned into vineyards and consumption level is demanding day by day. Also government supports export and regulates wine sided. Furthermore, they are very close to Asia which is a growing business in wine sector. Chile has a lower consumption and production according to Australia and California, but their price level is low and taxation and regulations are helpful in terms of improving production and growing wine business. Their wines are carton packed and acidic, and also those give the opportunity of cheap wines.
If you were the governor of California, what would you do about the wine cluster?
Regarding wine clusters, firstly I probably offer some marketers to market premium products with better price, and create better brands. I would try to open gourmet, chef and wine expert schools, also more research institutions for not also wine production but also their materials and grape species. I push tourism sector to create especially wine tasting and winery visit tours. Moreover, placing wine and best brands into Californian advertisement campaigns. Reason behind all of those, Californian wine needs presentation, awareness and marketing, moreover good labeling and better brand image in minds. So, to create all class of brands from premium down to simple versions, they need premium marketing advises and campaigns.