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Quotas, tariffs, subsidies ? statistics
? Exports of wine have increased from 3% of sales to 52% of sales in 2002. this equals $2.3 billion dollars or 414 million litres
? US greatest source of export growth
? Australia's export policy has led to major reforms in the Australian wine industry
? ?Rationalisation of wine production' leading to overall efficiency giving them cost advantages over their competitors and reshaping of distribution lines.
? 4th largest wine exported in the world with 5% of global market
International organisations and treaties
? 1994 Uruguay multilateral agreement (WTO)
? Agreement to reduce protection on agricultural products (wines/grapes) by 36% by 2000
? UK has the largest export market of wine
Trade agreements
? US and Australia have strong trade relations and trade agreements
War in the Middle East
Weak economic conditions
Social
Consumer tastes
? Global markets have been increasingly integrated
? Growing demand for mass market, high quality wines and a recognisable brand
? Marketing of wines ?other benefits' has increased consumption globally
? Strong economic growth period sees wine viewed as a luxury good, something consumers buy when they feel conditions are good as their incomes are increasing...
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