Magazine

Table: What Ails the French Wine Industry


TOO MUCH REGULATION

While New World growers are free to plant how they please, France sets strict limits on what types of grapes can be grown in a particular region and how they're planted and picked.

QUANTITY OVER QUALITY

Most French winemakers are paid for the amount of grapes they deliver to a local cooperative, discouraging the careful pruning and limited yields needed to produce high-quality wine.

TOO MANY PLAYERS

The fragmented French wine industry is losing ground to overseas rivals who have created powerful global brands such as Rosemount and Beringer.

TOO CONFUSING

New World wineries make it easy for consumers to understand what they are buying by selling single-grape varietals such as Chardonnay. Most French wines are labeled according to geographical origin. Only connoiseurs can distinguish between dozens of Burgundian villages.

POOR MARKETING

Small French winemakers can't afford to keep up with New World competitors on advertising and other promotions. In England, E. & J. Gallo's marketing budget last year reached $2.5 million, more than twice what the entire Bordeaux region spent on marketing.

Data: BusinessWeek


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus