1. Introduction
This case study presents the challenge the French “Old World” wineries face due to the growing competition from the New World wineries and the increased globalization of the wine industry. France is still considered a world leader by producing 20% of the world’s wine and consuming 14% (Wine Institute, 2004), although their dominance is waning. The French winemakers believe “It’s an art, not a science” whereas the New World espouses a “total commitment to innovation…from vine to palate” (Bartlett, Cornebuse, McLean 2008, p. 119). Bartlett, et al ask “What strategy would reverse the trends” and “how to align the diverse industry and government interests to act on it” (p. 137).
1.1. History
It is an extraordinary fact that wine is the fermented juice of a single fruit, the grape. Every drop of wine is made from rain, sunlight, and nutrients from the soil and is far older than recorded history. It emerged with civilization itself from the East and is a long established industry of thousands of years which began with the Egyptians and Greeks who colonized the Mediterranean about 1100BC. It was within the stable framework of the Church and the monasteries in the Middle Ages where the tools, terms and techniques of wine came into being.
The 1800’s saw Europe with an unhealthy amount of their economy relying on wine. Further as much as 80% of the population in Italy relied on the wine industry for a living (Wine Institute, 2004). As wine was in the unique position of being the one and only safe, wholesome beverage and often the only storable, Europe drank wine on a scale that is difficult to imagine. Over the years, France became the ...