PARINGA ESTATE WINERY

Paringa Estate Winery (Exploring Price Points)

Paringa Estate Winery (Exploring Price Points)

Introduction

The wine market of the world includes the sale of champagne, sparkling wine, fortified wine, and still wine. Market and industry components differ according to the country specific situations. However, market is valued by RSP, i-e retail selling price and taxes. The total amount of wine consumed shows the total wine consumption in millions of liters (Demeter Group, p. 2). Wine industry is growing with a steady pace. The global wine industry is forecasted to generate more than $292 billion in 2014. At this point, it is expected that the volume would exceed $22 billion.

The wine industry is highly diversified. Geographical concentration of wine production is not too much in any particular region or company. The biggest 3 winemakers contribute about 8% of the total wine production. Wine producers own or rent vineyards. Assessing the wine market and doing business is highly affected by the state laws and regulations. Wine and other alcoholic beverages are considered to be affected by the state's provisions of doing wine business. In such case owning and renting decisions depend on government regulations. Major wine companies own vineyards according to their needs and some rent out vineyards. Many of the winemakers buy fruit from local producers and convert them into wine.

The consumption trends change mildly. Market can shift towards beer consumption. May be a change in regulations or social trends can cause the market to lose ground. Degree of competition is moderate in the wine industry. Country specific wine industry can give a better picture. The prices are seemed to have a mild effect due to competitive forces. Pricing decisions can be highly affected by the trends in the market. “Selling it Cheaper” will not work in all cases (Pricing Society, 2013, p. 1).

Paringa Estate Winery

Established in 1985 by Lindsay McCall, Paringa Estate Winery has increased substantially during its business history. The company owns 10 acres of planted vines with Chardonnay, Pinot Gris, Shiraz and Chardonnay. In 1998, the current winery was built. It has an excellent restaurant on it on the upper level of the field. Paringa Estate had more than 55 acres of wines and 220 tonnes of processed fruit, producing 16, 000 wine cases. In Australia, Paring Estate is the most awarded winery. Especially, the Pinot Noir and Shiraz of Paringa Estate have been very successful (Paringa Estate Winery, 2013).

Beginning an incredible journey in 1984, Lindsay McCall's fascination and passion in wine began after 1970s. In 1980, he decided to go for fulfilling his vision and passion. First ten years did not show significant growth and progress as Lindsay was a fulltime teacher. In 1996, Lindsay became fulltime devotee of his business. He gave it all to produce excellent wine. Paringa had more than 220 tonnes of fruit in 2008. It has a strong presence in Australian market and exports its products to Denmark, UK, Singapore, Korea, Hong Kong, Taiwan and China (Paringa Estate Winery, ...