Vincor

Vincor

Wanted to be a leader – 1 billion dollar of sales

One of the world’s top 10 wine companies

Decide to go global  - so they start developing export capabilities, product innovation and shift to consumer marketing

Acquisition of Goundrey Wines, Australia

Vincor is the largest Vine Company in Canada and 4th largest in North America – to become a major leader they chose Acquisition strategy 

It acquired 8 wine companies and integrated its sales, marketing, production and accounting and merged two wine kit companies which leads to

Economies of scale

21% market share in 2000

Export to japan and Asia – increasing trend in Japan  – markets had yet to be tapped

Competition was tough – because consumers moved up the quality and price scale

L’ambiance

Vex

Canada cooler

R.H Phillips

Swot

Strength

Experience, market share 21%, expertise in R&D, brand

Weakness- could be the price

Opportunities – New product with high quality – Demand in red wine  

Threats

Monopolistic

Shift in consumer preference

Demographics – 20-39 age group per capita consumption at 7.9 litres

40+ ages group having a per capita of 14 litres

The largest wine producer of wine were US, Australia, Chilli and Argentina

France – is the world leader in the production of wine – due t historical and cultural factors – Quality is High

Italy – 2nd largest producer - Old and established wine industry that relied on the appellation method to control the quality –

Australia – made higher quality wine while keeping the cost down

Chile – had 4.5% of the total export market and was ranked 5th in the world