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The California Wine Cluster (History of the California Wine Cluster…
The California Wine Cluster
Economy
The seventh largest economy in the world on a standalone basis.
Responsible for 17% or $109.5 billion of U.S. exports.
Leaderhip
Aerospace
Biotechonology
Computer Hardware / Software
Agriculture
50% workforce
Food processing
Companies
Dola
Campbell Soup
Frito-Lay
Sun Maid Raisins
Tourisim
History of the California Wine Cluster
Spanish missionaries began cultivate grapes in late 1700
Phylloxera epidemic reached California in the late 1870
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Opening of the Viticulture and Enology Department at the University of California at Davis.
Grafting helped mute the impact of
phylloxera.
In 1889 California wines had reached a quality to compete in the World´s Fair
Prohibition 1920-1934 vintners survived making grape juice and sacramental or medicinal wines
U.S. wine consumption
Table less tha 14% alcohol
Dessert or fortified greater tha 14%
Sparkilng
Third largest wine markey
Wine production
Grape procurement
Crushing, fermentation and aging
Bottling and packaging
Labeling requirement
Distribution
Taxes $1.07 per gallon
Price 50%/16%/33% winery. wholesaler retailer
Sales & MKT
Focus in Distribution / Retailer
Technology development
Department of Viticulture and Enology world´s leading wine reaserch institutions
Financing
Bank loans
Specialized Financing
Five years to reach profitability
Competition
France
Highest consumption
Italy
Australia
Chile