Economics

All About the Wine Industry

Wine has been an important commodity for thousands of years, and today France leads the way in its manufacture globally.

5. Description

With the numerous emerging concoctions available today, an old fashioned drink can be easily eroded off. However, wines continue to be among the most popular drinks, with romantic dates, reveling in festivities, and the eating of quiet family meals all said to be fitting occasions for its consumption. Wine is an alcoholic spirit made from fermented fruit, most notably grapes, without the addition of yeast and other fermentation aids seen in the production of beer, whiskey, and other alcoholic beverages. Wines usually come in varieties of whites and reds, and are being consumed by people worldwide today. Wine production is both a science and an art, a blend of innovative technology and individual creativity. The Wine industry is also a growing sector, with several economic factors lending to the environment surrounding its manufacture. The Wine Industry has taken a leading lapse because of the integration of artistic and economic aspects, and thereby producers must possess a solid understanding of both intrinsic and extrinsic factors pertinent to the wine market. Quality wines, especially those made with high antioxidant grapes, have also been shown to proffer a myriad of health benefits when consumed in moderation.

4. Location

From Africa to America, the wine production industry offers entry into the global market via one of the most diversely selected product lines worldwide. Some of the top global producers of wine today are France, Italy, the United States, Spain, Chile, and China. Though Italy has only one-third of the vineyards seen in France, 4.5 million tons of wine are still produced annually in that country. France, meanwhile, has long had a firm hold on the global winemaking sector. Top wines from France include Cabernet Sauvignon, Syrah, Grenache, and Merlot. China ranks among the top nations for both wine consumption and production as well. The bulk of their production remains for domestic sales, though they are still trading with the US and Canada to meet those same needs, as wine demands there are growing alongside incomes.

3. Process

Wine makers follow five general steps, with added deviations and variations along the way, to make their respective wines unique. Harvesting is done either mechanically or manually. Grapes are harvested after determining the acidity in them and with little bit of tasting. After harvesting, sorting of grapes is done into rotten and un-rotten. Un-rotten grapes are stomped, crushed and pressed in order to separate the juice from the skins, seeds and solids. Fermentation usually happens in about 6 to 12 hours, and keeps on going until all the sugar has been converted into alcohol, thereby producing "dry wine". In the process of clarification, solids, like proteins, tannins, and dead yeast cells, are removed. Wines are given right away in a bottle with either a cork or a screw cap or kept for some extra aging and then bottled.

2. History

Wine enjoys a rich history from ancient civilization. Since 6,000 BCE, people have been developing methods for fermenting grapes to be used in wine production. With global exploration, settlers came to new lands and then viticulture flourished within them as well. Some of the evidences are seen in New World vineyards, which remain economically important, within the hybrid Scuppernong vines of Florida and California. Today, the wine industry is flourishing throughout the world, with annual sales revenues in the billions of dollars. Wine has also long been an important status symbol, and frequently used in religious rituals.

1. Regulations

The wine industry is actually a composite of several individual economic market segments. Vineyards might face new viticultural challenges, such as a shorter growing season that may not allow grapes to develop to maximum maturity for manufacturing premium wines. Significantly higher capital for wine production, such as for increased irrigation entailing high levels water usage in growing grapes and many other operating costs, are some of the threats that require consideration as soon as they arise. If there is less severe cold of the winters, there will be no deep freeze to make those lusciously sweet nectars of the gods and growing the grapes needed for Champagne and making high-acid wines for "bubbly". As such, climate change will also become an ever greater challenge to the industry in years to come. Furthermore, as an alcoholic "adult" beverage, there are age restrictions on wine consumption and purchase in many countries and, as with all alcoholic spirits, wines should always be consumed responsibly in order to enjoy them without risking harmful repurcussions.

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