Essays on Terroir in New World Wine Regions Case Study

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The paper "Terroir in New World Wine Regions" is a great example of a marketing case study.   The French winemakers developed the concept of terroir after they observed the differences that existed in the wines that are from different regions, vineyards or different areas of that particular vineyard. The French crystallized the concept of terroir to explain the particular aspects of regions from diverse places that shape and influence the wine that is made from that place (Trubek 2008). Such components as climate, topography, soil type and the plants growing around and in the vine plots are given particular consideration.

These are natural elements that to some degree are beyond human control. However, the definition of terroir can be enlarged to include particular elements that can be influenced or controlled by the human. This can include the choice of the grape variety to plant, though whether that variety produces quality wine or not is an intrinsic element of terroir that may be beyond any human influence. The concept of terroir entails the complex influence that will result in a wine’ s unique traits. The attempt of terroir is to capture all of the cultural and myriad environmental influence in making wine and growing of grapes.

The concept and application of terroir issues have become integrated into the new world of wine today. The winemaking choice of ambient or wild yeast in the process of fermentation instead of laboratory or cultured produced yeast is an example of a reflection of terroir. The influence that this concept has is evidenced throughout the evolution of the wine industry: both the traditional (or established) producers and the new producers.

(Cross, Plantinga & Stavins 2011) The world wine industry is characterized by the presence of traditional producers who is also referred to as established producers, new producers and new buyers. There are changing trends being observed in this industry one is the dynamism of the oligopolistic competition where new firms face the threat of new competitors (Hollebeek, Jaeger, Brodie & Balemi 2007). The new producing world wine region is progressively applying the concepts that will make them cope with the needs of the market. The export of wine has hiked the recent past due to factors like the rise in demand for wine by non-producing countries that have little or no wine consumption traditions.

Traditional wine regions include the European wine producers that existed from the seventies. The new producing and exporting industries includes the U. S. and Australia that are rated from the eighties and the Argentina, Chile and South Africa that are since the nineties (Villanuela 2011). The Australian region is one of the New World wine regions. Australia is a relative newcomer in the world wine. It has been able to conquer the mainstream consumer market.

Subsequently, it builds on this success by showcasing world-class wines. The Australian wine exports, for example, were negligible in the 1960s and by the end of 2005, they hit 10% of the wine exports globally (Anderson & Nelgen 2011). Currently, Australia is ranked the fourth largest exporter of wine in the world. About half of the wine produced in Australia is exported – over four hundred liters. The Australian wines have developed a reputation for good quality in the past thirty years especially due to the production of a variety of wine grapes.

South Australia is a producer of more wine than any other Australian state. It is characterized by a long ripening season, warm summers and cool winter.


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Cross, R, Plantinga, A J, & Stavins, R N 2011 What is the Value of Terroir? The American Economic Review, 1013, 152-156.

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