Susan Cholette

Assistant Professor, Department of Decision Sciences, College of Business, San Francisco State University

This paper compares the state of the French and Californian wine industries from a business perspective, through a broad survey of recent academic and popular press articles.  Although these two wine regions may seem disparate, commonalities (including potential business opportunities and threats) make the comparison relevant. Facets of supply and demand are analyzed, and respective production and distribution regulations are summarized.

Several predictions for the future are presented, with suggestions on how to best leverage these trends.  Demands will rise as the economic downturn abates and overall non-cyclic market expansion continues.  Segmentation will play an even more important role in how suppliers target their offerings, as will changes within distribution and wine retailing.  Regional shares of the domestic and export markets will shift as globalization of the sector, including international mergers and partnerships, continues.

In conclusion, suppliers from both regions can take advantage of current conditions and future trends to produce and market wines in a business-savvy manner. 

A summary of this analysis was presented at the CSU-MICEFA International Faculty Partnership, June 22-26, 2003 in Paris, France, but this paper has not yet been published in any form.