Wine and Spirit Industry: Overview, Market Segmentation, and Product Details

This presentation provides an overview of the wine and spirit industry, including market segmentation and product details. It covers the annual consumption rate of Singapore, the major wine companies, and the consignment contracts. It also discusses the Japanese company Golden Vineyards and its Taketsure Pure Malt Whiskey Nikka. The presentation is a valuable resource for anyone interested in the wine and spirit industry.

WINE AND
SPIRIT
INDUSTRY
An Overview

INTRODUCTION
 The wine and the spirits industry
is the industry which caters to the
recreational needs of the
customers from the diverse parts
of the world (Delmas and Grant
2014).
 The alcohol consumption rate of
the world has increased in a
significant manner and this
particular factor is being utilized
by the various organizations to
provide superior quality alcohol
to the people (Cassi, Morrison
and Rabellotti 2015).

OVERVIEW OF THE
INDUSTRY
 The wine making industry is one of
the most important ones in the nation
of Singapore and the annual
consumption rate of the nation is
“17.6 million hectoliters” for the year
2017 (Singapore Wine Vault. 2018).
 68% of the people of the nation like
to consume red wine (Singapore
Wine Vault. 2018).
 Furthermore, according to an
estimate the annual wine
consumption rate of the nation is
expected to increase by almost 21%
(Singapore Wine Vault. 2018).

OVERVIEW OF THE
INDUSTRY (CONTINUED…….)
 The annual wine consumption rate
of the nation has increased by
almost 83% within the last decade
(Singapore Wine Vault. 2018).
 The nation imports the majority of
the wine required by its citizens
from the nations of Australia, Chile,
France and others (Garcia et al.
2012).
 The major wine companies of the
nation of Singapore are “AA French
Wine Pte Ltd”, “Beautiful Wine”,
“Golden Hung Ho”, “Infinite Supply
Pte Ltd” and others (Gov.sg. 2018).

MARKET SEGMENTATION
 The Japanese company Golden
Vineyards is trying to enter the
wine and spirits industry of the
nation of Singapore with its
“Taketsure Pure Malt Whiskey
Nikka”.
 This is a whiskey which is a
manufactured by the Japanese
company from the cereals and
malt.
 Likely to be much popular in
Singapore considering the fact
that the people of the nation like
to indulge in hard drinks.

MARKET SEGMENTATION
(CONTINUED…..)
 The company will export 100 bottles of
the whiskey to check the response of
the people towards this particular
product.
 The price of each bottle of 1.5 liters of
“Taketsure Pure Malt Whiskey Nikka”
is $79.99 in the nation of Singapore.
 The government of the nation levies a
tax of 5% on various kinds of alcohols
(Gov.sg. 2018).
 The nation of Singapore levies an
additional tax of 7% on the various
kinds of alcohol which is being
exported from the other nations as part
of GST (Gov.sg. 2018).

MARKET SEGMENTATION
(CONTINUED…..)
 The company will focus on the
customer base belonging to the age
range of 20-40 years of age as it is
seen that the people belonging to this
particular age range consume the
maximum amount of alcohol.
 The primary areas where the product
will be served to the customers are the
various kinds of bars, restaurants and
others in addition to the authorized
stores which sell alcohol to the
customers.
 The whiskey under discussion here
will also be provided in the Shen
Shiong supermarkets.

MARKET SEGMENTATION
(CONTINUED….)
 The company which is likely to
take this particular kind of
whiskey is “Golden Hung Ho”.
 The company is known for the
high quality as well as the
diversity of the alcohol to the
customers.
 The people of the nation of
Singapore like to try new kinds of
alcohol and the particular whiskey
under discussion here is a well
established brand in the nation of
Japan (Chandran, Sundram and
Santhidran 2014).

CONSIGNMENT CONTRACT
 A consignment contract is a
contract which is signed
between a “consignee and
consignor”.
 Signed for the process of the
sale of a particular product,
its transfer from one place to
another, its storage, resale or
any other related aspects
(Curdt-Christiansen and
Silver 2013).

CONSIGNMENT
CONTRACTS
 The below give are two samples of the
consignment contracts which the
company can take the help-

PRODUCT DETAILS
 The whisky under discussion is
originally manufactured in the
nation of Japan from malt and is
a very popular one in the nation.
 Japan generally transports
alcohol and other kinds of
products to the diverse nations
taking the help of the sea routes
and therefore it is quiet logical
that the nation of Japan will
transport this particular product
as well to the nation of
Singapore via the sea route
itself.

PRODUCT DETAILS
(CONTINUED….)
 The nation of Singapore levies a tax of
7% on the products which it exports from
the other nations of the world (Gov.sg.
2018).
 The products which are entering into the
nation needs to have a prior permit as
well as permission from the government
of Singapore for its entry into the nation
as per the precepts of “International
Trade Act” of the nation.
 The products from the other nations of
the world need to take care of another 7%
of additional duty tax in order to enter the
market of the nation (Gov.sg. 2018).

PRODUCT DETAILS
(CONTINUED….)
 The company is going to
follow the strategy of
product differentiation for
the process of the sale of
this particular whiskey.
 The company will also try to
take the help of various
kinds of effective marketing
strategies for the process of
the sale of this particular
product.

CONCLUSION
 The spirits industry has recently
evolved as one of the major ones
and in the recent times it is seen
that the industry has significant
strides not only in terms of the
revenue generated by it also in
terms of the number of customers
which they have.
 For the process of the sale of
various kinds of whiskeys and
other spirits the organizations the
government needs to take into
consideration various factors.

REFERENCES
 Anderson, K., Nelgen, S. and Pinilla, V., 2018. Global wine markets, 1860 to 2016: a statistical compendium. University of Adelaide
Press.
 Cassi, L., Morrison, A. and Rabellotti, R., 2015. Proximity and scientific collaboration: Evidence from the global wine
industry. Tijdschrift voor economische en sociale geografie, 106(2), pp.205-219.
 Chandran, V.G.R., Sundram, V.P.K. and Santhidran, S., 2014. Innovation systems in Malaysia: a perspective of university—industry
R&D collaboration. AI & society, 29(3), pp.435-444.
 Curdt-Christiansen, X.L. and Silver, R., 2013. New wine into old skins: The enactment of literacy policy in Singapore. Language
and Education, 27(3), pp.246-260.
 Delmas, M.A. and Grant, L.E., 2014. Eco-labeling strategies and price-premium: the wine industry puzzle. Business &
Society, 53(1), pp.6-44.
 Farinelli, F., 2012. Natural resources, innovation and export growth: the wine industry in Chile and Argentina . Maastricht university.
 Garcia, F.A., Marchetta, M.G., Camargo, M., Morel, L. and Forradellas, R.Q., 2012. A framework for measuring logistics
performance in the wine industry. International Journal of Production Economics, 135(1), pp.284-298.
 Gov.sg. 2018. Home. [online] Available at: https://www.gov.sg/ [Accessed 28 May 2018].
 Nooriafshar, M. and Vibert, C., 2012. Perception of success in a nascent wine industry. Proceedings of the Regional Development:
Connectedness, Business and Learning 2012, pp.117-123.
 Rod, M. and Beal, T., 2014. The experience of New Zealand in the evolving wine markets of Japan and Singapore. Asia-Pacific
Journal of Business Administration, 6(1), pp.49-63.
 Rod, M., Ellis, N. and Beal, T., 2012. Discursive constructions of the role of cultural intermediaries in the wine markets of Japan and
Singapore. Qualitative Market Research: An International Journal, 15(2), pp.128-147.
 Singapore Wine Vault. 2018. 2015 Singapore Wine Industry: Q2 Highlights and Outlook - Singapore Wine Vault. [online] Available
at: http://www.singaporewinevault.com/2015-singapore-wine-industry-q2-highlights-and-outlook/ [Accessed 28 May 2018].
 Szolnoki, G., 2013. A cross-national comparison of sustainability in the wine industry. Journal of Cleaner Production, 53, pp.243-
251.
 Wang, L., Kowk, S.K. and Ip, W.H., 2012. A radio frequency identification-based quality evaluation system design for the wine
industry. International Journal of Computer Integrated Manufacturing, 25(1), pp.11-19.