Food and Wine Industry (Research Paper Sample)

Food and wine industry Name Institution affiliation 1. Introduction Food and wine tourism has been growing as part of the overall travel experience with Australia, highlighted as one of the best destinations to offer such services. The country's wines have won international accolades particularly from the Tasmanian region. The purpose of this report is to develop a winery that can compete with leading wineries in the Tasmanian region. The winery and cellar door will be located in Launceston and will aim to promote tourism initiatives such as festivals. 2. Wine region Analysis 2.1 Country Over the last 200 years, the wine industry in Australia has undergone tremendous growth with a transformation from small plantings to the fourth largest wine exporter in the world. The country's wine industry renowned for its innovation, quality and depth (Winetasmania.com.au, 2016). Additionally, Australia produces every major wine a factor that sees the country produce an average of 750 million liters annually for export purposes with the local market consuming only 40% of the volume produced. As such, it contributes greatly to the country's economy by promoting tourism and creating employment. The Country has over 60 wine regions across the country and is famed across the globe for its award winning wines. The reputation of wine tourism has grown over the years with every wine region in the country holding annual festivals where tourists sample local culture, food and of course, wine. The country's largest festival is the Biennal Tasting Australia, where Australia's best wine is showcased. 2.2 Region The Tasmania region is well known for its production of Chardonnay, Riesling, Sauvignon Blanc, sparkling wine and Pinot Noir all which are award winning products. Launceston is the region's second major city after Hobart. It is famed for its culture, nature, food and most importantly wine. Additionally, the city boasts of a well-preserved and elegant Victorian and Colonial architecture that offers both city and country charm. The city, located in the Northern region has long, dry, and sunny autumns coupled with a cool climate providing ideal conditions for developing aromatic wines that are intensely flavored. The premium wine growing region runs from the Launceston through the region covered by River Tamar. The city serves as Northern Tasmania's commercial hub and has grown into a major tourist center. Over the years, the number of visitors to the city has been on a steady rise. In 2004, the city attracted over 400,000 visitors, an increase by 51% with the United States accounting from 17% of the visitors and the United Kingdom 25% (Hardy, 2015). One of the main attractions to the city is the Cataract Gorge. A single span charlift, the longest in the world stretches 308 meters across the world. Other attractions include City Park which houses the Albert Hall as well as the Tasmania Zoo. Launceston hosts a three-day celebration annually every February at the City Park. the Festivale, features Tasmania's famed cool-climate wines and gourmet food with interstate and local artists offering entertainment at the Festivale. The event usually attracts 30,000 to 35,000 people, with over 70 food and wine exhibitors (Food and Wine, 2016). The Tamar Valley also specializes in cellar door tastings especially for visitors. 2.3 Competitors In every new business, it is imperative to identify competitors for benchmarking purposes. As such, the report highlights three competitors towards the Leux Winery. The first competitor is the Brown Brothers. The company, purchased from the former Tamar Ridge Estates in 2010. The Brown Brothers are one of Australia's respected wines businesses owns over 300 hectares of vineyards (Brown Brothers, 2016). The company has a cellar door at Tamar Ridge within the proximity of Launceston. The cellar door offers eight wine products, with the Pinot Noir as the premium brands in terms of pricing. Members of the cellar door have a privilege to discounted prices on all products. Part of the company's marketing initiatives is the use of events such as the king Valley Ballooning, Pie and Pinot Days and the Spring Wine & Food Festival to promote their products (Brown Brothers, 2016). The company’s target market is both local and international tourists. The company's website has a great layout that is appealing and easy to navigate. The key point of difference for the company is that it offers its clients food recipes that blend well with their wines. The second competitor is Josef Chromy Wines. The company's cellar door, winery and vineyard is located at Relbia, which is a 10-minute drive from the airport. Its proximity to the airport gives it an advantage in attracting arriving tourists. The company has three broad ranges of wine. These are Pepik, Josef Chromy and Zdar. The latter is the premium quality range of wine and are limited in production. One of the key features of Josef Chromy wines is its introduction of the Wine and Spirit Education Trust (WSET), the first of its kind in Tasmania. The trust is internationally recognized and certifies those interested in learning the production of wines. Josef Chromy's pricing policy depends on the class of the wine range. The most expensive range of wine is the Zdar. Additionally, one can purchase gift vouchers for friends and families to redeem them at events. The company's website is well designed and has an option placing orders online. As part of the company's marketing initiative, a restaurant was recently introduced whereby fresh local produce and the superb wine range is available to customers. The third competitor is Winemaking Tasmania. The winery is located at Cambridge. Unlike the other two companies, Winemaking Tasmania offers contractual services to its clients with vineyards. The company, established in 2001 does not produce its own wine. The company's key products include sparkling, red, and white wine depending on their client's needs and serves between 35 to 46 clients (Winetas.com.au, 2016). Because the company does not brand its own wine, it does not have a pricing policy. Its target market are clients who lack wineries such as retailers, restaurateurs and wholesalers. 2.4 Environmental Analysis Political Australia is a country run by a federal constitutional monarchy operating under a parliamentary democracy also referred to as a liberal-capitalist democracy. As such, the state is influencing national economic policies. The country has experienced political stability for many years and has three main political parties: the National Party of Australia which is a conservative movement, the Liberal Party of Australia which is a centre-right movement and the Australian Labor party which is a social democrat party (Guven & Islam, 2015). The Tasmanian government knows the importance of the wine industry. As such, government policies in place are geared towards working with potential investors to achieve excellent growth prospects. The department of State Growth provides potential investors with tailor-made requirements for the wine industry. Most of the country's cellar doors and wine producers require a 'special' license for their mode of operations which allows them to sell their liquor at specified times and conditions. Australia's foreign investment guidelines are flexible policies that allows foreign investments to make substantial contribution to the wine industry as it is non-discriminatory and takes a practical approach (Guven & Islam, 2015). Potential investors from overseas are allowed both short-term and long-term investments that may provide them with permanent residency. It is also important to highlight that the Tasmania region has the lowest tax brackets and lowest costs of setting up businesses in Australia making it an ideal location for a winery and cellar door. Economic Australia is one of the world's largest capitalist economies (Pietsch, 2004). The country's GDP is at par with Western Europe's dominant economy (Ho, 2014). Part of the country's economic strength is based on natral resources such as iron ore, coal, natural gas, coal and renewable energy sources. The country also has high levels of foreign investments due to its favorable government policies and relatively low taxes. Other than energy, natural resources and food exports, much of its income is derived from its large service sector. Prior to the 2008 global recession, Australia experienced 17 consecutive years of economic growth. The country experienced massive economic growth for 25 consecutive years without suffering a single recession. Australia is a dynamic investment destination that continues to attract foreign investment in almost every sector of the industry. The country’s economy has been mainly driven by continuous entrepreneurial activities that have been largely supported by attractive perks and government framework. The Australian government has reduced its interest in many sectors of the economy, thus opening them up to domestic and foreign competition. The country’s legal framework and fiscal policy ensured that it came out of the 2008 economic crisis relatively unharmed. The country's government is currently engaged in bilateral agreements (Free Trade Agreements) with Indonesia, Japan, China, Malaysia and India. At the moment is engaged in the Trans-Pacific Partnership Agreement. Australia's currency is fifth after, the US dollar, the euro, the Japanese yen and the British pound in the world foreign exchange markets. It is a popular currency due to its high interest rates in Australia. This is attributed to lack of government intervention of the foreign exchange market as well as political stability associated with the country. Social Historical data indicates...