Organic Wine
1
ITS. CIUDAD JARDÍN
PROJECT: MARKETING OF ORGANIC WINEIN THE NETHERLANDS
AUTHOR: CYCLE OF INTERNATIONALTRADE
PROGRAM: LEONARDO DA VINCI: "YOURCOMPANY ACROSS BORDERS"
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
2
INDEX:
1. Product ................................................................. 3-91.1. Environmental analysis1.2. Designation of Origin Rioja (DOR)1.3. Organic farming1.4. Organic wine: material elements
and external elements1.5. Swot analysis
2. Price ....................................................................... 103. Place ...................................................................... 104. Promotion ............................................................. 105. Market Research................................................... 116. Dutch Students questions and answers ...... 12-137. Appointments in Dokkum .................................... 148. Ther relationship with the students ................... 159. Living at the Dokkum students´ houses ............ 16
10. Basque students experience about
the Project with ROC FRIESE PORT .................... 17
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
3
1. PRODUCT
1.1. Environmental analysis
In the Appellation of Origin Qualified Rioja, according to the climate and geographydiversity, there are three sub-areas of production:
§ Rioja Alta (North part of Rioja)§ Rioja Baja (South part of Rioja)§ Rioja Alavesa (Alava part of Rioja)
where they originate various features of wines, such as, fresh, aromatic, balanced and ofexcellent bouquet.
Our product is located in two cellars of Villabuena, in the Rioja Alavesa, anoutstanding wine region, situated within the framework of action of the Atlantic-Mediterranean climate zone, which ensures the sun and water in sufficient quantity andunder the protection of the Sierra de Cantabria that protects it from the Cantabrian climate(winds from the northwest, cold and wet). Their vineyards are located in small plots, mostlylocated on slopes facing south ("face suns").
Rioja Alavesa is considered to be one of the most international prestigious winearea. A privileged area with a microclimate that makes their wines really unique. Riojawines are covered by one of the oldest appellation of origin in Spain (1926)
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
4
1.2. Designation of Origin Rioja (DOR)
Our winery produces several types of wines, but in this case, we will focus onorganic wines.
The wines are produced under the control of the Council of the Designation of OriginRioja, which have to follow the campaign rules of the wine harvest. It follows the rules withthe aim of protecting the diversity and the quality of the wines. The process of winemakingbegins with a rigorous control of the vineyards according to the Regulation for campaignvintages.
With the Regulation of the Denomination Origin of Rioja about the vineyard andwine, in addition to improving quality is established: the maximum production andprocessing, the authorization of the way and irrigation conditions or any other which couldinfluence these processes.
1.2.1. Parameters associated with the current development and harvest inthe Denomination Origin Rioja
The types of wines under the Denomination of Origin Rioja are: red, rose and white,with a minimum alcohol content of 11.5 º for the reds. It is expressly forbidden to mix any ofthese types of wine.
Quality control comes to any winery that wish to develop and market wines fromRioja. In this sense any winery must appear in the records of the Control Board and fulfilwith the following requirements:
l Be located within the territory of the Denomination of Origin.l Far from a public road or any other local vineyards.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
5
l The facilities must have suitable features for the production, bottling andageing.
Name plate in the cellar of the Board
1.2.2. Rules of the appellation of Origin Rioja
The wines produced and processed according to the rules of the appellation of originrioja, should undergo and overcome a rating process detailed below, in accordance withthe rules of:
1. sampling2. analytic process3. sensorial control4. following of qualified wine
1.3. Organic farmingThe ecological agriculture is a system of agricultural production that promotes the
health and protection of the soil, the water, the air, the biological cycles and the mostimportant, the health of the consumer.
Props on which the ecological production of the wine is supported:· Before starting producing the land in which we will place our vineyards, it has to
be between 2 and 3 years without cultivating anything. (The purpose is to cleanall the chemical products that this land could have).
· We can only use natural fertilizers, of vegetable or animal origin. (Neverminerals).
· To defend our vineyards of the diseases, we can only use sulphur and sulphateof copper (in traditional agriculture thousands of products can be used) toprotect the health of the consumer.
· To eliminate the plagues, it is totally forbidden to use pesticides, since these candamage the vine-stocks and land.
· The fermentation of the wine is made only by natural yeasts.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
6
· The only product that we can use for the correct conservation of the wine is thesulphurous anhydride (in very small quantities).
· The picking up of the grape is done exclusively by hand, we can’t use machines.· They try to use renewable sources of energy, as for example solar panels.
The main difference between the organic wine and the non organic wine, is in thegrape. Organic wine grapes have to be organic, and the distinction of organic productsappear on the bottle (eco label).
Spain has been uploaded to the basket, and there are many wineries that can havein their back labels that are part of the generic term "organic" and producing organic wine.This is a several regulation which is controlled by a regulatory council and it clearlydetermines what is permitted or not in winemaking, to come into the category of organicwine.
1.4. Organic wine: material elements and external elements
Organic wine: material and external elementsThe wine is not a product bearing ingredients but it is exclusively obtained from the
total or partial alcoholic fermentation of fresh grapes. The only ingredient of the organicwine is the organic grape, that’s why the ingredients do not need to appear on the brand.
In connection to the organic production, the vineyards that produce organic grapeare based on two European Laws: CE 2090/91 of 24 June 1991 and 834/2007 of June2007.
The Basque Cabinet of organic farming is the only responsible for giving a guaranteefor organic production. In that way they certify the quality of the wine and in the same way,the obligation of not using chemical fertilizers and fitting sanitary productions. Following theEuropean regulations The Basque Government awarded the eco-label.
In addition to this information, there are two more details printed on the ecologicbrand (eco-label): the first one is ES-VAS. AE CONVERSION to identify the number of thecompany that makes the inspections to the vineyards. And the second one is Nº 007205:the identity number of each bottle (there is only a unique number for each bottle).
Eco- Label
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
7
Finally, we can say that the council of regulatory Denomination of Origin Rioja onlygives the brand to those wines that pass the inspections successfully. Denomination oforigin Rioja is based on a European Law.
The external elements, in many cases are almost as important as the physicalelements. Now we detail the external elements:
s PACKThe wine is bottled in green glass bottles with a capacity of ¾ litre. This is the most
common packaging in Spain.We use the traditional cork. The cap has to be organic too, it can not be made of
silicon or other materials.s PACKAGINGThe boxes in which our wines are sold are made of cardboard and they have a
capacity for 12 bottles, separated by cardboard dividers, so they do not collide with eachother avoiding any tears or friction or wear on the labels or in the glass.
The boxes will be exactly the same as those used in Spain, they will show the logoof the company, just like on the label and the type of wine that contains (young, nurturing,reserve, ....).
The bottle is an element of promotion much more important than the box itself,because the bottle is what the consumer will finally buy.
s LABELINGThe label is everything that is placed on the packaging itself, in our case on the
bottle that is not only the main forms tag labelling, but the label on the back of the neck andjacket are part of the labelling. What separates the main and back label does not dependon the size, or location, because the bottle has no front or rear. The tag is one whichreflects the compulsory elements, which are detailed in the warrant 1493-99 and 753/2002of the EU and are therefore common to all European countries.
In our case we will add to the mandatory labels (front and rear) two tags indicatingthat our product has the Denomination of Origin La Rioja and the label indicating that ourproduct is organic. In our case the stickers that means that it is a wine with Denomination ofOrigin is on the back of the bottle and the stick that proves that it is an Organic product isplaced at the front of the bottle as we have seen in the picture of the eco label above.
The word Rioja indicates both the geographical area the wine is from, as well as theyear in which the wine was harvested and the kind of wine that it is (Young, Crianza,Reserva ... etc ). It is compulsory to saw on the label the following:
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
8
· the place where it was bottled and the bottling company who did it. In ourcase, the wine is bottled in the wine cellars of Villabuena.
· The capacity of the bottle and the etilic degree of wine per litre. To certify ourbottling capacity is essential to print the number of registry bottle. All thisinformation can appear indistinctly in Spanish or in the language of the placeof destination, except the name of the region from which it comes that has toappear in Spanish. In our case, Rioja.
1.5. Swot analysis
SWOT Analysis is a tool to find out the Strengths, Weaknesses, Opportunities, andThreats that are to be expected in our project that is refer to the organic wine. It means thatthe marketing environment (internal and external to the organization or individual) is lookedat.
q STRENGTHS:The first strength that we find in our product is the technology, which is similar to the
one used in the main countries. The second one is the climatic conditions making this areaa suitable place for producing wine. This is good for the vineyard prospect and permits anefficient production of those products.
On the other hand, nowadays there is a wish of something. More than the materialaspect, we expect more from the product so the concern on the environment comes up.The big feed knowledge and its consequence on the soil is another strength that givesplace to more open attitudes to organic products and innovating products. Moreover thiskind of organic production has more control to assure the product quality. In this case theorganic wine has the AENOR-ISO 2007 certification and has already ICEX help and theExporters association of “Rioja Alavesa”.
q WEAKNESSESThe organic wine is not a really known product in the international market due to the
fact that production is limited, which takes us to a clear lack of experience about thisproduct.
On the other hand, the little knowledge that we have right now about the Netherlandsmarket in this sense doesn’t help us to predict whether it will be accepted in the previouslymentioned market or not. So it’s necessary to do an investigation concerning thismarketing.
Apart from that, the obligation of not using some fertilizers makes the workers beindispensable, as well as better qualified. The capacity of production of the organic wine isvery small because of the reduced dimensions of the smallholding.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
9
q OPPORTUNITIESOne of the opportunities is the general acknowledge about the environmental
problems with a higher consumption of natural and healthy products. Another one, is theincrease of the demand (healthy scientific researchings). There is also the conventionalagricultural crisis and a promotion of organic wine and employment. The organic labelling isalso an opportunity that is supported by Regulatory Councils that assure the quality andorigin of the product.
q THREATSWe must say that the organic wine is not an organized sector. On the other hand,
the dependence that organic wine has of the climatic conditions can have terrible effects.The promotion of new sellers or competitors in the market, such as the Italian and
French wines, increase the competence because they offer more competitive prices andtheir sensorial qualities are really accepted by the international market.
2. PRICE
Initially the base price is 4,40 € for bottle and finally we sold it at a final price of 6 €.The price may increase or decrease depending on the margins, depending on the
number of dealers we use and depending on the final sellpoints we choose to distributewine. And obviously, depending on the different taxes we will have to add.
In addition to this, the price will change depending on the quantity, the place oftransport and the way in which we make the distribution. In this way, we will establish thefinal price of the product.
Here there are the different types of strategies to sell the wine abroad:l Strategy of penetration.l Strategy of maintenance.l Strategy of skimming.l Follower’s strategy.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
10
3. PLACE
In a beginning we have worked with the selling points in Dokkum. But due to the littleinformation we found about organic selling points in English, we needed help from thedutch students to look for this kind of information.
Finally, when we were in the Netherlands, we sold the wine in a supermarket and infront of a small store.
Stand in the supermarket
Stand in the street
4. PROMOTION
We made the promotion using some leaflets, posters, books, movies and explainingto the customers the difference between organic and non organic wine. It can be seen inthe pictures above.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
11
5. MARKET RESEARCHHere, we have some questions we made for collecting information about the
Netherlands. With this information we could go on with our project, and we will work on theprice, the place and the promotion more thoroughly.1. In your market:
§ What kind of wine is the most demanded?( Red, White or Rose wine).§ And its quality level? ( Reserva , Crianza, Joven)
2. Do they know what a Young Wine is?
3. Is ¨Denomination Origen Rioja¨ known in your city?§ If so, what do you think of it?§ In case you do not know it, what is the idea you have about the Spanish wine?§ Would the prices influence in the purchasing decision?
4. Are there any habits of consumption of organic products in your city?
5. Between an organic product and a normal one with the same features:§ How does the population react?§ Would they pay more or less for it?§ Which are the variables that invite an organic product to be consumed (health,
environment...)?
6. Habits of wine consumption:§ Ages§ Places§ Customs
7. Are there any organic commercial establishments in your city?§ How many?§ Which ones?§ In case there are not, in which establishment can we try to sell our product?
8. Are there any Distributor companies of organic products near your city or in your city?
9. Are there fairs or events organized where the wine takes place?
10. What Tax burden does the Wine sale bear?
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
12
6. DUTCH STUDENTS QUESTIONS AND ANSWERS
The Dutch students asked us the following questions:
· In Holland it is compulsory to put the ingredients on the product, so you have to finda solution for that.
· What is the minimum price to sell? 4,40€ without taxes?
· Do you have more information about the company? Because companies would liketo have some additional information.
· What do you mean by organic? Is it crafted by hand? Or do you not use anybiological chemicals?
The answers of those questions are all included in the project, except for the thirdone, which is the one that we are going to explain now:Basoco and Cándido Besa are the two wineries we work with, and later on we haveadded information about this two. In any case, these two belong to Association ofBodegas of the Rioja Alavesa and you can find more information in its website:http://www.riojalavesa.com/
1. JOSE BASOCO
Warehouse recently founded, in 1997, but directed by a family with a large traditionin the world of the wine, that in a beginning they sold by bulk until they launched to bottle.Its vineyards, are composed of 80% of tempranillo variety grape, 15% of viura and 5% ofgraciano. They make young white wine and red wines, organic wine as red wines ofupbringing with the mark BETIKOA and FINCA BARRONTE.
It has recently been awarded the Bronze Medal at the prestigious ¨International WineChallenge du vin¨.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
13
2. CÁNDIDO BESA
It was about the year 1940 when this warehouse started elaborating itscharacteristical wine, but in 1957 Cándido Besa began its own marketing. The familypossesses vineyards with an age between the 5 and 100 years. The varieties of wine are"tempranillo", 90 % and "viura" 10 %. The wine is elaborated following the "MaceraciónCarbónica" system of the entire grain of grape, which contributes a few organolepticscharacters special with a very typical aroma of fruit. Nowadays, it has been thrown to theadventure of the ecological vineyard partly of his production.
o Ecological red wine: CANDIDO BESAo Tempranillo 90%, viura 10%o 13.8% of alcohol
Beautiful red colour with a distinctive border picota violet. The nose shows intensearomas of forest fruits such as blackberry, raspberry and currant with a hint of liquorice. Inthe mouth it is smooth, with sparkle and very fruity taste. Their persistence is long and endswith a pleasant aftertaste of fruit and liquorice.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
14
7. APPOINTMENTS IN DOKKUM
Our commercial selling began the evening of the first day. We were divided in twogroups of two Basque students and we went to a shop and a supermarket for trying to sellthe wine.
The stand of the supermarket was behind the cash desks and the other one, in thestreet, just opposite to a shop. In every stand, we had leaflets, posters and otherinformation about the wine and the warehouse.
Selling a bottle in the supermarketWe totally brought 21 bottles of wine and two of them were opened to taste the wine.There was a great difference between both stands. From the first moment, the
people approached to the stand of the supermarket. Even, the first person who approachedbought a bottle.
On the other hand, a time passed until people stopped in the stand of the street.Probably it was because it was Monday and there were less people than in thesupermarket. In addition to this, most of the people told us that they only drink beer.
In both stands, we were with the Dutch students all time. Certainly, they attractedpeople talking to them in Dutch, and then we spoke with them in English, trying to explainthe way of producing organic wine and the meaning "Denomination of Origin Rioja". It waseasy to explain it to them, because in the Netherlands most of the people can talk inEnglish.
The price of each bottle was 6 €. We believe that the people who bought the wine,thought that the wine is something more exclusive and exquisite than the beer for havinglunch.
We were supposed to sell more wine the following day in other two different places,but we sold the whole wine the first day and we didn’t have any more.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
15
8. THE RELATIONSHIP WITH THE STUDENTS
In our stay in Holland, we were two days at school in which we got together withDutch and Norwegian students to discuss the project and to talk about ourselves.
The first day, we were only with the Dutch students that worked with us in theproject. They started explaining how was the day been prepared, they presented us theirproject and then we made the same with ours. In the afternoon, we sell all the wine.
The second day, we made the same as the first one, but with the Norwegianstudents and another group of Dutch students. They told us about their projects andsomething about their experience in Norway. Apart from this, we were also in an Englishlesson in which we watched a movie of The Netherlands and then we helped them toprepare an exam exercise. The previous day we sold all the wine, as a result of this, wehad that afternoon free, and we went to Leeuwarden. There, we went shopping,sightseeing the city and then we ate in a McDonald’s.
The third day, the Dutch students had an economy lesson, so we waited for them ina computer room, connected to the Internet. After the lesson, we met all together again togo to the centre of Dokkum for sightseeing and shopping. Then we went to the cost to havelunch in a typical restaurant. At the end of the lunch, we visited a reconstructed old villageof fishermen in which the houses where museums and where we could see how the lifewas in those days. Finally, we got back to Dokkum to see a mill and to have dinner in anItalian restaurant.
Small village in the coast
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
16
9. LIVING AT THE DOKKUM STUDENTS´S HOUSES
In general, living together with the Dutch families was incredible. Four students forthe Basque County went to the Netherlands, where we split up in two couples and eachcouple stayed in a different house. The opinion of both groups is very good; they treated usvery well and they took care of everything. Since the first time, we felt accepted by thefamilies, and we spent nice moments together, not only with the students, also with theirfamilies.
Every morning we had to take two buses to go to school.The hourly difference at meals was a big change, because although breakfast was
more or less at the same time than in the Basque County, the lunch was at 12.30 and thedinner at 18.00.
The food was different but delicious.Every night, we met at one of the two houses, where we were living, we had dinner
together and kept on talking, having a drink, and playing X-Box.We are very glad having been able to go and we hope we can go back soon.
Basque students at a dutch house with the family
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
Organic Wine
17
10. BASQUE STUDENTS EXPERIENCE ABOUT THE PROJECTWITH ROC FRIESE PORT
In our point of view, the most important conclusions are the following ones:l Firstly, the main problem is that most of the people drink beer not wine. Dutch people
use to drink wine for dinner and in special events.l Wine has to pay taxes because they aren't wine producers.l There is a big culture with organic products.l It was really easy to explain Dutch people our product, because almost every one
can speak English.
Click h
ere to
buy
ABB
YY PDF Transformer 2.0
www.ABBYY.comClic
k here
to buy
ABB
YY PDF Transformer 2.0
www.ABBYY.com
