The current structure of the global wine industry can be divided into traditional wine manufacturers using traditional wine making methods, and the upstarts referred to as the New World wineries. The traditional wine making nations include France, Germany, Italy and Spain. There are many New World wine making nations including Chile, the United States, Australia and South Africa. The traditional wine making countries tend to regulate their wine industries carefully and this regulation is intended to ensure that consumers purchasing a premium wine receive a premium product. The New World wine industries tend to be less closely regulated, and consequently wineries in these areas are free to experiment with new methods of producing wine was well as new blends and varieties of wine. In addition, while traditional wineries are often limited by geography to how large they can become, the so-called New World vineyards tend to be larger and newer and have more modern processing and bottling equipment.
In addition to the freedom that comes with fewer controls, the New World wineries are challenging the traditional wine producing countries on several fronts. One is product quality. Some, but certainly not all New World wineries manufacture premium products that compare favorably to vintages from even the most prestigious traditional or old world wineries. Another challenge is the variety of products the New World wineries manufacture. Offering a variety of wines helps ensure that there will be something for everyone in the New World winery product offerings. Another factor is price. Old World wineries tend to specialize with grade growing, wine making, bottling, packaging, distribution and marketing being involved in and taking its share of the profits from the manufacturing process. New world wineries tend to produce in quantity, and in some cases in bulk. As a consequence, prices are low and sometimes are recognized as a bargain b...