VEN 3 Lecture Notes - Lecture 17: Stainless Steel, Zinfandel, Gold Rush
25 Jun 2018
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● There are five periods of expansion:
○ Introduction of v.vinifera of 1780-1880s.
○ Boom of the 1880s,
○ Prohibition of the 1919-1933,
○ Expansion of 1970s,
○ Expansion of 1990s.
● The production cycle follows the basic economic intuition. Prices rise when demand is
high and it lowers when demand is low.
● The UP cycle means an increase in price due to an increase in demand, for whatever
reason. This also means plant goes up, and with it, the price of land.
○ There is a lag of 3-4 years, between which, continued planting is encouraged.
● When there’s so much planting, we have a surplus → the DOWN cycle.
● The wineries now have lower prices and want to get the fuck out. With enough wineries
leaving the market, we’ll end up at an equilibrium.
● Over time, the US demand for wine has been increasing. A reason for this can be the
rise in population, besides, of course, the change in taste and abolition of fucking
religion.
● V.Vinifera was introduced by Spanish missionaries.
● From the 1800s, it was the secularized Mexicans or the Spanish who increased
plantation not just for religious reasons.
● The Mission grape:
○ CA’s first introduced vinifera.
○ It roots back to Spain.
○ It’s not very good, however. It’s low in acid and color and is crap for both red and
white wines.
● A Frenchman was the first guy who opened a winery in LA in 1831. He also put some of
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Document Summary
The production cycle follows the basic economic intuition. Prices rise when demand is high and it lowers when demand is low. The up cycle means an increase in price due to an increase in demand, for whatever reason. This also means plant goes up, and with it, the price of land. There is a lag of 3-4 years, between which, continued planting is encouraged. When there"s so much planting, we have a surplus the down cycle. The wineries now have lower prices and want to get the fuck out. With enough wineries leaving the market, we"ll end up at an equilibrium. Over time, the us demand for wine has been increasing. A reason for this can be the rise in population, besides, of course, the change in taste and abolition of fucking religion. From the 1800s, it was the secularized mexicans or the spanish who increased plantation not just for religious reasons.
