Essay about The Ginestet Case Study.

2264 Words Oct 31st, 2012 10 Pages
THE GINESTET CASE STUDY.
INTERNATIONALISATION AS A WAY TO
RENEW BORDEAUX WINE ECONOMY’S
ENTREPRISE SPIRIT
(1978-2000)
Christian Delpeuch, chief executive officer of Ginestet, Bordeaux,
& Hubert Bonin, professor in contemporary economic history at Bordeaux
Political Sciences Institute
The Bordeaux wine economy endured a grave crisis at the beginning of the last quarter of the 20th century: most of its familial trade houses were submerged by losses and failed down. The renewal of bordeaux wine economy was due to new forms of capitalistic and commercial strategies. Large French financial groups (Suez, Paribas) linked to investment banks, or foreign French and alcohol and spirits groups (Bols, Seagram, Pernod-Ricard,
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But, after the so long guidance of the patriarch Fernand Ginestet in
1953, under the second and third generations’ management, the company failed to match the rebuilding of selling forces all over France and Europe in the 1960s-1970s: it lacked contacts with the new forms of ‘modern retailing’, that is self-service markets (hyper- and super-markets chains
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and their centralised purchasing entities), whilst losing efficiency on traditional outlets, wholesale wine and alcohols traders abroad. Like many bordeaux wine trade houses thus, it lost ground in front of competition.
Moreover a speculation crisis that burst out in Bordeaux in 1973-1974 shook several companies which were financially burnt out by wine overstockpiling and discrepancies between high tariffs at buying and the fall down of trading prices… After a deficit of 20 millions francs in 1973-1975, its total debt rose to 67 millions francs4 in 1976; a terrible crisis shook Ginestet in 1976-1977. As bankers showed hard pressures, the Ginestets had to sell Château Margaux, a most famous vineyard and grand cru (for 72 millions francs!) which it had bought in 1920. The second (Pierre Ginestet, born in 1900 – whilst Jean-François, Pierre’s elder, died in 1974) and the third (Bernard Ginestet,
born

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