Vincor International Inc Case Study

1477 Words 6 Pages
Introduction Vincor International Inc. (Vincor) is ranked among the largest companies specializing in the production and marketing of wine in North America. It has many outlet wineries in Canada and the U.S. Since its inception, the company has grown immensely both domestically and internationally. The growth is attributed to the development and marketing of the company’s major brand of Inniskillin Ice-wine. Roger Provost is behind the international success of Inniskillin Ice-wine, which relied on the exclusive distribution channels. However, the recent takeover of the company by Constellation Brands Inc. threatens the exclusive distribution channel and originality of the Inniskillin Ice-wine brands. This paper presents a case study on the …show more content…
Whereby, the synthetic brands are cheap to produce, therefore, increasing the availability of synthetic ice-wine in the world markets. Recent research findings have revealed the dwindling sales of original ice-wine brands from Canada in the international wine market due to high supply of synthetic ice-wine. As cheap as it is, synthetic wine destroys the true nature, taste, and heritage of the ice-wine products. The side effects of synthetic and counterfeit ice-wine brands are massive including company losses, lack of employment, increased poverty, and increased rural-urban migration. This means that as the company’s sales dwindle, many workers are laid-off and traditional grape farmers lose their market (Booth, Colomb, & Williams, 2009). Thereafter, the affected rural regions experience increased levels of poverty that forces people to migrate to urban areas in search of other …show more content…
The Customs Regulation 1383/2003 mandates the customs control of a given country to impound and take necessary measures on the products that infringe or violate certain aspects of the intellectual property rights. In the context of ice-wine brands, infringement represents the current counterfeiting of Inniskillin ice-wine, production of synthetic brands of ice-wine, and the promotion of wrong advertisement of ice-wine to the public (Jacobs, 2009). The approach will not be futile in the modern globalized world because it is not about eliminating competition, rather it is an approach that will secure the heritage of the Canada’s Inniskillin ice-wine brands, promote the farming of ice-wine grapes in rural Canada, retain rural populations via employment in farms, and prevent synthetic production of the ice-wine products.
In conclusion, the paper presented a case study of Vincor based on two major factors that determine the future success or failure of the Inniskillin ice-wine brands. These factors include the exclusive distribution channels and preservation of ice-wine production by VQA board. The discussion found that exclusive distribution is unfavourable in securing the market of Inniskillin ice-wine

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