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Read the article about a North American wine company and answer the
following questions. 1. What is Paul Jones responsible for?
2. Who heads the company?
3. Is the company successful?
4. What reason does Tony Swan give for distributors buying more wine
produced in the US last year?
5. Does Tony Swan think that the average American expects a bottle of
wine that costs $10 to taste good?.
Swan and Lewis
Greentree Wine Company, California, USA
Greentree Wine Company has been producing premium wine in
the Napa Valley since 1980 and markets wine under the Brown
Canyon, Swan & Lewis and Stratclith labels. In addition, GWC
produces several private labels for both domestic and
international customers. Last year, GWC bottled over 500,000
cases between their own brands, private labels and custom
The Swan and Lewis label, which retails for about $10, grew
by 53 percent in 2012. Swan and Lewis includes a Chardonnay,
Cabernet Sauvignon, Merlot, Syrah, Zinfandel and Pinot Noir.
The package was recently updated and includes the slogan,
"Stick your nose in our business."
The company is headed by Tony Swan and Glen Lewis who
created the Swan and Lewis label in 1990. Paul Jones is
responsible for wine production and has worked exclusively
for the firm since 1992.
The primary reason Swan & Lewis experienced record growth
last year is that key distributors got behind the brand.
Swan said the secret of their rapid growth was "being with
the right distributors at the right time." He credits the
rise in the value of the euro relative to the U.S. dollar
for making reasonably priced California wines more
attractive to distributors that previously were interested
mostly in imports. "A lot of our distributors were strong in
imports but felt it wasn't a bad idea to have something from
California," he said.
"We need to be with medium-sized distributors, and we need
to be with medium-sized distributors that actually care
about us, which is not the same thing."
Swan commented that with many wines designed to retail for
$10, much of the emphasis is on marketing instead of what
the wine tastes like. "We depend on the wine," he said. "I
think $10 is an interesting price point," Swan said. "It's a
price where almost anybody can afford to buy but high enough
where you can do something slightly interesting as far as
the wine is concerned. I think the American consumer has
become more sophisticated and is looking at interesting
wines for around $10."
Before you read the following article on the mobile phone market in
Africa, try to predict the answers to these questions.
1. What is the growth rate
of Nigeria’s mobile phone market?
100% per year.
2. What percentage of the population used mobile phones in
Africa in 2011?
3. What percentage of small businesses in South Africa use
only mobile phones and not land line (fijo) phones?
more than 85%
Mobile growth 'fastest in Africa'
GMobile phone use in Africa is growing faster than anywhere
else in the world, according to a report.
The study, backed by the UK mobile phone company Vodafone,
said African countries with greater mobile use had seen a
higher rate of economic growth.
The report, supported by the Centre for Economic Policy
Research, studied the social and economic impact of mobiles.
Small businesses in South Africa rely on mobiles, the report
said, while Nigeria's market is doubling annually.
The report's positive results come despite separate figures
which show the proportion of people using mobile phones in
much of Africa remains low in international terms, averaging
about 6% in 2011. Business boost
Mobile and land line networks - in addition to the openness
of an economy, GDP growth and infrastructure - are
positively linked with foreign inward investment, according
to the report.
The report also said:
• More than 85% of small businesses run by black people,
surveyed in South Africa, rely solely on mobile phones for
• 62% of businesses in South Africa, and 59% in Egypt, said
mobile use was linked to an increase in profits - despite
higher call costs.
• 97% of people surveyed in Tanzania said they could access
a mobile phone, while just 28% could access a land line
• A developing country which has an average of 10 more
mobile phones per 100 population between 1996 and 2003 had
0.59% higher GDP growth than an otherwise identical country.
Income, gender, age, education - and even the absence of
regular electricity supplies - do not create barriers to
mobile access in rural areas, the report said. Handsets are
often shared by smaller communities. 'Explosive growth'
Stephen Yeo, chief executive of the Centre for Economic
Policy Research, said mobile phones had enabled developing
countries to "leapfrog" old technologies.
"The result is explosive growth - 5,000% in Africa between
2003 and 2007," he said.
"This research... provides the first concrete evidence of a
link between social and economic development and the
establishment of mobile phone networks."
Diane Coyle, of consultancy Enlightenment Economics, said
many people were finding ways to reduce the cost of making
"Even in very poor communities, a lot of people share mobile
phones," she said. "In Tanzania, for example, there were as
many people using somebody else's mobile phone as actually
Currently, there are more than 82 million mobile phone users