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I'm confused. You seem to be supporting his point. R&D departments are cheap? No special knowledge required? Race to the bottom on price? How has that worked o
by Implicated 11y ago
I'm confused. You seem to be supporting his point.
R&D departments are cheap? No special knowledge required? Race to the bottom on price? How has that worked out in the wine world?
- exelius 11y agoR&D requires scale. There are relatively few jobs compared to the size of the industry. And the vast majority of the wine industry is indeed in the $10-or-less category. Alcohol in general is a pretty well-consolidated industry, with a few global giants owning the vast, vast majority of the global brands and production. And I never said there wasn't money in it -- there is, but it's not going to be made by VC startups. The problem is that it's a relatively easy market to get into (I.e. There are no major technical hurdles) and it's really obvious. People will make money, but its really not a hockey-stick market. The types of companies that will be successful will be ones with superior cost controls enabling them to outlast / outspend the competition on brand advertising.
- draw_down 11y agoI don't think anyone grows wine grapes indoors or hydroponically... Guess I could be wrong