Globalising chains – decoupling grape production, wine production and wine exports

Abstract

PurposeThe purpose of this paper is to show that globalisation (or de-regionalisation) in the wine business is entering a new phase in which grape production, wine production and wine exports are increasingly decoupled. In order to illustrate the case, the authors present Lithuania, compared to Romania, as a case study.Design/methodology/approachThe authors tested the hypothesis that grape production and wine trade are increasingly decoupling. Based on the notion that transformation countries act as an avant-garde where new developments show first, the authors use Central and Eastern Europe as a case in point. The authors apply a mixed and a fixed effects model, where self-sufficiency in grapes explains wine exports to a reducing degree.FindingsIn the descriptive part the authors demonstrate how Lithuania, since EU accession, has become a major hub for wine trade, importing from the main export countries, and exporting mostly to Russia. In the multivariate section, it can then be shown that this decoupling between grape production and wine exports is a significant development in international terms.Practical implicationsThe division of labour in wine trade has entered a new phase where wine production and wine marketing are decoupled. If extrapolated into the future, this may indicate that in the future world market, grape production and wine production may also decouple.Originality/valueThe paper has traced a new and un-described phenomenon on the global wine market. It shows that the division of labour is still advancing.