Organic wine production: the case of Bodega Colomé in Argentina

Abstract

PurposeThe purpose of this paper is to be a teaching case about organic wine in Argentina, in a sustainable perspective, showing the advantages that this country has related to others in terms of organic and biodynamic production of wine. It shows also the potential of this kind of production, and its limitations, using for that the case of Bodega Colomé, owned by Donald Hess, a global wine producer.Design/methodology/approachThis paper uses case study methodology; this is an adequate approach, as Argentina has some specific characteristics (geography, labor and other conditions) that makes it unique. The information about Bodega Colomé was obtained from secondary data such as academic articles, specialized magazine articles, web sites about wine production, and an interview conducted with the General Manager of Bodega Colomé, Caspar Eugster, in July, 2009.FindingsOrganic and biodynamic wine production are discussed as an alternative to the traditional production in developing countries, specifically in Argentina, where a series of factors – geographic characteristics (altitude), lands and technology used in a sustainability logic, labor conditions, tradition, history, brand and nature characteristics – allow a competitive advantage to develop. Donald Hess, president of Bodega Colomé, bets in the direction of investment maintenance in organic wines, given the favorable conditions cited, adding brand value, but this kind of production is impossible for less expensive wines as producing wines organically is labor intensive.Research limitations/implicationsThe main limitation of this case is its uniqueness and its findings cannot be applied to the universe of companies in Argentina, the country studied; but it encourages future research and more investigation about the subject. The main implication of this case is the possibility of generating some discussion about the theme: do the wine producers of developing countries, such as Argentina, Chile and Brazil produce organic wine (added into the company's sustainability actions) for export, or should they dedicate themselves to the production of traditional wines for internal market?Practical implicationsThis case study is relevant for groups of students or professionals interested in discussing the strategies of wine production and marketing. The case may also be used by policy formulators of the winegrowing industry.Originality/valueThe organic and biodynamic production of wine is a recent subject and there are few studies about this theme. Mainly, the role of Latin American players is not very clear and this paper contributes to the discussion about the opportunity of organic and biodynamic wine production as a possible source of competitive advantage to Latin American wine producers in the global market.