Promotion of European Wines in Third Countries within the Common Market Organisation Framework: The Case of France

Angelo Puccia,César M Mora Márquez,Julia M Núñez-Tabales

doi:10.3390/economies10020041

Angelo Puccia, César M Mora Márquez + Show 1 more

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https://doi.org/10.3390/economies10020041

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Journal: Economies	Publication Date: Feb 2, 2022
Citations: 1	License type: CC BY 4.0

Affiliation: University of Córdoba

Abstract

The international wine market has undertaken important structural changes in the first decades of the 21st century, both in terms of demand and offer. In order to mitigate the effect deriving from the increase in competition, the European Union (EU) continues to allocate important resources to increase the competitiveness of the winemaking sector by means of its Common Agricultural Policy (CAP) and the Common Market Organization (CMO). This paper aims to understand which factors have an influence on the correct implementation of the CMO measure of promotion in the principal wine exporter country: France. A fuzzy-set model (fs/QCA) has been utilized, studying a period of 10 years since 2009. Results show that is it possible to obtain a better execution ratio of measure of promotion by adapting some key factors, such as CMO budget allocation. These findings could support French national and regional authorities in the task of planning. Moreover, other Member States (MS) could also benefit, since in the new CAP approach, a higher participation in strategic plans is required for them by the EU.

Highlights

Organisation Framework: The CaseThe international wine market has displayed notable changes since the 20th century (Anderson and Nelgen 2011; Mariani et al 2012)
That known as the “new world” or the new winemaking countries gathers and groups those that have recently been appearing on the international scene throughout the 20th century
The main goal of this study is to analyze the performance of the Common Market Organization (CMO) grant for the wine sector in France, a country chosen due to being the most represented in terms of exports and aid from the Common Agricultural Policy (CAP)

Summary

Introduction

Organisation Framework: The CaseThe international wine market has displayed notable changes since the 20th century (Anderson and Nelgen 2011; Mariani et al 2012). The “old world” name would refer to the European countries with a long winemaking tradition. That known as the “new world” or the new winemaking countries gathers and groups those that have recently been appearing on the international scene throughout the 20th century. Their modern harvesting techniques, adapted to extreme climate conditions, as is the case in Chile or New Zealand, for example, differentiate these wines from those better known “old world” wines (Sarturi et al 2016; Barker et al 2001). A more aggressive and competitive pricing strategy, combined with the work performed by their promotion agencies (Campbell and Guibert 2006; Giovannucci 2004), grant a leading role to these countries and their business fabric, forcing the “old world” producers to pursue more agile and flexible entrepreneurial policies

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