Global Wine Research Articles

Brand Personalities of Global Wine Exporters: A Collective Reputation Theory Perspective

ABSTRACTThis study examines the perceptions of the personalities that wine drinkers attribute to the wines of the six top exporting countries. An exploratory study with an inductive approach was used, and data were collected from 757 wine consumers from 22 countries. Based on the collective reputation theory, we question the use of standardized versus localized strategy when approaching international markets by the top producers of the world. By means of correspondence analysis, our results indicate that each wine producer country tends to have a different positioning among consumers from different regions of the world. Besides, it is evident that a standardized approach to marketing and promotion of a specific country’s wines to global markets could be viewed as rather myopic, representing a gross oversimplification of reality, and contradicting what our findings reveal about differences in global consumers’ perceptions of wines from the big six producers.

Border Wines: Terroir across Contested Territory

Etymologically related, the concepts of terroir and territoriality display divergent cultural histories. While one designates the palatable characteristics of place as a branded story of geographic distinction (goût de terroir), the other imbues the soil with political meaning, defendable boundaries, and collective entitlement. This research traces the production of eno-locality in contested spaces across political borders. Tracing the ascent of terroir as an organizing principle for the global wine culture and food industry, I examine the intersection of political geography, national identity, and cultural locality in the production of edible authenticity. Border wine regions such as Tokaj between Hungary and Slovakia, the Judean Hills and South Mount Hebron in Israel and Palestine, and the former Cold War buffer zone between Bulgaria and Greece illustrate the articulation of terroir as a story of border-crossing. Beyond the essentialization of terroir as “nature” and the contested politics of territory, I identify three formations of the terroir-territory connection: (a) territorialization of terroir, (b) terroir-ization of territory, and (c) colonial terroir expansion. In the case of “border wines” indexical strategies of boundary- and terroir-making highlight the creative agency and semiotic manipulation of winemakers across political territories.

The competition on wine markets in the Czech Republic

ABSTRACTThe purpose of the article is the elaboration of suggestions leading to the improvement of the Czech viticulture position on wine markets by means of the analysis of the development of the contemporary state of viticulture and consumption of wine in the Czech Republic (CR). The methodology of the following study comes from the comparison of data about the vine-growing and wine production of the Czech Republic, description of the EU legislature and authors’ own findings about consumers’ preferences in the consumption of wines in the Czech Republic. Then the follow-up analysis will become the basis for the elaboration of recommendation towards the improvement of the Czech viticulture position on the global wine market. The state wants to keep employment in the field of viticulture to support the position of the Czech wine on foreign markets and to support young vintners up to 40 years old through the programme of subsidies into vine-growing and wine-making. Domestic production of wine, which is preferred by consumers, has not satisfied even the third of the demand for wines in the Czech Republic. The average annual consumption of wine has reached 20 L per person.

The global competitiveness of European wine producers

PurposeComparative advantage is an important indicator in the analysis of international trade flow; however, in empirical studies on agriculture it is often neglected. The purpose of this paper is to analyse global comparative advantage in the European Union (EU) wine industry and to test the duration and stability of trade indices.Design/methodology/approachThe paper applies the theory of comparative advantages by using the Balassa indices to European wine trade (based on the 16 biggest producers) data from the period 2000-2013. Moreover, it applies stability and duration analysis on comparative advantages calculated.FindingsResults suggest that Bulgaria, Cyprus, France, Greece, Italy, Portugal, and Spain are the highest ranked European wine producers in the world market and have the largest comparative advantages. However, duration and stability tests indicate that trade advantages have weakened for the majority of these countries. The paper discusses a number of reasons for this downturn, including changes to Common Agricultural Policy wine regulation, economic crisis, and the rise of New World wine producers.Originality/valueThe originality of the paper is that it applies the theory of comparative advantage to top wine exporters in the EU. The paper also makes valuable contributions to the wine literature by analysing the duration and stability of comparative advantage in the global wine trade. Moreover, the identification of industry-specific causes for changing patterns in comparative advantage in the EU might be important to the wine industry.

Extraction and consecutive purification of anthocyanins from grape pomace using ionic liquid solutions

The global wine industry generates approximately 8.5 million tons of waste annually, which contains several biomolecules of high value. The present study focuses on the extraction of anthocyanins from grape pomace via solid/liquid extraction with aqueous solutions of the ionic liquid 1-ethyl-3-methylimidzaolium acetate [(C2mim]OAc) and sequential purification in aqueous two-phase systems (ATPS) with additional salts. The optimum conditions for solid/liquid extraction were obtained using response surface methodology and yielded up to 3.58 mg g−1 anthocyanins. During ATPS formation, the highest purification factor (PF = 16.2 fold) was obtained in the bottom and salt-rich phase using K2CO3 (29.41 wt%) and [C2mim]OAc (29.28 wt%) at 35 °C and atmospheric pressure. The partition process is exothermic, spontaneous and governed by enthalpy forces.

U.K. and Global Wine Markets by 2025, and Implications of Brexit

AbstractThe United Kingdom has accounted for a major share of the world's wine imports for centuries, and wine accounts for more than one-third of U.K. alcohol consumption. It is therefore not surprising that suppliers of those imports and U.K. wine consumers, producers, traders, distributors, and retailers are focusing on what the United Kingdom's planned withdrawal from the European Union (Brexit) might mean for them. In this paper, a model of the world's wine markets is used to project those markets to 2025 without, and then with, the occurrence of Brexit. The Brexit scenarios involve adjustment not just to U.K. and EU27 (the countries remaining in the European Union) bilateral tariffs but also to assumed changes to the United Kingdom's income growth and currency. The relative importance of each of these three components of the initial shock are reported, as are impacts on bilateral wine-trade values and volumes for still and sparkling wines. The results suggest that the impact outside the United Kingdom will be minor compared with other developments in the world's wine markets. Inside the United Kingdom, however, the effect of Brexit on incomes and the British pound are likely to have nontrivial initial impacts on the domestic wine market and to be far more consequential than the direct impact of changes in bilateral tariffs. (JEL Classifications: F15, F14, F13)

EXAMINATION OF ADAPTING THE CONTRACTUAL SYSTEM IN THE HUNGARIAN WINE SECTOR

On a world scale, a huge concentration could be observed in viticulture and wine production during the last few decades. According to Kym Anderson [2003] the development of global wine market may be put at the 1990s. In the traditional European wine producing countries collaborations and integrations, as conditions for the safe operation of the sector, had been formed some decades before. Cooperation is necessary, because in many cases, only it can solve or mitigate the issues from global challenges. In our times assertion of interests and minimizing costs are becoming increasingly important, in which different forms of cooperation can provide great help. This study is intended to show what kind of collaborations can be noticed in the wine production of Hungary, and which form of cooperation could be the best one to manage the current professional issues. It examines how to adapt the basic principles of integrations that have achieved success abroad. The topicality of this matter is strengthened by the fact that Zsolt Feldman [2016] ranks the elaboration of inter-trade agreements, which can be the first step of cooperation by all means, amongst the most important tasks of the sector based on the FM-HNT partnership.

Distributing wine globally: financial and environmental trade-offs

PurposeGiven that currently around ten billion litres of wine are transported long distances to overseas consumers per year, the purpose of this paper is to provide a foundation for understanding the trade-offs between cost, water usage and carbon emissions in decisions about the location of wine bottling plants in a global supply chain.Design/methodology/approachThis paper presents a case-based analytical modelling study and employs actual data from one of Australia’s major wine companies. A descriptive analytical model is developed for assessing wine supply chain scenarios using three indicators of economic and environmental impacts – supply chain cost, risk-weighted water usage and carbon emissions.FindingsThe research highlights trade-offs required when considering optimal supply chain design, and finds possibilities for reshaping a global wine supply chain in order to improve the selected economic and environmental impacts.Originality/valueThe originality of this paper lies in its analytical focus on examining the interplay between supply chain cost, risk-weighted water usage and carbon emissions in a global supply chain, which has not previously been addressed.

European Wine Policies and their consequences on the global wine trade

Over the years EU policy has introduced a number of instruments with the principal goal, until the middle of 1980, being to ensure the development of productivity, the creation of market stability and the provision of income support while building tariffs and non-tariff measures for trade policy. While continuing on the path of reform which started in the early '90s, it was only with the 2008 and 2013 reforms that wine policy changed significantly from a policy based on subsidising the production and protection of domestic markets from non-European producers, to a policy that aims to stimulate the quality production and competitiveness of the wine sector on the international scene. The Common Agricultural Policy, and the EU domestic and international contexts have (probably) played an important role in the design of the strategies for wine interventions. What is going on in the EU wine sector and what has gone wrong? The purpose of this paper is to focus on the historical evolution of wine policies through three phases and their consequences on EU budgets and on global markets.The study is based on an in-depth analysis of EU wine policies, the financial expenditures and the market relationship of EU wine in the global scenario. The thread which runs through this paper is that the controversial aspects of the wine sector are urgent requests from holdings to both policymakers to intervene with market laws and rules, and to the policy itself which aims to correct its own failings. EU policy has arrived late (too late) to understand the increasing threat posed by the competitive growth of third countries. After 46 years of implementation (1970-2016), the ‘classic dilemma’ between policymakers and markets, the trade-offs between markets and policy, are still the drivers of the EU wine policy.

Constrained innovation on sustainability in the global wine industry

ABSTRACTIn dynamic and turbulent contexts many firms are trying to develop innovative sustainability solutions. Winery managers across the globe from this study discussed sustainability innovations in terms of product innovation (products, services, and product-service bundles), process innovation, and organizational innovation. However, forces act to constrain sustainability innovations in some agricultural industries including the wine industry. This article reports findings on forces constraining sustainability innovation from an ongoing seven-year investigation into global contemporary wine marketing and sustainability. This inductive theory-building grounded theory study involved a large number of in-depth interviews and used traditional interpretive trustworthiness criteria to ensure valid data were collected and the best interpretations out of multiple possible ones considered by the research term were developed. Executive perspectives from wineries of seven countries yielded insights to four significant constraints to sustainability innovations (i.e. competing motivations, variation in innovation approaches, lack of resources, and lack of a sustainability orientation) and why, in some cases, overcoming these constraints can be difficult, retarding progress toward sustainability goals. These executives also shared insights to strategies, processes and capabilities that enabled them to overcome constraints.

Efficiency of winemaking in developing countries

PurposeThis paper aims to the evaluation and comparison of the efficiency of winemaking in two developing countries (Ukraine and Bosnia and Herzegovina (B&H)) from the perspective of their development.Design/methodology/approachIn this research study, four models of data envelopment analysis (DEA), correlation and other tools of the data analysis are used to analyze the efficiency of wineries in two developing countries. Returns to scale, scale efficiency, super-efficiency and some other indicators are examined. The research is based on the sample, including 33 wineries of Ukraine and B&H.FindingsCharacterized by the same average efficiency and number of leaders, in Ukraine, medium and large wineries are developing more efficiently than small ones, whereas the opposite is true for B&H. The authors found the high potential growth of efficiency on Ukrainian (up to 28.9 per cent) and Bosnian wineries (up to 28.3 per cent). The ways for its realization were suggested. Cross-country efficiency analysis enabled us to find inter-country leaders of wine industry. The authors grouped inefficient wineries, calculated the potential for inputs reduction and found the main directions for the improvement of efficiency for each group.Research limitations/implicationsThe research is limited to a single industry in only two developing countries. Future studies can be devoted to the comparison of the efficiency of wineries in developed and developing countries. The results can determine which countries can be leaders in the global wine market in the future.Practical implicationsThis study provides useful information for: researchers of wine market in developing countries enabling them to understand the current state, basic problems and efficiency levels of wineries in Ukraine and B&H; domestic policy-makers- to improve regulation of wine industry as to make it more competitive and efficient; wine producers in these countries- to find the benchmarks using the best practices to adapt them in own business and to increase an efficiency.Originality/valueOn the example of Ukraine and B&H, this study has shown that each respective country has its own conditions of doing wine business. This is the first paper that compares the efficiency of wine industry in Ukraine and B&H.

Innovation and entrepreneurial orientation: the case of a global family wine firm

Innovation and entrepreneurial orientation: the case of a global family wine firm

Innovation and entrepreneurial orientation: the case of a global family wine firm

While academic research emphasises the importance of innovation for many firms' long-term sustainability, some authors indicate that the literature primarily focuses on large companies, overlooking small and medium-sized enterprises (SMEs). This study contributes to narrowing the knowledge gap on innovation in this domain, examining the case of Uruguay's Carrau Wines, a global family business. Data were collected since 2011 through interviews and email communication with the firm's owners, and the director of Wines of Uruguay. Content analysis identified that, fundamentally owners' leadership in diversifying and in investing on equipment and technology are driving innovation processes. These findings align with key variables and dimensions of the theory of innovation, particularly benefit-cost and resources. Entrepreneurial orientation emerged through the firm's strong focus on the Tannat grapes, as well as on product quality improvements, and on internationalisation efforts. The findings have important implications for family businesses, particularly those operating in emerging economies.

Analysing the online wine tourism strategies of American and Italian wineries

As competition intensifies in the global wine market, online wine tourism has become a crucial marketing dimension for wineries and wine regions around the world. This paper presents and extends the proven attracting, informing, positioning and delivering framework for examining the strategic orientation of winery websites. Two nations that are at the forefront of the competition between old world and new world wines are the USA and Italy. Qualitative and quantitative analyses showed that American wineries were generally better at projecting a wide-range virtual branding characteristics. Italian wineries were better at the attracting dimension, and they focused mainly on local characteristics.

Changes in the international wine market competitiveness

This study offers a contribution to understanding the complexity of the international wine trade analysing the specialisation patterns of 14 among the most important wine world actors in the period 2007&2016, in order to verify if the patterns of comparative advantages for the trade of this countries have experienced significant changes. Using the Lafay index, as a comparative advantage measure, our results reveal deep changes in the global wine market exchange. Our result constitutes a base element for the future development of the competitive scenario and provides some both theoretical and practical implications. In the baseline projection, the maintenance of the competitive position is closely linked to the needs to know the specificities, the differences, the sizes and the economic opportunities for each of the countries target, in order to undertake targeted actions and effective strategies.

Changes in the international wine market competitiveness

This study offers a contribution to understanding the complexity of the international wine trade analysing the specialisation patterns of 14 among the most important wine world actors in the period 2007&2016, in order to verify if the patterns of comparative advantages for the trade of this countries have experienced significant changes. Using the Lafay index, as a comparative advantage measure, our results reveal deep changes in the global wine market exchange. Our result constitutes a base element for the future development of the competitive scenario and provides some both theoretical and practical implications. In the baseline projection, the maintenance of the competitive position is closely linked to the needs to know the specificities, the differences, the sizes and the economic opportunities for each of the countries target, in order to undertake targeted actions and effective strategies.

Analysing the online wine tourism strategies of American and Italian wineries

As competition intensifies in the global wine market, online wine tourism has become a crucial marketing dimension for wineries and wine regions around the world. This paper presents and extends the proven attracting, informing, positioning and delivering framework for examining the strategic orientation of winery websites. Two nations that are at the forefront of the competition between old world and new world wines are the USA and Italy. Qualitative and quantitative analyses showed that American wineries were generally better at projecting a wide-range virtual branding characteristics. Italian wineries were better at the attracting dimension, and they focused mainly on local characteristics.

How might climate changes and preference changes affect the competitiveness of the world׳s wine regions?

Winegrape production is generally considered riskier in cool-climate regions than in warmer ones, yet more producers are looking to invest in such regions. A commonly stated reason is to hedge against global warming, but is there more to it than that? This note reflects on some other supply-side drivers as well as some drivers from the demand side of global wine markets. It first defines what characterizes a cool-climate region; and it ends by drawing implications for the economic future of such cool regions as compared with the world׳s warmer wine regions.

Gradual catch up and enduring leadership in the global wine industry

The wine industry is an extremely interesting sector from a catch -up point of view because the latecomers in the international market have changed how wine is produced, sold and consumed and, in doing so, they have challenged the positions of incumbents. Until the end of the 1980s, the European countries, and particularly France and Italy, dominated the international market for wine. Subsequently, significant changes in the market, namely decreases in consumption by traditional consuming countries, the entry of new inexperienced consumers, and the increasing importance of large distribution have threatened this supremacy. Initially, the USA and Australia and later emerging countries such as Chile and South Africa, gained increasing market shares in both exported volumes and value, at the expense of incumbents. However, some of these newcomers (e.g. Australia) have shown slower growth, opening opportunities for newer entrants such as Argentina and New Zealand. At the same time, some of the incumbents (especially Italy) have innovated, challenging the leadership of France in key markets such as the USA. In this article we investigate the different catch-up cycles in the global wine sector that occurred between the 1960s and 2010, through a detailed analysis of export volumes, values and unit prices. We address issues related to the increasing share in the global market of latecomer countries and the relative decline of the incumbents, as well as possible changes in the market leadership within these two groups.

Psychic Distance and Country Image in Exporter–Importer Relationships

Conflicting evidence on the issue of psychic distance (PD) in international business relationships has suggested the existence of misunderstood boundary conditions to its effect. This article argues that country image (CI) is a contingent factor to the effect of PD. Expectancy–value theory provides the theoretical foundations, and structural equation modeling analyses for a sample of 358 exporter–importer relationships in the global wine industry provide empirical support for this argument. Product-related CI mitigates the negative impact of PD on the relational exchange orientation (REO) between firms. Specifically, a high level of PD dampens REO when product-related CI is poor, whereas a strong product-related CI helps firms facing such PD conditions to build REO. People-related CI has an indirect effect on REO through product-related CI. This study helps explain the “paradox of distance” and offers a fresh perspective on how to handle the issue of PD when relevant.