Small Wineries Research Articles

The Impact of Covid-19 Pandemic on Small Wineries in Cyprus and Reflections on Wine Tourism: Entrepreneurs’ Perspectives

Tourism-dependent countries like Cyprus, have been seriously affected by the shockwave that COVID-19 pandemic has generated to their sociocultural/economic fabric. One of the industries of Cyprus impacted is the wine industry. Indeed, the consequences of the pandemic have been reflected on various angles of the island’s wineries; from the day-to-day operations to their overall strategy. Moreover, they influenced their relationship to tourism and the provision of wine tourist experiences. This is even more apparent in the case of small wineries. In this respect, the paper examines how tourism related wine enterprises, and more specifically, small wineries in Cyprus, handled the crisis and its impacts, through the analysis of the wine entrepreneurs’ views. This study explores the dimensions of the pandemic imprinted on wineries’ business and highlights the pertinent measures taken to deal with them. Additionally, it illustrates how wine tourist activities have been affected, enhanced, and reformed for the smooth wine tourist experience to be provided. To do so, exploratory research was utilized to collect data through secondary sources and face-to-face in-depth interviews with winemakers/managers/owners of small wineries in Cyprus. Findings reveal that the greatest challenge that small wineries faced, was the high degree of uncertainty, as Hotels, Restaurants, and Catering companies (HO.RE.CA.) were temporarily closed and consequently, the wine consumption related to tourist flows was reduced. Small wineries took a series of measures to handle the crisis, such as emphasizing communications through online media, improving the provided -tourist- experience in the wineries, or enhancement of direct marketing and distribution strategies. The paper concludes with recommendations for small winemakers to deal with the shocks of crises and for their sustainable competitive advantage.

The role of third actors in the dyadic business relationship initiation: an empirical perspective of sommelier in the wine context

PurposeStarred restaurants, as significant outlets for small wineries, present a unique business opportunity. In this context, the sommelier, as a third actor, assumes a pivotal role in shaping the business relationships between these entities. This study, employing a grounded theory approach, delves into the sommeliers’ roles and activities in the initiation of relationships between small wineries and starred restaurants.Design/methodology/approachA qualitative methodology was adopted. Twenty-four semi-structured interviews, direct observations, and informal conversations with starred restaurants, small wineries, and sommeliers were collected and analysed using an abductive approach.FindingsThe findings suggest that the sommelier acts as a contributor to the business relationship initiation between the small winery and the starred restaurant, performing several continuous, simultaneous, and bilateral roles toward both actors.Originality/valueThe study sheds light on the role of wine stewards in the B2B context and provides useful insights to close the theoretical gap between business relationship initiation and the role of third actors.

Determining the influence of belonging to a wine protected designation of origin on profitability

AbstractTo guide consumers, wineries need credible attributes about the quality of their wines and its origin. In Spain, protected designations of origin (PDO) guarantee that the wine has been produced in a certain wine region in accordance with specific and officially regulated quality criteria thus providing elements of guarantee to the consumer. The objective of this work is to determine whether the belonging of a winery to a PDO is positively or negatively related to profitability. This analysis is important because based on its results, managers will have more knowledge to decide whether a winery is interested in joining the regional PDO or not. We performed an empirical study using a random‐effects generalized least squares regression analysis, with a sample of 1182 Spanish wineries, in which we determine the relation between belonging to eight of the major Spanish PDOs and winery profitability. The results show that wineries registered in these PDOs tend to have higher levels of profitability than wineries that have opted to remain outside, with these differences being significant in five of the eight PDOs analyzed. Additionally, the regression model reveals a positive relationship between PDO membership and winery profitability in six of the eight PDOs. Furthermore, the findings suggest that in some of these PDOs small wineries benefit the most from being part of a PDO due to their difficulties in having a recognized brand in the market, while belonging to a PDO seems to be less useful for large wineries that have greater resources to build their own quality brand. On the basis of these findings, the wineries now have more information to decide whether to stay in the PDO, join it, or focus exclusively on developing their own brands [EconLit Citations: L15, L66, Q13].

Spatial structure and influencing factors of an emerging wine tourism network: a case study of the Ningxia wine region

PurposeNetworks linking tourist attractions or organizations are a major focus of tourism research. Despite extensive research on tourism networks, academic research on the spatial structure and formation of wine tourism networks is limited. This study aims to investigate the spatial structure and factors influencing the development of a network among Ningxia wineries, an emerging wine tourism destination in China.Design/methodology/approachThis study uses social network analysis to uncover “what” the spatial structure of wine tourism networks looks like. Sixteen in-depth interviews were conducted among key stakeholders to explain the “why” of such structural characteristics.FindingsThe results show that in an emerging wine tourism destination, popular tourist attractions enjoy high centrality and hold key positions in the wine tourism network. Small wineries exhibit high closeness centrality, and only one winery serves as a network broker. According to the stakeholders, the importance of network actors will increase as their economic and political importance increase, while small wineries that lack differentiation in the network may perish.Practical implicationsLocal governments can implement the suggested measures for improving network connections, and wineries are advised to find suitable positions to improve the experiences of tourists.Originality/valueThis study pioneers the identification of the distinct structure and factors influencing the network of an emerging wine tourism destination, thus enriching the understanding of the interplay and roles of different actors.

Development of a Novel Approach for Controlling and Predicting Residual Sugars in Wines

Residual sugars (RS) in wine are the sugars that remain in a wine after fermentation is complete. In some wine styles, such as semi-dry wines, the accurate measurement of the RS concentration is critical for both qualitative and legislative reasons. Brix, measured by a simple refractometer, can give a good estimation of the RS concentration in the must, but during fermentation, the presence of alcohol leads to inaccurate sugar measurements. In order to measure the RS accurately, other more precise techniques are used, most of which are expensive or require professional skills. Therefore, novel approaches for rapid, easy, and practical measurements for estimating the sugar content have been suggested over the years. However, most of these methods do not supply an actual measurement of RS but rather give brix values, and those that measure RS involve special equipment, which is less relevant for small wineries. This study suggests a novel model for predicting and controlling the wine’s residual sugar. The data the model uses is the initial brix of the must before fermentation and its density during fermentation. The model was created by measuring actual residual sugars during the fermentation of natural and synthetic musts, with various degrees of initial brix levels, while simultaneously measuring their densities and correlating the two measurements. Linear regression between the residual sugar of the wine and its density was obtained for all treatments and repetitions (i.e., different values of must initial brix) with R2 values above 0.97. Using the model, one can calculate (before commencing the fermentation) the density values at which the fermentation will reach a particular desired residual sugar value for a specific initial brix level; the model is applicable for the fermentation conditions used in this work, i.e., brix levels of 18–27 °Bx, Saccharomyces cerevisiae strains (fx-33 and fx-10) in common conditions of fermentation regarding temperature and aeration.

Collaborative Performances of Wine Tourism Destinations in the Northern Rhone Valley

Purpose: The main aim of this article was to identify the wine tourism destination models set up on collaborative performances driven by Tourism Offices (Destination Marketing Organization, DMO) and wineries (private enterprises) from the appellate areas in the Northen Rhone Valley. Design/methodology/approach: The ethnographical methodology was used, including methods of participating observation (applied by a mysterious tourist method), study tours (to explore the study field), expert analysis (based on knowledge exchange with Tourism Office Managers) and official interviews (with Mangers of small and large wine producers from the areas). Findings: Two of the three surveyed wine tourism destinations from the Northern Rhône Valley (Vienne Condrieu and Rhône Crussol) are distinguished by the very active role of tourism organizations in building collaborative wine tourism offerings, in particular with small wineries. The third destination surveyed (Ardèche Hermitage) is more oriented toward collaborations with large wine producers and their independent role in leading wine tourism marketing. Research limitations/implications: Managers of tourism organizations should be oriented toward collaboration with both: large and small wine producers. Large wineries are helpful in raising the visibility and image of a wine destination. Small producers, on the other hand, offer a distinctive and individual wine tourism experience. Originality/value: The key aspect of wine tourism marketing is the building of collaborative wine tourism offerings led by DMO’s collaboration with both large and small wineries from the destination.

Technical and Economic Efficiency of Vine Pruning: Results of Experimental Trials of Some Cultivars of Grapevine Grown in Sicily and Determination of Break-even Point

The research presents the results carried out on Sicilian viticulture in order to study the economic sustainability of the agricultural company. In particular, the author examined the operation of dry pruning and tying of the fruiting head in espalier vineyards with tools that facilitate the work. The economic analysis highlights that equipping yourself with mechanical tools that facilitate work is convenient for both large and small wineries. The results of the research highlight that the investment to facilitate pruning and tying in Guyot-trained vineyards can also be made by wine-growing companies and is increasingly convenient as the area under vines involved increases.

Wine tourism – a chance for the development of rural regions: A case study from Eastern Poland

European wine tourism has long been carried out in the traditional wine areas of France, Portugal or Germany. In the countries of Central Europe, these traditions also occur, but they have a more local meaning. The article presents one of the wine regions in Eastern Poland – the Lesser Poland Gorge of the Vistula River, where the development of small wineries has been observed for several years. The article’s primary goal is to present vineyards in the Lesser Poland Gorge of the Vistula River concerning the possibilities of development of wine tourism and its impact on the region’s functioning. It seems that the concept of “terroir” can be used by local winemakers to identify the particularities of wines from vineyards. This can be an excellent contribution to the development of wine tourism, considering that nowadays, tourists search for authentic experiences. The production of local grape wine and its promotion may be the basis for rebuilding the region’s wine production tradition, as well as contributing to the region’s development.

Corporate heritage marketing to support the buyer–seller relationship initiation: the case of a small winery

AbstractDue to the complexity of postmodern markets, firms are developing corporate heritage marketing initiatives to engage in consumer research for emotional ties. Due to its rising relevance in the literature, several aspects of corporate heritage marketing need to be examined in depth, especially within the b2b context. This study explores how corporate heritage marketing supports the initiation phase of the buyer–seller relationship. The originality of this study relies on the fact that, thus far, no studies have discussed the connection between corporate heritage marketing and buyer–seller relationship initiation, a crucial period for the establishment of the business relationship, which in turn has been scarcely investigated in the management literature. The findings suggest that corporate heritage marketing might act as an initiation contributor for the buyer–seller relationship: it facilitates the first contacts between the parties by conveying emotional and rational values that improve seller attractiveness, and the first formal agreement after primary interactions by increasing seller trustworthiness. This study contributes to the corporate heritage marketing and buyer–seller relationship development literature. Relevant managerial implications are also provided, suggesting a simplified model for the SMEs for corporate heritage marketing management along with advice for buyers.

WINE TOURISM: GLOBAL AND LOCAL PERSPECTIVES IN KVEMO KARTLI

Wine tourism is a growing sector with great opportunities to diversify demand. In the case of Kvemo Kartli, this potential is even more special. The main topic of the article is the study of wine cellars in the region of Kvemo Kartli. The article discusses the resources and facilities important for the development of wine and agrotourism, the main developing force of this kind of tourism in Kvemo Kartli. This work will study the contributions of the family wineries to the development of the touristic sector. It also serves to popularize Kvemo Kartli as a wine region and a way to form a wine culture. The study will also present the contributions of the Germans colonists in the development of winemaking and preservation of traditions in the Kvemo Kartli region. Qualitative research methods were used in the research process. The survey revealed the positive role of small wineries in the development of tourism in the Kvemo Kartli region, highlighted the current problems of small wineries (which relate to the factors affecting development), the economic benefits of small entrepreneurs, improper representation of wine tourism products on the market and other challenges. Recommendations were formulated in order to eliminate the problems identified. Also, we discussed the government's action plan for the future development of wine tourism in Georgia.

The6000Project: How a Small Winery’s Crisis Became a Social Media Crowdfunding Success

In the last week of February 2020, Sfriso Winery, a small, family-owned winery in the countryside of northeastern Italy, was forced to indefinitely suspend operations as one of the first wine businesses affected by the crisis resulting from the Coronavirus pandemic. The prospect of indefinite delays affecting their traditional distribution model forced the husband and wife team of Pier Sfriso and Réka Háros to rely on innovation as a means to find new customers. With the couple predominantly relying on tourism for new client acquisition before COVID-19, the prospect of attracting enough customers via alternative means appeared daunting. The impact of COVID-19 hit when a commercially life-saving order fell through in the early weeks of the pandemic. This small business in a global market suddenly became impacted by a crisis. The challenge to this husband and wife team at Sfriso Winery was to thus find a way to turn this constraint in traditional sales revenues into a profitable market opportunity. This case thus explores two key research questions. Firstly, how can a small business identify a market opportunity in the midst of a supply chain crisis? Secondly, how does a little-known winery create sufficient demand using electronic word-of-mouth? The Sfrisos’ responses to these two questions resulted in a defaulted sale of 6000 bottles of wine becoming the centerpiece of a successful online campaign. #The6000Project was born. The case follows the impact of the COVID-19 crisis on a small wine business. This case illustrates how a little-known winery, in a little-known winemaking village was able to utilize knowledge of marketing as a means to identify an opportunity during a crisis. By using the advantages of online communications via a social media campaign, the owners succeeded in attracting enough new consumers to their small brand. This research project is ideally run as a 2-stage, multimedia case study. The case study is outlined in the following pages, as two sets of supports: for the case moderator(s), and for case participants. This case would be valuable for any wine producer wanting to follow a template for identifying opportunity in the midst of a crisis, and/or any business wanting to investigate means for utilizing social media for the purpose of initiating a crowdfunding campaign when limited funds are available for marketing.

Green walls as a novel wastewater treatment option for craft breweries

The fermentation industry has experienced significant growth as craft breweries and small wineries and cideries are enjoying increased popularity. These beverage manufacturers are also facing increased regulatory pressure to treat wastewater (WW) prior to discharge to the environment and municipal sewer systems. This research assesses the performance of a green wall system in treating brewery WW by measuring reductions in biochemical oxygen demand (BOD), turbidity, total solids and total nitrogen. The system includes a green wall column with a 35 L sump and a pump that continuously cycles wastewater at an average rate of 3 L/min through the green wall in a batch process. Experimental scenarios included a control with the pump cycling WW between the sump and an empty column and WW cycled through a media filled column, columns with media and biofilm, and the full system including media, plants and biofilm. After 24 h of treatment, the full system achieved 78%, 97% and 63% reductions of BOD, turbidity and total nitrogen, respectively. The net hydraulic residence time within the green wall column was 40 min over the 24 h treatment period. Although, the WW resided in the green wall columns for only 2.8% of the treatment period, the green wall accounted for 50%, 84%, and 94% of the reduction of BOD, turbidity, and total nitrogen. This green wall system has the potential to provide adequate treatment of brewery wastewater prior to discharge to a municipal sewer system or an onsite treatment system.

Effect of Particle Character and Calcite Dissolution on the Hydraulic Conductivity and Longevity of Biosand Filters Treating Winery and Other Acidic Effluents

Acidic effluent such as winery wastewater is challenging to remediate. Biological sand reactors can simultaneously remove organics and neutralize winery wastewater via biotic and abiotic mechanisms. The systems have been shown to be suitable for treating the intermittent flow of wastewater at small wineries. It has been shown that dissolution of calcite is the most important abiotic mechanism for increasing the pH of the influent. In this study, sand column experiments were used to determine the effects of (i) sand particle size distribution on calcite dissolution kinetics, and (ii) the effects of calcite particle dissolution on the hydraulic conductivity. The results were then used to calculate the theoretical temporal abiotic neutralization capacity of biological sand reactors with differently sized sand fractions, including unfractionated (raw) sand. The results were compared with those determined from a pilot system treating winery wastewater over a period of 3 years. Sand fractions with larger particles contained lower amounts of calcite (using Ca as a proxy), but exhibited higher hydraulic conductivities (3.0 ± 0.05 %Ca and 2.57 to 2.75 mm·s−1, respectively) than those containing smaller particles and/or raw sand (4.8 ± 0.04 to 6.8 ± 0.03 %Ca and 0.19 to 1.25 mm·s−1, respectively). The theoretical abiotic neutralization capacity of biological sand reactors was compared with a pilot system with the same flow rates, and a temporal abiotic neutralization capacity of 37 years was calculated for biological sand reactors, which compared favorably with the theoretical results obtained for wastewater with pH values between 2 (8.2 years) and 3 (82 years). It was concluded that biological sand filters with around 10% calcite will be able to abiotically neutralize winery wastewater and other wastewaters with similar acidities for the projected life span of the system. Future work should focus on determining the effect of sand grain size on the bioremediation capacity, as well as the use of biological sand reactors for treating other acidic organic wastewaters such as fruit processing, food production and distillery wastewater.

Grape Quality Zoning and Selective Harvesting in Small Vineyards—To Adopt or Not to Adopt

The practical application of grape quality zoning and selective harvesting in small vineyards (<1 ha) has not yet gained much importance worldwide. However, winegrowers with small vineyards are looking for ways to improve wine quality and maximise profit. Therefore, the aim of this study was to identify the most predictive vegetation index for grape quality zoning among three vegetation indices—NDVI, NDRE, and OSAVI—at three grapevine growth stages for the efficient use in small vineyards for the selective harvesting and production of different wine types from the same vineyard. Multispectral images were used to delineate two vigour zones at three different growth stages. The target vines were sampled, and the most predictive vegetation index was determined by overlapping the quality and vigour structures for each site and year. A differential economic analysis was performed, considering only the costs and revenues associated with grape quality zoning. The results show that OSAVI is the least predictive, while NDVI and NDRE are useful for grape quality zoning and selective harvesting. Multi-year monitoring is required to determine the ideal growth stage for image acquisition. The use of grape quality zoning and selective harvesting can be economically efficient for small wineries producing two different “super-premium” wines from the same vineyard.

Ozone Gas for Low Cost and Environmentally Friendly Desulfurization of Mute Grape Must.

Ozone is widely used for storage and processing facilities and food sanitization. In this research, ozone was tested as an alternative to high temperature vacuum must desulfurization in order to make a more sustainable process. Bubbling ozone in highly sulfited red must (mute must) at two treatment temperatures, a significant reduction in total and free sulfites from around 1000 mg/L to 200 and 120 mg/L at 20 and 10 °C, respectively, was observed in 24 h, but already after 4 h the concentration was halved. Air flushing of the mute must did not reduce the SO2 content. To evaluate the potential ozone effect on polyphenol oxidation, we carried out the ozone treatment on a water solution with tannins, ascorbic acid, or potassium metabisulfite (MBK) as single and as mixture. In 1 h, 2/3 of sulfite disappeared with the treatment, but the reduction was greater with ascorbate and tannins; the same was observed for ascorbate, whereas tannins decreased to a lesser extent when combined with ascorbate and MBK. Taken together, the results indicate that ozone could be an environmentally friendly, low cost, treatment for desulfurization, especially for white must, and is also easy to use by small wineries.

Modelling the group dynamics in the wine industry

PurposeOne of the main difficulties for wine managers is understanding and interpreting how some strategies and company behaviours could affect firms’ performance. This study aims to contribute to improve these concerns by examining the evolution of the competitive wine industry structure over time using the strategic group membership dynamics approach.Design/methodology/approachThis study empirically analyses a data set spanning the period 2004–2014 to identify the strategic groups in the Spanish wine industry and to model their evolution over time. A time inhomogeneous hidden Markov model (HMM) is used for this purpose.FindingsThree strategic groups are identified: Young Makers, Quality Lovers and Major Players. Young Makers are small wineries that produce low-quality wines. They are not part of a collective brand – Protected Designation of Origin – and do not invest in marketing campaigns. Quality Lovers produce the highest quality wines but offer a narrow assortment. They invest modestly in advertising, and most of them belong to a Protected Designation of Origin. Major Players produce medium-quality wines, offer a wide assortment and invest heavily in advertising. The groups seem stable over time.Practical implicationsThe results show that strategic group analysis can be used to identify and compare patterns of strategic activity within the wine industry, providing a better understanding of the competitive environment.Originality/valueNo previous studies have analysed the competitive structure of the Spanish wine industry. This study delineates the structure of this industry using strategic groups, which is supported by a valid econometric model. Therefore, from a theory base perspective, this study adds new evidence to the stream of research on strategic groups by investigating their evolution over time in the wine industry and the effect of strategic group membership on performance.

Agro-Environmental Practices and Business Performance in the Wine Sector

Wine production is directly related to the environmentally responsible production. In recent years, due to demands for an environmentally responsible wine production in the Republic of Serbia, wine producers have become aware of the environmental responsibilities and are taking measures to prevent environmental problems. The objective of this research was to investigate attitudes of winery owners/managers on business performance of the wineries concerning the environmental behavior and its disclosure. The research has been conducted in the period from July to the end of October 2021 on a sample of 330 small wineries in the Republic of Serbia. The data were processed in the Smart PLS software v.3.2.7. The findings show a positive connection between of both service and financial performance with an ethical environmental behavior and environmental disclosure. However, no positive connection between innovative performance and ethical environmental behavior or ethical environmental disclosure has been determined. The positive attitudes of managers on the environment influence the business performance of wineries and indirectly on environmental behavior and disclosure. The current study should contribute to the relevant literature, as it investigates not only firm behavior in the wine sector, but also the impact of firm performance on the environment.

How do transaction costs, capabilities and networks influence the procurement strategies of small agri-food firms? Evidence from the wine industry

PurposeThe purpose of this study is to disentangle the drivers of adoption of procurement strategies in situations where small agri-food firms deal with constrained organizational choices. More specifically, the authors investigate the role of transaction costs, capabilities and networks in the definition of feasible “make-or-buy” choices in emerging wine regions.Design/methodology/approachThis article analyzes a unique dataset of small wineries from five US states: Illinois, Michigan, Missouri, New York and Vermont. The reported results derive from both a hurdle model (i.e. a probit model and a truncated regression model) and a tobit model.FindingsThe results suggest the importance of trust as a replacement for formal governance structures whenever small firms deal with highly constrained sets of organizational choices. On the other hand, the level of dependence on a limited mix of winegrape varieties and the perception that these varieties are fundamental in building legitimacy help to explain higher rates of vertical integration.Originality/valueThis study is important because it sheds light on organizational constraints that affect millions of farmers across the globe. The study of “make-or-buy” decisions in agri-food supply chains has mostly relied on the implicit assumption that all organizational choices are available to every firm. Nevertheless, limited capabilities and the participation in low-density networks may constrain the ability of a firm to adopt a governance mechanism. Stated organizational preferences and actual organizational choices may thus differ.

Social Media Use of Small Wineries in Alsace: Resources and Motivations Analysis

Social media (SM) plays an increasingly important role in small and medium businesses, including wineries. However, little is known about the managerial adoption and use of SM by wineries. This study aims to understand wineries’ SM usage by analysing their strategic objectives of SM usage and main differences in relation to their SM usage, as well as establishing factors contributing to SM usage. The unified theory of acceptance and use of technology (UTAUT) framework (performance expectancy, effort expectancy, social influence, and facilitating conditions) is discussed together with additional explanatory factors relevant in the studied context (attitude toward SM, self-efficacy, and anxiety). A quantitative survey of 78 wineries from the Alsace wine region of France was conducted. The results show that SM is currently used by a majority of wineries, but that strategic alignment is missing. There are significant differences in SM usage according to winery size, export orientation, and winemakers’ profiles. The results also confirm that wineries need resources and knowledge to use SM more extensively.

Universities and Wineries: Supporting Sustainable Development in Disadvantaged Rural Areas

This exploratory study focuses on the role of the university in supporting sustainable development in rural areas, focusing on small wine producers, particularly those located in remote and disadvantaged areas. Disadvantaged areas have distinctive features. Firstly, they are fragile areas from a sociodemographic point of view because of population ageing. Secondly, they are unstable from an environmental (physical, eco-systemic) point of view, as a consequence of insufficient maintenance of their seminatural capital. University–business cooperation with companies located in those areas thus needs to be designed by considering the specific characteristic of the place. Therefore, this exploratory study sought to understand how the university can work with small wineries and support them and their rural area to face inequalities and low growth, and foster social innovation. We present a case study based on field research in Italy. The results—based on the analysis of 26 semistructured interviews with small wine producers—are discussed by exploring the potential form of cooperation between rural stakeholders and universities, beyond the concept of knowledge transfer. Conclusions highlight the need for the university to act as a facilitator of dialogue at a territorial level, as a first step toward to formulation of shared sustainable goals.