Wine Exports Research Articles

Systemic Approach Applied to the “R” Paradigm of the Circular Economy: A Critical Reading of the Winemaking Process Through Case Studies from Northwest Italy

How does the circular economy contribute to the sustainable development of the wine sector? What benefits and limitations can come from the application of the “10Rs”, the circular strategies theorized in 2017 and today a valid tool for the orientation and evaluation of sustainable business models? Through the analysis of 10 case studies (relevant to Northwest Italy), the research confronts a sector of great importance for Italy, the world’s leading wine exporter and second-largest producer. Through the systemic approach, which reads the systems of relationships between matter, energy, information, living beings, inorganic units, and other systems, the 10Rs become filters for a critical reading of winemaking and the post-use phases of wine when the producer’s responsibility meets that of the consumer. A number of relevant issues emerge, in terms of the negative socio-environmental impact of the supply chain; the case studies try to describe them and present a possible ethical and critical response. Although it emerges that the actions of circular economy practitioners focus on the valuing of by-products and waste from the supply chain, rather than on measures to minimize the amount of resources used, extend the life of goods, and reduce waste, the case studies help to broaden this “narrow” view of the circular economy.

Developing new boutique winery businesses—Lessons from the Australian experience

The global wine industry has been growing strongly for many years with entrepreneurs often seeking to establish boutique wineries in new or established wine-producing regions, partly to indulge their passion for wine but also to develop successful, long-term business ventures. Within this context, Australia has successfully grown its wine industry over several decades and is now one of the world’s largest wine exporters. The country is known for its robust mix of large and small wine producers and wine tourism. This paper explores key issues that should be considered by entrepreneurs contemplating new boutique winery ventures to increase their chances of business success. This is done by reviewing the general wine industry in Australia and comparing the situations of five successful smaller wine producers scattered around the country. To carry out the comparisons, the authors reviewed public promotions, customer reviews, and other materials about the case businesses and industry and interviewed proprietors as needed. A representative convenience sample of successful boutique wineries from several major Australian wine regions was chosen for review so that the whole Australian industry was covered. Based on their analysis, the authors firmly believe that boutique winery entrepreneurs must examine all aspects of the business model for their proposed venture and especially their interface with wine tourism to improve their chances for long-term growth and business success. Like most real estate investments, the location of the vineyard is critically important. Then, as well as producing high-quality grapes and wines and developing strong cellar door sales, they should also incorporate food offerings that emphasize pairing their wines with local produce. In addition, they should establish onsite “experience” focused lodging options that showcase local arts and crafts, with “glamping” style accommodations providing a particularly suitable option. These are all matters which should be considered from the very outset when the venture is initially being conceptualized and plans are being formulated for the development of the chosen property. For the sake of clarity, within this study, the term “boutique winery” refers to a wine-making facility with an adjoining vineyard.

Harmonization of Trading Partners Between Indonesia–Italy: Empirical Calculations of Selected Agricultural Commodities

Initially, exports were perceived as the prestige and dignity of a nation. However, in terms of terminology, the essence of export flows is complementarity between countries, where each party has advantages, competition and excess production of a particular product to offer. The orientation of this study is to examine the relationship between tobacco exports, coffee exports, and wine exports to GDP growth in Italy–Indonesia. There are key variables which are divided into two case studies including tobacco export volume, FoB on tobacco exports, coffee export volume, FoB on coffee exports, green grape export volume, CIF on green grape exports, red wine export volume, CIF on red wine exports, GDP share of agriculture in Indonesia and Italy. The fundamental difference in wine exports from the two is that Indonesia uses green grapes and for Italy it uses red wine. The method is set through a panel data regression approach and samples for the 2013–2021. The econometric results explain that tobacco exports and coffee exports have a significant effect on the GDP share of agriculture in Indonesia–Italy. Likewise, CIF on exports of green grapes and red wines which have a significant effect on the GDP share of agriculture in both nations. These findings inspire more urgent implications for the topic of agricultural commodity exports and become an integrated whole.

Do Territories with Geographical Indications Trade Better?

AbstractDo Geographical Indications (GIs) have an impact on local export dynamics? This paper uses a panel geo-referenced dataset and a quasi-experimental approach based on Propensity Score Matching and Difference in Differences methods. Specifically, the study focuses on the impact of the European GI scheme on the wine sector export dynamics of Italian municipalities. Findings suggest that GIs positively impact wine export performance. Additionally, the positive impact of GIs spills over to the overall agri-food sector: taking similar non-GI municipalities as a benchmark, GI municipalities saw a higher increase in the value, volume, and unit value of export both in the wine and the overall agri-food sector. The positive impact involves both extra- and intra-EU trade flows and it is confirmed for rural areas as well for municipalities belonging to regions with weak institutions.

Potable intellectual property: WTO TRIPS and EU geographical indication wines

AbstractThe World Trade Organization (WTO) protects geographical indication (GI) wines such as Bordeaux and Chianti. However, there is scant empirical evidence on the effectiveness of this protection. Our triple difference panel data analysis of EU wine exports from 1995 to 2019 finds a significant effect. When countries join the WTO, their import of GI wines increases by about 25% more than non‐GI wines, compared to non‐joiners. Our findings suggest that specific trade provisions matter and that the EU policy of also including wine GIs in bilateral agreements is an attempt to further improve enforcement of GI protection in third countries.

Diplodia seriata Biocontrol Is Altered via Temperature and the Control of Bacteria.

Grapevine trunk diseases (GTDs) attack the vine's wood, devastating vineyards worldwide. Chile is the world's fourth-largest wine exporter, and Cabernet Sauvignon is one of the most economically important red wine varieties. Botryosphaeria dieback is an important GTD, and Diplodia seriata is one of the main pathogenic species. Biocontrol studies of these pathogens are commonly carried out at different incubation times but at a single temperature. This study aimed to evaluate the biocontrol effect of Chilean PGPB and grapevine endophytic bacteria against D. seriata at different temperatures. We analyzed the biocontrol effect of Pseudomonas sp. GcR15a, Pseudomonas sp. AMCR2b and Rhodococcus sp. PU4, with three D. seriata isolates (PUCV 2120, PUCV 2142 and PUCV 2183) at 8, 22 and 35 °C. Two dual-culture antagonism methods (agar plug diffusion and double plate) were used to evaluate the in vitro effect, and an in vivo test was performed with Cabernet Sauvignon cuttings. In vitro, the greatest inhibitions were obtained using the agar plug diffusion method and at a temperature of 8 °C, where Rhodococcus sp. PU4 obtains a 65% control (average) and Pseudomonas sp. GcR15a a 57% average. At 22 °C, only strains of Pseudomonas sp. show control. At 35 °C, one Pseudomonas strain shows the highest control (38%), on average, similar to tebuconazole (33%), and then Rhodococcus sp. (30%). In vivo, a biocontrol effect is observed against two D. seriata isolates, while the PUCV 2142 proves to be more resistant to control. The biocontrol ability at low temperatures is promising for effective control in the field, where infections occur primarily in winter.

The impact of policy intervention on international wine demand

PurposeThe purpose of the study is to investigate the impact of implementing anti-dumping duties on imported Australian wine to China in the short- and long-run, respectively.Design/methodology/approachFirst, the Difference-in-Differences (DID) method is used in this study to evaluate the short-run causal effect of implementing anti-dumping duties on imported Australian wine to China. Second, a Bayesian ensemble method is used to predict 2023–2025 wine exports from Australia to China. The disparity between the forecasts and counterfactual prediction which assumes no anti-dumping duties represents the accumulated impact of the anti-dumping duties in the long run.FindingsThe anti-dumping duties resulted in a significant decline in red and rose, white and sparkling wine exports to China by 92.59%, 99.06% and 90.06%, respectively, in 2021. In the long run, wine exports to China are projected to continue this downward trend, with an average annual growth rate of −21.92%, −38.90% and −9.54% for the three types of wine, respectively. In contrast, the counterfactual prediction indicates an increase of 3.20%, 20.37% and 4.55% for the respective categories. Consequently, the policy intervention is expected to result in a decrease of 96.11%, 93.15% and 84.11% in red and rose, white and sparkling wine exports to China from 2021 to 2025.Originality/valueThe originality of this study lies in the creation of an economic paradigm for assessing policy impacts within the realm of wine economics. Methodologically, it also represents the pioneering application of the DID and Bayesian ensemble forecasting methods within the field of wine economics.

Linking Spanish wine farmers to international markets: Is direct export better than indirect export in improving farm performance?

Selecting an appropriate export channel is one of farmers' most important strategic decisions as it determines farm performance. Although direct and indirect exports are two important channels linking farmers to international markets, little is known about whether direct export is better than indirect export in improving farm performance. This study addresses this research gap by analyzing the impact of export channel choice on wine export farm performance, utilizing data collected from 479 wine-exporting farmers from Spain. An inverse probability-weighted regression adjustment estimator addresses the selection bias issue of export channel choice. The results show that the wine export price received by the direct exporters is significantly lower than that received by the indirect exports. Using domestic intermediaries for exportation (i.e. indirect export) can reduce information asymmetry and transaction costs, which enable indirect wine exporters to sell their products at higher prices. However, there are no significant differences between direct and indirect exporters in export volume, value, diversity, and satisfaction. The findings highlight that direct and indirect exports do not generate differentiated profits, and wine farmers should choose one of them that can facilitate their access to international markets.

The impact of COVID-19 government policy on the international wine trade

To control the health impact of the COVID-19 pandemic, governments implemented various restrictive policies, such as stay-at-home orders and restrictions on internal movement, which had adverse effects on consumption and, consequently, on international trade. This was observed even for products intensively traded and minimally impacted in terms of production, such as wine. Thus, to work towards a better awareness of future crises, this study assesses the impact of government policy responses to COVID-19 on the international wine trade. A gravity model, a benchmark approach for studying the determinants of trade, is estimated using monthly data for 20 exporting countries and 214 potential importing countries. The findings suggest that, ceteris paribus, the value of wine export flows was inversely related to the intensity of government policy response in importing countries due to lower demand provoked by restrictive measures. This effect was considerably reduced, however, concerning wines coming from the Old World, which are inferred to be more resilient, a factor primarily attributed to their higher share of wines exported with geographical indications. On the other hand, only the exports from Old World countries were negatively influenced by restrictions on internal movements in the exporting country, which reflects a business model with a complex supply chain in which several intermediaries are involved, thus weakening the direct linkage between wine producers and consumers.

ŞARAP SEKTÖRÜNÜ ETKİLEYEN BAZI SEÇİLİ EKONOMİK VE SOSYAL FAKTÖRLERİN ANALİZİ: BİR BULANIK KÜMELEME ANALİZİ

The purpose of this study is to analyze some selected economic and social factors affecting the wine industry and to determine the cluster of countries in Europe including Türkiye that produce wine. The study sample comprised 28 countries (the 27 EU members plus Türkiye). Five country-level variables related to the wine industry were analyzed: Excise duty, value added tax, support provided by the European Union to the wine industry, geographical indications, and wine export data. A fuzzy c-means clustering algorithm was used to analyze the data. According to the findings, Türkiye is in the same cluster with 24 other European countries that are similar regarding selected social and economic factors. Thus, these countries are likely to be suitable competitors in terms of wine production. European largest producers Italy, France and Spain are in a different cluster. Economic policies can help Türkiye become an international leader in wine production. For example, the Turkish government can decrease or stop collecting excise duties from the wine industry, support the acquisition of geographical indications for its local wines. provide cash support to the industry, similar to policies throughout the European Union countries.

Destination-Centric Wine Exports: Offering Design Concepts and Sustainability

With more than 40% of produced wine crossing borders, wine represents a truly global beverage. Wine export serves as a sales lever, especially for producers where home wine consumption diminishes but the global wine business is highly competitive. The literature tells that in competitive market innovation, customer centrism, and increasing sustainability are key. Wine export offerings need to meet the customer’s desires in the targeted foreign destinations. German wine providers have to catch-up in regard to destination-specific preferences so they can offer adaptation or suffer a competitive disadvantage in sustainability positioning. The main aims of this study were to validate the importance of sustainability in wine import and to explore destination-specific preferences and potential sustainable offer designs on the basis of new, fungus-resistant grape (FRG) wines by an explorative, qualitative approach. Evaluating the key export markets for German wine, the study delved into a performance assessment on how German providers who are marked by small-scale structures and fragmentation are positioned in regard to the primary purchasing factors in global wine competition, in regard to sustainability, and how to overcome performance gaps by tailoring destination-specific export offerings. In order to close a lack of research on destination-oriented sustainable wine offer design and to provide orientation for practitioners, an empirical study tested wine export offerings in the form of four concepts with a strong emphasis on sustainability and FRGs. More than 100 wine experts in the five key countries for German wine exports served to explore country preferences for offer elements and perceived performance of German wine producers. The interviews revealed (a) that sustainability is a must for wine export sales; (b) that German wine producers limp in sustainability reputation; (c) the existence of country-specific preferences allowing exporters to tailor their offerings to the specific needs in their ambition to increase export performance; (d) that German wine producers can potentially claim sustainability on the basis of a fitting concept; (e) FRGs are potentially suited to reposition innovatively and sustainably; (f) a playful exploitation of stereotypes for German suppliers is risky; (g) that an offer concept on sustainability and “made in Germany” characteristics (design, technology, and reliability) is highly regarded potentially allowing to escape price cutting in their key export destinations.

Uruguay’s Wine Export Strategies

ABSTRACT Uruguay entered the wine export market around 2000 when Chile had already established its market share. This article investigates whether Uruguay followed the path of its South American neighbor (Chile) in terms of wine quality improvements and pricing. Using the nonparametric test, we examine whether Uruguayan scores and/or prices shifted closer to Chilean scores and/or prices from vintage year 2000 to vintage year 2015. The results indicate that Uruguayan scores did, but not prices. Uruguayan prices were broadly higher than those of Chile for both years. A likely reason is higher production costs in Uruguay compared with Chile.

Recent evolution of wine exports in a turbulence period: a multiregional input–output analysis

This study focuses on analysing the economic impact (in value-added terms) generated by Spanish wine exports during the period 2018–2020, characterized by significant geopolitical changes and market shocks produced by Brexit, the entry into force of the Federal Law on Viticulture and Winemaking in the Russian Federation, the imposition of tariffs by the USA and the COVID-19 pandemic. For this purpose, the multiregional input–output model was used to identify the overall effects (direct and indirect) in different countries deriving from the changes in final demand. The paper shows that both the world wine trade and Spanish wine exports have been negatively affected by the recent changes in the analysed period. It is estimated that the accumulated losses since 2018 as a result of the decrease in the value-added generated by Spanish wine exports exceed 300 million euros. In addition, the results suggest that the negative effects of COVID-19 are greater than the effects caused by the rest of the geopolitical changes.

L’œnotourisme au service des IG

Wine exports from Provence have grown by over 30% in ten years. In response to the pandemic, the constituent appellations of this region1 have adapted to the closure of consumer frontiers. The expansion of local consumption through œnotourism in the locality of the viticultural terroir provides an element of resilience through which the industry can pursue its ambitions. In order to sustain performance, territorial promotion needs to coexist with geographical indications (GIs), and to permit the exploitation of expertise associated with the latter. While the wines of Provence are the only viticultural beverages which are permitted, under the terms of French and EU legislation, to be designated by the distinctive term « Provence »2, their constituent appellations fall within a broader administrative territory, under the name of the Provence-Alpes-Côtes d’Azur Region (PACA).

Les effets du contexte de crise sur les exportations de vin : Étude exploratoire auprès des exportateurs français

This exploratory work aims to analyze the effects of rules implemented in reaction to three events (Covid 19, Brexit, Trump taxes) on French wine exports and the ability of firms to adapt to crisis context. Four main results were obtained : first, strong pressure on exports was caused by internal markets conditions. Then, as a whole, exporters seem to have held up well in terms of market and customers, but experiment a certain decline in margins. The effects of the health crisis and Trump taxes seem greater than the Brexit which was anticipated. Finally, the wineries have shown real adaptation-resilience facing this context.

Exploring the determinants of wine export performance. Analyzing the importance of noneconomic performance

ObjetivoEl sector vitivinícola es una industria en crecimiento con una parte importante de los ingresos procedentes de los mercados de exportación. Debido a su naturaleza cultural, la exportación de vino requiere unas capacidades empresariales y de gestión específicas. Por ello, los enfoques tradicionales de los factores que influyen en los resultados de la exportación deben integrar las especificidades del vino como producto.Diseño/metodología/enfoqueEste estudio, basado en una muestra de 93 productores de vino, desarrolla y pone a prueba, mediante un modelo de ecuaciones estructurales, concretamente el método de mínimos cuadrados parciales, un modelo conceptual de la influencia de los factores internos, los factores externos y las capacidades de relación con los socios en los resultados de exportación.ResultadosLos resultados revelan que los factores internos y las relaciones con los socios influyen en los resultados no económicos de la empresa, que a su vez influyen en los resultados económicos. Los resultados también muestran que los factores externos no afectan al rendimiento no económico ni al rendimiento económico. Además, los resultados muestran el efecto de moderación de la variable no económica. Los factores internos y las capacidades de relación tienen un impacto en el rendimiento económico que arroja el efecto de mediación del rendimiento no económico. En general, los factores internos y las capacidades de relación de las empresas son cruciales para lograr un mejor rendimiento de las exportaciones de las empresas vitivinícolas portuguesas.Originalidad/valorEste estudio combina las teorías de SCP, RBV y la perspectiva relacional o de comportamiento para presentar un enfoque novedoso del rendimiento de las exportaciones, analizando las dimensiones externas e internas de la empresa en relación con el rendimiento financiero y no financiero.

Analysis of the Grape and Wine Market in Slovakia

Abstract The cultivation of grapes and the production of grape wine have a long tradition in Slovakia. In the paper, we deal with the analysis of the grape and wine market in Slovakia in the years 2011–2020. Vineyards have approximately 1% representation in agricultural land. The average area of vineyards in the monitored period was at the level of 11,485 ha, of which 80% were fruiting vineyards. Their acreage was mainly comprised of cider varieties (97%) and a small portion of table varieties (2%) and hybrids of all varieties (1%). The production of grapes showed a fluctuating trend, but on average 46,913 t of grapes were produced in Slovakia. The average yield was 5.3 t/ha. The territory of Slovakia is divided into 6 wine-growing regions, the largest being the Malokarpatský region, the average area of which was 4,930 ha, and the smallest region, Tokaj, with an average area of 1,091 ha. On average, 340,000 hl of wine were produced in Slovakia, of which 67% was white wine production. Imports exceeded exports of wine. The number of winemakers as well as traders with wine products is growing from year to year.

Bias behind closed doors: Chinese consumers' perception of foreign wines

AbstractAlthough considerable research has explored consumer ethnocentrism and conspicuous consumption effects independently, a meaningful quantitative analysis of the interaction of such effects on consumer perception is yet to be undertaken. This study aims to provide insight into these effects by examining the impacts of consumer ethnocentrism and consumption setting on foreign Country‐of‐Origin (COO) effects in a Chinese consumer wine market context. A total of 324 wine consumers in mainland China participated in a 3 (COO: France vs. Australia vs. China) × 2 (Consumption Setting: Public vs. Private) × continuous (Chinese consumer ethnocentrism) between‐subject, factorial design experiment. The study finds that Chinese consumers favor French red wine when compared with its Australian and Chinese counterparts but shows that Australian wines still benefit through smaller, indirect COO effects. Additionally, French COO effects are mediated by the utilitarian and hedonic meanings of red wine and moderated by consumer trait ethnocentrism and the consumption setting. This paper contributes to the understanding of culturally informed self‐regulation of consumer behaviors and how Chinese consumer ethnocentrism interacts with consumption settings to alter a consumer's perception of foreign goods. The findings of this paper also provide practical insight into Chinese wine consumers' perceptions and decision‐making processes for wine exporters.

Trade uncorked: Genetic distance and taste‐related barriers in wine trade

AbstractA nascent literature explores the impact of taste differences on trade. In gravity model estimations, the coefficient on geographic distance is large because it tends to capture such (usually unobservable) preference‐related frictions. We examine this question in the context of French wine, that is, a cultural good characterized by a great variety of types (i.e. accommodating a large heterogeneity in wine tastes) and of quality levels (from cheap table wine to the finest grands crus). A series of gravity models are estimated using the universe of French bottled wine exports by detailed appellation between 1998 and 2015. We use genetic distance as a proxy for taste differences inherited from biology and culture. We show that this interpretation is not ruled out by other possible roles of genetic distance on trade (i.e., microgeography or non‐gustatory cultural dimensions such as trust). We find that genetic distance has an independent effect on trade, explaining between 20% and 40% of the coefficient on geographic distance. Dynamic estimates confirm this result and establish both the persistent and contemporaneous effects of genetic differences. A heterogeneous analysis also corroborates previous findings in the literature showing that high‐tier goods tend to escape gravity. In addition, we find that premium wines escape the home bias associated with taste differences, possibly illustrating that luxury wines have become global iconic products purchased for status and investment motives rather than for gustatory pleasure.

Paninvasion severity assessment of a U.S. grape pest to disrupt the global wine market

Economic impacts from plant pests are often felt at the regional scale, yet some impacts expand to the global scale through the alignment of a pest’s invasion potentials. Such globally invasive species (i.e., paninvasives) are like the human pathogens that cause pandemics. Like pandemics, assessing paninvasion risk for an emerging regional pest is key for stakeholders to take early actions that avoid market disruption. Here, we develop the paninvasion severity assessment framework and use it to assess a rapidly spreading regional U.S. grape pest, the spotted lanternfly planthopper (Lycorma delicatula; SLF), to spread and disrupt the global wine market. We found that SLF invasion potentials are aligned globally because important viticultural regions with suitable environments for SLF establishment also heavily trade with invaded U.S. states. If the U.S. acts as an invasive bridgehead, Italy, France, Spain, and other important wine exporters are likely to experience the next SLF introductions. Risk to the global wine market is high unless stakeholders work to reduce SLF invasion potentials in the U.S. and globally.