Wine Supply Research Articles

How to increase sustainability in the Finnish wine supply chain? Insights from a country of origin based greenhouse gas emissions analysis

As wine supply chains become increasingly globalized, sustainability issues take on ever greater importance. This is the first study to analyse the environmental sustainability aspect of greenhouse gas (GHG) emissions from a global wine supply chain perspective, covering just over 90% of Finland's wine imports. Lacking substantial domestic production capacity, virtually all wine consumed in Finland is imported. Finland is comparable to its Nordic neighbours, Sweden and Norway, in this respect.The Life Cycle Assessment (LCA) methodology was combined with sensitivity and scenario analyses to investigate GHG emissions implications from prospective policy changes. Our results spotlight differences related to wine production in the eight main wine producing countries for the Finnish market (Australia, Chile, France, Germany, Italy, Spain, South Africa, and the United States), related logistics, and all packaging types for wine used in Finland (glass bottle, Bag-in-Box, PET bottle, beverage carton, and pouch). We found an average value of 1.23 kg CO2e for 0.75 L wine consumed in Finland, ranging from 0.59 kg CO2e for French wine in a bag-in-box packaging to 1.92 kg CO2e for Australian wine in a glass bottle. After identifying the main GHG emission hotspots in the wine supply chain, our scenario analyses highlight the effects of reducing glass bottle weight, moving away from glass packaging toward bag-in-box, increasing bulk wine export volumes to Finland, and following the European Commission's Energy 2020 strategy which targets increasing energy efficiency by 20 percent.

Innovation developments in the wine industry: a journey from the amphorae of old to the California wine cluster

Does traditional sector innovate as others? The wine sector evolution proves the role of innovation since the antique world with the amphora innovation until Californian cluster that symbolises new world country production-based from wineries and coopetition. While wine suppliers focus on technical innovations, winegrowers develop organisational innovations to face their structural lack of resources. Anyway, both actual global context and climate change lead wine actors to innovate for survive or adapt. In our article, we first analyse innovation in the wine sector over time. Then, we define innovation and focus on wine sector specificities.

Innovation developments in the wine industry: a journey from the amphorae of old to the California wine cluster

Does traditional sector innovate as others? The wine sector evolution proves the role of innovation since the antique world with the amphora innovation until Californian cluster that symbolises new world country production-based from wineries and coopetition. While wine suppliers focus on technical innovations, winegrowers develop organisational innovations to face their structural lack of resources. Anyway, both actual global context and climate change lead wine actors to innovate for survive or adapt. In our article, we first analyse innovation in the wine sector over time. Then, we define innovation and focus on wine sector specificities.

Chemical characterisation, antioxidant and antimicrobial screening for the revaluation of wine supply chain by-products oriented to circular economy

Aim of the project was the bioassay guided optimisation of extraction methods applied to wine chain by-product to obtain extracts, fractions and biologically active biomolecules with a possible use in the nutraceutical and cosmeceutical industry. Exhausted red and white grape marc were extracted using water:ethanol 50:50 with ultrasound assisted extraction and Naviglio® technology; and also with supercritical fluid extraction (SFE) and steam-distillation obtaining different phytocomplexes. Each extract was characterised by different molecular category: exhausted red grape marc (VCR) by anthocyanins, exhausted white grape marc (VCB) by flavonoids, and grapeseed (VIN) by proanthocyanins. SFE and steam-distillation, instead, highlighted the presence of fatty acids and their ester in every matrix, but terpenoids were not revealed at level major or equal than 0.1%, except for manoyl oxide in VCR (2.89%). VIN was the most abundant matrix in polyphenols (506.24 ± 55.91 mg gallic acid/g dried extract), and it showed the highest antioxidant activity (IC50 of 4.30 μg/mL). Regarding the antimicrobial activity, the hydroalcoholic extracts from VCR, VCB and VIN were tested but no noteworthy activities have been recorded.

Investigating environmental management practices within the Northern Cape wine supply chain

Background: Environmental management systems and practices have become a necessity in wine supply chains, given their vulnerability to climate change. Climate change could lead to a 55% loss of wine-cultivating land in South Africa by 2050, which would harm the first two tiers of the wine supply chain.Objectives: The objective was to investigate the current environmental systems and practices applied in the first two tiers of the Northern Cape wine supply chain.Method: This qualitative exploratory study was conducted by semi-structured interviews to determine the various environmental management systems and practices adopted by role players. The data collected were analysed by thematic analysis.Results: The results indicated the implementation of an environmental management tool, namely the Integrated Production of Wine scheme. Supportive practices such as water- and energy-wise approaches, soil management and waste management were also identified. Furthermore, a sincere relationship between farmers, cellars and viticulturists results in collaboration based on mutual information sharing and cooperation between role players to reduce their environmental impact.Conclusion: The various environmental management practices and the collaborative approach between role players can serve as an example to other agricultural supply chains.

Resilience and response of wine supply chains to disaster: the Christchurch earthquake sequence

ABSTRACTThe study of resilience for organisations and their extended supply chains has become an important field given the increase of supply chain disruptions. The 2010 and 2011 Christchurch earthquakes provide an opportunity to examine the resilience of supply chains to a disaster; the specific context of this study is the product category of wine. Theoretically, we use a three phase model of disaster resilience; readiness, response and recovery, to frame our study of the wine supply chain. We adopt a case study method to examine five members of the wine distribution channel, as a subsector of the fast moving consumer goods (FMCG) industry, from the wholesale sector to retail. We identify key factors of supply chain resilience: building performance, distributed networks of locations and IT, owned assets, critical infrastructure and adaptable work force. We report on the actions taken and what can mitigate future risk and enhance resilience in FMCG supply chains.

A water footprint management framework for supply chains under green market behaviour

Abstract Freshwater sustainability has been emerging as a critical corporate social responsibility issue for leading businesses worldwide. An increasing number of companies disclose and evaluate their water footprint, embracing an end-to-end supply chain perspective. In this work, we first propose a strategic system dynamics model for capturing the long-term impact of various water management policies on consumptive water footprint and supply chain profitability under diverse scenarios of consumers' demand patterns depending on blue water-related efficiency (i.e. green market behaviours). We apply the proposed simulation model on a specific wine supply chain and demonstrate that, under specific green market behaviour conditions, technological interventions in agriculture (e.g. drip irrigation) are more environmentally and economically sustainable compared to industrial water recycling and reuse, while the combined application of both policies is even more effective. Additionally, the impact of water-efficient policies on supply chain financial performance is even more potent under increased consumers' environmental sensitivity. Based on the managerial insights obtained from our analysis, as well as current corporate drivers and goals, we finally propose a supporting methodological framework for the ex-ante evaluation of eco-efficient supply chain water management policies, considering the impact of the green market behaviour on water-related and economic sustainability.

What factors explain the price of top quality wines?

PurposeGiven the growing supply of wines and the large number of new consumers with purchasing power but lacking knowledge of the subtleties of high-quality wines, expert opinions are used for consumers as proxies for quality. This study aims to determine the determinants of prices in top-quality wine market. The authors also seek to estimate the role for country of origin, grape, producing region and winery in prices. And, finally, the authors try to show how countries, regions and wineries can help increase their position in international rankings.Design/methodology/approachThe authors try to answer: What factors explain the price of top-quality wines (defined as best rated in a standardized ranking)? To some extent, in the hands of producers influence prices, which imply long-term decisions or large investments in land and marketing. Other variables that consumer value does affect prices. The authors try also to detect undervalued or overvalued wines, grapes, regions, wineries or producer countries. The authors estimate an econometric model of hedonic prices using a 14-year sample of the Wine Spectator’s 100 top-rated wines for the American market between 2003 and 2016, totaling 1,400 observations. The sample is a great cross-section because each wine is unique.FindingsThe authors’ contribution is twofold: the determination of the price explanatory values and the identification and attribution of price differences by country, grape, region and winery. Also, the authors detected grapes, countries, regions and wineries which are overvalued or undervalued with respect to the average prediction of the model.Research limitations/implicationsThe findings are useful to understand the role of price explanatory variables, as well as for making policy and managerial decisions. From the model, collective or managerial actions can be derived to increase particular wines’ positions in international rankings. The proxy for “quality” in the study is not the only possible definition.Practical implicationsIn some cases, managerial choices could be conditioned by the policies or history. There is some room for collective action and public policies to improve regions’ and countries’ reputation.Social implicationsThere are clear synergies for policies that can raise the prestige of countries and regions and their spillovers on the brand name reputation of individual wineries.Originality/valueThe results, policy and managerial implications are of interest for business, countries interested in improving their position in international rankings and for consumers to make more informed decisions.

Economic analysis and energy valorisation of by-products of the wine supply chain: the case of the ‘Mamertino wine PDO’

The paper reports the analysis of biomass derived from maintenance of a vineyard, to assess its potential as an alternative energy source, instead of the usual disposal of the wine supply chain’s residuals. The site studied is within the province of Messina, Sicily, in the area of Mamertino wine PDO, a wine of superior quality. The analysis suggests that use of this kind of biomass may allow a fossil fuel such as liquefied petroleum gas (LPG) to be replaced by a wine wood chip biomass boiler, thus meeting economic and environmental criteria by reason of recycling for sustainability.

Managing Water Sustainability: Virtual Water Flows and Economic Water Productivity Assessment of the Wine Trade between Italy and the Balkans

The management of natural resources in economic activities has become a fundamental issue when considering the perspective of sustainable development. It is necessary to rethink every process in order to reach efficiency from different points of view, not only environmentally but also economically. Water scarcity is growing because of economic and population growth, climate change, and the increasing water demand. Currently, agri-food represents the most water consumptive sector, and the increasing importance of international trade in this industry puts freshwater issues in a global context that should be analyzed and regulated by sustainable policies. This analysis is focused on virtual water flows and economic water productivity related to the wine trade, and aims to evaluate water loss/savings achieved through bilateral trade relations. The choice fell on Italy, the first wine producer in the world, and the Balkan countries. The latter are new markets for wine production/consumption, in which Italian wines are strongly positioned for different reasons. The results show that, from a national point of view and considering wine trade, Italy exports water in virtual form to the Balkan countries, more than it imports, so that in effect it partially uses its own water resources for the wine supply of the Balkans. The latter, on the other hand, being a net importer of wine, partially depends on Italian water resources and exerts less pressure on their own water basins in the supporting wine supply. We also observed that the wine trade between Italy and the Balkans implies global water savings.

Impact of Infrastructure and Production Processes on Rioja Wine Supply Chain Performance

This paper presents a structural equation model for analyzing the relationship between four latent variables: infrastructure, production processes, transport benefits, and economic benefits within the supply chain for wine from La Rioja, Spain, by incorporating 12 observed variables. The model proposes six hypothesis that were tested using information gathered from 64 surveys completed by managers of several wineries in the region. The WarpPLS v.5® software (Version 5.0, Script Warp Systems, Laredo, TX, USA) was used to execute the model and analyze the direct, indirect, and total effects among latent variables. The results show that the control of production processes is a direct source of economic and transport benefits because of its higher explanatory power of those variables. Similarly, infrastructure is a direct source of transport and production benefits, and some of them are given indirectly. In addition, infrastructure does not have a direct effect on economic benefits; however, there were indirect effects given through production process and transport benefits. Infrastructure is a very important variable because of its influence in the final performance, but also because of its high environmental impact. Finally, economic benefits were explained in 43.8%, 19.1% belonging to production process, 21.1% coming from transport benefits, and 3.7% from infrastructure.

L’innovazione nelle piccole e medie imprese agroalimentari della Regione Campania

Purpose of the paper: The purpose of this paper is to analyse the impact of some drivers - both internal (n. employees, revenue, competences, investment in R&D) and external (collaboration, information sources, public funding) - on the development of innovation activities in small and medium enterprises (SMEs). Methodology: Based on a theoretical framework derived from the literature, it has been conducted an empirical analysis involving 122 agri-food SMEs of the Campania Region that belong to the grain-pasta, olive-oil, dairy and wine supply chains. The data has been elaborated through the cluster analysis technique in order to explore any meaningful patterns that may exist in terms of the innovation capacity. Results: Three clusters with different innovation modes have been identified: Innovative and collaborative (IC); Innovative and non-collaborative (INC); Noninnovative (NI). The analysis reveals that the main discriminating factors of the innovative capacity are the collaboration with different local stakeholders the access to information sources and the ability to obtain public funding for innovation. Research limits: A longitudinal analysis of some best practices of innovative SMEs could offer a better understanding of the relationships between some drivers and the results of the innovation. Other limits is the lack of the analysis of characteristics of the entrepreneur as the main dynamic actors of the business ri-organizational process. Practical implications: The dissemination of “best practices” can promote the adoption of collaborative practices by SMEs of the others two clusters INC and NI, given the fact that these usually innovate by imitation. Originality of the paper: This is the first quantitative study focusing on the innovation capacity of agri-food SMEs in the Campania Region. The study specifically highlights the existence of some innovative SMEs that generally are overlooked by national and European statistical surveys.

Differentiation strategies for the wine and nursery sector: empirical evidence from an Italy region

The aim of the paper is to analyze how the dynamic capabilities of the wine industry actors, involved in searching for biodiversity, influence and are influenced by the dyadic buyer–supplier relationship. In particular, the study aims at analyzing how the organizational culture, the strategic and relational approach, adopted in the customer-supplier interactions, affect the inter-organizational learning and the value-creating process. For this purpose, an explorative study has been carried out in the wine supply chain of Basilicata region (in southern Italy). Data are collected by submitting a semi-structured interview to the complete population of wineries and grape growers in the abovementioned area. By means of Principal Component Analysis and a Spearman’s rank correlation analysis, the paper investigates if the relational approach adopted by the winery toward the grape grower affects positively the dynamic capabilities for wine differentiation strategies.Results show the grape grower are positively influenced by an organizational culture of winemakers based on flexibility and not standardized transformation processes then facilitating the planting choices and assuring the health of cuttings.

Le capacità relazionali quali risorse critiche per la creazione di valore nella filiera vitivinicola lucana

Relational abilities as critical resources for value creation in wine supply chain of Basilicata The study, analyzing the wine supply chain of Basilicata region, investigates the influence of relational approach winery-grape grower on the perception of services’ value, through a Pearson’s correlation. Results show that relations winery-grape grower, characterized by a buyer’s approach to rationalization, development, and focus on value creation for customer, affect the perception of services’ value.

A performance measurement framework for the South African bulk export wine supply chain

Background: Many participants in the South African wine industry still exhibit low supply chain maturity in the management of their supply chains. This hampers export performance and ultimately client satisfaction. The development and tracking of appropriate metrics are key steps in improving supply chain performance.Objectives: The purpose of this study was to develop a performance measurement framework for the South African wine industry, focussing on the bulk export segment.Method: The framework was developed using an emergent multi-phased exploratory approach. The approach was implemented in two distinct phases, namely qualitative research followed by quantitative research in each of three iterations to develop and refine the framework. In each iteration, the qualitative research phase consisted of a literature survey, semi-structured and unstructured interviews and case studies, while the quantitative research phase consisted of the development, distribution, completion and analysis of the framework questionnaire, each iteration building on the framework outputs from the previous iteration.Results: The research highlighted that the wine supply chain performance of bulk exports is hindered by the lack of a measurement culture, hampering the identification and prioritisation of interventions. The creation of a performance measurement framework in conjunction with industry, and informed by the Supply Chain Operations Reference framework, creates a platform for the industry to address these challenges.Conclusion: The implementation of this framework will provide performance visibility for cellars in the wine industry. This would enable them to improve their logistics processes and increase their supply chain maturity, ultimately enabling benchmarking against competing supply chains both within South Africa and abroad, such as in Australia, Argentina and Chile.

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.

The impact of human resources on the agility, flexibility and performance of wine supply chains

The research proposes a structural equation model (SEM) that integrates four latent variables: human resources skills, flexibility, agility, and the economic supply chain (SC) performance for wineries that together include fifteen observed variables. The data was obtained from 64 surveys applied to managers in the wineries in La Rioja, Spain. Direct, the indirect and total effects are analysed to prove six hypotheses that relate the aforementioned latent variables. The results indicate that the skills of human resources are a source of flexibility and agility in the supply chain for wineries in La Rioja and thus a direct and indirect source of economic performance.

Impact of human resources on wine supply chain flexibility, quality, and economic performance

This article assesses the impact of human resources skills on production quality, flexibility, and economic performance of La Rioja’s wine supply chain. These four elements were integrated as latent variables composed of 15 observed variables and associated through six hypotheses. Data were gathered from 64 wineries located in La Rioja, Spain, and hypotheses were validated in a structural equation model using WarpPLS v.5 software. Results indicate that human resources skills have a positive direct impact on SC flexibility and quality, but not on economic performance; however, these variables are indirectly associated through SC quality and SC flexibility.

Assessment of Environmental and Economic Impacts of Vine-Growing Combining Life Cycle Assessment, Life Cycle Costing and Multicriterial Analysis

The wine sector is going through a significant evolution dealing with the challenges of competition issues in international markets and with necessary commitments to sustainability improvement. In the wine supply chain, the agricultural phase represents a potential source of pollution and costs. From the farmers’ point of view, these contexts require them to be more attentive and find a compromise among environmental benefits, economic benefits, and costs linked to farming practices. This paper aims to make a sustainability assessment of different wine-growing scenarios located in Calabria (Southern Italy) that combines conflicting insights, i.e., environmental and economic ones, by applying Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) to identify the main hotspots and select the alternative scenarios closest to the ideal solution through the VIKOR multicriteria method. In particular, the latter allowed us to obtain synthetic indices for a two-dimensional sustainability assessment. Conventional practices associated to the espalier training system represent the best compromise from both environmental and economic points of view, due to the higher yield per hectare. The choices regarding Functional Unit (FU) and indicators were shown to have a high influence on results.

Complexity and Dynamics of the Winemaking Bacterial Communities in Berries, Musts, and Wines from Apulian Grape Cultivars through Time and Space.

Currently, there is very little information available regarding the microbiome associated with the wine production chain. Here, we used an amplicon sequencing approach based on high-throughput sequencing (HTS) to obtain a comprehensive assessment of the bacterial community associated with the production of three Apulian red wines, from grape to final product. The relationships among grape variety, the microbial community, and fermentation was investigated. Moreover, the winery microbiota was evaluated compared to the autochthonous species in vineyards that persist until the end of the winemaking process. The analysis highlighted the remarkable dynamics within the microbial communities during fermentation. A common microbial core shared among the examined wine varieties was observed, and the unique taxonomic signature of each wine appellation was revealed. New species belonging to the genus Halomonas were also reported. This study demonstrates the potential of this metagenomic approach, supported by optimized protocols, for identifying the biodiversity of the wine supply chain. The developed experimental pipeline offers new prospects for other research fields in which a comprehensive view of microbial community complexity and dynamics is desirable.