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Article
Publication date: 1 February 2003

Leopoldo Arias‐Bolzmann, Orkun Sak, Andres Musalem, Len Lodish, Rodrigo Báez K. and Luis José De Sousa

In recent years there has been a marked increase in the consumption of bottled wine in the United States. Associated with this phenomenon, there has been a substantial rise in the…

Abstract

In recent years there has been a marked increase in the consumption of bottled wine in the United States. Associated with this phenomenon, there has been a substantial rise in the number of vineyards from foreign countries entering this competitive market. The study examines the factors that influence wine prices. Specifically, the article proposes that the country of origin, the perceived quality and the varietal of the wine have an effect on wine price in favour of countries with greater wine traditions. These premises were tested by means of a multiple regression model estimated using a sample drawn from the North American market. The study concluded that this market recognises differences in country of origin, quality and varietal. Specifically, these factors significantly influence wine prices, with price premiums being awarded to wines of varietal Pinot and to wines produced in France.

Details

International Journal of Wine Marketing, vol. 15 no. 2
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 10 May 2022

Tamás Mizik and Jeremiás Máté Balogh

The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become…

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Abstract

Purpose

The study aims to give an overview of the development of the Chinese wine industry and trade between 1992 and 2019. Its importance is highlighted by the fact that China has become one of the world’s largest wine-consuming markets with great growth potential and is now ranked among the top 10 largest global markets for wine.

Design/methodology/approach

To address Chinese wine industry competitiveness, revealed comparative advantage (RCA), relative trade advantage (RTA) and revealed competitiveness (RC) were calculated, based on the World Bank World Integrated Trade Solution database. Chinese wine market-related issues are analyzed by Porter’s Five Forces in help of Market Line industry profile reports.

Findings

Results suggest that the Chinese wine market is relatively fragmented, with a concentrated food and beverages retail industry, strong buyer power and a moderate supplier power. The RCA calculated for the Chinese wine trade indicates that the share of exported bottled wine has become significant in the analyzed period. However, the RCA was perceivable just for bottled wines and only in the last analyzed period (2013–2019), whereas RTA and RC were negative for all periods revealing a comparative disadvantage. However, current market trends suggest that they will increase in the future.

Research limitations/implications

Data accuracy may affect these results because wine statistics may contain mislabeling. Moreover, China expanded its investments in many well-known wine regions all over the world, especially in Bordeaux, France. These, along with the significant re-export, could make it harder to interpret wine trade data because some part of the export is related to Chinese wineries outside of China.

Practical implications

Knowing the above-mentioned limitations, results should be interpreted with caution. However, high-quality wines can be identified as a niche market in China.

Originality/value

The study provided a detailed analysis of the Chinese wine industry and its competitiveness.

Details

International Journal of Wine Business Research, vol. 34 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 1 April 2006

Nathalie Guibert

This paper sets out to investigate the view that a firm's strategy in a marketing channel is contingent on the organization of its related upstream network of embeddedness.

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Abstract

Purpose

This paper sets out to investigate the view that a firm's strategy in a marketing channel is contingent on the organization of its related upstream network of embeddedness.

Design/methodology/approach

An in‐depth documentary study of recent developments in marketing channels in the French Rhône Valley Appellation d'Origine Controlée wine industry combined with content analysis of qualitative data derived from interviews with local wine merchants and Inter‐Rhône wine experts.

Findings

The extended theoretical framework used in this case study enables researchers to more completely specify channel members' behavior. By taking into account not only general objectives but also legitimacy concerns of this type of organizations, it is possible to identify reputation and institutional commitment management in the upstream network as two governance mechanisms of equal importance to the mechanisms of vertical integration or management of relationships with suppliers.

Research limitations/implications

This study suggests the need for further research into external validity and measurement issues.

Practical implications

The study highlights the necessary governance mechanisms wine merchants have to deploy in their upper professional and supply networks in order to enhance their market performance. Successful positioning strategies seem to be more and more dependent on the wine merchants' ability to acquire a strong position and recognition in its upstream networks: only those who have taken into account the legitimacy issue and have deployed mechanisms to govern it effectively will survive the current internationalisation processes and avoid market decline.

Originality/value

This more nuanced channel approach offers a number of empirical illustrations to support the tri‐dimensional conceptualization of institutional environment suggested by Grewal and Ravi in 2002.

Details

British Food Journal, vol. 108 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 2 November 2015

Rodrigo Berríos and Rodrigo Saens

The purpose of this paper is to analyze whether or not the reputation of a region/country in the international wine market depends on a region/country’s efforts to specialize in a…

Abstract

Purpose

The purpose of this paper is to analyze whether or not the reputation of a region/country in the international wine market depends on a region/country’s efforts to specialize in a specific grape variety.

Design/methodology/approach

Data on 19,959 bottles of wine corresponding to six vintages across ten wine producing regions worldwide are used to estimate a hedonic price model that measures consumer valuations of the different wine attributes.

Findings

The results of this study show that although variety specialization has successfully underpinned the reputation of some New World regions, such as the Napa Valley (with its Cabernet Sauvignon) or Oregon (with its Pinot Noir); in others, such as Australia (with its Shiraz), this has not been successful.

Practical implications

Over the last ten years, the exponential growth of Australian bulk wine exports has seriously harmed the reputation of Australian wine. With respect to the Napa Valley wines, price discount received by Australian wines increases between the 1997 and 2007 vintage from 33 to 61 percent. Thus, in order to successfully build a collective reputation of an entrant (New World) country, an institutional framework that mediates differences of interest between the large and small vineyards and, above all, that regulates the free-rider problem in the wine market is required.

Originality/value

This paper empirically illustrates how cooperative (and non-cooperative) behavior between firms can help to build (and to destroy) collective reputation of wines that come from the same region or country.

Propósito

El objetivo de este trabajo es analizar si los esfuerzos de una región/país por especializarse en la producción de una misma variedad de cepa sirven o no para construir la reputación de una región/país en el mercado internacional del vino.

Diseño/metodología/Enfoque

Se utiliza un modelo econométrico de precios hedónicos sobre la base de 19.959 mil observaciones provenientes de 6 cosechas y 10 zonas productoras de vino del mundo.

Resultados

Los resultados de este estudio muestran que aunque la especialización por cepa ha impulsado la reputación de algunas regiones del Nuevo Mundo, como la del Valle de Napa (con su Cabernet Sauvignon) o la de Oregon (con su Pinot Noir); en otras, como la de Australia (con su Shiraz), no ha sido una estrategia exitosa.

Implicaciones prácticas

En los últimos diez años, el crecimiento exponencial de las exportaciones de vino a granel australiano ha dañado seriamente la reputación del vino de dicho país. Respecto a los vinos de Napa, el castigo de precios de los vinos australianos ha crecido desde un 33% en la cosecha 1997 a un 61% en la cosecha 2007. Así, si se desea construir con éxito la reputación de un país entrante (del Nuevo Mundo) al mercado mundial del vino, se requiere de un marco institucional que medie las diferencias de interés entre las grandes y pequeñas viñas, y que, por sobre todo, regule las conductas no cooperativas (free-rider) que surgen al amparo de la reputación colectiva asociada a los vinos que provienen de una misma región o país de origen.

Originalidad/Valor

Este paper ilustra de manera empírica cómo las conductas cooperativas (y no cooperativas) entre productores pueden ayudar a construir (y a destruir) la reputación colectiva de los vinos que provienen de una misma región o país.

Details

Academia Revista Latinoamericana de Administración, vol. 28 no. 4
Type: Research Article
ISSN: 1012-8255

Keywords

Article
Publication date: 15 May 2009

Michael Thorpe

As the Chinese economy continues to develop, rising incomes for many people has meant significant shifts in consumption patterns. Over the past several years, per capita wine…

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Abstract

Purpose

As the Chinese economy continues to develop, rising incomes for many people has meant significant shifts in consumption patterns. Over the past several years, per capita wine consumption in China has doubled. Although off a relatively low base, this still represents a significant sales volume. At the same time, the wine industry in the country has been undergoing restructuring with China now emerging as a major producer in world terms. These developments have been occurring at a time when the global wine industry has become increasingly globalised with so‐called new world (NW) suppliers challenging established European companies in existing and emerging wine markets. In this context, the paper aims to look at the possible threats as well as opportunities presented by China as a relatively new player in the market.

Design/methodology/approach

The paper reviews recent production and consumption trends in the world wine market. The changing patterns and growing volume of global wine trade is then assessed in light of the significant structural changes occurring in the industry in both importing and exporting countries. Recent developments in the wine market in China are identified and possible future implications for the world market are discussed.

Findings

NW wine producers are increasingly encroaching on traditional wine consuming markets and gaining advantage in new and growing markets. One result has been an expanding and increasingly competitive global market place. China, meanwhile, is seen to have considerable potential for growth in terms of wine consumption, while at the same time posing a possible threat to existing exporters in third markets.

Originality/value

Knowledge of emerging trends in wine markets and likely future developments are important for industry participants as well as policy makers in countries where wine is an increasingly important traded commodity. The paper provides an important contribution to the understanding of the global nature of the wine industry and the potential influence of China as both a major producer and consumer of wine.

Details

China Agricultural Economic Review, vol. 1 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 1 January 2004

Oliver Richardson

The vineyards of the United Kingdom are small, few in number and struggling against a mass of foreign imports. In order to survive, the owners need a market that does not put them…

Abstract

The vineyards of the United Kingdom are small, few in number and struggling against a mass of foreign imports. In order to survive, the owners need a market that does not put them in direct competition with these imports. The thousands of tourists that visit rural areas of the UK could constitute such a market. This potential needs to be examined, and the required facilities put in place. Structure planning, both by governments, regional authorities and the industries themselves has been seen as a priority in tourist‐orientated economies throughout the world and UK vineyards need to follow these examples if they are to benefit from tourism. This will involve investment in improved information systems, communications, staff and shop facilities and image. It will also involve developing links with other similar rural attractions and ensuring that as a development, it is both successful as a tourist centre and has the support of the local community.

Details

International Journal of Wine Marketing, vol. 16 no. 1
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 March 1994

A.L. Patrick

The 1993 industry survey in this journal updated. Increasingly the Cyprus wine industry is turning its attention to the making of higher quality table wines, to satisfy an…

Abstract

The 1993 industry survey in this journal updated. Increasingly the Cyprus wine industry is turning its attention to the making of higher quality table wines, to satisfy an ever‐growing local market, comprised mostly of two million foreign tourist arrivals, 30,000 foreign residents and a slowly growing segment of Cypriot professional and business people. Despite the planting of new grape varieties and setting up of regional wineries near the vineyards, there is still a long way to go, before quality wines are a significant sector of production and for some years the Cyprus industry will depend on exports of low‐price bulk wines and spirits for survival and profit For the moment, though, 1994 was a good year overall and the transition of the industry is gathering pace. The author surveys the structure of the industry, developments in vine‐growing and wine‐making, current local and export marketing trends and future prospects.

Details

International Journal of Wine Marketing, vol. 6 no. 3
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 2 November 2020

Swati Singh, Ralf Wagner and Katharina Raab

This study aims to investigate driving factors for wine tourists to revisit Indian vineyards. It explores the motivation for Indians engaged in wine tourism and specific behaviors…

Abstract

Purpose

This study aims to investigate driving factors for wine tourists to revisit Indian vineyards. It explores the motivation for Indians engaged in wine tourism and specific behaviors related thereto. Framed in the theory of planned behavior, this paper proposes a conceptual model of revisit intentions for wine tourism. This model covers environmental concerns, escapism, countryside lifestyle, entertainment and spillovers of international traveling as direct antecedents for the revisit intentions.

Design/methodology/approach

A quantitative approach was adopted for this research. Data was gathered through a standardized questionnaire from 141 vineyard tourists in Nashik, India and evaluated by fitting a structural equation model.

Findings

Important drivers for wine tourists revisit intentions are countryside lifestyle and spillovers of international travel. Notably, entertainment does not have a significant direct effect, but a substantial impact moderated by escapism. Environmental concerns have a negative impact. The escapism component is the most influential motivation for revisiting the Indian vineyards.

Research limitations/implications

The attractiveness of vineyards visits in contrast to nearby tourist attractions needs to be clarified, e.g. by calibrating gravitation models.

Practical implications

Escapism is a substantial antecedent for the revisit intention of the vineyards while environmental concerns are its major barrier.

Social implications

Countryside lifestyle contributes to overcoming the disadvantage of the contemporary hectic society of the Indian middle class and preserving Indian roots along with modernizing lifestyles.

Originality/value

The first evidence of Indian wine tourists revisits intentions. The current research fills a research gap by examining India’s wine tourism phenomenon.

Article
Publication date: 1 February 1992

Jeremy Lee Williams and Brendan Pearson

The Hungarian wine industry is in a state of transition. Old methods and practices are being abandoned and new techniques are arriving from the West. Tokaj, one of the world's…

Abstract

The Hungarian wine industry is in a state of transition. Old methods and practices are being abandoned and new techniques are arriving from the West. Tokaj, one of the world's oldest and most famous sweet wine‐producing regions, is at the cutting edge of such developments. Examines the obstacles to be overcome in making a successful transition to the new marketing realities, surveying the approaches and progress made in Tokaj. Argues that there are three integral steps required in the formation of a competitive industry: reorganization of ownership; viticultural and oenological modernization; and Western methods of marketing. The impetus for such changes must come not only from within Tokaj, but also from collaboration with Western foreign investors.

Details

International Journal of Wine Marketing, vol. 4 no. 2
Type: Research Article
ISSN: 0954-7541

Keywords

Article
Publication date: 1 October 1998

Stephen F. Thode and James M. Maskulka

Many firms, wine producers among them, have successfully communicated the quality of their products to the market by emphasizing the geographic origin, or location of production…

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Abstract

Many firms, wine producers among them, have successfully communicated the quality of their products to the market by emphasizing the geographic origin, or location of production of critical ingredient(s) found in the product. The purpose of this article is to: introduce the concept of a “place‐based” marketing strategy, i.e. a marketing strategy that identifies a consumer product with a specific geographic area; explain why it is essential to the wine business; and, why it may be superior to other types of marketing strategies for certain types of agricultural products. Additionally, traditional valuation techniques applied to agricultural land typically assume that agricultural goods are undifferentiable commodities. With the growing trend toward the production of “place‐based” agricultural products, the traditional valuation methods omit an important variable – the potential for the geographical source to help develop a product‘s brand equity. This paper also discusses land valuation techniques and applies the concept of products of place to the trend among Californian wine growers to produce wines with vineyard designations.

Details

Journal of Product & Brand Management, vol. 7 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

1 – 10 of 533