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This paper aims to contribute to the growing body of literature on wine and tourism, as it explores the value contribution of tourism in the context of strategic grouping of wineries.

A panel of three online surveys about the strategic management of German wine estates served to analyze wine and tourism as potential strategic levers. More than 300 German wineries participated in the surveys.

Almost 50 per cent of the interviewed wineries planned to extend their tourism services. The implementation rate is high and reaches nearly the level of new product implementation. Tourism is therefore highly relevant. It can serve to profile in the market. Cost leaders and boutique wineries were two strategic groups indicating reluctance to pursue tourism-based strategic initiatives. The data illustrate a potential strategic trade-off between tourism and export management.

The study is neither representative for the German nor for an international winery population. Data were generated in a broader context of strategic and innovation management research. Descriptive analyses dominate the explorative study.

Extending services to win tourists helps to differentiate and to attract new clients. For less differentiated strategies (price-value and quality-leadership), tourism can be a strategic lever to sustainably increase profits. Smaller wineries need to strategically assess their growth option. They may face a strategic dilemma whether to export their goods or to add tourism offer components. Fierce international competition and restrictions due to small size represent export barriers, favoring a strategy to exploit market potentials via tourism. Concerted wine tourism efforts require a more sensitive approach considering the individual strategic motivation of wineries. The strategic value depends on the strategic grouping.

Wine and tourism can create regional and thereby social value. Addressing the strategic value of tourism for the individual wineries fosters tourism engagement and encourages a cluster approach.

Literature universally praises the synergetic value of wine and tourism. This research proposes a more sensitive approach reflecting strategic groupings and individual value contribution of tourism activities for the wine estates.

This study aims to provide a detailed characterization of Argentinean exporting wineries using a new rich firm-level data set to understand how capabilities and business strategies differ among firms with different levels of involvement in the export market.

A survey was distributed among all wineries along all wine regions of Argentina; the 45-min questionnaire was answered by 230 wineries, a representative sample with a response rate of 26.3% of the total population of Argentinean wineries. The survey assessed the interaction between wineries’ dynamics and characteristics and their participation in export markets. In the comparative analysis, the results are presented by dividing the sample into four categories according to the export intensity of the wineries.

High-intensity exporting wineries in Argentina differ from other Argentinean wineries in several dimensions. In particular, the most internationalized Argentinean wineries are the most endowed with higher capabilities; they follow a specific business model emphasizing product differentiation, quality upgrading, brand building and the development of distribution channels. Exporting wineries from Argentina adopt business practices that differ from those that prevail among wineries that only target the domestic market. They have developed firm capabilities such as human capital and technology to play a critical role in quality upgrading for their participation in global wine markets.

To the best of the authors’ knowledge, this paper is the first to study the Argentinean exporting wineries using a firm-level sizeable representative sample.

The purpose of this paper is to examine the changing competitive landscape in the wine industry, focusing upon how premium Napa valley producers are responding to such changes.

The in depth interview technique with 11 privately owned premium wine producers was used, with interviews conducted in early 2005.

Wineries identify the growing concentration and consolidation amongst distributors and domestic US producers; increased foreign competition, particularly from Australia; and the trend towards homogenised taste following the increased power of numerical wine ranking surveys as principal concerns that they face.

The findings highlight the dilemmas faced by wineries as they attempt to stress their locational advantage for reputation building but endeavour to differentiate their product from other wineries in Napa.

As a pilot project the paper indicates how even firms in high value added product markets are facing heightened competition and what they fear might emerge in the near future from foreign producers.

The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process.

This study uses a case study approach to examine two premium wine producers engaged in internationalization. The data sources consist of semi-structured interviews, observations at three major events and secondary data sourced from industry reports and materials that are available online.

Findings illustrate that both personal and inter-firm networks help wineries to internationalize. Inter-firm networks play a significant role in gaining international legitimacy. Personal networks were found to be more important in establishing brand authenticity that facilitates wineries in their internationalization process. Gaining international legitimacy and establishing brand authenticity are crucial in the successful internationalization of premium wineries.

This study provides an explanation of how networks can be put into institutional context. Future studies could map out the formal and informal institutions within the wine industry and investigate the closer dynamics among the different actors in the whole network. A whole network is formally structured and governed, yet still built on the relationships among members, making it a very complex phenomenon. This would allow the evaluation of multilateral ties that link firms and actors within the network and how this affects the internationalization process.

This paper provides managers with insights on how they can capitalize on their inter-firm and personal networks to help them deal with domestic and international institutional environments when embarking on internationalization activities.

This paper adds to the existing literature on networks relationships and provides an important link between networks, institutions and internationalization.

In October 2004, Mr. Richard Sands, CEO of Constellation Brands, evaluated the potential purchase of The Robert Mondavi Corporation. Sands felt that Mondavi's wine beverage products would fit into the Constellation portfolio of alcohol beverage brands, and the opportunity to purchase Mondavi for a highly favorable price was quite possible due to recent management turmoil at that company. However, should it be purchased, strategic and operational changes would be necessary in order to fully achieve Mondavi's potential value. In making a decision, students need to consider the attractiveness of the wine industry, its changing structure, its share of the overall market for beverages, and rival firms' strategies. As rival bidders may emerge for Mondavi's brands, Constellation must offer a price that demonstrates its serious intent to acquire Mondavi.

The Beringer Wine Estates Company has been expanding its market share in the premium segment of the wine industry in the 1990's. After operating as a wholly owned subsidiary of the giant Nestlé food company for almost a quarter of a century, the firm was sold in 1996 to new owners, in a leveraged buyout. For the next year and a half, management and the new owners restructured the firm and expanded through internal growth and strategic acquisitions. With a heavy debt load from the LBO, it seemed prudent for management to consider a significant rebalancing of its capital structure. By paying off a portion of its debt and enhancing the equity account, the firm would achieve greater financial flexibility which could enhance its growth rate and business options. Finally, a publicly held common stock would provide management with another “currency” to be used for enhancing its growth rate and overall corporate valuation. With the equity markets in turmoil, significant strategic decisions had to be made quickly. Should the IPO be completed, with the district possibility of a less than successful after market price performance and these implications for pursuing external growth initiatives? A variety of alternative courses of action and their implications for the financial health of the Beringer Company and the financial wealth of Beringer stockholders are integral components of this case.

Does it make economic sense to invest in winery startups with high land prices? This paper aims to apply a capital budgeting analysis for a startup project to investigate the role of land prices in the decision-making of a wine entrepreneur.

This paper uses a capital budgeting analysis to evaluate the value of a winery project using the six investment criteria: net present value (NPV), internal rate of return (IRR), modified IRR, profitability index, payback period (PB) and discounted PB.

This study finds that high land prices are economically justifiable (NPV is greater or equal to zero) when the weighted average capital cost is sufficiently low for investors who are able to diversify risks and with access to a cheap source of funds. Additionally, this study demonstrates that wine entrepreneurs need a long-term investment horizon because the recovery of the initial investment in winery startup projects takes many years.

The startup winery projects are heavily influenced by wine pricing, production and cost assumptions. As a result, different assumptions made at other wine regions may result in slightly different outcomes for the acceptability of the wine startup projects.

High land prices are economically justified for investors and entrepreneurs with the ability to diversify risk and access to cheap financial resources. As such, land prices can be a critical obstacle for individual entrepreneurs who experience a lack of capital.

In the famous wine regions of the world, high land prices may result in more wineries being owned by the capital rich wine conglomerates.

This paper provides estimations of land prices based on financial methods to discuss the justification of observed prices and the implications regarding the ability of investors and entrepreneurs to access capital.

This purpose of this investigation is to compare the perceptions of competitive advantage through cost leadership and differentiation with sustainable practices of wineries from the USA, Italy and Spain.

Data are collected via self-report web-based surveys in California, Tuscany and Catalonia in 2010-2011 during a severe economic downturn in the wine industry.

Of the 260 respondents among the three country samples, over 75 per cent are family-owned and family-managed. Respondents indicate who has implemented a clear business case for an Environmental Management System (EMS) and who has not. Benefits and challenges of implementing sustainability practices are also addressed.

A comparable percentage of respondents across the three countries indicated a “clear business case for EMS”. Wineries in all three countries perceive that they have competitive advantage through implementation of EMS and commitment to sustainable practices. Top perceived benefits for respondents from the USA and Italy are focused on cost reduction strategies, while top perceived benefits for Spanish respondents are focused on differentiation strategies.

Activities that create competitive advantages for wine businesses in different countries are understudied; this research bridges that gap.

The aim of this paper is to develop an understanding of the value and application of entrepreneurial marketing within the French wine industry.

Following an initial review of the literature describing the nature of entrepreneurial marketing and its potential application within the wine industry, a case study is presented of a small independent winery of the Côtes du Rhône in order to explore the theory and practice of entrepreneurial marketing in this commercially important French wine growing region.

The marketing approach adopted by the case company is found to contrast with the traditional adversarial approach to competition prevalent throughout the French wine industry. The case study illustrates how entrepreneurial marketing has allowed the leverage of superior knowledge of customer preferences, market intelligence and product knowledge in the process of delivering superior value to the customer through brand differentiation at firm level. Additionally, engaging in cooperative relationship development at regional and international level appears significant in creating opportunities for knowledge acquisition and innovation.

The research provides interesting insights into the potential value of the adoption of entrepreneurial marketing by small wineries in France.

This paper aims to examine the purposive strategy behind the growth of cult wines in Napa California since the 1980s. By leveraging the growing wine reputation of the region, a small number of new owners used extensive financial resources from other ventures to make a finely crafted, high-priced wine, in small quantities and sold through restricted distribution channels. Their aim was to compete with Bordeaux first-growths and create wine that would evoke the luxury connotations of craft, heritage, reputation and exclusivity. Because they were new, they relied upon experts to rate their wine, thus creating instant legitimacy with high scores and appealing to a small group of wealthy wine enthusiasts, many of whom were insecure in their knowledge of high-quality wines.

Semi-structured in-depth interviews with a sample of 13 cult winery owners, wine makers and a CEO were utilized in addition to descriptive statistics and secondary historical information drawn from public records.

Certain Napa producers have created iconic wines through purposeful behavior and extensive resources that are rare and difficult to imitate. Their success is also a function of positive accolades by influential wine critics whose scoring sanctioned their status as a luxury good. High prices and limited availability further manufactured the scarcity element that is crucial to maintaining demand for high-status goods.

This study examines the interface between supply of a product, external validation that legitimized it and a small but significant market of wealthy individuals who created the demand for it. This mosaic behind market creation reveals how successful producers have been in realizing the multidimensionality of luxury goods.