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Article
Publication date: 3 September 2019

Vincenzo Alfeo, Aldo Todaro, Giuseppina Migliore, Valeria Borsellino and Emanuele Schimmenti

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the provision of raw…

Abstract

Purpose

This paper aims to illustrate the organisational and managing models characterising the craft beer producers in Sicily (Southern Italy) and the main issues of the provision of raw materials.

Design/methodology/approach

A direct survey involving the overall population of 41 craft breweries operating in Sicily in 2016 was carried out. Then 29 questionnaires were collected for exploratory analysis. A hierarchical cluster analysis was also performed out to group companies by similar structural, productive and economic features.

Findings

The findings of the survey showed a Sicilian craft beer industry characterised by a substantial dependence on the import of malts hops and yeasts and the limited use of local raw materials among brewers. Furthermore, the characteristics of the processing plants and the sales channels appear to influence the diversification of the products and the turnover levels of the Sicilian craft beer producers.

Originality/value

This is the first study describing the craft brewing industry in Sicily. The findings contribute to enrich the knowledge on the organisational models applied in the craft beer industry. In particular, the findings could contribute to shed light on some critical issues about the provision of raw materials, suggesting possible paths for the successful development of the craft beer industry in the region.

Details

International Journal of Wine Business Research, vol. 32 no. 1
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 30 March 2020

Valeria Borsellino, Francesca Varia, Cinzia Zinnanti and Emanuele Schimmenti

The purpose of this paper is to verify whether, besides the traditional organisational models mainly implemented by wine-making cooperatives, more modern and hybrid organisational…

Abstract

Purpose

The purpose of this paper is to verify whether, besides the traditional organisational models mainly implemented by wine-making cooperatives, more modern and hybrid organisational forms can be profitably applied within an increasingly competitive wine market.

Design/methodology/approach

The study outlined in this paper deployed a mixed method. Specifically, an archived analysis, a survey and a descriptive case study (including visits, interviews and documentary analysis) were the methodological techniques used in this study, which were “in series but integrated” between themselves. In this paper, the landscape of Sicilian wine cooperatives is described by collating and processing different types of statistical sources, which have been integrated by direct surveys undertaken in 2017. Thereafter, the study focussed on a wine cooperative with a specific business model and a strategic edge by analysing its strategic choices and main structural and governance characteristics. Within this case study, a financial ratio analysis, which was based on 2011-2017 financial statements, was conducted to analyse the profitability, financial balance, capital structure and debt relationships of the wine cooperative.

Findings

The Sicilian wine cooperative system is still predominantly characterised by partial and vertical integration, implemented by cooperatives which elect to sell mainly bulk wine to wine merchants. In such a context, there is scope for other degrees of integration and strategic inter-firm alliances; the latter includes “vertical quasi-integration”. The study demonstrated how the wine cooperative under investigation is overcoming the structural problems of the regional wine sector and why it is retaining such a strategic alliance with one of the most important Italian wine conglomerates. Indeed, it has acquired greater strength and reliability since its collaboration with the aforementioned wine company. Thus, total revenue and the company’s market share of packaged wine have increased. However, there are still margins for improving sales’ profitability.

Research limitations/implications

This study has territorial limitations but Sicilian wine cooperatives generally play an important role in the regional, Italian and European wine industries. As such, this research should be considered as an exploratory study, deserving further investigation into different strategic choices within the wine cooperative system by performing cross-case comparisons. Results may also be useful in orienting cooperative strategies in Sicily (or further afield) to small-to-medium wine cooperatives, often lacking specific abilities relating to the distribution, marketing and selling of their wine. Public agricultural policies may also be enlightened by these research pathways.

Originality/value

The authors contend that their study provides hitherto missing information relating to inter-firm strategic alliances, which wine cooperatives might implement to enhance their competitiveness and survive in the long-run.

Details

International Journal of Wine Business Research, vol. 32 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

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