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Article
Publication date: 1 February 1991

E.A. Selvanathan and S. Selvanathan

The consumption patterns of beer, wine and spirits in the UK are analysed to find reasons for the rapid growth in recent years of wine consumption. Data are presented…

Abstract

The consumption patterns of beer, wine and spirits in the UK are analysed to find reasons for the rapid growth in recent years of wine consumption. Data are presented together with the demand model and estimation results. Consumption of the three beverages is simulated to see the effect of various levels of tax and the effects of changes of preference over time. Growth in income, changing preferences and lower tax rates are found to be possible causes for the growth in wine consumption and the corresponding fall in spirits consumption.

Details

International Journal of Wine Marketing, vol. 3 no. 2
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 20 June 2016

Jeannette Paschen, Ulrich Paschen and Jan Henrik Kietzmann

The status of icewine as a luxury item is largely undisputed in popular perception. Despite this, icewine has received very little attention in the management literature…

Abstract

Purpose

The status of icewine as a luxury item is largely undisputed in popular perception. Despite this, icewine has received very little attention in the management literature. This paper aims to close this gap by developing a theoretical framework to segment the luxury wine and spirits market with a focus on icewine.

Design/methodology/approach

This paper is conceptual in nature. The authors adapt Berthon et al.’s (2009) aesthetics and ontology (AO) framework for luxury brands to provide a theoretical lens for segmenting the luxury wine and spirits market into four distinct segments.

Findings

The main contribution of this paper is a theoretical framework for segmenting the market for luxury wines and spirits into four distinct segments: cabinet collectors, cellar collectors, connoisseurs and carousers. The authors then apply their framework to the icewine category and outline considerations for the marketing mix of icewine producers.

Practical implications

The AO framework for luxury wines and spirits is beneficial for icewine producers to help differentiate their current and future market segments. In addition, this paper outlines practical implications for icewine maker’s marketing mix that could enhance their competitive position today and in the future.

Originality/value

This is the first paper examining icewine in the context of luxury marketing.

Details

International Journal of Wine Business Research, vol. 28 no. 2
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 1 March 1991

James Espey

A case study is given of International Distillers & Vintners(UK) Limited (IDV (UK)) and an assessment made of the viability oftranslating theory into practice in the real…

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Abstract

A case study is given of International Distillers & Vintners (UK) Limited (IDV (UK)) and an assessment made of the viability of translating theory into practice in the real world – the importance of having a strategy, of strategic planning, and having a success factor as a key component of an organisation′s competitive advantage. Following the appointment of a new managing director at IDV (UK) in 1982, three goals were established: (1) to more than double profits within five years; (2) to increase return on capital employed by almost 50 per cent within five years; and (3) to be the outstanding wine and spirit company in the UK. A sound strategy was required to achieve these goals. The historic background of the organisation is given and the strategic position of IDV (UK) in relation to its competitors and market share is described. A review of the state of the market is given and possible areas for expansion discussed. The quality and pedigree of certain brands and the quality and strength of leadership are proposed as the success factors upon which IDV (UK) could build. Details are given of how the organisation built upon these factors to achieve strategic success; the lessons learned; and the level of achievement and success in the marketplace.

Details

Marketing Intelligence & Planning, vol. 9 no. 3
Type: Research Article
ISSN: 0263-4503

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Expert briefing
Publication date: 30 September 2016

The market for alcoholic beverages in China.

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DOI: 10.1108/OXAN-DB213686

ISSN: 2633-304X

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Geographic
Topical
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Case study
Publication date: 1 May 2009

Armand Armand Gilinsky and Raymond H. Lopez

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

Abstract

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.

Details

The CASE Journal, vol. 5 no. 2
Type: Case Study
ISSN: 1544-9106

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Article
Publication date: 12 June 2007

Fang Liu and Jamie Murphy

This research aims to examine Chinese consumers’ wine consumption and purchasing behaviour.

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Abstract

Purpose

This research aims to examine Chinese consumers’ wine consumption and purchasing behaviour.

Design/methodology/approach

The study, conducted during the Chinese New Year in early 2006, used in‐depth interviews with 15 consumers in Guangzhou, People's Republic of China.

Findings

The results suggest that Chinese consume Chinese spirits for all occasions, yet consume red wine only for special occasions such as Chinese new year and other holidays. A key point for selling red wine to the Chinese is its positive image; drinking red wine is considered trendy and shows good taste. Another key point is consumer perceptions of red wine as healthier than Chinese spirits because wine contains less alcohol. Two other findings are that most Chinese consumers assume all wine is red wine and have little wine knowledge. Most respondents did not know of white wine or that Australia produces wine. Finally, China's culture of face value, mianzi, plays a key role in purchasing and consuming wine. Chinese tend to purchase inexpensive wine for private consumption and public occasions, yielding more mianzi in front of others. In some important occasions, consumers will purchase a foreign (French) red wine to impress their guests and obtain even more mianzi. In most situations, Chinese purchase and consume wine for perceived health and symbolic – lucky or good face – values.

Research limitations/implications

The small sample size is a limitation. Another limitation is that all the respondents lived in the urban area of Guangzhou, one of China's most developed cities. The findings do not generalize to China.

Practical implications

The findings suggest that wine is a symbolic product rather than a necessity product in China; therefore, image is an important attribute for selling wine in China. Furthermore, limited wine knowledge tends to make Chinese consumers rely heavily on price for their wine purchasing decisions, as price relates to mainzi. Chinese consumers’ high awareness of France as a wine making country and their deep‐rooted positive beliefs about French wines pose difficulties for marketing other foreign wines, such as Australian wines, in China.

Originality/value

This is perhaps the first academic study in English of Chinese wine consumption and wine purchasing. It offers important insights on the characteristics of wine consumption and purchasing in China.

Details

International Journal of Wine Business Research, vol. 19 no. 2
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 29 April 2020

Alistair Williams, Glyn Atwal and Douglas Bryson

The purpose of this study is to identify how craft spirits distilleries use elements of the storytelling narrative as part of a storytelling marketing strategy.

Abstract

Purpose

The purpose of this study is to identify how craft spirits distilleries use elements of the storytelling narrative as part of a storytelling marketing strategy.

Design/methodology/approach

A case study approach was undertaken based on seven craft distilleries in and around Chicago, IL. Data were collected from various sources including direct observation and secondary data based on online press coverage company websites and social media.

Findings

In the sample of firms, the authors identified the following seven categories of storytelling themes: craft, innovation, origins, myth, celebrity, provenance and collectability. These categories comprise both functional and emotional components which are strongly associated with the concept of authenticity.

Originality/value

This research is the first of its kind to investigate storytelling within the craft spirits sector. The results are relevant to develop strategies for marketing craft spirits brands. Findings are relevant for spirits distilleries in Chicago, IL but have transferable learnings for beverage categories who desire to stage meaningful, valued customer experiences.

Details

International Journal of Wine Business Research, vol. 32 no. 4
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 1 February 1995

Peter Garrett

Natural wine was not a factor in South Africa until after 1935. However, the hybrid Pinotage was produced in the 1920's and the now quasi government KWV representing wine

Abstract

Natural wine was not a factor in South Africa until after 1935. However, the hybrid Pinotage was produced in the 1920's and the now quasi government KWV representing wine farmers, was far reachingly empowered to fix the price of distilling wine. South Africa is traditionally a national brandy and beer drinking nation, and that largely stands today. The monopolistic KWV backed by the Afrikaaner government since 1948 has continuously increased its hold as a stabilising force. In reply the producing wholesalers have merged from many into four very large firms of which SFW is by far the biggest. Even the two largest of those were controlled by one firm until joined by KWV, their long term adversary, which took a thirty percent interest SFW's vision of natural wine being more healthy than spirits has been its theme from the time of its founder W.C. Winshaw in 1935. This is demonstrated in many ways. The new South African government, no longer Afrikaaner led, has set up a competition's board enquiry which is almost certainly destined to change completely, the face of the whole SA wine and spirits industry. The purpose of this paper is to set on record the old regime, and Stellenbosch Fanner's part therein as a matter of record and learning.

Details

International Journal of Wine Marketing, vol. 7 no. 2
Type: Research Article
ISSN: 0954-7541

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Article
Publication date: 13 November 2007

Danny I. Cho, Mikhail Permyakov and Tomson Ogwang

The purpose of this paper is to investigate structural changes in the elasticity of demand for wine in the Province of Ontario and in Canada as a whole. It will provide…

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Abstract

Purpose

The purpose of this paper is to investigate structural changes in the elasticity of demand for wine in the Province of Ontario and in Canada as a whole. It will provide academic researchers and practitioners with a better understanding about structural changes in the levels of wine demand elasticities over time. It will also help the relevant governments and wine business establishments in developing taxation policy and business decisions.

Design/methodology/approach

The Kalman filter method, in conjunction with the Chow test, is applied to investigate structural changes in the elasticity of demand for wine. The Chow test is used for primary investigations of structural changes in the elasticity of demand for wine over time, whereas the Kalman filter method provides information about the behavior of the elasticity coefficients over time.

Findings

The Chow test reveals that structural changes in wine demand for Ontario are more pronounced than those for Canada as a whole. The Kalman filter results indicate that increased (decreased) government taxation could be an effective tool for discouraging (encouraging) consumption of wine. The analysis of own‐price elasticity suggests that the effects of increased government taxation on wine consumption be totally unexpected. Cross‐price elasticity coefficients change their signs over time, suggesting that some of the goods that are considered to be complements may become substitutes. Income and unemployment levels have different effects on wine consumption in Ontario and in Canada as a whole.

Research limitations/implications

There may be variation in results by wine color (red or white), country of origin (imported or domestic), or price (premium or non‐premium).

Practical implications

Understanding changes in the elasticity of demand structure for wine over time would help policy makers at the provincial and federal levels come up with effective tools for controlling consumption of wine over time, including their taxation policies. For the wine business establishments, the information on consumer response is important for pricing purposes.

Originality/value

The Kalman filter has not previously been used to examine structural changes in the demand for wine in Canada.

Details

International Journal of Wine Business Research, vol. 19 no. 4
Type: Research Article
ISSN: 1751-1062

Keywords

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Book part
Publication date: 23 September 2005

Ingeborg Rossow

The study aimed at assessing whether diffusion theory may be applicable to explain the increasing trends in consumption of table wine in Norway over a four-decade period…

Abstract

The study aimed at assessing whether diffusion theory may be applicable to explain the increasing trends in consumption of table wine in Norway over a four-decade period. Data comprised a series of eight cross-sectional surveys from 1962 to 1999 in national samples of adults. The results indicated that diffusion theory might in part be applicable to explain the trends in wine consumption in Norway. Thus, early adopters were characterized by high social status and being more “cosmopolite”. Yet, the typical S-shaped curve for adoption rate was not found, nor the expected association between wine consumption and social network.

Details

Substance Use: Individual Behaviour, Social Interactions, Markets and Politics
Type: Book
ISBN: 978-1-84950-361-7

1 – 10 of over 2000