Premium Essay

Italian Wine Industry

In: Business and Management

Submitted By pepper101
Words 7357
Pages 30
This article was downloaded by: [] On: 14 March 2013, At: 21:43 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK

Journal of Wine Research
Publication details, including instructions for authors and subscription information:

Winemakers and Wineries in the Evolution of the Italian Wine Industry: 1997–2006
Raffaele Corrado & Vincenza Odorici a a a

Department of Management, University of Bologna, Via Capo di Lucca, 34, 40126, Bologna, Italy E-mail: Version of record first published: 30 Sep 2009.

To cite this article: Raffaele Corrado & Vincenza Odorici (2009): Winemakers and Wineries in the Evolution of the Italian Wine Industry: 1997–2006, Journal of Wine Research, 20:2, 111-124 To link to this article:

PLEASE SCROLL DOWN FOR ARTICLE Full terms and conditions of use: This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. The publisher does not give any warranty express or implied or make any representation that the contents will be complete or accurate or up to date. The accuracy of any instructions, formulae, and drug doses should be independently verified with primary sources. The publisher shall not be liable for any loss, actions, claims, proceedings, demand, or costs or damages whatsoever or howsoever caused arising directly or indirectly in connection with or arising out of the use of this material.

Journal of Wine Research, 2009, Vol. 20, No. 2, pp. 111–124

Winemakers and Wineries in…...

Similar Documents

Premium Essay

Wine Industry

...ALL INDIA WINE PRODUCERS ASSOCIATION President Jagdish Holkar Cell. 9850044755 Email:, Secretary Rajesh Jadhav Cell. 9422271528 1 Strictly Private and Confidential Indian Wine Industry current scenario & Proposed corrective measures 2 Strictly Private and Confidential Introduction / Background           3 Agro-based industry. Value addition to Agri.- produce. Food Processing Industry. Converts highly perishable grapes in to non-perishable with value addition. Major rural employment generating tool for unskilled labours. Food based (part of food) alcoholic beverage. Tiny Industry. Encourage first generation entrepreneurs amongst the farmers. Promote agro-tourism. Overall rural development Strictly Private and Confidential Key statistics Statistic Wine consumption Industry size (revenues) Land under cultivation Farmer families dependent on grape cultivation Families employed by the wineries Grape dues of 2009 and 2010 (Maharashtra) Present 1.1 crore litres Rs 1,050 crore 10,000 acres 10,000 6,750 Rs 208 crore Year 2020 estimate 7.2 crore litres > Rs 10,000 crore 21,000 acres 21,000 13,500 NA In addition to the above, the wine industry over the years has contributed substantial revenue to the State and Central exchequer Source: Industry association estimates 4 World wine scenario  Largest fruit processing industry in the world ......

Words: 1700 - Pages: 7

Free Essay

The Wine Industry of Chile

...Part One: The Chile Wine Industry The Chilean wine industry has experienced various transformations over the past 30 years – its quality revolution led by the complete technological renovation during the 1980s, the export boom of the 1990s, and the new terror developments during the 2000 decade. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile’s viticultural paradise and to produce World Class Wines of unique character and personality. Chile is the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8% by volume of the global international wine market at the close of 2010. However, and most importantly, Chile exports 70% of its wine production, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service. With 150 destination countries and 1.5 billion consumers for each year, Chilean wines are positioned as the country’s most emblematic and best known world ambassador. In the late 1970s and early 1980s, Chileans adopted advanced technology and invested in new machinery for optimizing the winemaking process in the field. The winemaker offered an innovative higher-quality product that was conducive to the development of new wine varieties. Later producers also perfected their wine cellars and invested in better labels and packing, such as boxes, bottles and cartons, that were more attractive......

Words: 1518 - Pages: 7

Premium Essay

Vincor and the Wine Industry

...The Wine Industry and Vincor Vincor International Inc. is in the business of selling premium wine to discerning wine drinkers. The company relies on its firm resources and capabilities from which it derives its distinctive competencies. These include the ability to produce market and distribute premium New World wines to a growing market of customers around the world. The total estimated world market is worth approximately $190 billion dollars (U.S.). Vincor’s strategy is based on its distinctive competencies (such as world renowned wine making experience, vineyard development and ownership, and the ice wine product/brand) and centres on an acquisition and takeover formula (sometimes with a joint venture component). The company believes that in a highly fragmented wine industry the only companies that are going to survive, grow and maintain a competitive advantage are those that can rationalize their cost structures, achieve economies of scale and control their distribution channels effectively. Synergies in marketing, sales forces, administration and other overhead factors can drive down per unit costs and make Vincor more efficient. By lowering its cost structure, Vincor can pass lower costs to consumers and gain market share in a global market place. Vincor has surmised that the best way to do this is expand, through a combination of equity and debt financing to take over competitors, whenever there is a good “strategic fit.” The industry in which Vincor......

Words: 1672 - Pages: 7

Premium Essay

Chilean Wine Industry

...Investment Attractiveness of the Chilean Wine Industry 1. Introduction Over the past 30 years saw major transformations within the Chilean wine industry, this transformation allowed many of the talented Chilean winemakers on this unique opportunity to produce world class wine with its own unique personality and character. Chile currently is one of the leading nations in the global in the wine industry, currently ranked at 8th as the world’s largest wine producer and ranked 5th as the largest wine exporter. Chile exports a massive 70% from its own wine production making Chile the world’s most globalised wine industry. Even with the enjoyed success by the nation, Chilean wines find themselves facing huge competition globally in different markets as the wines produced in Chile sells at a relatively low average price therefor directly affecting the profit levels in return. (Emeraldinsight, 2010) 2. Factor Conditions As of 2011, Chilean vineyards have been facing shortage of filed workers as most employees are migrating to construction, agriculture director Santa Rita is quoted saying “between 15% and 20% fewer workers now than two years ago” Working in vineyards is not a preferable profession to the locals anymore as they end up working eight hours more just to get the minim wage. (MecrcoPress, 2011) This means finding field workers for the vineyards will prove difficult unless the company is prepared to pay the minimum wage. 2.1 The unemployment rates in......

Words: 3401 - Pages: 14

Premium Essay

Italian Wine Export in China

...internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian case THEORETICAL......

Words: 13025 - Pages: 53

Free Essay

Wine Industry in Asia

...ROUND TABLE: PREMIUM WINE INDUSTRY (LUXURY & LIFESTYLE) IN ASIA * Vintage Club * Online business (subscription) * Private consumers * Corporate (gifts, meetings) * Import directly from France, no intermediaries * Old wine company * Advice to collectors * Private customers 1. Specificity of the Asian market vs Europe * Cognac: people in Asia drink cognac with water, sprite. Do you like to have style or do you like to have sales? * Singapore wine market: 90s started climbing, mainly because students from 70s came back from abroad with new trends; French lifestyle (wine and food). * Singapore sales are driven by promotions and brands. Brands for import wines are still important, more than old world. * Time of transport from vineyard to Singapore is 2 months. * Taxes/duties: 48% china, 0% HK, $88/lt Singapore +GST * France: 25y start buying wines more regularly. Singapore: wines purchase for social representation, gifts. * Everybody knows in France about wine but they don’t care about technicalities. Only know basic characteristics of a good wine, know how to differenciate. In Asia people are more interested. * China for C&T: Hard market. Office in Shanghai, network of distributors is huge, each has a network of 1mm clients. Set up selected distributors that work closely with the brand (control network). Chilean wine is perceived as good value for money, good quality. *......

Words: 419 - Pages: 2

Premium Essay

Indian Wine Industry

...of Indian Wine Persian conquerors brought grape vines to India nearly 2500 years ago; wine consumption is first mentioned in a text on statecraft written about 300 b.c.  Wine was a beverage for elites, not the masses (who apparently wanted stronger stuff), and lived a shadowy existence that continues today due to concerns about alcohol consumption. The influence of British colonizers contributed to the growth of Indian wine production in the 19th century, before the scourge of phylloxera hit India’s vineyards in the 1890s with predictable results. Table grapes are a major crop in India and wine grapes are grown in several regions, generally at altitudes of 200m – 800m, although vineyards at 1000m exist in Kashmir. Growing conditions are surprisingly good using viticulture practices that take humidity and rainfall patterns into account (harvest must be complete before the monsoon). Two crops per year are common. Since independence in 1947, wine has been caught in a crossfire in India. On one hand, it is a heavily controlled substance.  Article 47 of the constitution makes it a function of the state to discourage alcohol consumption (Gandhi and some other early leaders were teetotallers), so wine imports are highly taxed and advertising is forbidden. Individual state governments within India tax and regulate wine sales much as in the United States, creating a distributional crazy quilt. At the same time, however, some state governments promote viticulture and wine making......

Words: 6779 - Pages: 28

Premium Essay

Tunisian Wine Industry

...The Tunisian Wine industry In 2013 the world wine consumption stood at 238.7 mhl, this was a decrease of 2.5 mhl in comparison to 2012. “The global wine industry has seen an excess of 600mn unit cases (almost ¼ of global consumption) in 2004, reduce to just 1m unit cases in 2012” (The Global Wine Industry, 2013). History of wine in Tunisia There are a lot of comparisons made between new world wines and old world wines. When discussing old world, this refers to wines made in countries that are considered the birthplaces of wine. Some of the countries that are Old World include: France, Spain, Italy, Germany, Portugal, Austria, Greece, Lebanon, Israel, Croatia, Hungary and Switzerland. New world include the following countries U.S., New Zealand, Argentina, Chile, Australia and South Africa. In 1881, the French conquered Tunisia, and brought along knowledgeable and experienced wine makers. After this large scale wine production began in the country. Many years after, Tunisia gained independence and although the wine production continued, a lack of expertise caused production to decrease (Tunisia tours, 2014). The climate in Tunisia is significantly influenced by the Mediterranean. The winters are wet and the summers are dry, which creates a prosperous environment for wine making. The type of grape variety that are planted in Tunisia are also hugely influenced by the French involvement. Market Entry Modes There are certain factors that influence foreign entry modes.......

Words: 448 - Pages: 2

Premium Essay

Italian Wine Report

...WINE MARKET STRUCTURE AND CONSUMER DEMAND Antonio Stasi Faculty of Agriculture, University of Foggia, Italy Antonio Seccia Faculty of Agriculture, University of Bari, Italy Gianluca Nardone Faculty of Agriculture, University of Foggia, Italy One of the most globalized and profitable sector in worldwide agribusiness is wine industry. Given the attractive features of investing in wine markets and productions, many multinationals started diversifying their product portfolio by including wine. The current market structure, in fact, highlights the presence of highly competitive and large size firms, especially in popular wine segments. Smaller size wineries, on the other hand, are characterized by having a stronger local component and a less competitive but more conservative structure. Besides economies of scale, does the firm size contributes to the shaping of the demand and to the strength of consumers’ loyalty to brands? The economic context in which the analysis will be carried out has specific traits, being characterized by changes in consumer tastes and consumption habits. In fact, during the last decade, Italian but also European wine economy is facing a decrease in total consumption and a modification in consumers’ preferences, which are moving towards higher quality wines. Therefore, the specificity of this context of analysis regards the fact that the main wine brands are mostly concentrated in low-price segments, which are losing market shares, but are also getting......

Words: 557 - Pages: 3

Premium Essay

Robert Mondavi and the Wine Industry

...      Autumn   15   ROBERT  MONDAVI  WINE  INDUSTRY   Dougal  POGET  &  Caroline  MULHAUSER               U N I V E R S I T Y   O F   A P P L I E D   S C I E N C E   -­‐   G E N E V A   H A U T E   E C O L E   D E   G E S T I O N   –   G E N E V E     Mondavi  Wine  Industry  –  Case  Study   Dougal  Poget  &  Caroline  Mulhauser     TABLE  DES  MATIERES   1.  Read,  reflect  on  and  analyze  the  company  situation  within  the  context  of  a   changing  wine  industry.  ................................................................................................................  4     2.  Think  about  an  outline  all  of  the  external,  internal,  competitive,  market,  and   consumer  factors,  changes  and  trends  affecting  Mondavi  in  their  business  model.  5   External  factors:  .........................................................................................................................................  5   Internal  factors  (Integration  level)  ......................................................................................................  5   Competition  .......................

Words: 3781 - Pages: 16

Premium Essay

Spanish Wine Industry

...Marieshka Barton Wines of Spain Prof. Newton June 15, 2015 Spanish Wine Marketing and Sales Sonoma State University’s Wines of Spain 2015 summer class introduced students to Northern Spain’s prestigious Penedès, Priorat, and Rioja wine regions. Production and marketing professionals from eight wineries hosted our student group and provided facility tours and insights on production, marketing, and exporting. This paper focuses on Northern Spain’s wine industry’s legal regulations, tourism, stewardship, communications, and exports through the lens of wine business marketing. The paper concludes with marketing recommendations relevant to new world (USA, Canada, and Australia) markets. History First, a brief introduction to Spain’s wine history is provided to differentiate Spain from its global competitors and set the context for further analysis. As an “old world” wine culture, Spain has a rich wine history beginning with Phoenician tribes and industrious Romans. Unfortunately, Spain’s nascent wine industry was disrupted due to Islamic rule followed by civil and global wars. In the late 1800’s, French winemakers revolutionized Spain’s weak wine industry. France’s Phylloxera tragedy brought an exodus of French winemakers over the Pyrenees seeking work. By the time Phylloxera reached Spain, viticulturists where already grafting native vines onto......

Words: 3895 - Pages: 16

Free Essay

Wine Industry Report

...WINE INDUSTRY REPORT Expert Report on the Profitability & Dynamics of the Australian Wine Industry PREPARED FOR WINEMAKERS FEDERATION OF AUSTRALIA BY CENTAURUS PARTNERS – AUGUST 2013 This proposal is solely for the use of WFA. No part of it may be circulated, quoted or reproduced for distribution outside the addressees without prior written approval from Centaurus Partners. 2 Expert Report on the Profitability and Dynamics of the Australian Wine Industry Centaurus Partners INTRODUCTION AND REPORT CONTENTS The Australian (and global) wine industry is highly fragmented with many different business models, and significant variations in performance. Players within the industry make decisions based on their individual position, strategy and view of economic fundamentals. The intention of this review is to provide facts and perspectives to help WFA determine where it should focus its industry efforts and how it can support individual participants in their decision-making processes. The Report has four sections:   ummary Findings of the Expert Review S   ecommendations for the WFA Board to Consider R   xecutive Summary of the Fact Base Supporting the Findings and Recommendations E  Appendices • Recommended Next Steps for WFA • Overview of Approach, Analysis, and Sources •  dditional Analyses and Exhibits—Available on the WFA Website A Segment Definitions. To enable clear evaluation of the......

Words: 1394 - Pages: 6

Premium Essay

Wine Industry

...Me Details The American wine industry is a stable and present market in the United States with room to grow. The wine industry began with the first settlers and has persevered for centuries. There are three classifications of wine: Red, White, and Blush, and table wine (a wine containing 7% to14% alcohol traditionally consumed with food) is the most popular and fastest-growing type of wine consumed. Even though wine is produced virtually everywhere in the U.S. the wine producers in California have the largest economic impact of $30 billion. Wine sales have risen in the last ten years from 11.7 billion dollars to 19 billion dollars. The Alcohol, Tobacco, and Firearms division of the Internal Revenue Service, at 8%, which is around $1.07 per gallon, heavily taxes these sales. Technological impacts have allowed winemakers to help control the quality of the wine from the vine to the liquor store. The wine industry contains high barriers to entry due to high costs of land and building manufacturing facilities. Product differentiation is quite vast, being able to make several different types of wine varieties. The value of the wine varies year to year and is often set by the opinions of a few wine experts. The economies of scale in the wine industry have the greatest impact on the cost of land for grape growing. This because the type of land needed to produce quality wine is limited in the United States. This provides an advantage to existing wine producers already having......

Words: 5424 - Pages: 22

Premium Essay

Transformation of Us Wine Industry

...That Transformed the U.S. Wine Industry For the last ten years, Blue Ocean Strategy has challenged business leaders to explore uncontested marketplaces -- or what we call "blue oceans." But this strategy goes beyond theory: It provides a set of methodologies and tools that can help managers pursue value innovation systematically and make blue oceans attainable for all aspiring organizations and individuals. Take, for instance, the wine industry. Related: The Cloud-Based Startup Making Waves in Wine Country Historically, the industry has proudly promoted wine as a refined beverage with a long history and tradition. This has alienated a large portion of consumers who have viewed wine as intimidating and pretentious. Alternatives -- beer, spirits and ready-to-drink cocktails -- have captured three times as many U.S. consumer-alcohol sales. The Australian winery Casella Wines addressed these problems with a new strategy that transformed the market, but not by competing on traditional factors. Instead, Casella looked to beer and ready-to-drink cocktails and created Yellow Tail, a fun and easy-to-drink nontraditional wine brand. Yellow Tail was designed to embody the characteristics of Australia's culture: bold, laid back, fun and adventurous. Yellow Tail aimed to represent a leap in value that appealed to a broad cross-section of alcohol beverage consumers. Casella Wines’ success with Yellow Tail was not by luck. Finding that many Americans, too, saw wine as a turnoff, the winery......

Words: 924 - Pages: 4

Free Essay

Australian Wine Industry

...1 Synopsis Today as the world around us continues to age more and more people have an interest for premium wines. As Australia’s economy continues to boom some industries have taken a major hit over the last decade including Australia’s wine industry even though it continues to produce some of the best wines in the world. The report will look into the history of Australian wine and look at where things have gone wrong. The reports key findings will reveal a relatively unknown winery in the town of Orange, called Belgravia that produces some outstanding wines. The results that have been presented have been researched on various Internet resources, newspaper articles and journals. The writer has also contributed to the report with his knowledge, as he is involved in the wine industry. Table of Contents: 1. Synopsis.............................................................................................................1 2. Introduction........................................................................................................3 3. Procedure...........................................................................................................3 3.1 History...........................................................................................................3-4 3.2 Orange Wine Region …..................................................................................5 3.2.1 Belgravia Vineyard…………………………………………………………5 3.2.2 Belgravia......

Words: 1781 - Pages: 8