An Exploratory Study of the Factors Enhancing and Inhibiting Export Growth in the Chilean Wine Industry

This exploratory study investigates the main drivers that enhance and inhibit the export performance of Chilean wineries. The findings of this study suggest that the main constraints within the Chilean wineries in developing exports is the lack of financial resources, limited quantities of stocks for market expansion, management's lack of knowledge and experience, and the high cost of traveling and participating in trade shows. The main drivers of wine export performance according to the respondents are high quality of the wines, well-established network of international distributors, and marketing skills. The major inhibitors of developing wine exports are exchange rate variability, problems in selecting a reliable international distributor, and limited government support to promote wine exports. This study also shows that export managers of Chilean wineries have high educational levels and have international experience. The findings have important implications for export development efforts of both governments and managers.     

Protecting Quality of Wine Exports to China: Barriers and Bridges

There is a great potential for wine to deteriorate during shipment and storage of wines being exported from the United States to China. Certification of storage conditions such as that provided by the Hong Kong Quality Assurance Agency (HKQAA) is a key bridge to protecting quality and maintaining value in the auction market there. A literature review and semistructured interviews with winery managers, freight forwarders, transportation experts, and representatives of HKQAA provide qualitative analysis of barriers and bridges to protecting quality. The article presents a strong case for the adoption of storage and transportation standards for wine, such as the Wine Storage Management System implemented by HKQAA. Looking at wine exports through the lens of Total Quality Management provides the basis for recommending formal certification.     

The Pricing of Experience Goods: The Example of en primeur Wine

The market for "primeur" wine in the Bordeaux region allows producers to sell wine that is still in barrels. As with all experience goods, producers send quality signals to uninformed buyers. Using original data on Bordeaux wines, we show that the pricing behavior of producers depends to a large extent on their reputation, and much less on short-term changes in quality (as measured by experts' grades). We also find that the primeur price has an informative role, since a 10% increase in primeur price leads to a 3% increase in prices on the market for bottled wine.     

Successful Practices in California Wine Exporting

Abstract

California is one of the world's largest wine producers, yet it has exported only a small portion of its products. Many US wineries want to pursue opportunities in foreign markets but only a few are actually doing this successfully. Therefore, this study attempts to identify the successful practices of 12 California wineries that have achieved their financial targets and other export goals. A qualitative research design of in-depth interviews was employed. Results indicate that there are 5 major success factors, with the two most important being the foreign partner relationship and top management vision and commitment to exporting.     

Analyzing Consumer Preference for Wine Product Bundles: Implications for the Retail and Wine Industry

This research examines a marketing technique (bundling) that wine companies may use to gain access to retail stores. The study examined consumers' perception toward bundling with respect to the Australian wine market and the results allowed for the formulation of market segments, which aimed to provide a better understanding of the wine-bundle purchaser. Cluster analysis highlighted three market segments, in particular, one consumer segment is prone to purchasing wine bundles and is interested in deals. While exploratory in nature, the research may provide an insight into global wine marketing strategy.     

Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market

The U.S. wine market experienced rapid growth in all facets—production, consumption, exports, and imports—over the past decade. Red wine imports more than tripled while consumption of domestically produced red wines doubled. This research estimates demand elasticities of U.S. red wine imports from five countries accounting for over 90% of imports—Italy, France, Spain, Australia, and Chile—using the first-difference version of the almost ideal demand system (AIDS). These elasticities are compared with those for domestically produced red wine. Results for conditional expenditure elasticities indicate that the U.S. red wine industry gains over imports when U.S. consumers' total expenditures on red wine increase. However, comparing own- and cross-price elasticities reveals an increase in the price of U.S. red wine results in a decline in quantity demanded six times greater than for French and Italian red wines and over 20 times greater than other import countries, thus harming the U.S. red wine industry. Empirical results suggest that U.S. red-wine producers could increase their total revenue by decreasing prices, while Italian and French producers can increase total revenues by increasing them.     

Brand Personalities of Global Wine Exporters: A Collective Reputation Theory Perspective

This study examines the perceptions of the personalities that wine drinkers attribute to the wines of the six top exporting countries. An exploratory study with an inductive approach was used, and data were collected from 757 wine consumers from 22 countries. Based on the collective reputation theory, we question the use of standardized versus localized strategy when approaching international markets by the top producers of the world. By means of correspondence analysis, our results indicate that each wine producer country tends to have a different positioning among consumers from different regions of the world. Besides, it is evident that a standardized approach to marketing and promotion of a specific country’s wines to global markets could be viewed as rather myopic, representing a gross oversimplification of reality, and contradicting what our findings reveal about differences in global consumers’ perceptions of wines from the big six producers.     

The Importance of Intrinsic and Extrinsic Sparkling Wine Characteristics and Behavior of Sparkling Wine Consumers in Croatia

ABSTRACT

Sparkling wines accounted for 7.7% of the total wine consumption in 2011 in the world. Even though sparkling wine remains a long way behind still wine in total volume of production, world consumption of sparkling wine is expected to grow at a faster rate with an 8.5% increase by 2016. Although Croatia is a country with a high residual per capita consumption, the share of sparkling wine consumption compared with total wine consumption amounts only 1.3%. To collect data on Croatian sparkling wine consumers’ behavior and attitudes, we performed online research with 273 consumers. The research confirmed the low frequency of sparkling wine consumption. The most important characteristics of sparkling wines for Croatian consumers are their intrinsic characteristics (taste, smell) together with price:quality ratio, while visual appearance, expert reviews, or wine prizes are less important. Consumption of sparkling wines is generally associated with specific celebrations. Due to such perception of exclusive wine use, there is a need to break down this prejudice by better sparkling wine promotion through wine-tasting events, seminars, and gastronomy offers, especially for younger consumers.     

Exploring Attitudes Toward Aquaculture Development in the United Kingdom: A Consultative Stakeholder Approach

ABSTRACT

This study explores attitudes toward aquaculture development as a way of providing a sustainable source of seafood through a consultative stakeholder approach. Given that aquaculture is a less familiar concept within southwest England, gaining insight into the views and perspectives of such a development in the region is required to facilitate stakeholder engagement. In-depth qualitative interviews investigate attitudes across five stakeholder sectors: government, fishing/marine, business/catering, tourism/leisure, and environmental/charity. Findings show a mix of stakeholder attitudes, which differ by industry sector, from very negative to very positive. From this, two segments are proposed (commercially focused and environmentally focused) to enable targeted communication and information dissemination strategies based on key areas of concern.     

E-Business in the Agricultural Input Industries

A variety of factors are creating pressure for increased use of information technologies and e-business concepts in the agricultural input industries. Understanding where information technology and e-business concepts will add value to the distribution channels for agricultural inputs requires an understanding of the needs of the two primary agents in the channel: agricultural producers and manufacturers. In this paper, a framework for understanding the changes information technology and e-business may bring to the distribution channel is developed. In addition, some of the attitudes of managers toward e-business and the impacts of information technologies for the agricultural inputs industries are considered.     

Latent Class Analysis of Consumer Preferences for Wine in Tirana,Albania

This research aimed to determine wine attributes preferred by consumers in Tirana, Albania, and consumer segments based on preferences and sociodemographic factors. To accomplish these objectives, a conjoint choice experiment was designed. Data were analyzed with the latent class approach. Initial results showed a 5-class model fit best. Results indicated that younger people tend to prefer Italian wines over domestic wines, whereas some older consumers strongly prefer domestic, lower priced wines. Other domestic wine consumers sought higher prices, possibly indicating a niche demand for high-quality Albanian wines. The wine industry and its marketers might use this information to strategically market their wine to different groups. Overall, the majority of the respondents preferred Italian wines, but many might be persuaded toward domestic wine. Government assistance in standardizing the quality of wine and introducing new grape cultivars and efficient farming practices should aid long-term competitiveness of domestic wine in Albania.     

Politics, Economics, and the Regulation of Direct Interstate Shipping in the Wine Industry

In 1986, California passed legislation restricting the direct importation of wine from another state by California residents unless the originating state allowed direct shipment from California wineries to residents in that state. The result has been a patchwork of direct shipment regulations across states. We examine how various economic and public interest factors affect the likelihood that a state adopts a change in its direct shipment regulation and the nature of that change. Our results suggest that private and public sector economic considerations lie at the root of direct shipment regulations in the wine industry.     

Label Style and Color Contribution to Explain Market Price Difference in Italian Red Wines Sold in the Chinese Wine Market

This study employs a hedonic price methodology to investigate the implicit price of individual labelling characteristics of Italian red wines sold in the Chinese market. Our results highlight the most important quality attributes (extrinsic and intrinsic) given in the label capable to explain price difference. In particular, reveal significant premium price for wine origin, identified in particular through the DOC/DOCG appellation given in the label, and for clean labels or labels with particular designs. On the contrary, a price discount has been revealed for Italian wines produced with local grape varieties and with a label characterised by warm colors. These results, partly in disagreement with other empirical evidence, contribute to enrich the existing literature in this field by providing useful suggestions both to the producers and other stakeholders operating in the wine industry.     

Labour Demand in the Post‐apartheid South African Wine Industry

In 2013 the minimum agricultural wage in South Africa was increased by an unprecedented 51%. We use data on 77 Western Cape Province wine grape farms from 2005–2015 to estimate the impacts on employment. Previous post‐apartheid labour market reforms increased minimum wages substantially, but re‐entry to global markets after sanctions were lifted increased demand and this preserved jobs in the wine sector. However, by 2005 this demand growth had largely ceased. The long‐run wage elasticity for permanent employees was found to be ?0.4, but for casual workers the figure was ?4.7, so the 51% wage increase is likely to decimate casual employment in the future. Thus, the poorest and most vulnerable casual workers lose most in terms of jobs, incomes and secure livelihoods, whereas 80% of full‐time staff benefit from the higher minimum wages. Thus, the minimum wage change is likely to increase the gap between privileged permanent staff and casual workers. This result is not surprising in view of the long‐standing interdependence between farmers and their permanent workers in wine grape production.     

The Influence of Consumer Involvement in Wine Consumption-Elicited Emotions

There is scarce research on the influence of the level of consumer involvement with wine and consumption-elicited emotions. In this context, we aim to examine whether the level of wine involvement influences the emotional response; and further, whether the level of wine involvement plays a determining role in how emotions drive satisfaction. The study involved a convenience sample through a restaurant and bar intercept survey conducted in La Rioja (Spain). Subsequently, three levels of consumer involvement with wine were examined: low (n?=?316), medium (n?=?387) and highly involved consumers (n?=?462). Then, data were analyzed through structural equation modelling (SEM). Our findings indicate that differing levels of consumer involvement with wine lead to different emotions and satisfaction. Further, consumers should surpass an “involvement threshold” in order to develop a negative emotional appraisal and to provoke negative affect towards wine; but this “involvement threshold” does not apply to the development of pleasant emotions.     

CEREAL SUPPLY POLICY INSTRUMENTS: AN ATTITUDINAL SURVEY AMONG FARMERS IN ENGLAND

Against a background of steadily mounting cereal surpluses in the European Community and a recognition that the cereals sector is a major contributor to the Community's budgetary problems, a survey was carried out of English farmers' attitudes and preferences concerning a range of alternative cereal supply policy instruments. Personal interviews were held with 102 farmers in two contrasting agricultural districts — one an intensive cereal-growing district in eastern England, the other an area of mixed livestock and arable farming in western England. Amongst cereal producers in both areas a quota was the preferred policy instrument; in the east because of the security it offered, but in the west because it was perceived to be the least damaging instrument for the industry as a whole. A price reduction was the preferred option of small livestock farmers in the western area. None of the other instruments — co-responsibility levy, set-aside, nitrogen use restrictions — received much support. Farmers were particularly negative about schemes involving the withdrawal of land from agricultural use.     

Influence of the EU CAP on terrain morphology and vineyard cultivation in the Priorat region of NE Spain

After the GATT agreements in 1986, which removed the existing external protection on wine market, and with demand developing towards a qualitative level, the European wine sector has been subjected to a continuous transformation to accomplish that main objective. To give producers the chance to bring production into line with market developments and to allow the sector to become permanently competitive, the European Commission established the Council Regulation (EC) No. 1493/1999) on the common market organization in wine, later adopted in the 2003 CAP reform. Among other measures, this regulation finances the restructuring of a large part of present vineyards by adopting new farming systems (EC Council Regulation No. 1227/2000), supporting actions as soil preparation, which includes land levelling and terracing. Traditional vineyard areas in Mediterranean mountain environments, with subsistence agriculture and farming systems based on man and animal labour, have taken advantage of the new market opportunities in the wine sector and of this policy as well, and have changed to a market-oriented farming strategy. It has involved the construction of terraces on hillslopes using heavy machinery with the objective of crop mechanization, which has supposed important changes in soils and landscape. An example of this situation is the Priorat region (Catalonia, NE Spain), where vineyards have been cultivated on hillslopes by human and animal labour since the 12th century. Since the early 1990s the region has been undergoing major changes arising from new wine market opportunities and later by vineyard conversion and restructuring EU policy, which subsidizes up to 50% of the cost. In this paper we consider two aspects of the changes that modern farming systems are causing in the region: (a) land use changes after the coming into practice of the EU vineyard restructuring policy and (b) terrain morphology changes due to land terracing and related geomorphological effects. The results show high terracing rates (22.6–36.1 ha year⁻¹) in the study period (1998–2006), accompanied by huge land movements (a cutting rate of about 5475 m³ ha⁻¹). Bad design of terraces has led to the collapse of benches and borders, affecting about 3.5% of the newly planted area. These effects question the suitability of the EU CAP for vineyard restructuring in Mediterranean mountain environments, revealing that although farmers comply with environmental protection requirements, CAP support is not accomplishing the objectives for which was conceived: the protection of the environment by the reduction of impacts of the agricultural activities.     

Willingness to Pay for Quality Labeled Meat in a Rural Area

The aim of this study is to identify consumer perceptions and attitudes toward quality labeled pork and beef using cross-sectional consumer data. Given the dramatic changes over the last years in the meat sector as a result of the recent food scares, the study can facilitate better communicating with consumers and gaining insight into their perceptions and behavior toward meat products. A consumer survey was conducted in the rural region of Thessaly in Greece in order to investigate (a) food quality perceptions, (b) attitudes toward pork and beef quality labels, and (c) intentions to purchase higher priced certified pork and beef. The findings suggest that sociodemographic and personal characteristics have an impact on consumer willingness to pay for such products and different market segments can be targeted by marketers and food policymakers.     

An Evaluation of the Ontario Farm Business Management Association Program

The Ontario Farm Business Management Association (FBMA) program was initiated to improve the business management skills of Ontario red meat producers. The program has three aims:

• •

  to increase management skills on the farm
• •

  to increase management skills in the private sector
• •

  to help farmers make use of private sector advice.

Two methods were used to evaluate the program. First, FBMA members and other red meat producers were surveyed about their farm and personal characteristics as well as use farm records and information sources. Second, focus groups were held with the FBMA field persons. Results indicate that membership in an FBMA increased the collection and use of farm records, but that there was no significant increase in the use of private sector consultants by the producers. Moreover, FBMA members indicated a very low willingness to pay to support their FBMA if government funding were stopped.     

Production risk,risk aversion and the determination of risk attitudes among Spanish rice producers

Agricultural production is subject to risk and the attitudes of producers toward risk will influence input choices insofar as these affect production risk. Risk attitudes in turn may be affected by certain socioeconomic characteristics of producers. Using 2004 survey data from a cross‐section of 130 Spanish rice farms, we estimate risk‐aversion coefficients of farmers and investigate the influence of a series of socioeconomic variables on their risk attitudes. Our results show that farmers exhibit risk‐averse behavior and that risk attitudes are related to a series of socioeconomic characteristics. In particular, the belief that the farm will continue after the producer retires is found to increase the degree of risk aversion, while age is found to have nonlinear effects on risk aversion. Off‐farm income, especially from nonagricultural activities, is found to reduce risk aversion. Neither the educational level of the producer nor the presence of dependents on the household is found to have an effect on risk preferences. Regarding the production technology, we find that land, labor, and fitosanitary products are risk‐reducing inputs, whereas capital, seeds, and fertilizer all increase risk.