Problems and opportunities within the wine industry in terms of the COVID-19 pandemic

The COVID-19 pandemic has affected and still affects various sectors, including the agricultural sector. A specific industry deriving from agriculture is the wine industry. The purpose of this article is to find out and analyse the impact of the COVID-19 pandemic on the wine sector, especially regarding the Slovakia wine sector. To achieve this, a wide literary research study was conducted through which an overview of the global wine industry situation was obtained. Subsequently, the impact of COVID-19 on a selected wine business in the Slovak Republic was determined via interviewing. The findings were further analysed and compared with the situations of other Slovak and foreign wineries. It follows from the observations that both risk diversification within supplying and purchasing relations and the business's essential need to adapt to new circumstances under adverse conditions are very important factors. The article's contribution lies in a summarization of the problems and opportunities within the wineries as a result of the COVID-19 pandemic, based on a wide literary research review and interviews with an employee of the large wine company, and the conclusions can also be applied to other agricultural industries.

Challenges of the wine industry of Baja California, Mexico

The Baja California wine industry has developed significantly in recent decades, based on the increase in wine consumption in Mexico and the state government's interest for the development of regional vocations. However, its growth has not been accompanied by an integration of the sector among the producers and with the communities where it is based. This work presents an analysis of the current situation of viticulture in the state from its value chain, to identify the challenges before and after the COVID-19 pandemic, considering the actions carried out from the production of the grape, transformation of the wine, distribution, marketing and commercialization, highlighting the social problems that affect the development of the sector and cultural identity. In this research was used the systematization methodology, which articulates the experiences of key actors related to the industry in the territory. To obtain the information, focus groups organized by activities related to the wine sector in Valle de Guadalupe were held.

Research regarding the changes that happened on the Romanian wine market during the COVID-19 pandemic period

Even though it is among the top ten European wine producers and the top 20 worldwide, in Romania, the wine culture is not as well developed as in countries such as Portugal, Italy and France, considered the largest consuming countries of wine, from the European Union. In addition, there is a differentiation between urban and rural preferences for wine consumption. Romania is one of the major wine producers, at the European level, ranking 6th, with a total production of 5.4 million hl in 2021, being on an upward trend in last years. The national wine market is in a continuous rise, being determined by a growing demand, supported by the health benefits of wine products. The quality of the wines and the way they are presented, the innovation of flavors and the new distribution networks, combined with the changes that occurred during the Covid-19 pandemic, impose new consumption models.

New wine tourism strategies during the Covid19 crisis - a comparison in five different countries

To compensate for loss of business during the COVID-19 crisis, wineries in the tourism industry had to apply new strategies. In order to collect and compare these newly developed sustainable strategies, a cross-cultural study has been conducted in 2021. This study is based on a qualitative survey with key decision-makers of 70 wineries from the U.S., Australia, Germany, Hungary and Romania. The aim was to identify new and sustainable initiatives and resilience strategies implemented to deal with the disruption caused by the COVID-19 pandemic, noting cultural differences in each country's response, and to analyse the perspectives of wine tourism in the future. The findings highlight the wineries' focus on creativity and flexibility while also bringing attention to cultural differences. We can conclude that the most important initiatives were in the areas of CRM database management, promoting direct-to-consumer sales and digitalisation, holding virtual events and tastings, and offering new product delivery methods, albeit to a very different degree. The findings provide initial suggestions for best practice strategies that wine tourism companies can incorporate into their future business planning.

43rd World Congress of Vine and Wine, Ensenada, Mexico, 31 October-4 November 2022

These proceedings contain over 100 articles discussing the latest developments and challenges facing the vine and wine industry, focusing on 4 major themes such as viticulture, oenology, economy and law, and safety and health. Specific topics discussed include the adaptation and optimization of viticultural resources, the characterization of different microclimate to improve grape quality, the validation of new oenological techniques, and the resilience of the wine sector after the COVID-19 pandemic. Other topics included the impact of climate change on viticulture, the market competitiveness of the wine sector, and public health aspects wine consumption.

Wine tourism in Spain: The economic impact derived from visits to wineries and museums on wine routes

Wine and tourism represent a perfect symbiosis, as they offer a different experience to tourists and also promote the economic, social, and environmental development of wine regions. In Spain, wine tourism is an increasingly important research field and several studies have been conducted on the role of wine routes in boosting the competitiveness of a territory, increasing wine production, improving the quality of life of citizens, and respecting the environment. However, to the best of our knowledge, the economic impact generated by these routes in Spain has not been addressed in the academic literature. To overcome this research gap, this paper aims to analyze the supply and demand of tourism activities by examining the evolution of the institutions involved in the Spanish wine routes, on the one hand, and the economic impact of these routes, on the other. The results show a sharp drop in the supply of institutions and the demand for tourist routes in 2020 as a result of COVID-19, with a decrease of 2.58% in the total number of institutions adhered to the wine routes, a decrease of 73.53% in the total number of visitors to the different Wine Routes of Spain and a decrease of 74.7% in the economic impact compared to the previous year. Likewise, the research shows the existence of differences between the Wine Routes of Spain in terms of the number of visitors and their economic impact, which could serve as a guide for managers to make investments through acquisitions and/or their own investments in wineries located on the routes with the greatest economic impact.

Financial resilience of Spanish wineries during the COVID-19 lockdown

Purpose: This study aims to focus on the impact of COVID-19 on the Spanish wine sector and the financial resilience of Spanish wineries in the period 2019–2020. Design/methodology/approach: The data set contains 355 limited companies of the Spanish wine sector which were active in the period 2019–2020. The explanatory variables used are size and age of the company, exports, subsidies and gender distribution in the workforce. The financial statements of the companies are treated as compositional data, using log-ratios for asset structure, leverage, margin, turnover and debt maturity. The first-difference estimator is used for the panel-data model relating the differences in the log-ratios between 2020 and 2019 to the explanatory variables. Findings: In average terms, margin and turnover have significantly worsened between 2019 and 2020, while debt maturity has increased. A larger firm size, a greater age, a higher share of women in the workforce and subsidies have made wineries more resilient between 2019 and 2020. Originality/value: To the best of the authors' knowledge, this is the first financial statement analysis of the impact of COVID-19 in the winery sector. © 2023, Emerald Publishing Limited.

Laimburg research centre: research and innovation for the winegrowing industry. (L'Accademia per il post Covid-19.)

Laimburg Research Centre is the research centre for agriculture and food quality in South Tyrol. Agriculture in the Alpine region is suffering the intense pressure of its less favourable socio-economic and topographical conditions, together with the effects of climate change. The Laimburg Research Centre carries out research projects to provide in-depth knowledge about winegrowing, from growing techniques through to plant protection systems. The aim is to provide a solid knowledge base and practical answers for farmers and growers to be able to better face the challenges of the future.

Wine industry perceptions and reactions to the COVID-19 crisis in the Old and New Worlds: Do business models make a difference?

The COVID-19 crisis has severely impacted the wine industry, with producers in different countries affected differently and, therefore, differing in their perceptions toward it. These differing perceptions are assumed to be due to different business models, mainly linked to the distribution system adopted and resulting in varying distances of producers to distributors and consumers. While upstream integration characterizes the Old World, the New World applies a downstream business model, being more closely linked to distributors and consumers and, therefore, more vulnerable to shocks, which should lead to higher perceived impacts of the COVID-19 crisis. This study analyzes 542 surveys collected from wineries in nine countries, divided into New World, historical Old World, and emerging Old World. Econometric results show statistically significant differences in both the perceived impact of COVID-19 and wineries' responses in terms of planned investments, with the New World being more affected. A common desire by wineries to direct future investments towards direct-to-consumer sales and communication was found, to the detriment of investments in vineyards and cellars. This desire is particularly strong in the New World, in line with their focus on the downstream part of the value chain, underlying their greater reactivity to shocks and capacity to innovate. [EconLit Citations: D22; L21; L66; Q13].

Uncovering hidden human capital in uncertain times by exploring strategic resources in Spanish wineries

PurposeThe purpose of this paper is to explore the continuous identification of tangible and intangible strategic resources needed to achieve competitive advantages in uncertain times in Spanish wineries, highlighting the critical value of human capital.Design/methodology/approachBy means of a case study of a Spanish Sherry winery theoretically based on the resource-based view (RBV) of the firm, the paper focuses on the influence of environmental uncertainty on firms’ strategic resources and the need for in-depth knowledge. Direct participation and experience in the business have allowed access to data for longitudinal exploratory analysis.FindingsHuman capital, especially managers’ knowledge and experience, has been the key to the survival and success of the company analysed, throughout its history.Practical implicationsThe paper guides managers, especially in microenterprises and SMEs, on the inclusion among the firm’s strategic resources of a part of their own human capital that is generally not considered.Originality/valueThis paper contributes to the RBV and self-reflection theory by demonstrating the value of human capital in a small family business under extremely uncertain times.

TIME FOR CHANGE: TOOLS ENHANCING COMPETITIVE ADVANTAGE IN THE WINE BUSINESS

Strategy implementation failure, a continuing debate, jeopardises business performance. Our study complements this research by examining the overlooked role of competitive advantage, facilitating implementation and securing profitability, a leadership responsibility. Globally wine businesses struggle with profitability, signalling the lack of competitive advantage. To understand the failure of strategy implementation in the wine business, we explored the influence of the perceived leadership style on employee satisfaction which affects the strategy implementation and business performance results of selected businesses in the South African wine industry. The South African wine industry exemplifies the global wine industry, and an under-researched context, was the setting for studying this problem. An exploratory qualitative case study collected data by interviewing participants from purposively selected businesses, which were content analysed. Leadership plays a significant role in shaping a competitive advantage. The reasons for the strategy implementation failure can be summarized as the thwarting of employees needs for competence, autonomy, and relatedness, which are the levers of motivation. These motivational needs can be addressed by effective coordination and cooperation, which are integral to the structural dimensions of organisation for implementing strategy. The structural dimensions of organisation for implementing strategy unlocks human competence to implement strategy, and harness competitive advantage. Autocratic leadership styles, more so than democratic leadership styles, have undermined the structural dimensions of organisation for implementing strategy. Structural dimensions of organisation for implementing strategy can thus serve as a tool enhancing competitive advantage and guide leadership to implement strategy to improve business performance. This study augments overlooked research on strategy in wine businesses, favouring technical and marketing agendas and provides leadership with practical tools to enhance competitive advantage, facilitating strategy implementation and securing much needed profitability. The main limitation of the study is its cross-sectional nature. Scholars can modify their research agendas to include strategy considerations in addition to technical and marketing issues. Practitioners can immediately use the proposed tools for change to shape a competitive advantage, facilitating strategy implementation and securing profitability, and so augment a solid product with a sound strategy.