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].

Sensory descriptors, hedonic perception and consumer's attitudes to Sangiovese red wine deriving from organically and conventionally grown grapes.

In recent years, produce obtained from organic farming methods (i.e., a system that minimizes pollution and avoids the use of synthetic fertilizers and pesticides) has rapidly increased in developed countries. This may be explained by the fact that organic food meets the standard requirements for quality and healthiness. Among organic products, wine has greatly attracted the interest of the consumers. In the present study, trained assessors and regular wine consumers were respectively required to identify the sensory properties (e.g., odor, taste, flavor, and mouthfeel sensations) and to evaluate the hedonic dimension of red wines deriving from organically and conventionally grown grapes. Results showed differences related mainly to taste (sour and bitter) and mouthfeel (astringent) sensations, with odor and flavor playing a minor role. However, these differences did not influence liking, as organic and conventional wines were hedonically comparable. Interestingly, 61% of respondents would be willing to pay more for organically produced wines, which suggests that environmentally sustainable practices related to wine quality have good market prospects.