We explore whether the global financial crisis has had heterogeneous efects on traded goods differentiated by quality. Combining a dataset of Argentinean firm-level destination-specific wine exports with quality ratings, we show that higher quality exports grew faster before the crisis, but this trend reversed during the recession. Quantitatively, the effect is large: up to nine percentage points difference in trade performance can be explained by the quality composition of exports. This flight from quality was triggered by a fall in aggregate demand, was more acute when households could substitute imports by domestic alternatives, and was stronger for smaller firms’ exports.
Over the last years there has been a debate about the “structural change” in emerging economies and their impact on the understanding of development. New types of structuralisms are discussed using the concept of value chain in certain production sectors that have undergone significant changes.
The objective of this paper is to contribute to the debate about the structural change of the Argentine grape-wine growing sector using the dual analysis of “Strengths and Governance”.
First of all, we wish to point out that viticultural production is carried out in imperfect markets where prices are the result of an asymmetric negotiation between the purchasing power of a demand that is concentrated in a few firms and an atomized supply that is in the hands of thousands of producers. We analyze the strengths resulting from the interaction between the internal factors characteristic of the production unit and the external forces that operate within a given business organization. We describe the manner in which the supplier is related to the resources and the markets. We combine the above analysis with the governance approach, which refers to the manner in which the relationship among the several actors engaged in grape-wine growing is governed. We also analyze the relationships between firms and institutional mechanisms through which coordination actions are implemented outside the market. Emphasis is laid on the importance of explicitly incorporating institutionality into the analysis of the grape-wine growing sector chain so as to make sure that enforcement agencies comply with decisions reached by “consensus”.
One first conclusion of the study refers to the complementariness of both approaches and, in both cases, there is a continuous segment that spans from “decentralized coordination to a more centralized one”. By learning how value chains are governed, it is possible to know how they affect suppliers’ “upgrade” (increasing the added value of the chain through innovation). The upgrade is illustrated with a case study in which the knowledge acquired by the innovative firm is spread within the grape-wine growing sector, giving rise to a positive externality that may be internalized by means of suitable public policy instruments.
Table wines do not shine like Malbec does in Argentina’s wine industry; nonetheless they represent two thirds of the wine produced in this country. A key economic indicator of this product is the price of the “vino de traslado” (bulk wine). A grape-grower has two options with his grape: he can sell it or he can elaborate wine (the “bulk wine”) and sell it later to a large winery. Thus, the price of the “bulk.wine” is a reference of the income of grape-growers and small wineries.
In the last five years, this price has been very low, and consequently governments of wine provinces are under social pressure to implement policies to raise it by restricting wine supply and/or by buying wine. Why is this price so low? From a sectorial perspective, there is overproduction, with the consequent increase in wine stocks. This hypothesis is strengthened by the declining domestic consumption of this wine in Argentina for several decades, as well as in other major wine producing countries. However, there is another view, a crisis one. Over a period of more than three decades, this reference price reaches the minimum levels in each recession in Argentina. After a while, in every economic recovery, this price has increased very strongly. Macroeconomic impacts seem strong.
This study will show in numbers both impacts (of overproduction and recession) on the price of “bulk wine” in the Argentine case. Given the relevance of this price for the grape-grower, the study.will analyze the evolution of the producer share in the final price of wine (paid by consumers). In these years of low prices, producers have complained of lower share and there is a question whether this phenomenon is a trend observed over time.
This study examines the effects of increasing provision of hygiene quality information on consumer assessment of restaurant quality. In July 2010 New York City introduced mandatory hygiene grade cards to be displayed in restaurants. I show that both an A grade and better inspection scores are correlated with higher ratings in food, decor, service and price, with the former having a larger impact. These results suggest that consumers give much credence to the information provided byhygiene grade cards but the underlying scores might not reflect the true hygiene quality of restaurants.
The aim of the study is to analyze the capital structure of the Hungarian and the French wine industries and to examine the funding models. First, the database and the applied methods will be described followed by the descriptive statistical analysis of the industry. The analysis indicates the capital structure policy applied in the industry and, at the same time, evaluates its performance in terms of profitability and efficiency. The analysis examines the differences between the funding policies applied in the two countries, especially those variables that are the basis for the separation of the two branches. This was carried out by means of discriminant analysis, which indicates the financing characteristics. The main conclusion of the study is that the behavior of the factors explaining the development of the capital structure is significantly different in the examined countries.
The wine industry faces significant risks climate change, such that the security of future production is under threat. To address this risk, in this paper, a framework is proposed to examine responses to climate change in the wine industry. Building upon the literature and relying on expert input, the framework takes into consideration mitigative and adaptive actions across market-based, regulatory/standards-based, and operational-based levels. To explore the framework, a case study is developed for Treasury Wine Estates (TWE), one of the world’s largest wine producers. The case study reveals verification of the framework, with TWE relying on several technologies and unique processes to engage in many mitigative and adaptive actions across the proposed levels. The findings suggest several opportunities for future study.
On this week’s episode of Slate Money, Felix Salmon of Fusion, Cathy O’Neil of mathbabe.org, Slate’s Moneybox columnist Jordan Weissmann, and wine economics expert Karl Storchmann drink some rosé.
In this paper we provide a simple and transparent non parametric methodology to express the scores of each wine expert (15) on the same rating scale. We discuss the advantage of this methodology over a linear transformation. The non paramatric method ensures the comparability of scores among experts and allows for a relevant average calculation of available wine scores. This approach may be usefuel to wine professionals who seek to reduce uncertainties leading to improved market efficiency. Uniform scores for many Bordeaux en primeur wines can be freely accessed at globalwinescore.com.
This paper investigates the motives behind the entrepreneurial activity in the Italian beer industry between the late 1980s and mid-1990s. The paper argues that the evolutionary dynamics of the new producers (microbreweries and brewpubs) must be connected to the dynamics of consumption, which have gradually changed consumer preferences and lifestyles since the 1980s. On the one hand, increasing revenues, growing interest in food knowledge, and the rise of new cultural and social meanings attached to food consumption generated a new demand for variety. On the other hand, international integration increased the knowledge of beer typologies and styles. These changes enabled new small firms to enter the market and produce differentiated specialised products. This paper suggests that more research is required on the role of demand to interpret the dynamics of industries. The argument and discussion are based on original in-depth interviews with the pioneering entrepreneurs in Italy’s craft beer segment.
Women are a powerful economic force in the world’s wine market, with marketing of wines made by women to female consumers increasingly important. It is widely assumed that women winemakers in California have shattered the glass ceiling, but few studies have addressed their progress in what remains a male-dominated field. This paper reports on three separate studies assessing their progress. Study 1 assessed the perception that women winemakers have shattered the glass ceiling. Results showed that only 9.8% of California wineries have a woman as the lead winemaker, illuminating a discrepancy between perception and fact. Study 2 investigated whether winery acclaim was associated with this discrepancy. Coding of winery data in Opus Vino (2010) provided support for the hypothesis of proportionally greater acclaim for wineries having women as their lead winemakers. Study 3 tested the hypothesis that the recent increased recognition and visibility received by lead women winemakers is opening doors for other well-qualified women. Using the wineries included in Wine Spectator’s California Wine (1999) for a case study, the same set of major wineries was investigated at two times—1999 and 2014. Two approaches were taken to assessing progress: comparing the percentage of wineries with lead women winemakers at both times, and comparing the percentage, taking into account position availability and pattern of gender hiring into available positions. Results showed some increase, 10% in 1999 to 14.7% in 2014 overall, and 20.5% when considering only available positions. Progress appears steady but slow.