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The Wine Cluster and Beyond Mikel Larreina*, Fernando Gómez-Bezares and Ricardo Aguado

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The Wine Cluster and Beyond Mikel Larreina*, Fernando Gómez-Bezares and Ricardo Aguado The Open Geography Journal, 2011, 4, 3-15 3 Open Access Development Rooted on Riojan Soil: The Wine Cluster and Beyond Mikel Larreina*, Fernando Gómez-Bezares and Ricardo Aguado Universidad de Deusto, La Comercial, Avenida de las Universidades 24, 48007, Bilbao, Spain Abstract: The wine industry has experienced dramatic changes since the 80’s. The surge of New Producing Countries challenging the Euro-centred status quo, the decline of consumption in traditional markets, the permanent large imbalances in the sector resulting in global overproduction, the apparition of new consumers, the development of wine tourism… In this period of time, Rioja, a region producing wines since the Middle Ages, has been able to use all its strengths to increase its market share in the wine global market, driving the regional economy to higher and more widespread social welfare. This paper shows the main features of this relation between wine and territory at Rioja, and the reasons for the successful performance of this sector, using a number of approaches (cluster, agro-industrial district, oenopolis) that progressively enlarge the scope of the analysis up to including all potential relations between the main regional sector and the society itself. Keywords: Wine cluster, Rioja region, regional development, agro-industrial district, oenopolis. 1. INTRODUCTION: WINE AS A DRIVING FORCE to control an excessive area under vines1 and decided to FOR REGIONAL DEVELOPMENT forbide anyone to plant more vines in Italy, ordering simultaneously to cut down vineyards in the provinces (or, at Wine has played a major role in Mediterranean societies most, leave them halved), hence favouring the italian since the Ancient Ages and quite likely even during the late industry. prehistoric times; in fact, there are proofs of the existence of viticulture around 6000 BC, even though grapes were The role of wine production in the Middle Ages and the collected and consumed since 30000 BC. The role of Modern era was determinant for some regions, mainly in the viticulture and wine-making has been much greater than Mediterranean basin [2]; for instance, as late as 1878, the merely eating fruit and drinking wine. On one hand, it has Spanish Government wrote that “the wine sector’s shown great relevance in several religions, being a sacred performance affects the national wealth, and hence the drink full of symbolism. We can cite Noah, who inmediatly interests of the State”2. Wine was a key product for trade, after leaving the Ark planted a vine; or the myths of wine being affected by most changes in trading rules; hence, some being given by Gods as a gift to mankind; or the ceremonial monopolistic companies controlling the wine commerce role played by wine in Egypt, where it was a necessary were founded (as the Company for High Douro, in 1756) and complement for the afterlife, and buried in tombs for this wine was included among the products to be protected by the purpose; or the games that honoured Dyonisus in Greece, in Apellations d’Origine when the first international which people feasted and enjoyed the pleasures of life; or Agreements in this field were signed in the XIX century. The even the role of wine in the Last Supper, where it is linked impulse to economic studies during the Enlightenment by Jesus himself to his own blood. Besides religion, wine produced a number of works studying in some way the wine had an important economic role [1, 2]: it was a product market; for instance, the great economist Adam Smith traded between different nations; it was a main industry in wondered on the reasons for the French king Louis XV’s some regions, and its origin even served to identify the interdiction for new planting of vineyards. Furthermore, product; it was a product for which specific regulation was David Ricardo used wine to explain the comparative produced, since some rules on wine were included in the first advantages of regions and nations, and to show the social legal code kept to date, the Hammurabi code (dated around welfare linked to trade; his classical example was 1750 BC); and it was a product chosen for investment by educated investors, as Roman wealthy families did. Measures to protect local industries were even experienced 1 at that time; for instance, when the emperor Domitianus tried The decision taken by Domitianus for the whole Roman Empire in 92 AD may be seen as well as a precedent of much more recent European CMO’s rules, oriented towards reducing the productive potential and controlling the *Address correspondence to this author at the Universidad de Deusto, La wine supply. 2 Comercial, Bilbao, Spain; Tel: (+34) 94 413 92 60, Ext. 2460; Fax: (+34) 94 This is an approximate translation from the Spanish. The original reads like 445 73 81; E-mail: [email protected] this: “Afectaría la pérdida de esta riqueza vitivinícola […] a la riqueza pública, y por lo tanto a los intereses del Estado”. Extracted from an Open Letter on the phylloxera issued by the Ministerio de Fomento, Dirección Gral. de Instrucción Pública, Agricultura e Industria, entitled “Nota sobre la Filoxera de la vid a los viticultores españoles”. Published in Madrid, on the 1st September 1878. 1874-9232/11 2011 Bentham Open 4 The Open Geography Journal, 2011, Volume 4 Larreina et al. international trade between England, that produced textile being a rural and poor region in European standards (a products, and Portugal, that produced wine [3]. middle level region in Spain) up to become for some years the Spanish richest region under some indicators, with a More recently wine has still played (in fact, it still plays) 3 GDP per capita over European average. Even though the a major role in some regional economies , this time spread all over the world, as viticulture has expanded in the last effects of the economic crisis begun in 2007 will be severe, the investments made in Rioja during the nineties and early centuries from its traditional producing area to the Americas, years of the XXI century, and its positioning in the global southern Africa and Oceania. The socioeconomic role of wine market will give this region a solid ground for further wine in some regions has been a major issue for national and development. supranational institutions, and for the regions with large wine producing sectors [4, 5]. The development of economic This paper is organised as follows: after this introduction clusters around the wine sector has been studied in a number on the diverses roles of wine, section 2 summarises the main of approaches: some authors have measured the economic contributions to wine producing regions analysis, discussing impact of wine in the producing regions [6, 7], and others some of the problems arisen when using the cluster concept have conducted economic analysis of the wine sector itself in areas like Rioja. Section 3 presents the historical roots of [8]. the wine industry in Rioja, showing that it has played a Another approach for showing the current social leading role in the socioeconomic evolution of the region. Section 4 comments the structure of the Rioja wine cluster, relevance of vineyards and wine-making industries may be and presents a valuation of its relevance in terms of GDP. found at the international level, in the World Heritage list. Section 5 sheds additional light in the relation between Rioja UNESCO, the United Nations Educational, Scientific and wine and its territory, using the industrial district framework. Cultural Organization, seeks to encourage the identification, Section 6 briefly proposes an enlarged theoretical protection and preservation of cultural and natural heritage around the world, when considered to be of outstanding framework, tailored-made for Rioja, the Oenopolis. Finally, the last section summarises the paper. value to Humanity. Hence, at the end of 2009 there are 890 sites around the world forming part of the cultural and 2. THEORETICAL REVIEW: RESEARCH ON WINE natural heritage of Humanity, that belong to all the peoples REGIONS of the world according to the international conventions on World Heritage. It is important to note that there are six wine The wine sector has been studied in a scientific way regions4 included in this list because of their vineyards, and following different approaches since the XVIII century: we at least four other sites5 in which vineyards or wines have can cite topographic atlas of the distribution of wine played a relevant role in their evolution, and as a varieties, and producing regions as the book by André Jullien consequence in their selection for the world heritage; thus, in 1816; or economic analysis like the report on the wine those vineyards are considered as having outstanding sector written by Felix Mª de Samaniego in 1771. universal value. Related to this, a real proliferation of wine Oenological literature has a milestone in Louis Pasteur’s tourism has occurred in recent times, as more sophisticated work in wines, published in 1866. wine consumers are looking for a wine experience in which The modern economic analyses of wine producing design, landscapes, local culture and history, and high regions mainly use one of two close concepts, the industrial standard facilities add a significant value [9]. district or the cluster. Both emphazise the importance of the In this paper, the Rioja region is the subject of the geographical concentration of interlinked economic analysis6. This region is deeply linked to the vine-growing activities, improving studies using the traditional sectoral and wine-growing sectors, which play a leading role in the surveys. In our understanding, which differs from that of regional economy. In fact, wine is simultaneously the main Zanni et al. [8], a combination of both approaches would be Riojan characteristic, and the engine of its economic more appropiate than privileging the latter; as the industrial development.
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