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The Palgrave Handbook of Wine Industry Economics The Palgrave Handbook of Wine Industry Economics Edited by Adeline Alonso Ugaglia · Jean-Marie Cardebat Alessandro Corsi The Palgrave Handbook of Wine Industry Economics [email protected] Adeline Alonso Ugaglia Jean-Marie Cardebat • Alessandro Corsi Editors The Palgrave Handbook of Wine Industry Economics [email protected] Editors Adeline Alonso Ugaglia Jean-Marie Cardebat Bordeaux Sciences Agro University of Bordeaux University of Bordeaux Pessac, France Gradignan, France Alessandro Corsi University of Turin Turin, Italy ISBN 978-3-319-98632-6 ISBN 978-3-319-98633-3 (eBook) https://doi.org/10.1007/978-3-319-98633-3 Library of Congress Control Number: 2018964901 © The Editor(s) (if applicable) and The Author(s) 2019 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or informa- tion storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omis- sions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Cosmo Condina Western Europe / Alamy Stock Photo This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland [email protected] Acknowledgments This book received contributions from economists from Europe, South and North America, Australia, South Africa and China. It describes and examines varying models of wine industry in different countries. Two main models are generally used to describe wine industries, Old and New wine worlds (appel- lation regimes vs. brands and varietals), which are generally discussed and compared with respect to their efficiency. What makes the difference between these models? The industrial organization does. This book therefore proposes a discussion of these models and highlights the key variables of the efficiency of industrial organization in the wine industry worldwide for the first time. This comprehensive volume is essential reading for students, researchers and professionals in the wine industry. Publishing a book is a long way off and this book would have not been written without the help and encouragement of a lot of people and institu- tions. This work received a grant from the Excellence Initiative of Bordeaux University (2014–2015) (Initial Support for Exploratory Projects-PEPS Emrgc 2014–2015_Adeline Alonso Ugaglia/MOMAVI/Modeling the wine market in the Traditional Producing Countries (TPC)). Thanks to this grant we have been able to have all the global experts contributing together to this challenging project. It has also received the support of the Bordeaux Wine Economics (BWE) group (bordeaux-wine-economics. com). We would like to thank particularly our Editorial Advisory Board who actively participated in this project since the early beginning and have welcomed our meetings over the years to prepare the book. Of course, this book would not exist without the contributions of all the authors who have kindly accepted to take part to this original work. We thank them for providing high-quality chapters specifically written for the book and to v [email protected] vi Acknowledgments comply with all the requirements we had. During the last months, the first proposal has benefited from the suggestions made by the peer reviewers. We have also been greatly helped by Laura Pacey and Clara Heathcock from Palgrave Macmillan in the editorial preparation, and by Sarulatha Krishnamurthy during the publishing process. [email protected] Contents 1 Introduction 1 Adeline Alonso Ugaglia, Jean-Marie Cardebat, and Alessandro Corsi Part I Structure of the Wine Sectors Worldwide 15 2 The French Wine Industry 17 Adeline Alonso Ugaglia, Jean-Marie Cardebat, and Linda Jiao 3 The Italian Wine Industry 47 Alessandro Corsi, Simonetta Mazzarino, and Eugenio Pomarici 4 The Spanish Wine Industry 77 Luis Miguel Albisu, Cristina Escobar, Rafael del Rey, and José María Gil Roig 5 The US Wine Industry 105 James T. Lapsley, Julian M. Alston, and Olena Sambucci 6 The Australian Wine Industry 131 Kym Anderson 7 The Argentinean Wine Industry 155 Javier Merino vii [email protected] viii Contents 8 The Chilean Wine Industry 177 G. Marcos Mora 9 The South African Wine Industry 201 Nick Vink 10 The Chinese Wine Industry 225 Linda Jiao and Shan Ouyang Part II Regulations in the Wine Sector 247 11 Introduction: Regulations in the Wine Sector 249 Paola Corsinovi and Davide Gaeta 12 International Wine Organizations and Plurilateral Agreements: Harmonization Versus Mutual Recognition of Standards 253 Raúl Compés López 13 The European Wine Policies: egulationsR and Strategies 265 Paola Corsinovi and Davide Gaeta 14 Barriers to Wine Trade 291 Angela Mariani and Eugenio Pomarici Part III Diversity of Organization in the Wine Industry 317 15 Introduction: The Diversity of Organizational atternsP in the Wine Industry 319 Adeline Alonso Ugaglia 16 The Organization of Vineyards and ineriesW 325 Douglas W. Allen and Dean Lueck [email protected] Contents ix 17 Wine Co-operatives and Territorial Anchoring 339 Marie-Claude Bélis-Bergouignan and Nathalie Corade 18 Diversity and a Shifting Power Balance: Negociants and Winegrowers in Bordeaux 363 Sofya Brand Part IV Backward Vertical Integration 381 19 Introduction: Outsourcing Versus Integration, a Key Trade-­ Off for Wine Companies? 383 Georges Giraud 20 To Make or to Buy? A Managerial Trade-­Off of Winemaking Process in the Burgundy Vineyards 389 Georges Giraud and Abdoul Diallo 21 Vertical Integration and Financial Performance of French Wine Farms and Co-operatives 403 Adeline Alonso Ugaglia and Julien Cadot 22 The Prosecco Superiore DOCG ndustryI Structure: Current Status and Evolution over Time 421 Eugenio Pomarici, Luigino Barisan, Vasco Boatto, and Luigi Galletto 23 International Perspectives on Backwards Vertical Integration 437 Alfredo Coelho and Etienne Montaigne Part V Efficiency of the Business Models in the Differentine W Industries 453 24 Introduction: Does a National Model Exist Which Favors Trade Performance? 455 Jean-Marie Cardebat [email protected] x Contents 25 Individual and Collective Reputations in the Wine Industry 463 Florine Livat 26 The Chilean Wine Cluster 487 Alfredo Coelho and Etienne Montaigne 27 Producing and Consuming Locally: Switzerland as a Local Market 507 Philippe Masset and Jean-Philippe Weisskopf 28 Conclusion: What’s Next? 523 Adeline Alonso Ugaglia, Jean-Marie Cardebat, and Alessandro Corsi Index 531 [email protected] Editorial Advisory Board Luis Miguel Albisu is Chairman Scientific Committee, Centro de Investigación y Tecnología Agroalimentaria de Aragón (CITA), Zaragoza, Spain. José María Gil Roig is Professor of Agricultural Economics at the School of Agriculture, Polytechnic University of Catalonia, Spain, and Director of the Center for Research in Agro-Food Economics and Development CREDA-UPC-IRTA (Centre de Recerca en Economia i Desenvolupament Agroalimentari - Universitat Politècnica de Catalunya - Institut de Recerca i Tecnologia Agroalimentàries), Spain. Simonetta Mazzarino is Assistant Professor and Confirmed Researcher of Agricultural Economics in the Department of Economics and Statistics “Cognetti de Martiis”, University of Turin, Italy. xi [email protected] Notes on Contributors Luis Miguel Albisu is Chairman Scientific Committee, Centrode Investigación y Tecnología Agroalimentaria de Aragón (CITA), Zaragoza, Spain. Douglas W. Allen is a Burnaby Mountain Professor in the Department of Economics, Simon Fraser University, USA. Adeline Alonso Ugaglia is Associate Professor of Economics at Bordeaux Sciences Agro, France. She is a board member of the American Association of Wine Economists and takes part to the Editorial Advisory Board of the Journal of Wine Economics. She is one of the International Organisation of Vine and Wine (OIV) experts represent- ing France in the group ENVIRO “Sustainable development and climate change”. Julian M. Alston is a distinguished professor in the Department of Agricultural and Resource Economics; Director of the Robert Mondavi Institute Center for Wine Economics at the University of California, Davis; and a member of the Giannini Foundation of Agricultural Economics, USA. Kym Anderson is the George Gollin Professor of Economics, foundation Executive Director of the Wine Economics Research Centre and formerly foundation Executive Director of the Centre for International Economic Studies at the University of Adelaide, and Professor of Economics in the Crawford School of Public Policy, Australian National University, Australia. Luigino
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