Hostname: page-component-586b7cd67f-g8jcs Total loading time: 0 Render date: 2024-11-25T16:51:24.208Z Has data issue: false hasContentIssue false
  • English
  • Français

Distribution Channel Choices of Wineries in Emerging Cool Climate Regions

Published online by Cambridge University Press:  15 September 2016

Lin Sun ,
Miguel I. Gómez ,
Fabio R. Chaddad  and
R. Brent Ross
Lin Sun
Affiliation:
Dyson School of Applied Economics and Management at Cornell University
Miguel I. Gómez*
Affiliation:
Dyson School of Applied Economics and Management at Cornell University
Fabio R. Chaddad
Affiliation:
Department of Agricultural and Applied Economics at the University of Missouri
R. Brent Ross
Affiliation:
Department of Agricultural, Food, and Resource Economics at Michigan State University
*
Correspondence: Miguel Gómez ▪ 321 Warren Hall ▪ Ithaca, NY 14853 ▪ Phone 607.255.8159 ▪ Email [email protected].
Get access

Abstract

The number of wineries in nontraditional cool climate regions of the United States has increased dramatically in the last decade. We examine factors influencing distribution channel choices by these wineries, including winery characteristics, marketing strategies, and the extent of vertical and horizontal integration. Using a survey of winery operators in Michigan, Missouri, and New York, we developed fractional logit models to test hypotheses regarding their distribution channel choices. We find that the share of wine sold through intermediated channels increases with winery size, years of operation, increased vertical and horizontal integration, and greater promotional intensity and levels of self-reported marketing challenges.

Keywords

cool climate regionsdistribution channelsmarketingwine
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 1 , April 2014 , pp. 87 - 103
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, E., and Weitz, B.A. 1986. “Make-or-Buy Decisions: Vertical Integration and Marketing Productivity.” Sloan Management Review 27(3): 3–17.Google Scholar
Carlsen, J. 2004. “A Review of Global Wine Tourism Research.” Journal of Wine Research 15(1): 5–13.Google Scholar
Coughlan, A., Anderson, E., Stern, L.W., and El-Ansary, A. 2006. Marketing Channels (7th edition). Upper Saddle River, NJ: Prentice Hall. Google Scholar
Dodd, T.H. 1995. “Opportunities and Pitfalls of Tourism in a Developing Wine Industry.” International Journal of Wine Marketing 7(1): 5.CrossRefGoogle Scholar
Dodd, T.H. 1999. “Attracting Repeat Customers to Wineries.” International Journal of Wine Marketing 11(2): 18–28.CrossRefGoogle Scholar
Economides, N. 1999. “Quality Choice and Vertical Integration.” International Journal of Industrial Organization 17(6): 903–914.CrossRefGoogle Scholar
Folwell, R.J., and Grassel, M.A. 1995. “How Tasting Rooms Can Help Sell Wine.” Direct Farm Marketing and Tourism Handbook. Tuscon, AZ: University of Arizona College of Agriculture. Available at www.ag.arizona.edu/arec/pubs/dmkt/HowTastingRooms.pdf.Google Scholar
Gattorna, J. 1978. “Channels of Distribution Conceptualization: A State-of-the-Art Review.” European Journal of Marketing 12(7): 469–512.Google Scholar
Gómez, M.I., and Sun, L. 2011. Entrepreneurship in Growing Wine Regions. Presentation at Extension Meeting with Emerging Region Winery Owners, Plattsburgh, New York, November 3.Google Scholar
Gurau, C., and Duquesnois, F. 2008. “Direct Marketing Channels in the French Wine Industry.” International Journal of Wine Business Research 20(1): 38–52.CrossRefGoogle Scholar
Hall, C.M., Sharples, L., Cambourne, B., and Macionis, N. 2000. Wine Tourism around the World: Development, Management, and Markets. Oxford, UK: Butterworth-Heinemann.Google Scholar
Hollebeek, L.D., and Brodie, R.J. 2009. “Wine Service Marketing, Value Co-creation, and Involvement: Research Issues.” International Journal of Wine Business Research 21(4): 339–353.Google Scholar
King, R.P., Gómez, M. I., and DiGiacomo, G. 2010. “Can Local Food Go Mainstream?” Choices 25(1): 4.Google Scholar
Kolyesnikova, N. 2007. “Marketing Strategies for Small Wineries.” Presentation to the annual conference of the Texas Wine and Grape Growers Association, Houston, TX.Google Scholar
Lesser, W.H., and Roller, V. 1982. “Identifying Factors Affecting Productivity in Grocery Distribution Centers.” Journal of Food Distribution Research 13(2): 35–46.Google Scholar
Marsh, L, and Shaw, B. 2000. Australia's Wine Industry: Collaboration and Learning as Causes of Competitive Success. Sydney, NSW: Australian Business Foundation.Google Scholar
Martinez, S.W., Hand, M.S., Da Pra, M., Pollack, S.L., Ralston, K.L., Smith, T.A., Vogel, S.J., Clark, S., Lohr, L., Low, S.A., and Newman, C. 2010. “Local Food Systems: Concepts, Impacts, and Issues.” Economic Research Report 96635, Economic Research Service, U.S. Department of Agriculture.Google Scholar
Michigan Grape and Wine Industry Council. 2011. Economic Impacts of Michigan Grapes and Wine 2005. Available at www.michiganwines.com/docs/Industry/micheconimpact.pdf (accessed December 2012).Google Scholar
National Agricultural Statistics Service, U.S. Department of Agriculture. 2011. 2011 Grape and Wine Industry Survey. Available at www.nass.usda.gov/Statistics_by_State/Wisconsin/Publications/Crops/WIGrapeWine.pdf (accessed January-April 2013).Google Scholar
New York Wine and Grape Foundation. 2011. “Facts and Figures” website. www.newyorkwines.org/Pages/FactsAndFigures (accessed November 2012).Google Scholar
Papke, L.E., and Wooldridge, J.M. 1996. “Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates.” Journal of Applied Econometrics 11(6): 619–632.3.0.CO;2-1>CrossRefGoogle Scholar
Pennerstorfer, D., and Weiss, C. 2012. “Product Quality in the Agri-Food Chain: Do Cooperatives Offer High-quality Wine?” European Review of Agricultural Economics 40(1): 143–162.Google Scholar
Ropel, S.C., Smith, B.L., and Reuber, M.N. 2009. “New York Winery Survey 2008.” National Agricultural Statistics Service, USDA, Washington, DC. Available at www.newyorkwines.org/PDFs/NASSWinerySurveyPub2008.pdf (accessed October 2012).Google Scholar
Schamel, G. 2009. “Dynamic Analysis of Brand and Regional Reputation: The Case of Wine.” Journal of Wine Economics 4(1): 62–80.Google Scholar
Schamel, G., and Santos-Arteaga, F.J. 2013. “Strategic Choice of Organizational Form: A Theoretical Model and Empirical Evidence.” Paper presented at the 2013 American Agricultural Economics Association annual meeting in Washington D.C. Available at http://purl.umn.edu/150311 (accessed February 2013).Google Scholar
Stonebridge Research. 2010. “The Economic Impact of Wine and Grapes in Missouri 2010.” Stonebridge Research Group, St. Helena, CA. Available at www.iccve.missouri.edu/publications/mo-winery-impact.pdf (accessed January 2013).Google Scholar
U.S. Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau. 2013. 2009 Wine Statistical Information. U.S. Treasury Department, Washington, DC. Available at www.ttb.gov/wine/wine-stats.shtml (accessed multiple times in 2013).Google Scholar
Wargenau, A., and Che, D. 2006. “Wine Tourism Development and Marketing Strategies in Southwest Michigan.” International Journal of Wine Marketing 18(1): 45–60.Google Scholar
Wine Institute. 2013. “Number of California Wineries” web page. Wine Institute, San Francisco, CA. Available at www.wineinstitute.org/resources/statistics/article124 (accessed February 2013).Google Scholar
Wyatt, R. 2011. “Undiscovered Wine Regions.” Wine Enthusiast. Available at www.winemag.com/Wine-Enthusiast-Magazine/February-2011/Undiscovered-expansion (accessed February 2013).Google Scholar
Zuurbier, P.J.P. 1999. “Supply Chain Management in the Fresh Produce Industry: A Mile to Go?” Journal of Food Distribution Research 30(1): 20–30.Google Scholar