Analysis of Italian Market of Syrah Wine

In order to fully understand Syrah wine market in Italy both supply and demand need to be studied. While supply is analyzed with the simple (benchmarking) comparison of the descriptive statistics between Syrah Italian wines and other high quality red Italian wines, the demand is studied econometrically. A double logarithmic approach has been chosen for its simplicity as well as its mathematical tractability, allowing for direct applicability and replicability at industry level. The information retrieved in these analysis results fundamental for the application of appropriate marketing strategies, in order to set the market efficiency at the margin. Findings show exact relationships allowing for price and marketing targets adjustments. Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, describing the competitive context and the Syrah wine sub-sector, would have been also important for the focus of this study for completeness purposes. Nonetheless, the aim of this analysis is to furnish valuable information about supply and demand in order to improve marketing efficiency for the Syrah wine. The contribution of this study to the existing knowledge about Syrah wine market is twofold: methodological because it identifies ad hoc methodologies that are easily applicable by the industry to understand such a “thin” market, and informational because results are directly applicable for marketing strategies.Syrah, Demand, Supply, Benchmark

Consumers' attitude towards the new element of evolution of the agro-food system: the introduction of Genetically Modified food

L’atteggiamento dei consumatori nei confronti di alimenti che contengono OGM o sono ottenuti da OGM e gli alimenti che contengono ingredienti ottenuti da OGM (di seguito designati complessivamente con l’espressione "alimenti geneticamente modificati" o “alimenti GM”) rappresenta un tema di grande attualità per il sistema agro-alimentare europeo. Le esigenze dei consumatori, caratterizzate da una crescente importanza assegnata alle caratteristiche sia dei processi produttivi sia degli alimenti finali, impongono un’ampia ed attenta analisi dei possibili effetti sui comportamenti di acquisto che l’introduzione di alimenti GM nel sistema agro-alimentare potrebbe generare. La diffusione della coltivazione di varietà di piante GM, principalmente in Paesi extraeuropei (USA, Canada ed Argentina), e l’immissione sul mercato mondiale di prodotti OGM destinati anche all’alimentazione umana, ha generato accesi dibattiti in Europa pro e contro l’adozione di questa nuova tecnologia, per i possibili effetti negativi per i consumatori e sull’ambiente. L’UE sin dai primi anni 90 ha cercato di definire una normativa sugli OGM capace di garantire la protezione della salute dei cittadini e dell'ambiente e al tempo stesso creare un mercato unificato della biotecnologia. L’obiettivo di questo lavoro è di valutare, alla luce del quadro normativo vigente in materia di alimenti GM, l’atteggiamento dei consumatori nei confronti di alcune caratteristiche del sistema agro-alimentare (di seguito designati come “attributi”) e in particolare dell’introduzione nei mercati finali di alimenti geneticamente modificati. Per valutare l’atteggiamento dei consumatori, in termini quantitativi oltre che qualitativi, si intende misurare la loro disponibilità a pagare (DAP) pro o contro delle variazioni (presenza/assenza o aumento/diminuzione) degli attributi considerati rispetto allo status quo, utilizzando la metodologia del choice modelling. Si tratta, in altri termini, del tentativo di fornire delle risposte alle seguenti domande: l’avversione dei consumatori nei confronti degli alimenti OGM è indipendente dal livello di sconto di cui i consumatori potrebbero beneficiare per i prodotti alimentari contenenti OGM? Ovvero, le problematiche ambientali ed etiche che muovono i cittadini ad essere contro le biotecnologie applicate alla produzione di alimenti sono negoziabili? Qual è l’importanza relativa, per i consumatori, della tecnologia GM rispetto ad alcune altre variabili del sistema agro-alimentare? La normativa vigente che disciplina l'immissione in commercio di prodotti GM e stabilisce norme per l’etichettatura dei prodotti destinati al consumatore finale è sufficiente a garantire i consumatori oppure esistono spazi per prodotti, quali gli OGM-free, che si ispirano al principio della tolleranza zero? La possibilità di immettere sul mercato prodotti GM-free dipende dalla DAP dei consumatori per questo tipo di prodotti. Pertanto, valutare la DAP per gli alimenti OGM-free fornirebbe indicazioni utili circa l’esistenza di opportunità di mercato per le imprese che intendono perseguire questa strategia di differenziazione di prodotto. L’analisi potrebbe fornire, inoltre, indicazioni utili anche per quanto concerne nuove azioni di politica per il comparto agroalimentare orientate al soddisfacimento delle attese dei consumatori.OGM, choice modeling, agro-food system

Effects of political-economic integration and trade liberalization on exports of Italian Quality Wines Produced in Determined Regions (QWPDR)

The aim of this work is to explain the magnitude of the trade flows for high quality wine from Italy to its main importing countries. This objective has been reached by establishing an appropriate econometric model derived from an extended form of the “Gravity Model”. This model has been broadly applied to the analysis of international trade because it provides robust estimates. The results obtained and the model itself are useful in forecasting potential trends in the exportation of high quality Italian wines. In particular, these estimates give a quantitative evaluation of the export gains that could result from the enlargement of the EU and from an increasing liberalization in international trade. Moreover, it is possible to identify the growing markets where Italian ventures could exploit certain promotional and communication strategies.Italy, Exports, QWPDR, Integration, Gravity Model

Agritourism flows to Italy: an analysis of determinants using the gravity model approach

Tourism represents one of the most important income sources for Italy. In recent years, apart from “traditional” destinations, tourism supply is widely changing in order to satisfy the customers “love for variety” and valorise marginal resources, then new formulas are emerging (e.g. agritourism). This work aims to elaborate and estimate an econometric model able to adequately explain the size of agritourists flows to Italy from main partner countries using the gravity model approach that has been broadly applied to the analysis of international flows. In this work, the “basic” model has been enlarged and improved with the introduction of other explicative variables. The results has allowed to confirm empirical validity of the gravity model in studying international flows of any nature. Furthermore, the estimated econometric model represents a useful analytical instrument to describe, and, eventually, predict demand of foreign visitors for agritourist vacations in Italy.Gravity Model, Agritourism, Rural tourism, Tourism flows, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

New challenges and opportunities for Italian exports of table wines and high quality wines

Competition in international wine market has recently become more intense because of several factors and, in particular, the progressive reduction in world-wide consumption, the addition of new producing countries such as Australia, Chile, the USA and South Africa (the so called New World wine producers) and the increasing trade liberalization. In order to achieve a competitive advantage in the international marketplace, it is very important to identify which markets are characterized by bigger attractiveness. In particular, the ability of a producer, a region or a country to provide effective communication and promotion actions towards more profitable local markets is strategic in international trade. Italy, one of the first wine producing country in the world, exports its wines to almost all countries of the five continents. However, the five greater importing countries account for 70 percent of Italy’s total wine exports (the USA, Germany, the United Kingdom, Switzerland, and Canada) and so Italy shows only a moderate market diversification. In this paper, an econometric model able to explain the size of wine export flows from Italy to its main importing countries was elaborated and estimated. This model provides useful information that can help to identify the main growing markets where all participants in the wine supply-chain, such as private wineries, joint-ventures, regional and national agencies, and producers’ associations, can unite to concentrate product communication and promotional efforts. The model is an extended version of the “gravity model” that many economists believe a very powerful tool for international trade analysis. In fact, at the empirical level, the gravity model gives very robust estimates and provides a good fit to the observed data. The basic concept of the gravity model for trade analysis borrows the gravity equation from physics: the volume of trade between two countries is proportional to their economic “mass” and inversely proportional to their respective distance. In this work, the investigation about the features of Italian wine export flows is conducted through the estimation of two different econometric models; the first one is related to QWPDR and second one is related to table wine category. Both models derive from an extended version of the basic gravity model where dummies for groups of countries have been added. An important result is that Italy should increase the production of high quality wine because there are favorable conditions in place which would increase exportation. At the same time, Italy should decrease the production of table wine because its international demand is declining. Moreover, estimation results show that both QWPDR and table wine exportations are income elastic. Hence, if Italian wine producers intend to expand their exportations, it is natural to look at those countries where income growth is high but also constant and solid. It is interesting to highlight that, among countries with the highest income growth rates, there are three very big countries, China, Russia and India, where expansion possibilities for Italian wine exports are very attractive. Currently, these countries import less than 1% of total exports of Italian wine. At the same time, it is important to highlight that the main countries importing Italian wine (the United States, Germany, the United Kingdom, Switzerland, Canada, Japan and almost all western European countries) show a moderate but stable income growth and therefore it would be strategic to defend and consolidate Italian market shares against any possible aggressions by the new wine producing countries. The recent enlargement of the EU could represent a great opportunity for the exporters of Italian wine. In particular, it is interesting to note that all new EU members and, in particular, the Baltic Republics (Latvia, Estonia, Lithuania) show high income growth rates. In addition, as widely known, there are no customs barriers within the European Union but instead there is a common external tariff applied to imports from non-EU countries. Therefore, these countries represent very interesting, and as yet untapped, markets even if, in the next years, there are real possibilities to expand mainly table wine exports because the income, although rapidly increasing, remains still moderate.Italian Wine; Trade; Gravity model; Exports

Italian wine demand and differentiation effect of geographical indications

Purpose – Geographical indications (GIs) provide a strong differentiation tool for firms. Whether this statement is confirmed at aggregate level in terms of market independence of different GIs is not tested yet. The purpose of this paper is to provide demand estimates and elasticities (own‐price and substitution) in order to test this hypothesis and verify the differentiation effect of GIs at aggregate level.Design/methodology/approach – The analysis consists of the application of a quadratic almost ideal demand on a four equation system. Estimates are obtained through an iterated version of a generalized method of moments, which corrects for endogeneity determined by expenditure and prices in case of promotional activities.Findings – Estimates prove the existence of a differentiation effect of GIs in terms of magnitude of elasticities and substitution effects. GIs corresponding to higher quality generate lower price sensitiveness and product substitution, contrarily to wine without GI. Controlled origin denomination (DOC) wine demand results are price sensitive and they substitute for wines of different GI. Controlled and guaranteed origin denomination (DOCG) is the most profitable GI. In fact, because of its inelastic demand, DOCG price could be potentially increased, to a certain extent, without having significant effects on volumes consumed.Research limitations/implications – Foreign wine should also be included in the demand system in order to understand the whole Italian wine market. Data concern retail level demand. The whole market, including hotels, restaurants and catering, should be included to offer a wider set of implications.Practical implications – Marketers and producers could use the information provided by the estimates in order to forecast Italian wine demand. Elasticities and substitution effect provide them with a precise measure of consumers' price sensitiveness, which would be beneficial for their pricing strategies.Originality/value – The paper provides, for the first time, estimates of a demand system relative to GI differentiated Italian wine

New Technologies and Sustainability in The Italian Wine Industry

Abstract The new shape of competition is pushing wine firms to invest into new technologies. Given the growing interests in this area, we provide evidence on the determinants of the adoption of the new technologies industry. On the basis of a survey on Italian companies, the main investments in innovations and their key drivers are investigated. We tested whether firm characteristics impact the adoption as well as absorptive capacity, networking and shared knowledge among firms and research institutions and demand factors. Drivers are explored throughout an econometric model. Results lead to policy implications that could be useful to develop supportive actions to innovation

Italian consumers' preferences regarding dealcoholized wine, information and price

Italian consumers'preferencesregardingdealcoholizedwinesaremeasuredintermsofalcoholiccontentandthedealcoholizationintensity information onthelabel.Theanalysisassumesdealcoholizedwineisanimperfectsubstitutefortraditionalwines.Dealcoholizationlevel,price, and otherwineattributesaresimultaneouslyevaluatedbydrawingonchoice-modelingtechniques.Theresultssuggestthatalcoholcontentof wine positivelyinfluences consumers'preferencesandthatdealcoholizationgeneratesaversion.Consumerstendtobuydealcoholizedwineonly for adiscountproportionaltothereductioninalcoholcontent.Thetargetgroupfordealcoholizedwineisyounger,infrequentconsumers,label readers, andpeoplewithalcoholdependencyproblems.Policyimplicationsconcernthefactthatdealcoholizedwineshouldnotbelabeledor marketed asawineandthatactionsaimedatincreasingconsumerconfidence towardthisnewproductshouldbeimplemented

Analisi del mercato Italiano del vino Syrah

In order to fully understand Syrah wine market in Italy both supply and demand need to be studied. While supply is analyzed with the simple (benchmarking) comparison of the descriptive statistics between Syrah Italian wines and other high quality red Italian wines, the demand is studied econometrically. A double logarithmic approach has been chosen for its simplicity as well as its mathematical tractability, allowing for direct applicability and replicability at industry level. The information retrieved in these analysis results fundamental for the application of appropriate marketing strategies, in order to set the market efficiency at the margin. Findings show exact relationships allowing for price and marketing targets adjustments. Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, describing the competitive context and the Syrah wine sub-sector, would have been also important for the focus of this study for completeness purposes. Nonetheless, the aim of this analysis is to furnish valuable information about supply and demand in order to improve marketing efficiency for the Syrah wine. The contribution of this study to the existing knowledge about Syrah wine market is twofold: methodological because it identifies ad hoc methodologies that are easily applicable by the industry to understand such a “thin” market, and informational because results are directly applicable for marketing strategies

Analisi del mercato Italiano del vino Syrah

In order to fully understand Syrah wine market in Italy both supply and demand need to be studied. While supply is analyzed with the simple (benchmarking) comparison of the descriptive statistics between Syrah Italian wines and other high quality red Italian wines, the demand is studied econometrically. A double logarithmic approach has been chosen for its simplicity as well as its mathematical tractability, allowing for direct applicability and replicability at industry level. The information retrieved in these analysis results fundamental for the application of appropriate marketing strategies, in order to set the market efficiency at the margin. Findings show exact relationships allowing for price and marketing targets adjustments. Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, describing the competitive context and the Syrah wine sub-sector, would have been also important for the focus of this study for completeness purposes. Nonetheless, the aim of this analysis is to furnish valuable information about supply and demand in order to improve marketing efficiency for the Syrah wine. The contribution of this study to the existing knowledge about Syrah wine market is twofold: methodological because it identifies ad hoc methodologies that are easily applicable by the industry to understand such a “thin” market, and informational because results are directly applicable for marketing strategies