Vol. 12 No. 2 (2023)
Original Research Article

Distribution velocity in wine retailing

Martin Hirche
University of Cologne, Faculty of Management, Economics and Social Sciences, Albertus-Magnus-Platz, 50923 Cologne
Simone Loose
Geisenheim University, Von-Lade-Straße 1, 65366 Geisenheim, Germany and Ehrenberg Bass Institute, University of South Australia, North Terrace, Adelaide
Larry Lockshin
Ehrenberg Bass Institute, University of South Australia, North Terrace, Adelaide
Magda Nenycz-Thiel
Ehrenberg Bass Institute, University of South Australia, North Terrace, Adelaide

Published 2023-12-31


  • distribution,
  • velocity,
  • wine,
  • retail,
  • channel,
  • strategy
  • ...More

How to Cite

Hirche, M., Loose, S., Lockshin, L., & Nenycz-Thiel, M. (2023). Distribution velocity in wine retailing. Wine Economics and Policy, 12(2), 31–41. https://doi.org/10.36253/wep-14190


Little is known about the relationship between distribution and market share in the wine category. Understanding the influences of product and distribution characteristics at the SKU-level and incorporating them into marketing strategy and planning has important managerial and academic implications. Sales of 3,524 wine SKUs across 4,218 stores in 4 states in the US over one year of observation are analyzed. We use an established distribution velocity model (Reibstein & Farris 1995) to estimate the relationship between distribution and market share. We then use the market share deviations from the expected values and apply a secondary robust regression to investigate possible relationships between various product- and distribution characteristics and those market share deviations. The results show that the distribution velocity in wine retailing is convex and increasing, in line with previous findings for other consumer-packaged goods in the marketing literature. Beyond distribution breadth, we find that overall parent brand performance (above), unit price (above), packaging type (above), country-of-origin, grape variety, sales consistency (above) and store specialization (below) are associated with above or below expected market share of wine SKUs.


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