Original Research Article
Published 2020-11-23
Keywords
- wine competitiveness,
- market structure,
- sparkling wine,
- HHI,
- revealed comparative advantage
How to Cite
Thome, K. M., & Paiva, V. A. L. (2020). Sparkling Wine International Market Structure and Competitiveness. Wine Economics and Policy, 9(2), 37–47. https://doi.org/10.36253/web-8433
Abstract
This paper aims to analyse the Sparkling Wine international market structure and competitiveness, focusing on the 2004–2018 period. It used the data regarding exports and imports of sparkling wine available in the International Trade Centre’s Trade Map database. The method used to examine sparkling wine’s international market structure and competitiveness consisted of calculation of: (i) Revealed Comparative Advantage (RCA); (ii) Relative Position in the Market (RPM); (iii) Hirschman-Herfindahl Index (HHI); and (iv) Net Export Index (NEI). The paper analyses the growth of the sparkling wine trade worldwide. It demonstrated that France had the greatest relative position in the market, followed by Italy and Spain. This same sequence was found in the revealed comparative advantage, highlighting the increased Italian export level. A high export market structure concentration was also shown. On the other hand, there was an unconcentrated import market structure, and, according to the NEI, it was possible to identify three groups composed of actors who were stable in terms of: i) exports based on domestic production (France, Italy and Spain); ii) trade, reflecting re-export (Singapore and the Netherlands); iii) imports, with strong domestic consumption (Germany, the United Kingdom, the United States of America, Australia, and Belgium).
References
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Lombardi, P., Dal Bianco, A., Freda, R., Caracciolo, F., Cembalo, L., 2016. Development and trade competitiveness of the European wine sector: A gravity analysis of intra-EU flows. Wine Economics and Policy 5(1), 50-59.
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Pomarici, E., 2016. Recent trends in the international wine market and arising research questions. Wine Economics and Policy 5 (1), 1-3.
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Rossetto, L., Gastaldello, G., 2018. The Loyalty Structure of Sparkling Wine Brands in Italy. Journal of Wine Economics 13(4), 409-418.
Scherer, F. M., Ross, D., 1990. Industrial market structure and economic performance. (2 ed.). Boston: Houghton-Mifflin..
Stevenson, T., 2003. World Encyclopedia of Champagne and Sparkling Wine. Wine Appreciation Guild.
Szolnoki, G., Hoffmann, D., 2014. Consumer segmentation based on usage of sales channels in the German wine market. International Journal of Wine Business Research 26(1), 27-44.
Thome, K. M., Soares, A. D. B. P., 2015. International market structure and competitiveness at the malted beer: from 2003 to 2012. Agricultural Economics 61(4), 166-178.
U. S. Department of Justice and Federal Trade Commission, Horizontal Merger Guidelines; 2010. Accessed 20 december 2019. Available: https://www.ftc.gov/sites/default/files/attachments/merger-review/100819hmg.pdf
Velikova, N., Charters, S., Fountain, J., Ritchie, C., Fish, N. and Dodd, T., 2016. Status or fun? A crosscultural examination of young consumers’ responses to images of champagne and sparkling wine. British Food Journal 118(8), 1960-1975.
Verdonk, N., Wilkinson, J., Culbert, J., Ristic, R., Pearce, K., Wilkinson, K., 2017. Toward a model of sparkling wine purchasing preferences. International Journal of Wine Business Research 29(1), 58-73.
Vollrath T. L., 1991. A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage. WeltwirtschaftlichesArchiv 130, 265–279.
Zhao, W., 2005. Understanding classifications: Empirical evidence from the American and French wine industries. Poetics 33(3-4), 179-200.
Balassa, B., 1965 Trade liberalization and ‘revealed’ comparative advantage. The Manchester School of Economic and Social Studies 33 (2), 99–123.
Banterle, A., Carraresi, L., 2007 Competitive performance analysis and European Union trade: The case of the prepared swine meat sector. Acta Agriculturae Scand Section C 4(3), 159-172.
Basso, M., 2019. Land-use changes triggered by the expansion of wine-growing areas: A study on the Municipalities in the Prosecco’s production zone (Italy). Land Use Policy 83, 390-402.
Benoît, L., William, A., Lindsey, H., Adrienne, L. F., Marianne, M. W., 2019. Wine sector: Definitions and nuances from global to country analysis - A comparison between Old World, New World, and emerging wine countries from 2005 to current. In Santini, C. Cavicchi, A. (eds.) Case Studies in the Wine Industry (pp. 7-32). Woodhead Publishing.
Bojnec S., Fertö I., 2009. Agro-food trade competitiveness of Central European and Balkan countries. Food Policy 34, 417–425.
Bresnahan, T. F., 1989. Empirical studies of industries with market power. Handbook of Industrial Organization 2, 1011-1057.
Correia, L., Gouveia, S., Martins, P., 2019. The European wine export cycle. Wine Economics and Policy 8(1), 91-101.
Corsi, A. M., Marinelli, N., Sottini, V. A., 2013. Italian wines and Asia: policy scenarios and competitive dynamics. British Food Journal 115(3), 342-364.
Crescimanno, M., Galati, A., 2014. Competitiveness of Italian wines in the international market. Bulgarian Journal of Agricultural Science 20(1), 12-22.
Culbert, J., Verdonk, N., Ristic, R., Olarte Mantilla, S., Lane, M., Pearce, K., Cozzolino, D., Wilkinson, K., 2016. Understanding consumer preferences for Australian sparkling wine vs. French Champagne. Beverages 2(3), 1-19.
Demossier, M., 2011. Beyond terroir: territorial construction, hegemonic discourses, and French wine culture. Journal of the Royal Anthropological Institute 17(4), 685-705.
Drescher, K., Maurer, O., 1999. Competitiveness in the European dairy industries. Agribusiness: An International Journal 15(2), 163-177.
Dressler, M., 2018. The German wine market: a comprehensive strategic and economic analysis. Beverages 4(4), 92.
Epstein, B. S., 2011. Champagne: a global history. Reaktion Books.
Galati, A., Tinervia, S., Crescimanno, M., Spezia, F., 2017. Changes in the international wine market competitiveness. International Journal of Globalisation and Small Business 9(4), 277-293.
Hannin, H., Couderc, J. P., Hauteville, F., Montaigne, E., 2010. La vigne et le vin: mutations économiques en France et dans le monde. La documentation Francaise, Paris.
Horn, E. J., 1985. Internationale Wettbewerbsfähigkeit von Ländern. WiST-Wirtschaftswissenschaftliche Studien 7, 323-329.
INTERNATIONAL TRADE CENTER – ITC. Market analysis and research. Available in: http://legacy.intracen.org/marketanalysis/Default.aspx. January 27, 2020.
Iwasaki, N., Seldon, B. J., Tremblay, V. J., 2008. Brewing wars of attrition for profit (and concentration). Review of Industrial Organization 33(4), 263-279.
Lafay, G., 1999. Nations et mondialisation. Paris: Economica.
Latruffe, L., 2010. Competitiveness, productivity and efficiency in the agricultural and agri-food sectors. OECD Food, Agri culture and Fisheries Papers 30, 417–449.
Lerro, M., Vecchio, R., Nazzaro, C., Pomarici, E., 2020. The growing (good) bubbles: insights into US consumers of sparkling wine. British Food Journal Ahead of print.
Lombardi, P., Dal Bianco, A., Freda, R., Caracciolo, F., Cembalo, L., 2016. Development and trade competitiveness of the European wine sector: A gravity analysis of intra-EU flows. Wine Economics and Policy 5(1), 50-59.
Mariani, A., Pomarici, E., Boatto, V., 2012. The international wine trade: Recent trends and critical issues. Wine Economics and Policy 1(1), 24-40.
Pascucci, F., 2018. The export competitiveness of Italian coffee roasting industry. British Food Journal 120(7), 1529-1546.
Phillips, R., 2016. French wine: A history. Univ of California Press.
Pomarici, E., 2016. Recent trends in the international wine market and arising research questions. Wine Economics and Policy 5 (1), 1-3.
Porter, M. E., 1979. The structure within industries and companies' performance. The Review of Economics and Statistics 61, 214-227.
Rod, M., Beal, T., 2014. The experience of New Zealand in the evolving wine markets of Japan and Singapore. Asia-Pacific Journal of Business Administration 6(1), 49-63.
Rokka, J., 2017. Champagne: marketplace icon. Consumption Markets and Culture 20(3), 275-283.
Rossetto, L., Gastaldello, G., 2018. The Loyalty Structure of Sparkling Wine Brands in Italy. Journal of Wine Economics 13(4), 409-418.
Scherer, F. M., Ross, D., 1990. Industrial market structure and economic performance. (2 ed.). Boston: Houghton-Mifflin..
Stevenson, T., 2003. World Encyclopedia of Champagne and Sparkling Wine. Wine Appreciation Guild.
Szolnoki, G., Hoffmann, D., 2014. Consumer segmentation based on usage of sales channels in the German wine market. International Journal of Wine Business Research 26(1), 27-44.
Thome, K. M., Soares, A. D. B. P., 2015. International market structure and competitiveness at the malted beer: from 2003 to 2012. Agricultural Economics 61(4), 166-178.
U. S. Department of Justice and Federal Trade Commission, Horizontal Merger Guidelines; 2010. Accessed 20 december 2019. Available: https://www.ftc.gov/sites/default/files/attachments/merger-review/100819hmg.pdf
Velikova, N., Charters, S., Fountain, J., Ritchie, C., Fish, N. and Dodd, T., 2016. Status or fun? A crosscultural examination of young consumers’ responses to images of champagne and sparkling wine. British Food Journal 118(8), 1960-1975.
Verdonk, N., Wilkinson, J., Culbert, J., Ristic, R., Pearce, K., Wilkinson, K., 2017. Toward a model of sparkling wine purchasing preferences. International Journal of Wine Business Research 29(1), 58-73.
Vollrath T. L., 1991. A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage. WeltwirtschaftlichesArchiv 130, 265–279.
Zhao, W., 2005. Understanding classifications: Empirical evidence from the American and French wine industries. Poetics 33(3-4), 179-200.