Vasco Ladislao Boatto

The price premium for wine quality signals: does retailers' information provision matter?

Purpose – This research aims to explore whether quality signals, such as grape variety names explicitly used by “quality wines produced in specified regions”, affect wine retail prices in different ways in large‐scale retail and specialised shops.Design/methodology/approach – Tocai wine, which is produced in Northeastern Italian regions and is involved in a dispute with the Hungarian geographical indication Tokaj, is taken as a case study. A hedonic price model has been estimated based on retail prices observed in local markets.Findings – The research shows that consumers buying at large‐scale retailers are willing to pay a higher price premium for quality signals than those buying in specialised shops, ceteris paribus. For the latter, willingness to pay for quality signals is reduced by the information provided by the specialised shop retailer, which decreases the customers uncertainty about wine quality; quality signals appearing on wine labels generally have a more relevant positive effect on wine pri...

Determinants of WTP for Prosecco wine: A latent class regression with attitudinal responses

Purpose – Under investigation is Prosecco wine, a sparkling white wine from North‐East Italy. Information collection on consumer perceptions is particularly relevant when developing market strategies for wine, especially so when local production and certification of origin play an important role in the wine market of a given district, as in the case at hand. Investigating and characterizing the structure of preference heterogeneity become crucial steps in every successful marketing strategy. The purpose of this paper is to investigate the sources of systematic differences in consumer preferences.Design/methodology/approach – The paper explores the effect of inclusion of answers to attitudinal questions in a latent class regression model of stated willingness to pay (WTP) for this specialty wine. These additional variables were included in the membership equations to investigate whether they could be of help in the identification of latent classes. The individual specific WTPs from the sampled respondents ...

The knowledge of Italian wines on export markets

Purpose – The European Union (EU) has strongly rearranged the management of EU wine policy by introducing actions for promoting wine in third countries. The purpose of this paper is to evaluate factors affecting the knowledge of Italian wines in foreign consumers, i.e., to what extend wine promotion actions can improve the consumer’s awareness or the reputation of Italian wines. As a consequence, these activities may increase the wine consumption as well as wine exports in emerging markets. Design/methodology/approach – Data have been collected through survey questionnaires where information about wine tasting, sensory satisfaction and preferences about Italian wines have been collected. The sample survey collects preferences of wine market operators in both EU and third countries. The survey, carried out from 2009 to 2011, includes 3,579 interviews classified according to four promotion actions: press conference, wine tasting, tasting course, knowledge of Italian wines. Data have been analyzed through a ...

Fishing Across the Centuries: What Prospects for the Venice Lagoon?

Fishing has always been an important activity for those Venetians who live near the Lagoon, and it still enjoys an important economic and social role in the region. Over the last few years, however, the fishing industry has been subject to a profound transformation both in the reduction of the variety and the abundance of the species found in the lagoon, and in the change from a complex and well-structured type of activity to one which has become monospecialist, that is based principally on the fishing of the bivalve Tapes philippinarum (Adam & Reeve). The widespread diffusion of this bivalve and its considerable commercial value have resulted in an increased harvest, initially carried out by hand but now by more sophisticated methods which are capable of obtaining much higher yields. The social, economic and environmental problems resulting from this automated fishing have stimulated research into alternative strategies to manage the alieutic resources of the lagoon which will allow fishing to become a sustainable activity without inflicting long-term environmental damage. This present work will try and prepare the foundations for a system of eco-compatible management, based on an analysis of the functioning of the lagoon’s eco-system, defined as a paralic model, the observation of the traditional forms of fishing practiced over the centuries, a technical analysis of the present typology of lagoon fishing (fishing with fyke nets, “vallicoltura” and fishing of fish fry for rearing, clam fishing (Tapes philippinarum), mussel culture) with particular reference to the species fished, the distribution of the activity throughout the year and the technology employed, to the productivity of the various fishing methods.

Assessing the risk profile of dairy farms: application of the Income Stabilisation Tool in Italy

Purpose This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this paper is to propose methodology for the quantification of reference income when farm structural change occurs and estimate the role of farm attributes on the probability of income loss, offering an ex ante evaluation of farm resilience to risk. Design/methodology/approach Based on a balanced Farm Accountancy Network farm-level panel ranging from 2008 to 2014, three hypotheses of reference income calculation are tested to assess whether farms structural changes over the years significantly affect the level of IST indemnification. The role of farm characteristics on the probability of an income reduction is then evaluated by estimating a multinomial logit model. Findings Results show that farms’ structural changes significantly affect IST indemnities and need to be considered in calculating the reference income. The estimated model suggests that farm characteristics significantly affect the probability of a severe income drop and hence risk resilience. Extensive livestock systems seem to reduce the probability of an income drop, while farms in upland areas managed by young farmers seem to experience increased risk exposure. Originality/value The research provides one of the first attempts to define risk profile of dairy farms by modelling the probability of an income reduction on observable attributes. Indeed, among different sectors, dairy farms emerge as the main candidates for the application of the IST.

Cheese perception in the North American market: Empirical evidence for domestic vs. imported Parmesan

Purpose – The purpose of this paper is to detect market segments where consumers have a different knowledge of domestic and imported Parmesan cheese in USA and Canada. The results may be helpful in understanding to what extend North America consumers appreciate Parmesan cheese and brands, Parmesan consumption and price while recognizing market segments according to consumer awareness, involvement and covariate effects. Design/methodology/approach – A class of mixture models, known as combination uniform binomial (CUB), is applied to survey data collected in USA and Canada. A questionnaire, filled out by 540 restaurant customers, collects opinions about consumption, purchase features and price. The CUB model estimates the two latent variables, known as feeling and uncertainty, explaining the respondent’s behavior as awareness and involvement variability while the CUB clustering procedure detects market segments. Findings – CUB results show that the Parmesan is a well-known cheese but also that a small shar...

More crop for drop - climate change and wine: an economic evaluation of a new drought-resistant rootstock.

The current paper presents the results of an economic evaluation of a new drought-resistant rootstock (M4), capable to maintain in adverse environmental conditions high photosynthetic activity, to accumulate osmotic compounds and to compensate for the accumulation of sodium and chlorine in the grapevines, in two core Italian grapevine growing areas: the North-East and Sicily. After collecting data on quantitative (yield per plant in kg) and qualitative parameters (°Brix, anthocyanins, pH) of experimental vineyards (Cabernet Sauvignon variety) planted using the traditional rootstock 1103P and the innovative M4 rootstock, over a seven-year period, a cost-benefit analysis calculated the effects of replacing the traditional rootstock. The results show that M4 rootstock yields higher net revenues compared to the best situation of 1103P rootstock, roughly in 40% of North-East vineyards and in more than 80% of their Sicilian counterparts. In addition, 14% of North-East vineyards and more than 94% of Sicilian vineyards are currently exposed to drought risk, and these areas are expected to increase in the coming years. Thus the M4 rootstock, as other related innovations [51-53], could significantly improve watersaving strategies, which are gaining increasing attention from both public bodies and wine companies.

The Liberalisation of Planting Rights in the Eu Wine Sector

The study analyses the theme of production potential regulation and of the planned abolishment of the planting rights regime considering the constraints defined by the CAP evolution, the current situation of the market, the role in the market of different regions and the structural complexity of the European wine industry. The study, starting from the analysis of the implementation of the planting rights regime across the EU and through an investigation of what could be the effects of the abolishment of the planting rights regime, defines which should be the policies to: a) counterbalance the effects of the liberalization of plantation; b) improve the functioning of the planting rights regime by implementing a new mechanism of functioning.

Politiche di valorizzazione nella filiera vitivinicola

The wine market is strongly differentiated according to consumer’s expectations as well as firm’ strategies while the competitiveness among wine companies has increased over time. However, the success on the market changes dramatically among firms, production areas, types of wine, etc. The paper presents main features of Italian wine market with special attention to strategies adopted by firms along the wine supply chain, the enforcement of Vqprd wine system, the impact of promotion strategies on international wine market. The methodology for wine market analysis has been firstly figured out. The market theory about monopolistic competition or oligopoly power cannot fully explain the dynamic of wine sector over time as well as the features and behavior of wine firms. Thus, approaches based on strategic groups or Porter’s cluster competitiveness seem to fit better what has happed in wine sector. The role of wine sector goes beyond the market involving a strategic role on the territory, especially in marginal areas, on the environment (e.g. landscape), on the tourism (e.g. enotourism). Peculiarities of Italian wine market have also emphasized at both supply and demand side showing factors which driving and affecting the features of wine firms. This analysis has figured out a quick response of wine companies to consumer preference changes at both national and international level. Market trends such as the increasing in Vqprd wines, the shift from draft to bottled wines or the strong increase in price differentiation and quality have been boosted by the innovation processes in grape production, wine making, supply chain arrangements and marketing activities about product (e.g. packaging), communication and distribution channels. Further the strategic analysis has been focused on two key aspects: the role played by Consortia in reinforcing the reputation of collective brands such as docg/doc wines and the effect of wine promotion in extra ue countries. Recently, the role of Consortia has been reviewed. The institutional task about controls over grape and wine production has been shifted to private and independent agencies while new arrangements have been set up. Among them the control over supply and policy actions at consumer level. Other traditional activities such as the protection of collective brands on international markets and the promotion have been reinforced, especially on Consortia involving a high share of producers, since financial support is now afforded by all producers regardless their membership to the Consortium. However, only a few Consortia are able to carry out these activities since many of them have a low representativeness. The case of Prosecco Consortium is then presented showing the effect of the reform of denomination of origin which has restricted the use of Prosecco to docg/doc areas only. Finally, the Italian promotion activities on third countries, financed by the wine cmo, have been outlined. Results suggest an high attention towards north American countries while promotion in Eastern countries has increased in the last year.

Understanding consumption choice of prosecco wine: an empirical analysis using Italian and German Homescan data

ABSTRACT This study analyses the degree to which wine consumers are truly able to intrinsically evaluate the meaning of a designation of origin certification or whether they generally consider such a certification to be a vague credence attribute. This issue was addressed through an empirical analysis of Homescan Panel data in the Italian and German markets, using a Heckman probit model to assess the role of consumers’ characteristics and habits in the choice of ‘Prosecco’ wines characterized by two different levels of the denomination of origin certification. Our results suggest that Prosecco sparkling wine is perceived as a product of medium-high positioning and is preferably purchased by households that buy wines with a higher unit price. In contrast, consumers who appreciate sparkling wine did not show any preference towards a specific type of Prosecco, especially outside the area of production, such as in the German market, which suggests that they still do not completely understand the difference between the certification levels.