Case studies in the traditional food sector: a volume in the consumer science and strategic marketing series 9780081010075, 9780081020371, 9780081009444, 9780081010464, 0081010079, 008101046X

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Case Studies in the Wine Industry

Related titles Case Studies in the Traditional Food Sector (ISBN: 9780081010075) Case Studies in Food Retailing and Distribution (ISBN: 9780081020371) Case Studies in the Wine Industry (ISBN: 9780081009444)

Woodhead Publishing Series in Consumer Science and Strategic Marketing

Case Studies in the Wine Industry Edited by

Cristina Santini Alessio Cavicchi

An imprint of Elsevier

Woodhead Publishing is an imprint of Elsevier The Officers’ Mess Business Centre, Royston Road, Duxford, CB22 4QH, United Kingdom 50 Hampshire Street, 5th Floor, Cambridge, MA 02139, United States The Boulevard, Langford Lane, Kidlington, OX5 1GB, United Kingdom Copyright © 2019 Elsevier Ltd. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the publisher. Details on how to seek permission, further information about the Publisher’s permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions. This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein). Notices Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary. Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility. To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein. Library of Congress Cataloging-in-Publication Data A catalog record for this book is available from the Library of Congress British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library ISBN: 978-0-08-100944-4 (print) ISBN: 978-0-08-101046-4 (online) For information on all Woodhead publications visit our website at https://www.elsevier.com/books-and-journals

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Contents

Contributors xi Foreword xiii Series Preface xv Alessio Cavicchi and Cristina Santini 1 Introduction Cristina Santini, Alessio Cavicchi

Part One  Market Outlook, Consumer Behavior and the Relevance of Consumer Science 2 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 Lecat Benoît, Amspacher William, Higgins Lindsey, Lindsay Ferrara Adrienne, McGarry Wolf Marianne 2.1 Introduction 2.2 Overview of the world market: Analysis of the OIV annual report 2.3 Regional analysis 2.4 Definition of wine categories 2.5 Grape varietals diversity 2.6 Conclusions 2.7 Further research To make in-depth analysis per country References 3 Consumer behavior toward wine products Maria Bonaria Lai 3.1 Introduction 3.2 Culture, age and gender as drivers in purchasing wine 3.3 Retails or alternative stores what wine consumers prefer 3.4 How packaging, wine characteristics and region of origin influence the consumer choice 3.5 Wine consumers behavior on holiday 3.6 Conclusions and discussion References Further reading

1

5

7 7 7 22 25 26 27 29 29 32 33 33 33 36 38 40 41 42 46

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4 Sensory and consumer sciences: What is their role as a business tool in the wine sector? Giovanni Sogari, Elena Casprini, Matteo Devigili, Tommaso Pucci 4.1 Introduction 4.2 Methodology 4.3 Results 4.4 Conclusions and implications References Further reading

Part Two  New and Innovative Products: The Role of Consumer Science 5 Ignoring consumer science? Three cases from Austria about innovation, philosophies, gut feeling, and intuitive decision-making Albert Franz Stöckl, Michael Lee, Stephanie Tischler 5.1 Introduction 5.2 Innovation management 5.3 Intuitive decision making 5.4 Three cases from Austria 5.5 Conclusion References Further reading

47 47 48 48 54 55 59

61 63 63 63 65 66 73 74 74

6 Sensory sciences and competitiveness in the wine business 75 Lucia Irene Bailetti, Cristina Santini, Stefania Supino 6.1 Sensory science as a tool for improving competitiveness: An introduction 75 6.2 Product and process development 76 6.3 Understanding the consumer 79 6.4 A case study 80 6.5 Conclusions 81 References 83 Websites 84 Further reading 85

Part Three  Sustaining the Growth: Consumer Science and Market Growth

87

7 How consumer science can be employed in a terroir-based market strategy? 89 Chiara Mignani, Lucia Irene Bailetti, Alessio Cavicchi 7.1 Introduction 89 7.2 Aims 92

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7.3 Material and methods 7.4 Sensory information, communication strategy and the main activities carried out by the consortia 7.5 The need for a new communication strategy 7.6 Future challenges 7.7 Conclusion References Further reading 8 Emotion in the glass: An innovative study to understand unconscious reactions in wine tasting Chiara Mignani, Venerucci Matteo, Lucia Irene Bailetti, Matteo Bonfini, Alessio Cavicchi 8.1 Introduction 8.2 Aims 8.3 Materials and methods 8.4 Results and discussion 8.5 Conclusion Acknowledgments References 9 Rebranding wine using sensory profiling data: A case study Camilo Peña, Annamma Joy, Karine Lawrence 9.1 Methodology 9.2 Experimental results 9.3 Expert insights and its implications Appendix 1 Appendix 2 References 10 The case of resveratrol-enriched wines: Is it possible to create a new niche or to revitalize mature products? Paolo Storchi, Sergio Puccioni, Cristina Santini 10.1 Introduction 10.2 An outlook for the industry: The healthy trend 10.3 The resveratrol debate 10.4 Consumer orientation 10.5 The response of the market 10.6 Examples of REWs 10.7 Conclusions References Further Reading

93 96 97 97 98 98 100 101 101 105 107 109 111 112 112 115 117 119 124 126 127 128 129 129 129 131 132 133 134 136 137 138

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Part Four  Interpreting Market Dynamics and Demand: Consumer Science as a Means to Achieve Strategic Information 139 11 Current trends and consumer motivation in the Ukrainian wine market Natalia Kochkina, Ernesto Tavoletti 11.1 Introduction 11.2 Method 11.3 Current trends in the Ukrainian wine market based on secondary data 11.4 Primary research of consumer motivation: Survey-based quantitative research 11.5 Primary research of consumer motivation: Key-informant-based qualitative research 11.6 Conclusions Acknowledgment References 12 How CS can be used for gaining info about consumers and the market? Maria De Salvo, Roberta Capitello, Diego Begalli 12.1 Introduction 12.2 Sustainable wine, consumers’ perceptions and market segmentation 12.3 Sustainable wine from the winemaker’s perspective 12.4 Conclusion Appendix References 13 Preliminary thoughts on the importance of sensory profiling for strategic decision-making in Canadian wineries Annamma Joy, Bianca Grohmann, Camilo Peña 13.1 Introduction 13.2 Expertise acquisition and the wine world 13.3 Philosophical considerations of sensory assessments 13.4 Findings and discussion 13.5 Conclusions Acknowledgments References Further Reading

141 141 142 144 147 150 153 154 154 157 157 157 161 164 165 166 167 167 167 169 173 176 177 177 179

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14 Evaluating the validity of consumer insights into the wine business Matteo Bonfini, Giuseppe Potentini, Cristina Santini, Alessio Cavicchi 14.1 Introduction 14.2 Objectives, materials and methods 14.3 Results 14.4 Final remarks References Further reading

181

15 Conclusions

191

181 182 183 188 189 190

Index 193

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Contributors

Lindsay Ferrara Adrienne Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States Lucia Irene Bailetti  Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata; Santa Chiara Lab, Università degli Studi di Siena, Siena; CIAS Innovation, Centro Italiano di Analisi Sensoriale, Matelica (MC), Italy Diego Begalli University of Verona, Verona, Italy Lecat Benoît  Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States Matteo Bonfini  CIAS Innovation, Centro Italiano di Analisi Sensoriale, Matelica (MC), Italy Roberta Capitello University of Verona, Verona, Italy Elena Casprini Department of Business and Law, University of Siena, Siena, Italy Alessio Cavicchi Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata, Italy Maria de Salvo University of Verona, Verona, Italy Matteo Devigili  Department of Business and Law, University of Siena, Siena; Doctoral School of Social Sciences, University of Trento, Trento, Italy Bianca Grohmann Concordia University, Montreal, QC, Canada Annamma Joy The University of British Columbia—Okanagan, Kelowna, BC, Canada Natalia Kochkina  Department of International Economic and Marketing, Taras Shevchenko National University of Kyiv, Kyiv, Ukraine Maria Bonaria Lai Associazione Scientifica Centro di Portici, Napoli, Italy Karine Lawrence Sirocco Consulting, Kelowna, BC, Canada

xiiContributors

Michael Lee IMC Krems University of Applied Sciences, Krems, Austria Higgins Lindsey  Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States Larry Lockshin Ehrenberg Bass Institute for Marketing Science, University of South Australia, Adelaide, SA, Australia McGarry Wolf Marianne Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States Venerucci Matteo Brain Propaganda, Beograd, Serbia Chiara Mignani Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata; Santa Chiara Lab, Università degli Studi di Siena, Siena, Italy Camilo Peña The University of British Columbia—Okanagan, Kelowna, BC, Canada Giuseppe Potentini Istituto Istruzione Superiore Giuseppe Garibaldi, Macerata, Italy Tommaso Pucci Department of Business and Law, University of Siena, Siena, Italy Sergio Puccioni CREA—Research Centre for Viticulture and Enology, Arezzo, Italy Cristina Santini Dipartimento di Scienze Umane e Promozione della Qualità della Vita, Università San Raffaele, Rome, Italy Giovanni Sogari Department of Food and Drug, University of Parma, Parma, Italy; Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY, United States Albert Franz Stöckl IMC Krems University of Applied Sciences, Krems, Austria Paolo Storchi CREA—Research Centre for Viticulture and Enology, Arezzo, Italy Stefania Supino Dipartimento di Scienze Umane e Promozione della Qualità della Vita, Università San Raffaele, Rome, Italy Ernesto Tavoletti Department of Political Science, Communications and International Relations, University of Macerata, Macerata, Italy Stephanie Tischler IMC Krems University of Applied Sciences, Krems, Austria Amspacher William Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States

Foreword

Case Studies in the Wine Industry takes a slightly different viewpoint to most books about wine business and wine marketing. The viewpoint is one of understanding consumer behavior and related sciences around wine, but it combines both research and case studies. Most wine marketing research books focus on research studies and interpret them for both academics and practitioners often with a focus on practitioners. This new book adds case studies in each chapter to help clarify the research and highlight how it has been adopted in the real world. This is a more useful approach for practitioners. Another benefit of this book is the scope of the material. The book starts with an overview of the world wine market and a focus on consumer behavior and consumer science. A unique part is to discuss sensory science as a part of wine marketing rather than as a science related to production. There are a number of chapters linking different aspects of sensory science to areas usually not considered together, such as sensory science and strategy and profiling consumers using sensory techniques including neuroscience measurements. Consumer science is also used in new ways in developing strategy and market analysis and even in how firms process information. This book adds to our understanding of how to improve wine marketing in a practical sense by focusing on some new viewpoints and emphasizing their practicality with case studies. Larry Lockshin Ehrenberg Bass Institute for Marketing Science, University of South Australia, Adelaide, SA, Australia

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Series Preface

The recent “background document,” published by the European Commission for the High-level event on “FOOD 2030: Research & Innovation for Tomorrow’s Nutrition & Food Systems” held in 2016, underlines how “the European food sector unites centuries of know-how with innovation in areas such as packaging, storage, transportation and marketing. Thanks to its size and importance, the EU food sector acts as a global benchmark. It is diversified yet standardized, traditional yet highly innovative, local but integrated and consumer-driven.” This description well explains the complexity of a sector in which many challenges for all the stakeholders stand on a tradition-innovation continuum. According to several market research companies, consumers’ trends in the next years will be affected by changes driven by different motivations, such as health awareness and preference for niche products, and by a growing influence of new technologies for both food processing and communication. Thus, today’s food and beverage companies have to face multifaceted consumers’ demand. Recently Forbes, in its “State of the Wine Industry 2018,” stated that companies should be vigilant, market savvy, and adaptable. In fact, a renewed attention to consumers’ emerging needs and trends is motivating the profound industry transformations at various levels. Innovation can be a leverage for meeting customer’s demand; the market can also create the chance for a rejuvenation of mature products. Companies should understand how to optimize the flow of information and the inputs they gain from the market. Thus, a synchronized combination of different disciplines like economics, psychology, sociology, marketing, management, anthropology, neuroscience, and statistics (just to cite the most relevant) as well as their relations to sensory analysis is necessary to increase the accuracy of forecasting and detecting the probability of consumers’ food choice by adopting a huge variety of qualitative and quantitative research methods. According to the DG-RTD of the European Commission, this combination of different fields, addressed to understand how people think, perceive, and behave about food and its production, is part of a multidisciplinary area of research of increasing importance that crosses both social and natural sciences: consumer science. This series, focused on consumer science and strategic marketing, provides practical information, through real cases and field-based research, to support practitioners in understanding how research in the field of consumer science is relevant for marketing strategies. The Woodhead Publishing Series in Consumer Science and Strategic Marketing presents the tangible economic and financial outcomes obtained by the joint work of sensory scientists, marketing researchers, and agribusiness managers and outlines

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Series Preface

communication methods and practices that support research and development in the food and beverage sectors. And, volumes in this series present successful examples and provide the foundation for further theoretical investigation. Volumes in this series address the several research questions, including: ●

●

●

●

Which market trends and challenges can be observed at international level? How did research in the field of consumer science become relevant for marketing strategies of SMEs? Which tangible economic outcomes have been obtained by the joint work of consumer scientists, researchers, and consultants in marketing field, agribusiness managers, and SMEs owners? Which challenges do these places face in order to make the most of R&D?

Practitioners in the food and beverage sectors of the food industry, including marketing, communication, and R&D managers, entrepreneurs, and managers of subject matter experts in food and beverage sectors, undergraduate and postgraduate students studying business, agriculture, food engineering and technology, and academics teaching courses in the fields of agribusiness, applied marketing, or business strategy are sure to find the Woodhead Publishing Series in Consumer Science and Strategic Marketing a useful reference. Alessio Cavicchi1 and Cristina Santini2 Series editors 1 University of Macerata, Italy 2 University San Raffaele Roma, Rome, Italy

Introduction

1

Cristina Santini⁎, Alessio Cavicchi† ⁎ Dipartimento di Scienze Umane e Promozione della Qualità della Vita, Università San Raffaele, Rome, Italy, † Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata, Italy

Wine is a multifaceted and complex product, yet the wine business itself is complex too. Some years ago, Orth et al. (2007) had admirably depicted the characteristics of the wine business: the emerging of new competitive scenario, the growing importance of retailing, and the availability of huge volumes of quality wines have made the marketing and management of a wine business extremely challenging. Running a wine business means dealing with the following issues, among others: How to differentiate a product? How to succeed in a foreign market? How to turn terroir into a strategic leverage? How to deal with consumers more and more conscious of intrinsic and extrinsic attributes? And many other questions and problems emerge. The role of consumers’ preferences has progressively gained importance. This scenario has created a breeding ground for international research: researchers have investigated the relevance of consumers from multiple perspectives. Terms such as consumer behavior, preferences, expectation, and buying behavior became part of the vocabulary of the wine business. The advances in research and the accessibility of research insights have fostered the interest toward consumers. New tools have been designed for understanding consumers, markets, and emerging needs. The interest ­toward consumer science grew, and nowadays, it can be reasonably considered as a multidisciplinary area of research of increasing importance that crosses both social and natural sciences for supporting strategic planning. This book is divided into four different sections. The first part of the book introduces the characteristics of the business, and it provides a framework for understanding the state of the art in consumer science. As previously outlined, the ongoing competitive challenges are reshaping the wine business. In Chapter  2, Lecat et  al. illustrate the ­dynamics that are affecting the system of production and consumption in the wine business; the authors underline the change of the competitive scenario according to geographic location and countries’ lack of international awareness. Lecat et al. provide a deep understanding of the world wine market, and they underline the risk that some Old World countries are running: isolationism can represent a threat due to the fall of local market capacity to absorb wine production. The relationship with the market, the predominant role of consumers, and the need for interpreting market trends and needs emerge. Chapter  3 explores the issue of consumer behavior toward wine product, and Chapter 4 introduces the reader to the importance of consumer science as a business Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00001-X Copyright © 2019 Elsevier Ltd. All rights reserved.

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tool. Lai, in Chapter 3, provides a comprehensive overview of the motivations behind the differences in wine purchasing according to emerging findings from the academic literature. The ongoing globalization of the wine business and the changes in the competitive scenario, as Lai underlines, contribute to the emerging of new characteristics in wine consumers, and consequently, new market needs occur. The interest in consumer behavior is fully motivated, as well as the awareness for the employability of consumer science tools. Chapter 4 offers an overview of academic contributions to the issue of consumer and sensory science as a strategic marketing tool. This chapter underlines the importance for producers to adopt a consumer-oriented approach, and it highlights how consumer and sensory science can be adopted to this aim. Therefore, the relevance and usefulness of a multidisciplinary perspective emerge, and Chapter 4 underlines the emerging insights from background research that provides inputs for combining different tools and research methodologies. In the second part of the book, the attention focuses on the role that consumer science has in the development of new products. Chapter  5 provides three cases from Austria and gives the reader the opportunity to reflect on the innovation process; ­although in this process intuition plays a relevant role, the employment of some ­specific analytic tools can be extremely fruitful. In this chapter, Stöckl et al. also introduce the motivations that limit the implementation of consumer science in wineries and explain the resistance that producers generally show. Chapter  6 provides another case in the Marches Region (Italy), and it describes how small and medium companies can employ consumer science and sensory analysis for improving their competitiveness. Chapter  6 illustrates, in a sense, a solution to the critical issues that are described in Chapter 5 and that can inhibit the adoption of consumer science in strategic marketing. The third section of this volume explores the relationship with the territory, and more specifically, it explores how consumer science can support strategies where a territory plays a relevant role. Chapter  7 offers an interesting case study of an Italy-based company that has successfully promoted protected designation of origin (PDO) wines through a ­sensory-science-based strategy. From Chapter  7, an innovative approach to terroir characteristics emerges. Chapter  8 focuses on the importance of managing information—and more specifically the information displayed on a label—by considering emotional values. The combination of consumer science and neuromarketing tools can provide useful ­insights for effective management of geographic indications on the label. Chapter  9 explores the rise of locally produced wine in British Columbia (in Okanagan Valley), and it investigates the elements that contribute to creating a tasting culture among local consumers. Thus, when producers are facing difficulties—due to the growing competition and a shift in demand—they should consider new ways of promoting and differentiating their products.

Introduction3

Chapter  10 focuses on this issue and proposes a reflection upon the usefulness of consumer science for the promotion and marketing of resveratrol-enriched wines or wines particularly rich of resveratrol, due to the pedoclimatic characteristics of production. The last section of the book explores how consumer science can provide useful information when planning a strategy. In particular, Chapter 11 explores the role that an in-depth knowledge of consumers can have for a successful development of a new market: the case of Ukraine surprisingly appears as one of the most dynamic and exciting wine market. Chapter 12 provides a description of how consumer science is managed for gaining information about consumers and markets. This chapter also explores the topic of sustainability and the importance given by wine consumers to environmental or sustainable issues. Chapter  13 contains a profound reflection on the management of information gained through sensory profiling for the development of a successful marketing strategy of Canadian wines. The issue is particularly interesting, given the importance that Canadian wines are gaining in the international market scenario. The last chapter, Chapter 14, explores the determinants that facilitate the usage of consumer science for strategic marketing: Bonfini et al. have studied the behavior of a group of firms based in Italy and their relationship with consumer science. This book provides an overview of the potentialities, the limits, and the relevance of consumer science to implement effective strategic marketing initiatives in the wine sector. The aim of the book is not only to provide insights for professionals and academics but also to foster a discussion on the examined topic and to stimulate further research.

Reference Orth, U.R., Lockshin, L., d’Hauteville, F., 2007. The global wine business as a research field. Int. J. Wine Bus. Res. 19 (1), 5–13.

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Part One Market outlook, consumer behavior and the relevance of consumer science

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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

2

Lecat Benoît, Amspacher William, Higgins Lindsey, Lindsay Ferrara Adrienne, McGarry Wolf Marianne Wine and Viticulture Department, California Polytechnic State University, San Luis Obispo, CA, United States

2.1 Introduction The purpose of this chapter is to develop an understanding of the world wine market. The discussion will include a look at the countries producing wine versus those that are consuming wine; provide insight on how the Old World (European countries), New World (Northern and Southern America, South Africa, Australia, and New Zealand), and Emerging World (Brazil, India, China, Hong Kong, Taiwan, South Korea, and Singapore) are performing; and examine the different categories of wine and varieties worldwide. The chapter concludes with a reflection on the significance of wine marketing and why it is particularly important for each cluster (Old World, New World, and Emerging World).

2.2 Overview of the world market: Analysis of the OIV annual report OIV publishes an annual report on the world vitiviniculture situation during its World Congress of Vine and Wine. The last report was published in July 2015 in Mainz, Germany. The next one will be released in the 39th Congress in the end of October 2016 in Brazil.

2.2.1 Global wine production According to the last OIV report (2015), world wine production has remained stable over the last few decades with around 270 million hectoliters (hL) produced each year. However, when we look at the European countries or the Old World countries (except Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00002-1 Copyright © 2019 Elsevier Ltd. All rights reserved.

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for some vintages due to better weather conditions, like 2013 in southern and central Europe), the volume of wine produced tends to be slightly decreasing (see Table 2.1). One of the reasons could be the subventions paid to the growers by the European Union to pull out their vines in order to maintain the price structure of the wines from their appellations. In 2014, the Old World was still dominating production. France represented 17% of total world production followed by Italy and Spain, at 16% and 15% of world wine production, respectively. Some countries such as Romania are also quite important, even if Romania lacks international awareness due to historic distribution channels in the previous U.S.S.R republics and also due to the lack of financial support to penetrate foreign western markets and emerging countries. The key “New World” producers are the United States with 8% of world wine production, followed by Argentina, Australia, South Africa, and Chile. The growth of Chile as a player in world wine production is mainly due to the cheap labor cost and the underlying increasing international demand because of the view of Chilean wine as a good deal for both retailers and consumers. For the emerging countries, China represents more than 4% of the world's production, and Brazil is just 1%. It is important to note that 80% of the wine by volume is produced by just 10 countries. While wine production is informative to understanding the world wine situation, it doesn't accurately depict the total acreage under vines by country (see Table 2.2). Area under vine has fallen considerably in Spain, France, and Italy (Old World). It is stabilized in the New World (the United States and southern hemisphere countries). For most readers, it might be quite surprising to observe that China boasts the second largest acreage under vine in the world. And Turkey has the fourth largest vineyard area. However, they are not producing much wine in comparison with what they could if they were planting more Vitis vinifera species. China and India represent a big risk for the wine sector if they decide to change their strategy in terms of (re) planting vineyards or simply moving toward wine production that their local markets could absorb very quickly. Regarding fresh grapes, China, Iran, Turkey, and India are the major producers, whereas the United States and Turkey are leading the market for dried grapes. In 2014, Europe continued to hold the largest vineyard acreage in the world at 54%, down from 63% in 2000. Asia is increasing, which now accounts for 25% of the world's vineyards. It is also important to notice that Iran and Turkey reduced their acreage during recent years. Spain, China, France, Italy, and Turkey represent nearly 50% of the world vineyard plantings. Finally, when we observe Table 2.3, which presents yield estimates by country (all types of grapes included), you notice that China, Italy, and the United States are the countries boasting the highest yields.

2.2.2 Wine consumption To analyze world wine consumption, we examine the global wine consumption, consumption per capita by country, and wine exports and wine imports both in volume and value, and finally, we will examine the price per bottle by country.

Country

2005

2006

2007

2008

2009

2010

2011

2012

2013

World total France Italy Spain The United States Argentina Australia South Africa China Chile Germany Portugal Romania New Zealand Greece Brazil Hungary Austria America total Oceania total Continental Europe Asia total Africa total

278,016 52,105 50,566 36,158 22,888 15,222 14,301 8406 11,800 7885 9153 7266 2602 1020 4027 3199 3103 2264 51,763 15,321 187,093 13,690 10,149

282,757 52,127 52,036 38,273 19,440 15,396 14,263 9398 11,900 8448 8916 7542 5014 1332 3938 2372 3271 2256 48,460 15,595 193,615 13,688 11,399

268,042 45,672 45,981 36,408 19,870 15,046 9620 9783 12,500 8227 10,261 6074 5289 1476 3511 3502 3222 2628 49,466 11,096 182,432 13,985 11,063

269,097 42,654 46,970 35,913 19,340 14,676 12,448 10,165 12,600 8683 9991 5689 5159 2052 3869 3683 3460 2993 49,150 14,500 179,743 14,237 11,468

272,952 46,269 47,314 36,093 21,965 12,135 11,784 9986 12,800 10,093 9228 5894 6703 2050 3366 2720 3198 2352 49,240 13,834 183,916 14,602 11,359

264,188 44,381 48,525 35,353 20,887 16,250 11,420 9327 13,000 8844 6906 7148 3287 1900 2950 2459 1762 1737 50,778 13,320 174,641 14,921 10,528

267,803 50,757 42,772 33,397 19,140 15,473 11,180 9725 13,200 10,464 9132 5622 4058 2350 2750 3460 2750 2814 51,229 13,530 176,971 15,129 10,944

258,230 41,548 45,616 31,123 21,650 11,778 12,259 10,569 13,511 12,554 9012 6327 3311 1940 3115 2967 1818 2125 51,732 14,199 164,966 15,470 11,862

291,000 42,000 54,000 45,300 23,600 15,000 12,300 11,000 11,800 12,800 8400 6300 5100 2500 3300 2700 2700 2400

2014 (forecast) 270,000 46,700 44,700 38,200 22,300 15,200 12,000 11,300 11,200 10,500 9200 6200 3700 3200 2900 2700 2600 2000

Wine sector from global to country analysis

Table 2.1  Production by major country and continent in 1000 hL

Source: OIV.

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Table 2.2  Total area under vine (in thousand hectares) including fresh grapes and dried grapes kha

2010

2011

2012

2013

2014 (forecast)

World total Spain China France Italy Turkey The United States Argentina Portugal Chile Romania Australia South Africa Greece Germany Brazil

7526 1082 588 804 739 514 404 218 236 204 191 171 132 112 102 92

7497 1032 633 796 720 508 413 219 236 206 191 170 133 110 102 90

7513 1033 709 792 713 497 412 222 233 206 192 162 135 102 102 91

7564 1037 760 793 705 504 424 224 229 208 192 157 133 102 102 90

7573 1038 799 792 690 502 425 228 224 211 192 154 132 102 102 89

Source: OIV.

2.2.2.1 Global wine consumption In 2014, worldwide wine consumption was approximately 240 million hectoliters. Continental Europe is still the dominant consumer with more than 150 million hectoliters in annual consumption. However, Table 2.4 shows that the largest consuming country is the United States followed by France, Italy, and Germany. The influence of Asia is growing. We can also observe over time the declining consumption of the Old World (with the exception of Germany that tends to be stable) especially France, Spain, and Italy. Consumption in the United States, Canada, Chile, Australia, and China is growing. What is important to observe is that Africa, America, Oceania, and especially Asia have shown promising growth in consumption whereas continental Europe has had a decreasing consumption trend over the last 10 years.

2.2.2.2 Wine consumption per capita What Table 2.4 doesn't show is the potential of consumption in some countries and the saturation of others (see Table  2.5). Although there have been declines in total consumption and consumption per capita, 9 of the top 10 consuming countries are in Europe based on consumption per capita. The consumption remains stable in the Netherlands, Germany, Austria, and to a certain extent Portugal. Luxembourg has a strange situation due to its location and regulations: the taxes are much lower than the neighboring countries—Belgium, France, Germany, and to a certain extent the Netherlands—thus driving consumption data from neighboring nationals coming to buy alcohol, cigarettes, and fuel in this small state.

Country

2005

2006

2007

2008

2009

2010

2011

2012

World total China Italy The United States France Spain Turkey Chile Argentina Iran South Africa Australia Brazil Germany Greece Portugal Romania Algeria

670,683 58,655 85,536 70,885 67,902 60,721 38,500 23,192 28,297 29,638 16,828 20,265 12,461 12,303 12,117 10,465 4821 3340

669,705 63,733 83,287 57,573 67,769 64,055 38,500 24,223 28,809 25,000 17,574 19,812 12,284 12,247 10,300 10,582 9512 3980

655,196 67,869 73,924 64,023 60,191 58,654 36,128 24,643 30,925 20,000 18,124 13,707 13,550 14,006 9000 8530 11,230 2450

673,704 72,362 78,130 66,400 56,735 59,025 39,184 25,618 29,212 22,557 18,653 18,370 13,993 13,515 9700 7908 9844 4020

680,527 80,387 76,026 66,431 61,136 57,601 42,647 27,422 22,574 23,050 17,486 16,836 13,457 12,351 9550 7585 10,355 4925

670,032 86,517 77,878 67,918 58,555 61,193 42,550 25,445 27,167 22,557 17,435 15,332 12,954 9534 10,029 7877 7296 5605

691,374 91,748 71,155 64,558 65,889 56,952 42,964 29,537 30,075 21,127 16,839 15,486 14,635 12,510 8566 9547 8539 4026

700,641 106,425 69,180 68,305 53,797 53,299 41,851 32,000 23,660 21,500 18,390 16,392 14,558 12,272 9782 7514 7189 5432

Wine sector from global to country analysis

Table 2.3  Yield production (total grapes produced in thousand hectoliters divided by the surface area of the vineyard in thousand hectares)

Source: OIV.

11

12

Table 2.4  Consumption by major country and continent in 1000 hL 2014 (forecast)

2005

2006

2007

2008

2009

2010

2011

2012

2013

World total Continental Europe America total The United States France Asia total Italy Germany The United Kingdom Russian Federation Argentina Spain China Africa total Oceania total Australia Portugal Canada The Netherlands South Africa Brazil Chile Japan Greece

237,114 158,977 50,003 25,850 33,530 16,347 27,016 19,848

244,943 164,069 50,945 26,700 33,003 17,347 27,332 20,210

250,073 166,283 52,850 27,850 32,169 18,167 26,700 20,782

250,242 166,126 51,953 27,700 30,800 18,708 26,166 20,747

242,246 157,897 51,991 27,250 30,215 19,416 24,100 20,224

240,598 154,790 52,118 27,600 29,272 20,333 24,624 20,200 13,000

242,282 153,479 53,365 28,254 28,307 21,798 23,052 19,707 13,000

241,895 151,011 54,176 29,163 28,022 22,939 22,633 20,300 13,000

243,000

240,000

30,000 29,000

31,000 28,000

22,000 20,000 13,000

20,000 20,000 13,000

10,193 10,972 13,686 6327 6327 5459 4523 4900 3754 3474 3401 3710 2644 2532 3586

11,210 11,103 13,514 6841 6841 5742 4769 4793 4025 3511 3407 3466 2380 2557 3200

12,610 11,166 13,100 6875 6875 5898 4869 4523 4054 3490 3557 3254 2980 2293 3300

12,892 10,677 12,168 7299 7299 6156 5146 4539 4253 3622 3558 3265 2339 2374 3200

11,895 10,342 11,271 6702 6702 6241 5204 4515 4414 3569 3384 3508 3118 2533 3029

12,025 9753 10,896 6979 6979 6378 5327 4695 4564 3615 3463 3686 3100 2610 3248

12,243 9809 9950 7299 7299 6341 5273 4686 4700 3556 3527 3805 3007 2778 2852

11,279 10,051 9850 7321 7321 6447 5402 4994 4803 3636 3217 3198 3157 3120 3068

10,000 10,000 10,000

10,000 10,000 10,000

5000 4000 5000

5000 4000 5000

3000

4000

Source: OIV.

Case Studies in the Wine Industry

Country

Country

2005

2006

2007

2008

2009

2010

2011

2012

Luxembourg Portugal France Italy Croatia Switzerland Austria Greece Argentina Belgium Australia Serbia Germany New Zealand The Netherlands Spain Uruguay Hungary Chile Georgia Cyprus Canada Romania

68 55 67 54 35 46 35 38 39 32 28 0 28 25 26 37 34 31 22 14 20 14 13

68 54 65 54 36 45 35 34 39 33 28 18 28 26 26 36 32 34 19 24 18 15 30

62 51 63 52 4 46 35 35 38 33 28 23 29 28 26 34 31 33 23 31 22 15 30

67 51 60 51 39 45 34 34 36 33 29 26 29 26 27 32 31 35 18 33 23 15 29

63 50 59 47 39 44 34 32 35 32 29 31 28 27 26 29 29 31 24 27 18 16 22

65 52 57 47 42 42 34 34 32 30 29 31 28 27 26 28 27 21 23 26 21 16 9

60 52 55 44 42 41 36 30 32 32 29 30 27 27 26 25 26 25 22 26 19 16 19

61 55 54 43 40 39 35 32 32 31 29 29 28 26 26 25 24 23 23 22 20 16 14

Wine sector from global to country analysis

Table 2.5  Wine consumption per capita (in liters, 1 L = 1000 mL)

Continued

13

14

Table 2.5  Wine consumption per capita (in liters, 1 L = 1000 mL)—cont'd 2005

2006

2007

2008

2009

2010

2011

2012

Bulgaria The United States South Africa Russian Federation

14 11 10 8

11 11 10 9

12 12 10 10

12 11 10 11

14 11 10 10

14 11 10 10

12 11 10 10

14 11 9 9

8 5 2 2 1 3 5 1 1 1 1 1 1 1

8 6 2 3 1 3 4 2 1 1 1 1 1 1

8 7 2 3 1 2 3 2 1 1 1 1 1 0

7 7 2 3 1 2 3 1 1 1 1 1 1 1

7 6 2 2 1 2 2 2 2 1 1 1 1 1

7 6 2 3 1 3 2 2 1 1 1 1 1 1

8 7 3 3 2 3 2 2 1 1 1 1 1 1

7 7 3 3 2 2 2 2 1 1 1 1 1 1

Czech Republic Ukraine Japan Singapore China Brazil Lebanon Morocco Algeria Bolivia Israel Korea Mexico Turkey Source: OIV.

Case Studies in the Wine Industry

Country

Wine sector from global to country analysis

15

In the New World, consumption per capita is lower than Europe, and this represents a potential for growth. The potential is also coming from the nonalcohol consumers (abstinent) who are switching to the alcohol category. In emerging countries, especially in Asia (see Table 2.5), consumption seems to be low, but in fact, alcohol consumption is focused on the substitutes, primarily spirits.

2.2.2.3 Wine exports In 2012, the quantity of wine exported was 104 million hectoliters in volume with a value of € 26 billion. In terms of exported volume, Spain, Italy, and France are among the top three exporters, followed by Chile, Australia, South Africa, the United States, Germany, Argentina, Portugal, New Zealand, and Moldova (Table 2.6). In terms of value, France and Italy are performing well in comparison with other countries, but the ratio of volume/value (see further) tells us more about their premiumization strategy (Table 2.7). The five top wine exporters account for 70% of both volume and value. The rank of the five largest exporters, although the same five, is different if we compare the value or volume. In volume, the five largest exporting countries in order of importance are Spain, Italy, France, Chile, and Australia, whereas measured in value, France, Italy, Spain, Chile, and Australia are the top five exporting countries. In Table 2.8, we can clearly see that the best countries in terms of price per bottle are France, New Zealand, and the United States. The prices per 750 mL bottle equivalent include bulk wines, which is the reason the wine price per bottle seems to be low.

2.2.2.4 Wine imports When you examine the wine imports in volume from 2012 (Table  2.9), the top six countries are (in order of importance) Germany, the United Kingdom (13 million hectoliters, not depicted in the table due to unavailable data in value), the United States, France, Russia, and China. Those six countries account for more than 50% of total imported wine. In terms of value in 2014, the United States was the leading wine importer, with imports valued around € 4 billion, followed by the United Kingdom, Germany, Canada, Japan, China, and Russia (see Table 2.10). Germany is the largest market in terms of volume, whereas the United States is the largest in value. Both volume and value of total imports have been increasing over time. When you compare value and volume, you notice that only Germany and the United States are both importing and exporting a significant amount. The United States is importing € 4 billion and exporting € 1.1 billion, which corresponds to 12 million hectoliters in volume for imports and 4 million hectoliters for exports. Germany is importing € 2.5 billion and exporting € 1 billion in wine, which corresponds to 15 million hectoliters in volume for imports and around 4 million hectoliters for exports. In Table 2.11, we can observe that Japan, Canada, the United States, and the United Kingdom are paying from € 2.5 to € 3.5 for the 750 mL bottle equivalent. The prices per bottle equivalent include bulk wines, which is the reason the wine price per bottle appears low for the wine imports.

16

Table 2.6  Wine exports by major country and continent in 1000 hL (volume) 2005

2006

2007

2008

2009

2010

2011

2012

World total Continental Europe Spain Italy America total France Oceania total Chile Australia Africa total South Africa The United States Germany Argentina Portugal New Zealand Moldova

78,864 57,937 14,439 15,721 9917 13,834 7533 4209 7019 3109 2811 3459 2970 2148 2627 514 2425

84,190 61,172 14,340 18,390 11,544 14,861 8176 4740 7598 2927 2717 3761 3197 2934 2930 578 1460

88,703 62,107 15,079 18,507 14,106 14,506 8622 6100 7862 3315 3126 4231 3543 3598 3442 760 660

89,560 61,818 16,914 18,067 15,014 12,798 7871 5885 6985 4346 4117 4638 3580 4141 2911 886 899

88,226 60,475 14,607 19,519 14,283 12,969 8845 6931 7719 4125 3956 3974 3557 2830 2344 1126 957

95,922 67,791 17,156 21,482 14,386 13,888 9231 7321 7811 3934 3786 4009 3929 2744 2666 1420 1260

102,909 76,064 22,031 23,500 13,880 14,722 8558 6250 7011 3721 3574 4210 4145 3115 3079 1547 1198

103,806 74,077 21,411 21,227 15,691 15,006 9003 7474 7214 4358 4172 4007 3973 3656 3386 1789 1220

Source: OIV.

Case Studies in the Wine Industry

Country

Wine sector from global to country analysis

17

Table 2.7  Wine exports in € billions (value, 2014) Country

Billions of euros

France Italy Spain Chile Australia The United States Germany New Zealand Portugal Argentina South Africa

7.7 5.1 2.5 1.4 1.3 1.1 1 0.8 0.7 0.6 0.6

Source: OIV.

Table 2.8  Comparison of export value-volume and average price in euro for an exported bottle equivalent Country

Billions of euros

Volume in million hectoliters

Price per bottle

France Italy Spain Chile Australia The United States Germany New Zealand Portugal Argentina South Africa

7.70 5.10 2.50 1.40 1.30 1.10 1.00 0.80 0.70 0.60 0.60

15.01 21.23 21.41 7.47 7.21 4.01 3.97 1.79 3.39 3.66 4.17

3.85 1.80 0.88 1.40 1.35 2.06 1.89 3.35 1.55 1.23 1.08

Source: OIV.

2.2.3 Discussion The key problem that becomes apparent when analyzing the world wine situation is overproduction relative to consumption. In 2014, world wine production was approximately 270 million hectoliters, and consumption was approximately 240 million hectoliters. In other words, worldwide wine production is the equivalent of 36 billion bottles (3 billion cases), whereas worldwide wine consumption is approximately 32 billion bottles (2.67 billion cases). The surplus of production is an astonishing 30 million hectoliters (450 million cases). The magnitude of this volume is put into

18

Table 2.9  Wine imports by major country and continent in 1,000 hL (volume) 2005

2006

2007

2008

2009

2010

2011

2012

World total Continental Europe America total Germany The United States Asia total France Russian Federation China The Netherlands Canada Africa total Belgium Italy Japan Switzerland Czech Republic Oceania total Portugal Spain

77,542 59,349 11,753 13,262 7052 3441 5495 6227 868 3799 2809 2278 2897 1833 1585 1813 1280 722 1420 334

80,678 59,934 12,988 13,772 7718 4281 5321 6112 1528 3417 3043 2683 2938 1463 1662 1753 1381 792 1235 400

85,773 63,058 14,020 14,553 8373 4969 5362 6434 1959 3823 3118 2735 3106 1779 1667 1860 1334 992 1253 462

85,547 61,655 14,194 13,708 8250 5266 5719 5733 2151 3631 3200 3242 3097 1840 1718 1845 1442 1190 1399 607

84,670 60,475 15,044 14,110 9219 5399 5755 4520 2235 3669 3284 2693 3061 1461 1807 1892 1443 1060 1606 350

92,041 65,434 15,684 14,778 9320 6948 6405 5466 3482 3692 3500 2838 2984 1668 1939 1905 1900 1137 1645 405

98,512 69,739 16,427 16,133 10,155 7964 6467 5112 4393 3647 3584 3222 3158 2477 2083 1864 1850 1160 1583 422

99,262 67,735 17,962 15,374 11,675 8788 5433 4899 4684 3980 3768 3472 3133 2756 2571 1883 1572 1306 1245 1236

Source: OIV.

Case Studies in the Wine Industry

Country

Wine sector from global to country analysis

19

Table 2.10  Wine imports in € billions (value, 2014) Country

Billions of euros

The United States The United Kingdom Germany Canada Japan China Russian Federation

4 3.6 2.5 1.5 1.2 1.1 0.9

Source: OIV.

Table 2.11  Comparison of import value-volume and average price in Euro for an imported bottle Country

Billions of euros

Japan Canada The United States The United Kingdom China Russian Federation Germany France Italy Spain Chile Australia New Zealand Portugal Argentina South Africa

1.20 1.50 4.00 3.60 1.10 0.90 2.50

Volume in million hectoliters 2.57 3.77 11.68 10.70 4.60 4.70 15.37 5.43 2.76 1.24 0.01 0.84 0.34 1.25 0.01 0.18

Price per bottle 3.50 2.99 2.57 2.52 1.79 1.44 1.22

Source: OIV.

p­ erspective by comparing it with all of California's wine production, which is approximately 225 million cases. As it can be observed in Table 2.12, the surplus of production (difference between production and consumption) is high in Italy, Spain, and France. This means that those countries have had to develop new export markets (we also know this based on the previous information about wine consumption declining in the Old World, even if it is still high per capita). Actually, to be accurate, we should deduct the exports and add the import figures to get a better idea of the surplus that is nor sold nor consumed

Country

23,550 22,472 28,116 18,575 5241 9862 5005 9778 5473 3822 4250 2366 2420 203 223 778 7 178 550 441 800 18 32 19 47

2006 24,704 24,759 29,546 19,124 6068 9853 5991 9494 5059 4558 4293 2749 1405 472 −532 1003 121 179 700 738 84 10 −5 19 78

2007 19,281 23,308 16,149 13,503 5247 5198 6226 4751 5625 4188 3880 1551 952 558 −240 991 82 167 216 211 359 11 −4 41 94

2008 20,804 23,745 13,617 11,854 6344 8344 6607 7302 5301 4169 3999 1150 1105 1178 −245 809 62 162 188 669 −88 10 −9 27 104

2009 23,214 24,822 26,019 16,054 6975 7593 6602 6580 6098 4657 1793 1379 1291 1123 2668 549 −23 174 182 337 69 7 −8 2 3

2010 23,901 24,457 19,851 15,109 5744 6942 5864 6093 6021 3549 6497 2453 690 979 1661 350 57 169 195 −298 103 6 −7 80 −19

2011 19,720 23,447 23,492 22,450 7457 7189 6198 5907 5901 3645 5664 936 1370 1411 542 448 211 198 192 −102 181 17 −9 −15 −33

2012 22,983 21,273 13,955 13,526 9397 7752 7352 6857 6190 4541 1727 1333 1320 1021 729 578 321 194 190 47 44 14 −10 −18 −33

Case Studies in the Wine Industry

Italy Spain Continental Europe France Chile Oceania total South Africa Australia China Africa total Argentina Portugal Moldova New Zealand Romania Bulgaria Uruguay Israel Algeria Greece Georgia Lebanon Bolivia Turkey India

2005

20

Table 2.12  Surplus of production (difference between production and consumption) per country and continent in 1000 hL

Serbia Croatia Hong Kong Ukraine Hungary Luxembourg Brazil Korea Austria Mexico Czech Republic Switzerland Japan America total Belgium The Netherlands Canada Russian Federation Asia total The United States Germany

75 32 −87

65 28 −108

−23 −16 −119

−59 −50 −111

−84 −15 −99

−22 −76 −117

−33 −88 −130

−52 −78 −126

0 −58 −166 172 460 −119 −511 −182 −136 46 −664 −1874 −1577 1760 −2790 −3474 −3250 −5603 −2657 −2962 −10,695

−184 −107 −169 −54 387 −133 −1094 −212 −194 167 −868 −1795 −1657 −2485 −2901 −3511 −3521 −4930 −3659 −7260 −11,294

−208 1223 −217 −175 400 −99 248 −305 178 121 −950 −1881 −1663 −3384 −2898 −3490 −3549 −5330 −4182 −7980 −10,521

−153 −165 −161 39 431 −136 418 −276 593 9 −1134 −1839 −1714 −2803 −2984 −3622 −3733 −5782 −4471 −8360 −10,756

−103 −23 −135 700 587 −123 −788 −220 −48 −206 −1436 −1773 −1803 −2751 −2844 −3569 −3884 −4769 −4814 −5285 −10,996

−103 −97 −133 515 −50 −161 −1227 −234 −663 −311 −1436 −1773 −1860 −1340 −2755 −3615 −4014 −4385 −5412 −6713 −13,294

−188 −128 −166 378 630 −125 −345 −249 252 −579 −1355 −1612 −1988 −2136 −2912 −3556 −4135 −5263 −6669 −9114 −10,575

−126 −156 −170 −171 −177 −181 −231 −283 −403 −636 −1329 −1667 −2320 −2444 −2869 −3636 −4233 −5059 −7469 −7513 −11,288

Wine sector from global to country analysis

Morocco Cyprus Singapore

Source: OIV.

21

22

Case Studies in the Wine Industry

locally and internationally. But the purpose of the table is to show that if the countries were becoming isolationist as has happened in the past (due to political instability in Europe with WWI and WWII), their local markets will not be big enough to absorb the wine production. The Old World countries export a large quantity of wine with the exception of Germany that both exports and imports a high quantity of wine (see the negative figure in Table  2.12). In the New World, Northern America (Canada and the United States) is a big importer similar to the case for Asia and the Russian Federation. The consequences of overproduction will rest in the Old World, with pressure on prices, justifying the actions of the EU to subvention or subsidizing the removal of vines in order to maintain high prices. To go further, consider the following: ●

●

World Vitiviniculture Situation, 2015, http://www.oiv.int/public/medias/177/statistiquesmainz-congress-2015-oiv-en.pdf World Vitiviniculture Situation, 2015, http://www.oiv.int/public/medias/2777/report-mainzcongress-2015-oiv-en-7.pdf

2.3 Regional analysis 2.3.1 Old World In terms of production, not only France but also Portugal and Romania have had decreasing production, whereas Italy, Spain, and Germany are stable. In terms of consumption, Europe represented 69% of the worldwide consumption in 2000 but decreased to 60% in 2014. France, Italy, and Spain show some decline in consumption. Germany remains stable. The United Kingdom is increasing because new consumers with increasing income and new eating habits have entered into the wine category. In terms of market size, France, Italy, and Germany are the second, third, and fourth largest wine markets in the world, respectively. Regarding wine exports (in volume), Spain, Italy, and France are the biggest markets followed by (but in much smaller quantities) Germany, Portugal, and Moldova. In terms of wine imports (in 2012 in volume), four out of the top six importing countries that account for more than 50% of total imports are based in Europe: Germany, the United Kingdom (13.4 million hectoliters), France, and Russia. In terms of value (in 2014), the United Kingdom imported wine valued at around € 3.6 billion, Germany at € 2.5 billion, and Russia at € 0.9 billion.

2.3.2 New World In terms of production, Argentina and Australia remain stable. The United States, South Africa, Chile, and New Zealand are increasing.

Wine sector from global to country analysis

23

In terms of consumption, the United States is the largest country for wine consumption with an increasing trend over time. Australia (like the case for the United Kingdom) is increasing because of the emergence of new consumers with increasing incomes and new eating habits. Argentina is declining, which might be linked to the political instability. In terms of wine exports by volume, Chile, Australia, South Africa, the United States, Argentina, and New Zealand are the largest countries in the New World. In terms of wine imports by volume in 2012, the United States is the only country from the New World to be present in the top six importing countries (accounting for more than 50% of total imports). The United States imported wine in 2014 totaling around € 4 billion, whereas Canada imported € 1.5 billion and Japan imported € 1.2 billion. The United States is increasing both in volume and value in terms of wine imports.

2.3.3 Emerging regions The emerging countries include Brazil and the Asian market (except Japan) where not only India and China but also Hong Kong, Taiwan, South Korea, and Singapore are playing key roles. It is important to note that the data for Hong Kong, Singapore, and Taiwan are detailed enough (which is why they were not included in the previous table). China is growing in both production and consumption. China is increasing because of the emergence of new consumers with increasing incomes and new eating habits (similar to the case for Australia and the United Kingdom). Consumption of wine in Asia jumped from 6% in 2000 to 10% in 2014 of the worldwide wine market. China is now the fifth largest market. In terms of exports, none of the emerging countries are in the top 10. This can likely be attributed to the wines being mainly consumed locally. Regarding wine imports (in 2012 by volume), China was the only emerging country to be in the top six countries (that were accounting for more than 50% of total world imports) with a value of € 1.1 billion. What is important to consider when reviewing wine consumption in Asia is the overall alcoholic drink market (including spirits, wine, and beer). The beer consumption was estimated in subtracting “spirits and wine” from the total in the alcoholic drink category (see Table 2.13). What is surprising when we review Table 2.13 is that South Korea is the largest country in terms of alcohol consumption in the world with 17.6 L of pure alcohol per capita. South Korea is followed by Estonia, Czech Republic, Lithuania, Germany, and Austria. Spirit consumption is the highest as well for South Korea, Estonia, Thailand, Belarus, and Lithuania. Regarding wine consumption, Portugal, France, Italy, Switzerland, and Slovenia have the highest consumption with more than 5 L of pure alcohol per capita. For beer, Estonia, Czech Republic, Lithuania, and Germany are the most important markets.

24

Case Studies in the Wine Industry

Table 2.13  Per capita consumption for top 20 countries ranked in 2015 (liters of pure alcohol) Rank

Country

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

South Korea Estonia Czech Republic Lithuania Germany Austria Ireland Poland Latvia The United Kingdom France Australia Belarus Slovenia Slovakia Belgium The United States New Zealand Bulgaria Portugal Thailand Russia Philippines Latvia Japan Brazil Uzbekistan Ukraine Italy Switzerland Argentina Denmark Greece Sweden The Netherlands Uruguay Hungary Spain

Alcoholic drinks 17.6 16.4 14.5 13.7 12.5 12.3 11.7 11.6 11.5 11.4 11.2 11.1 11.1 11 10.5 10.5 10.4 10.01 10 9.9

Spirits

Wine

Beer (estimated)

13.5 6.2 2.8 5.1 2.7

3.1

8.6

3.7 4.5

6.1

3.4 6.1 3.9

5.6 2.1

4.3 2.4 3 5.3 5.1 3.7 3.2 3.8 3.1 6.4 5.8 4.5 4.2 4.9 3.9 2.9 2.7 2.4 5.6 5.1 4.4 4.4 4 3.7 3.6 3.4 3.4 3.2

Adapted from Easton Sally, 2016. Global Alcohol Drinks Consumption, WSET Alumni Report.

Wine sector from global to country analysis

25

2.4 Definition of wine categories In Table  2.14, we can observe that bottled wine represents 54% by volume, bulk wine represents 38%, and the sparkling category is just 8%. What is important to notice is the increase of the bulk wine between 2000 and 2014, growing from 30% to 38%, whereas the share of bottled wine decreased by 4 points in value and 11 points in volume.

2.4.1 Bottled still wines There are five kinds of still (or nonsparkling) bottled wines: 1. White wines (see Section 2.5 for the main varieties). 2. White wines with late harvest due to noble rot (especially in Tokay, Bordeaux (Barsac, Sauternes, and Cadillac), Loire Valley (Coteaux du Layon), Constantia (South Africa), Austria, Germany, Alsace, and the northern United States (Niagara and Finger Lakes)) for the ice wine. 3. Red wines (see Section 2.5 for the main varieties). 4. Rose wines made from the red grapes mainly through the bleeding process or saignée. Rose consumption represented almost 10% of world wine consumption in 2013 with 24 million hectoliters. Worldwide rose consumption has increased by 25% in the last 10 years. Europeans are the main consumers of rose with France representing 37%, Germany 9%, the United Kingdom 6%, and Italy 5%. The United States represents 12% of rose consumption. The market is growing although the United States, Italy, Spain, and Portugal have a decreasing consumption. 5. Fortified wines that tend to be slightly sweet to luscious and with a higher level of alcohol because of the fortification process (addition of alcohol) to stop the fermentation and retain the sugar/sweet taste that couldn't be transformed into alcohol because of the end of the fermentation. The main fortified wines are sherry wines and port wines, but you can also find some fortified in Rutherglen (in Australia), in France (with the grenache-based and muscat-based Vins doux Naturels), or in Madeira. In 2014, the sherry sales represented 36.6 million liters. The main markets are Spain (32%), the United Kingdom (28%), the Netherlands (17%), and Germany (9%). In 2014, 80.1 million liters of port were sold. Their main markets are France (28%), Belgium (13%), Portugal (12%), the United Kingdom (11%), the Netherlands (8%), the United States (5%), and Canada (4%).

Table 2.14  Wine categories in value and in volume Category

Value in 2000 (%)

Value in 2014 (%)

Volume in 2000 (%)

Volume in 2014 (%)

Sparkling Bottled Bulk

17 75 8

18 71 11

5 65 30

8 54 38

Source: WSET.

26

Case Studies in the Wine Industry

2.4.2 Sparkling The sparkling category is primarily composed of the following: champagne, crémants (sparkling wines made in other French regions than champagnes), cava (in Spain), cap classique (in South Africa), sparkling produced in Carneros region (in the United States), prosecco (in Italy), and sekt (in Germany). In 2014, Champagne was producing 2.2 million hectoliters, whereas the rest of the category was representing 17.9 million hectoliters. The yields in Champagne are determined based on sales forecasting. Therefore, the production and the pricing structure are rather stable. Half of Champagne production is consumed in France and half in exporting countries. The main export markets are the United Kingdom, the United States, Japan, Germany, Belgium, Australia, Italy, Switzerland, and Spain. The 10 largest markets for sparkling wines (excluding champagne) are Germany (where they also produce sekt), Russia, Italy (with the production of prosecco, Lambrusco, Moscato d'Asti, and Franciacorta), France (with the production of not only crémant but also blanquette de Limoux and Clairette de Die), the United States (with important local production, especially run by French Champagne Houses such as Mumm Napa, Carneros (Taittinger), Roederer Estate, and Chandon a.o.), the United Kingdom, Australia (sparkling shiraz), Ukraine, Argentina, and Poland.

2.5 Grape varietals diversity Many Old World regions are popular for their local varieties that are in production elsewhere is the world. These include, but are not limited to, the following: ●

●

●

●

●

●

French Bordeaux varietal wines and blends, including merlot, cabernet sauvignon, cabernet franc, Malbec, and Petit Verdot for the red and sauvignon blanc and Semillon for the white French Rhone varietal wines and blends, including grenache and Syrah for the red and Roussanne, Marsanne, and Viognier for the white French Alsatian varietal white wines, including Riesling, gewürztraminer, muscat, and pinot gris Burgundian varietal wine, including chardonnay for the white and pinot noir for the red Spanish varietal wines, including Tempranillo and Monastrell Italian varietal wines, including Sangiovese and Trebbiano

Table 2.15 lists the 20 main international varieties. In the top 10, there are the following varieties: cabernet sauvignon, merlot, Airen (used in Spain to make inexpensive brandy), Tempranillo, chardonnay, Syrah, grenache, sauvignon blanc, Trebbiano Toscana (ugni blanc), and pinot noir. These varieties are widespread worldwide and, therefore, called international varietals. What is important to have in mind is that those 20 varietals represent 55% of world production. However, the remaining 45% of other varieties, many of them local (or regional) varieties, have huge potential to differentiate one wine region from another. As an example, Italy has more than 3000 different varieties that are regionally specific and varied.

Wine sector from global to country analysis

27

Table 2.15  List of the international varieties (share in surface of hectares with 1 ha = 2.47 acres) Grape varieties

Share in 1990 (in %)

Share in 2000

Share in 2010

Cabernet sauvignon Merlot Airen Tempranillo Chardonnay Syrah Grenache Sauvignon blanc Trebbiano Toscana (ugni blanc) Pinot noir Mazuelo (Carignane) Bobal (produced in Utiel-Requena/ Valencia) Sangiovese Monastrell (Mourvèdre) Grasevina/ Welschriesling/Italian Riesling Rkatsiteli (produced in Georgia and Eastern Europe) Cabernet franc Riesling Pinot grigio Macabeo Sum of top 20 surface (in share) Sum of top 20 surface (in hectares) Global total hectares

2.41 2.93 9.01 0.9 1.31 0.66 5.35 0.84 3.92

4.53 4.35 7.95 1.91 2.98 2.08 4.39 1.33 2.8

6.3 5.81 5.48 5.05 4.32 4.03 4.01 2.39 2.39

0.79 3.83 2.01

1.23 2.6 2.05

1.88 1.74 1.74

1.87 2.05

1.41 1.56

1.69 1.52

0.37

1.89

1.33

5.3

1.38

1.27

0.75 0.99 0.82 46

1 0.88 0.39 0.99 48

1.16 1.09 0.95 0.89 55

2,438,695

2,326,567

2,533,819

5,290,000

4,878,176

4,601,445

Source: OIV.

2.6 Conclusions The world wine market is substantial and represents € 287 billion in value, compared with the total alcoholic drink market of € 1397 billion. However, the challenges are different for the Old World, the New World, and the emerging countries. Wine production has tended to decrease in the Old World, whereas production has increased in the New World. Likewise, new players from the emerging countries have also moved into

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the wine production to supply wines for their local market. Looking into the future for the world wine market, we anticipate consequences for stakeholders related to (1) not only the increasing of the number of wineries in the New World (due to the market growth) but also the underlying competition, (2) the decrease of vineyard plantings in the Old World with improved quality to maintain not only its local but also its international positioning, and (3) the need for developing a marketing strategy to move local consumption to internationalization for the emerging countries. The wine industry is not as concentrated as the spirit or beer industry since the top 10 largest wine companies only have 14% of market share (Easton Sally, 2015) and most of these large firms are American-based. The Old World is dominated by the cooperative systems: French (40%), German (40%), Spanish (50%), and Italian (50%). The five largest wine producers represent 8% of wine sales in France (some of the large wine groups are Moët & Chandon, Pernod Ricard, Les Grands Chais de France, Castel Group, Baron Philippe de Rothschild, and Advini), 4% of wine sales in Italy (some of the large wine groups are Gruppo Italiano Vini (GIV), Caviro, and Cavit), and 8% of wine sales in Spain (Torres, García Carrión, and Arco wine Investment Group). If we compare market concentration in the New World with that of the Old World, the five largest wine producer's share of the market in their own country is starkly more significant: 62% of the sales in the United States (E & J Gallo Winery, The Wine Group, Constellation Brands, Bronco Wine Company and Trinchero Family Estates), 83% of the sales in Australia (some of the large wine brands are Accolade Wines, Treasury Wine Estates, and Casella Family Brands), 65% of the sales in Argentina (Grupo Peñaflor is the biggest group), 51% of the sales in Chile (Concha Y Toro, Santa Rita, and San Pedro Tarapaca are the largest), and 80% of the sales in New Zealand (where Pernod Ricard is the largest). The emerging countries also have large brands penetrating their domestic markets, such as China (Changyu and Dynasty) and India (Indage, Grover Vineyards, and Sula). In terms of average holding, the Old World tends to be small in comparison with the New World (Rabobank report). For example, compare Old World countries of France 7.6 ha, Italy 1.26 ha, and Spain 5.64 ha with New World countries of the United States 42.6 ha, Australia 20.9 ha, Argentina 8.4 ha, Chile 14.13 ha, and South Africa 25 ha. The key issue is to remain competitive vis-à-vis the large brand portfolios and try to find a spot on the supermarkets' shelves that is not yet occupied by a competitor. There is a need for marketing in order to build strong brands in the consumers' minds, to understand consumer behavior through marketing research, and to develop a consistent distribution strategy. It is also important to optimize the supply chain, to manage the exchange rate if exposed internationally, and to understand the cohorts of consumers with high growth potential (like the millennial generation). The Old World, New World, and Emerging World are culturally very different. Perhaps, a way to segment the market is to split the world market into these four groups: (1) Matured market with large consumption of domestic product (Old World producing countries + South Africa + the United States) (2) Matured market in nonproducing countries with wine culture (Northern Europe and Canada) (3) Development market with wine culture (South America and Mexico) (4) Development market with no wine culture (Asia and Eastern Europe for foreign wines)

Wine sector from global to country analysis

29

2.7 Further research This global analysis should be developed for each market (at the country or regional level) and could generate interesting international partnerships in terms of applied research. For each country, we would have to gather at least the following information and then identify a short story on their positioning or the way to differentiate themselves from the competition. The data necessary to collect are as follows: -















Size of the production (area in hectares and volume in hectoliters) Consumption both in value and volume (and also per capita) Local trends Domestic distribution Major import and export markets (in volume and value and average per bottle) Regional analysis and major appellations Major international and local varieties

To make in-depth analysis per country Old world France Bordeaux ●

●

●

http://www.bordeaux.com/ http://www.vins-bordeaux.fr/ http://www.medoc.org/

South West ●

●

http://www.vins-bergerac.fr/ http://www.vins-gaillac.com/

Burgundy ●

●

http://www.beaujolais.com/ http://www.bourgogne-wines.com/

Alsace ●

http://www.alsacewine.com/

Loire Valley ●

http://www.loirevalleywine.com/

Rhone ●

http://www.vins-rhone.com/

South of France ●

●

●

http://www.languedoc-wines.com/ http://www.coteaux-languedoc.com/ http://www.corsicanwines.com/

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Central Europe and Eastern Europe Austria ●

http://www.winesfromaustria.com/

Germany ●

http://www.winesofgermany.co.uk/

Hungary ●

http://www.winesofhungary.com/

Romania ●

http://www.wineromania.com/

Bulgaria ●

http://www.bulgarianwines.com

Mediterranean Countries Italy ●

●

●

http://www.italianmade.com/ http://www.piedmontwines.net/ http://www.chianticlassico.com/

Spain ●

●

●

http://www.winesfromspain.com/ http://www.riberadelduero.es/ http://www.riojawine.com/

Portugal ●

http://www.viniportugal.pt/

Greece ●

http://www.greekwinemakers.com/

Newcomer United Kingdom ●

http://www.englishwineproducers.com/

New world Africa South Africa ●

●

●

http://www.wosa.co.za/ http://www.sawis.co.za/ http://www.grape.org.za/

Wine sector from global to country analysis

Oceania Australia ●

●

●

http://www.awbc.com.au/ http://www.wfa.org.au/ http://www.wineaustralia.com/

New Zealand ●

http://www.nzwine.com/

Asia ●

●

●

http://www.winechina.com/ http://www.kizan.co.jp/eng/japanwine_e.html http://www.israelwines.co.il/

North America United States ●

●

●

●

●

●

http://www.wineinstitute.org/ http://www.napavintners.com/ http://www.scgga.org/ http://www.carneros.com/ http://www.oregonwine.org/ http://www.washingtonwine.org/

Canada ●

●

http://www.winesofcanada.com/ http://www.winesofontario.org/

South America Chile ●

http://www.winesofchile.org/

Argentina ●

http://www.winesofargentina.com/

Brazil ●

http://www.winesfrombrazil.com/

Uruguay ●

http://www.inavi.com.uy/

Sparkling wines Champagne http://www.champagne.fr/

31

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Fortified wines of the world Sherry http://www.sherry.org/ Port http://www.ivdp.pt/ Madeira http://www.madeirawineguide.com/

References OIV, 2015. Global World/OIV World Vitiviniculture Situation, 2015. http://www.oiv.int/public/medias/177/statistiques-mainzcongress-2015-oiv-en.pdf World Vitiviniculture Situation, 2015. http://www.oiv.int/public/medias/2777/report-mainzcongress-2015-oiv-en-7.pdf Easton Sally, 2015. Global Alcohol Drinks Consumption. . WSET Alumni Report, 2015.

Consumer behavior toward wine products

3

Maria Bonaria Lai Associazione Scientifica Centro di Portici, Napoli, Italy

3.1 Introduction Following the work of Lockshin and Corsi (2012), this chapter focuses on wine ­consumers’ behavior as described in the literature, taking into consideration articles that investigate different consumer approaches toward purchasing wine. In the literature back to 1999, it is evident that different elements affect wine consumers’ behavior, such as individual consumer characteristics, the place chosen for wine purchase, the moment of purchase, and wine characteristics. Common denominators among the articles selected for development in this chapter are the presence of case studies and applied methodologies. Four subject areas form the chapter paragraphs. The first is wine purchasing and how this can be different based on different cultures, ages, and genders of consumers; the second describes wine consumers’ behavior in purchasing at traditional retail or alternative stores such as on the Internet; the third speaks about how packaging, wine characteristics, and region of origin influence the consumer choice; the last paragraph examines wine consumers’ behaviors while on holiday. For each area examined, there are different customer approaches for the New World wine and the Old World one. The objective of this chapter is twofold: first, to provide an overview of wine consumers’ behavior based on the literature and, second, to give a useful indication of who is working in the wine sector and to identify new market opportunities and developing firms in the global wine sector. Consumer behaviors can lead wine firms to adopt appropriate marketing policies to reinforce and consolidate their positions in the market or to achieve new ones. It is important to understand how consumers act when they buy or consume wine, especially because the enlargement of the wine market and the change in the habits of wine consumption are continually pressuring wine firms to update their marketing techniques. Knowing how consumers choose their wine and which elements they take into consideration when they purchase it can play an important role for wine firms in addressing plans for golden strategy policies, for example, this knowledge can help them to identify in advance which consumers to target to achieve the base of their wine supply goals.

3.2 Culture, age and gender as drivers in purchasing wine According to Hofstede (1980), culture has been qualified as the state of “knowledge” applied to the domain of art in literature on the level of an individual or group. Or it can be defined as human activities of everyday life such as greeting, eating, and expressing Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00003-3 Copyright © 2019 Elsevier Ltd. All rights reserved.

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Case Studies in the Wine Industry

or hiding feelings. By translating these notions to the wine sector and joining the concepts of knowledge and nationality, it is possible to recognize two different wine cultures: French wine culture and New World one. The first culture, based on the concept of terroir, has driven wine consumers’ behavior for a long time and has influenced the world wine market. Nowadays, this culture remains competitive in countries that do not produce commercial quantities of wine (such as the United Kingdom) or the in the so-called New World producing countries (such Australia or California). Consumers in these countries are more and more interested in wine but have not been exposed to this culture of terroir (Ritchie et al., 2010). To verify these hypotheses, Cohen et al. (2009) studied the choice of wine in three different countries, giving an answer to the question, “Can cultural differences be measured through the choice criteria used by consumers in France, the United Kingdom, and Australia?” Using the best–worst method, and a restaurant as a situation context, they confirmed the hypothesis of a contrast between the French consumers and consumers in English-speaking countries. Arnold (2007) affirms that wine consumers, from non–wine-growing countries, learn the rituals of wine consumption from peers and literature, whereas Olsen et al. (2007) and Rozin and Rozin (2005) maintain that when a ritualistic behavior becomes part of the lifestyle of a social group, it normally becomes an accepted behavior for the next generation. Culture can also play an important role in different purchasing wine contexts, for example in relation to the place where the consumption will occur. This includes whether the wine is consumed in public or privately, in a formal or informal contexts (Seymour, 2004; Demossier, 2004), or whether it was received as a gift or not. In this last case, Olsen et  al. (2003), Lechmere (2005), and Barber et  al. (2007) support the idea of ­multiple-interaction purchase and think that another element determining the purchasing process is something related to the message that the chosen wine bottle can give the purchaser: “What is this wine going to say about me?” This moves the attention from the wine characteristics toward the impression that the wine will give in that particular circumstance (Hall et al., 2001). Ritchie (2009) affirms that wine culture in the United Kingdom has moved in a very short time from a specialist elite to a large population that includes adult, young, and new consumers. Generally speaking, consumers drink wine for the sensory pleasure it gives, but younger drinkers are also motivated to drink wine for reasons relating to cultural identity (Bruwer et al., 2011). However, their limited knowledge of wine, the insufficient amount of targeted marketing from wine firms, and wine’s multiple characteristics often confuse young consumers during product evaluation (Agnoli et al., 2011). The young generation, also called Generation Y, Echo Boomers, or the Millennial Generation, has a different perception of wine compared to the older one, who generally has a better knowledge of wine characteristics and history and sees it as a social facilitator. In literature, many works have analyzed the consumption behavior of mature wine consumers. Only more recently has the young generation been the object of studies capturing the attention of the wine market and researchers. Thach and Olsen (2006) focus their attention on the California market, studying the Generation Y wine consumption and providing useful information about marketing implications to the wine industries in the United States.

Consumer behavior toward wine products35

Considering that young consumers comprise the future of the wine global market, the number of research studies focused on young wine consumers has increased. Agnoli et  al. (2011), Hristo and Ales (2014), Capitello et  al. (2015), and Fountain and Menival (2016) have all investigated younger wine behaviors from a variety of perspectives. Agnoli et al. (2011) focus on young Italian consumers and have investigated how, in various consumption contexts, wine and other alcoholic choices and behaviors are influenced by values. Remarking on the important role that pleasure plays in the consumption of alcoholic beverages in Generation Y, and how the consumption behaviors of younger people who live in a country where wine is traditionally produced and consumed are daily becoming more like their peers from the new wine-­consuming countries. Both types of consumers choose to drink products with higher alcohol content among a wide range of alcoholic beverages. Chironi and Ingrassia (2014) confirm the subjective and emotional involvement of young consumers in wine consumption behavior; the younger generation consumes wine at particular events, preferring to drink it in a wine bar or a lounge bar. D’Alessandro and Pecotich (2013) discovered how the low level of wine knowledge among young consumers, together with the complexity of wine, does not encourage the selection of quality wine when younger consumers are making decisions. Natalia et al. (2016) examined young wine consumers’ behavior regarding champagne and sparkling wine and discovered that younger people interpret the images of these wines through the prism of the relationships among symbolism, ritual, and myth. Hristo and Ales (2014) conducted a study in two Macedonian cities based on recommendations from family members, friends, and colleagues. Information obtained by tasting the wine during previous occasions are elements that younger consumers consider when they purchase wine in wine shops. Another aspect in the choice behavior is the relationship between attitude and actions. In different contexts and situations, the Rokeach Value Survey (RVS) (Bloemer and Dekker, 2007) measured attitude–intention–action using a social psychological vision. As stated by Chrysochou et al. (2012), Generation Y lacks subjective knowledge, experience, and involvement with wine. They consider wine as an elite product and fall psychological subjection toward it (Marinelli et  al., 2014). De Magistris et  al. (2011) explain different elements among Generation Y consumers. Younger consumers, who live in traditional wine-producing countries, appear more wine conscious and attach importance to the origin of the wine; Generation Y consumers from the New World are less concerned about the wine and its origin. Generally, Old World Echo Boomers are introduced to wine consumption by their families, and alcohol seems less likely to be abused. Calafat et al. (2011) and Graziano et al. (2012), however, explain that riskier consumption behaviors are increasingly widespread. Capitello et al. (2015), applying the theory of reasoned action (TRA), test the hypothesis that young consumers from the Old World adopt a similar wine consumption decision-making process to that of young consumers from the New World. The important role that friends assume in driving wine consumption for younger consumers headlines the existence of a new trend in wine consumption. If young consumers love to consume wines, it does not mean that they buy wine in the same quantities as each other. Most of the time they request that those with a better

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Case Studies in the Wine Industry

knowledge of wine, such as parents and friends, purchase the wine for them. Another aspect of wine consumption and purchasing behavior is the different perceptions that women and men have of this ancient beverage. Ritchie (2009), in his research in the UK market, affirms that women purchase more wine than men in supermarkets, whereas men prefer special wine shops as the channel of distribution. Regarding the wine purchased, women prefer white wines. In the United States, based on the American Wine Market Council report, women prefer to drink chardonnay; in Australia women drink white and sparkling wine (Bruwer et al., 2014). Chironi and Ingrassia (2014) studied women’s consumption in an Italian region and found that, contrary to wine consumption tendencies in other parts of the world, this group of women preferred red wine to white ones, and these red wines were full bodied and structured with a good percentage of local varieties included. The main difference in consumption behavior between women and men comes from natural human characteristics of the two genders; women have a more sensitive palate than men and also have a greater ability to distinguish different smells (Atkin et al., 2007). Men generally prefer more aged characteristics than women (Lockshin and Corsi, 2012). Thomson (2007) noticed that women were purchasing more wine than before, and wine literature supports this assertion, adding that women spend disproportionately more on wine than men did. In terms of information search, women were more predisposed, compared men, to acquire details at the moment of purchase, to read shelf tags and labels, and to ask shop assistants for advice. Men, instead, preferred to learn about wine by reading wine books (Atkin et al., 2007). Research conducted in six cities in New Zealand, Australia, the United Kingdom, and the United States shows that gender does not make a difference in the wine drink consumers frequency. On the other hand, during the decision-making process for purchasing wine, women take notice of price discounts more than men. This supports the idea that women are, compared to the opposite gender, more concerned with the financial aspects of purchasing wine (Sharon et al., 2010).

3.3 Retails or alternative stores what wine consumers prefer Under the influence of new geographical wine production areas, consumer behavior has partially changed in the last several years (Mariani et  al., 2012; Anderson and Nelgen, 2011). Pallonari (2010) affirms that wine is a unique product because it links strong elements of tradition with elements of continuous innovation, whereas Platania et al. (2016a,b,c) claim that wine choice depends on several factors linked to the different purchasing steps, including place of sale and environmental stimuli. In a preview work, Platania et al. (2015) and Chartes and Pettigrew (2006) argue that wine, considering its cultural and economic function, is part of an economic and financial global market that follows the globalization process needed for innovation while continuing to preserve the product’s identity.

Consumer behavior toward wine products37

Purchasing channels and wine stores are different from nation to nation. In some countries, wine and other alcoholic beverages are controlled by state monopolies. This is the case in Norway, where wine can only be bought in government stores called The Wine Monopoly (Vinmonopolet in Norwegian) or consumed in hotels, restaurants, bars, pubs, or catering firms (Lai et al., 2013). Such limitations influence wine consumers’ behaviors, consumption, and purchasing, as well as wine commercialization. However, Norwegian consumers can buy their wine in more than 262 outlets, with an availability of more than 8000 wines from the main wine-producing countries. The role of alcohol monopolies has been analyzed in several studies. Her et al. (1999) provide an extensive overview of privatization/deregulation experiences in North America. High tax rates per unit of alcohol mean that cheap wines become relatively expensive, while expensive wines become relatively cheap. In other words, high-­quality wines have more-or-less the same price as identical wines purchased in a monopoly market, whereas inexpensive wines are much more expensive in the monopoly market. Generally, Norwegians prefer to drink wine at home because they consider wine in restaurants to be too expensive. Research results show that there are three main categories of Norwegian wine consumers: expert customers, low-price seekers, and sophisticated customers. The expert customers prefer to buy high-priced wine because they expect expensive wines to have high quality. They are likely to be members of wine clubs and to purchase wine in the special Monopoly stores in Oslo or Bergen. The low-price seekers buy large quantities of wine to drink during weekends. The sophisticated customers are mainly interested in high-quality wines, regardless of price, and they repeatedly purchase their favorite wines. Ritchie et  al. (2010) studied the reasons that influence wine consumers to buy wine in supermarkets, underlining in his research that supermarkets are the preferred retail location in the United Kingdom, where it is possible to find a good range of wines in promotion. Large UK supermarkets commonly carry a range of 700–1000 different wines, presented by country (Catchpole, 2009). In these retail stores, wine is sold in separate aisles, this joint to the limit age purchase, 18 years old, might affect wine-buying behavior. Ritchie (2009) argues that wines are purchased every day with ease and regularity, almost subconsciously in some cases, identifying the phenomenon of “not” buying wine, in which the consumers do not mentally register the purchase. Alexander et al. (2009) talk about the risk when wine purchasing is perceived as ordinary, becoming part of regular shopping when this kind of retail establishment has a competitive and trusted brand. Some elements that affect wine consumers’ behavior in supermarket purchasing situations are the wine medal award, shelf talker (Ali et al., 2008), or price promotion. Regarding price promotion, Casini et al. (2008) identified three different types of price promotion: three for £10, price reductions, and buy-oneget-one-free (BOGOF). Ritchie et  al. (2010) explains that wine consumers tend to spend more when they buy a bottle of wine as a present. Goodman et al. (2008), using the Max-Diffs method, repeated the study in twelve different countries in two different shopping channels—restaurant and retail—asking two different questions to wine consumers based on the store they used for buying the wine. “Remember the last time you had wine with a meal with friends in a restaurant,” for those who were interviewed at the restaurant, and “Remember the last time you bought a bottle of wine in a shop

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Case Studies in the Wine Industry

to have for dinner with friends,” for the other interviewees. Nowadays, cross-national research is very important and useful in understanding and comparing the different consumer purchasing behaviors among countries, especially now that new purchasing channels are being added to the traditional ones. Quinton and Harridge-March (2008) explain how consumer behaviors are influenced by different elements when customers purchase wine on the Internet or in other channel shops in the United Kingdom. Customers assume different behaviors, especially when they deal with purchasing a wine for the first time in a virtual or real environment, corresponding in this case to an online or offline shop. In this case, price could be seen as an indicator of quality and an initial filter as well. The pleasure, arousal, and dominance (PAD) method has been used to understand the cognitive and affective processes that can be activated in the consumer. Several researchers argue that risk perception is an important driver in wine purchasing behavior (Muller et al., 2008). When the available information is not satisfactory, price is used as an indicator of quality. According to Lockshin and Corsi (2012), consumers are less confident in purchasing the wine in a restaurant than in a shop, and new consumers, when they are not assisted during the wine purchase, made their choice by trying to remember the last wine consumed. It seems clear that the consumer’s characteristics are crucial to both the choice of the place of purchase and the availability of sensory involvement (Vigar-Ellis et al., 2015). According to Santisi et al. (2014), consumers tend to return to those shops that have given them positive emotions. These positive emotions are the sum of different elements such as tangible and intangible environmental aspects of the purchasing channels that are able to affect the wine consumers’ behavior in numerous ways. Platania et al. (2016a,b,c), applying the Mehrabian and Russel model, endorsed the existence of a relationship between emotional states, atmosphere, and consumer behavior. Using a hedonic pricing model, Lai et al. (2009) examined consumers’ preferences for Italian wine in different distribution channels (Iper and supermarket, traditional shops, and other types). Results show that consumers value the same wine attributes differently depending on the particular kind of retail locations considered. Cohen et al. (2009) state that restaurants, compared to other wine stores, present some peculiar characteristics in terms of choice and visibility. Here the wine choice is limited to the wine list and it depends on social interactions with the waiter or other people at the table; the consumers see the bottle only when the waiter or sommelier shows it to them. In addition, consumption in restaurants is synonymous with a social event. De Kervenoael et al. (2006) and Mintel (2008) show that consumers no longer have a wide choice of grocery retailers, and therefore they are primarily driven by location and convenience.

3.4 How packaging, wine characteristics and region of origin influence the consumer choice The work of Atkinson (1999), Batt and Dean (2000), Keown and Casey (1995), Priilaid (2006), and Seghieri et al. (2007) suggests that region of origin, rather than brand per se, is the most important factor in purchasing decisions in the United Kingdom.

Consumer behavior toward wine products39

Goodman (2009) analyzed how wine characteristics can influence the consumer choice in a retail store. Generally speaking, the factors are: tasted the wine previously, someone recommended it, grape variety, origin of the wine, brand name, medal award, read about it, and matching food, and these factors are in the order of elements that wine consumers take into consideration when choosing a bottle of wine in a store. There are some differences among countries, in that customers from Germany, Taiwan, and the United States take into consideration recommended wines. The Chinese and British look at the grape variety, whereas the origin of the wine is more important for Germans and Chinese than it is for Australians and British. Brand constitutes a determinant element in wine choice in Brazil. Medals and awards influence consumers from Australia, and food matching is important in Italy, Austria, France, Germany, Israel, and Brazil. Liu and Murphy (2015) examined the effect on Chinese consumers of Product Country Image (PCI) and considered local and foreign brands. They found that the PCI has a significant effect on consumer behavior. Lockshin et  al. (2006) showed strong differences in choice behavior between low and high involvement of wine consumers concerning factors such as price and awards and region of origin. Zaichkowsky (1988) used the personal involvement inventory (PII) to measure the involvement level of the consumers, substituting it for the consumer involvement profile inventory (CIP). Bruwer and Rawbone-Viljoen (2013) investigated the importance to wine consumers of product attributes, finding that high-involvement consumers are less brand committed compared to low-involvement ones. Lai et al. (2008) studied the preferences of Italian wine consumers, applying a Mixed Logit model through which it was possible to understand how attribute preferences are distributed in large samples, revealing the preferences’ heterogeneity. Results showed a strong interest in the sample for the denomination of origin as a first-quality signal. The interest in a quality signal associated with origin is consistent with the preference shown for typical wines. The red and the white wines were actually preferred rather than rosé, and the red appeared more appreciated compared to the white one. In another study, Lai et al. (2013) reported that Norwegian wine consumers pay particular attention to the origin and to small wineries that produce wine of high quality rather than to brands or to denominations. Ping and Wuyang (2016) studied Chinese preferences and their willingness to pay for wine attributes. Applying a choice model, they found out that country of origin, taste, and organic production are the most important attributes for Chinese wine consumers. Bruwer and Buller (2012), studying Japanese wine consumers, observed how high-involvement consumers have a strong preference for Old World– produced wines, mainly from France and Italy, and how the involvement of brand loyalty is influenced by age, increasing until the 35–45-year age group, and then slowly decreasing. Marchini and Diotallevi (2011) emphasized the importance of individuality in the mental process of purchasing. Each consumer perceives wine characteristics in different way, on the basis of his or her own needs, shared values, income level, social status, and investigated-on packaging attributes, which affect the consumer choice at the purchasing moment. In Europe, designation of origin is one of the most important wine attributes that consumers consider in the choice of wine (Kotler et al., 2014).

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Case Studies in the Wine Industry

Variety associated with the taste of wine is another relevant attribute (Ling and Lockshin, 2003). Considering some objective attributes such as name of the wine and label, Muller and Szolnoki (2010) affirm that these are related to the packaging. Besides, the consumers can use past consumption as an element of choice.

3.5 Wine consumers behavior on holiday Does the perception that people have regarding wine change, and with it their purchasing behavior, when they consume it in special moments of the year such as on holidays or at festivals? To answer this, a selection of articles regarding wine tourism is analyzed. Different profiles of wine consumers on the basis of country are taken into consideration. In the Old World countries that are wine producers, it is possible to distinguish between domestic wine tourism and international tourism. The first takes place in winter, involving the domestic traveler who prefers to organize a vacation out of the main summer season (Frochot, 2000). Foreign visitors prefer the summer season, and they usually stay longer on holiday, combining the consumption of wine with other tourist activities. Lai et al. (2016) and Lai (2010) analyzed the elements and determined the satisfaction of a group of tourists regarding a recreational activity, and they noticed the important role that beverages and wine played in the overall satisfaction of the tourists. Waller (2006) points out that the percentage of tourists who stay overnight in Alsace was under 50% of the people involved in the research, whereas Lopez-Guzman et al. (2008) gave an identikit of the Southern Spain wine tourist: man, 50–59 years old, middle to high income, generally traveling with family. In Italy, based on the work of Gatti and Maroni (2004), the wine tourist is normally a young, foreign male. “Foreign tourists are usually the most organized ones. They take advantage of specialized magazines and guides on Italy” (Gatti, 2001). Gender is the principle element of distinction in the wine tourist between Old and New World countries. In the Old World, the typical wine tourist is male, whereas in the New one, the tourist is commonly female. Gender differences constitute an important element of evaluation for consumption behaviors. Mitchell and Hall (2001) observed that packaging (bottles, labels) attracts more of the female gender than the male one. “Women share the winery’s wine with others and make post–winery-visit wine purchases.” O’Neill and Plamer (2004) describe the vinery visitor in Australia as an Australian female, young, with a managerial or professional occupation, and well educated. Johnson et al. (2000) describe the wine tourist in New Zealand and the United States as a young consumer, thirty-fifty years old, coming from the wine region or nearby regions. Alamanos et al. (2016), focusing their study on UK wine consumers who have spent their holidays in Greece, identified a postholiday effect that could generate interest in wine from the holiday destination and could facilitate the development of alternative tourism activities such as wine tourism. Fountain and Menival (2016) investigated the perception that Chinese tourists have of New Zealand wines. They examined Chinese wine tourism behaviors and paid attention to the effect that this kind of tourism has on brand awareness of New Zealand

Consumer behavior toward wine products41

wine. They found that the majority of Chinese visitors to New Zealand experience the country’s wine during their visit through wine consumption or wine tourism. Shifting the attention toward wine festivals, the approach that people have during these kinds of exhibitions is very different compared with those in wine tourism. In fact, considering only those festivals addressed to the customers, and not to the stakeholders, these involve a larger and a wide-ranging audience. In a study on a May weekend festival in Istria, called wine fair Vinistra, Ilak Persuric and Tezak (2015) point out that for numerous local visitors, this wine fair becomes a socializing point and a place for enjoying wine with friends and family. On the other hand, wine fairs enhance the probability of future visits to wine fairs, wine roads, and wine producers, and also increase wine consumption, wine tasting, and wine purchasing.

3.6 Conclusions and discussion The main objective of this chapter was to provide an overview of wine literature from those who work in the wine sector or who study it and to emphasize the importance of understanding consumer behavior. Consumer behavior can drive the market toward changing company policy. This new wine scenario for generating new consumers represents an important area of study for future research. Another element that should be considered and developed in new studies is the influence of the climate change in the wine sector, especially in terms of the new consumer/producer countries. In this chapter, wine consumers’ behavior was analyzed from different perspectives, considering the unique peculiarities of wine. In fact, compared to any other beverage or good, wine is considered a complex product. It includes culture, history, is a luxury good, is an element of socialization, is a tourist activity, etc. We showed how culture can play an important role and how the consumer behavior related to wine purchasing changes based on gender, age, and country of origin of the consumer. This literature review showed the important role that pleasure plays in the consumption of wine in the new generation and on holiday. Wine consumption behavior between consumers from traditional wine countries (consumers/producers) and new ones becomes more similar day by day. Considering these elements nowadays, cross-national research has become very important and useful to understand and compare the different purchasing behaviors of consumers among different countries, especially now that new purchasing channels are being added to the traditional ones. Understanding wine consumers’ behavior should be considered one of the keys for the development of the wine economic sector. Drawing on the way consumers make their wine choices and examining the different behaviors that wine consumers assume in the approach and consumption of wine—such as searching for product information, the trade channel chosen for purchasing the wine, and postpurchase behavior—is useful information that is highlighted in the chapter to help firms as they consider planning their strategies. The support and improvement of a marketing action depend on the analytical verification of its effectiveness (Lai and Pomarici, 2006). As noted earlier, all these examined points are able

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to transfer information to the companies that should use them to reinforce the connection with their customers and to attract new ones. Wine consumers’ behavior should be taken into particular consideration, especially nowadays when the wine sector is under a revision process caused by the globalization of the world’s wine markets. Over the last two decades, the number of wine consumers has significantly upturned, drawing a new geographical map for wine. The dichotomous division in the Old World and the New World has to share the market with the so-called “New, New World” and with emerging markets such as China and India. On the basis of the last OIV (Organisation Internationale de la Vigne et du Vin) statistic, China is among the main wine consumer countries, taking the fifth place in the worldwide wine consumption ranking immediately after Germany and before the United Kingdom.

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Marinelli, N., Fabbrizzi, S., Alampi Sottini, V., Sacchelli, S., Bernetti, I., Menghini, S., 2014. Generation Y, wine and alcohol. Asemantic differential approach to consumption analysis in Tuscany. Appetite 75 (1), 117–127. Mintel, 2008. UK Retail Briefing, Food and Drink. Available: http://academic.mintel.com/sinatra/oxygen academic/new reports. Mitchell, R., Hall, C.M., 2001. Self-ascribed wine knowledge and the wine behaviour of New Zealand winery visitors. Aust. N. Z. Wine Ind. J. 16 (6), 115–122. Muller, S., Szolnoki, G., 2010. The relative influence of packaging, labelling, branding and sensory attributes on liking and purchase intent: consumers differ in their responsiveness. Food Qual. Prefer. 21, 774–783. Muller, S., Francis, L., Lockshin, L., 2008. The relationship between wine liking, subjective and objective wine knowledge: does it matter who is in your “consumer sample”? In: Paper Presented at the Academy of Wine Business Research (AWBR), Siena, Italy. Natalia, V., Steve, C., Fountain, J., Ritchie, C., Fish, N., Dodd, T., 2016. Status or fun? A cross-cultural examination of young consumers’ responses to images of champagne and sparkling wine. Br. Food J. 118 (8), 1960–1975. O’Neill, M.A., Plamer, A., 2004. Wine production and tourism: adding service to a perfect partnership. Cornell Hotel Restaur. Admin. Q. 45 (3), 269–284. Olsen, J.E., Thompson, K.J., Clarke, T.K., 2003. Consumer self-confidence in wine purchases. Int. J. Wine Market. 15 (3), 40–51. Olsen, J.E., Thach, L., Nowak, L., 2007. Wine for my generation: exploring how us, wine consumers are socialized to wine. J. Wine Res. 18, 1–18. Pallonari, M., 2010. Il cambiamento dello scenario competitive e le nuove tendenze. In: Cardinali, G., Gregori, G.L., Pallonari, M. (Eds.), Piccole imprese vitivinicole e un nuovo approccio al marketing integrato. Franco Angeli. Ping, Q., Wuyang, H., 2016. Chinese consumer preference for red wine attributes. In: Agricultural & Applied Economics Association Annual Meeting, Boston. Platania, M., Rapisarda, P., Rizzo, M., 2015. Italian trade specialization: persistence and change in regional agri-food production. Agri-Line Pap. Econ. Inform. 7, 101–109. Platania, M., Rapisarda, P., Rizzo, M., 2016a. Food and health habits of university students. Relationship to food consumption behaviour. Int. Food Res. J. 23, 1239–1247. Platania, M., Rapisarda, P., Rizzo, M., 2016b. Wine tourism: website quality of wine roads in Italy. Calitatea 17, 242–250. Platania, M., Platania, S., Santisi, G., 2016c. Entertainment marketing, experiential consumption and consumer behavior: the determinant of choice of wine in the store. Wine Econ. Policy 5 (2), 87–95. Priilaid, D.A., 2006. Wine’s placebo effect: how the intrisic cues of visual assessments mask the intrinsic quality of South African red wine. Int. J. Wine Market. 18 (1), 17–32. Quinton, S., Harridge-March, S., 2008. Trust and online wine purchasing: insights into UK consumer behaviour. Int. J. Wine Bus. Res. 20, 68–85. Ritchie, C., 2009. The culture of wine buying in the UK off-trade. Int. J. Wine Bus. Res. 21 (3), 194–211. Ritchie, C., Elliot, G., Flynn, M., 2010. Buying wine on promotion is trading-up in UK supermarkets: a case study in Wales and Northen Ireland. Int. J. Wine Bus. Res. 22, 120–121. Rozin, E., Rozin, P., 2005. Culinary themes and variations. In: Korsneyer, C. (Ed.), The Taste Cultural Reader: Experiencing Food and Drink. Berg, Oxford, pp. 34–41. Santisi, G., Platania, S., Hichy, Z., 2014. A lifestyle analysis of young consumers: a study in Italian context. Young Consum. 15 (1), 94–104.

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Seghieri, C., Casini, L., Torrisi, F., 2007. The wine consumer’s behaviour in selected stores of Italian major ratailing chains. Int. J. Wine Bus. Res. 19, 139–151. Seymour, D., 2004. The social construction of “taste”. In: Sloan, D. (Ed.), Culinary Taste: Consumer Behaviour in the International Restaurant Sector. Buterworth Heinemam, London, pp. 1–22. Sharon, L., Cohen, D.A., Forbes, D., 2010. Women and wine: analysis of this important market segment. In: Fifth International Academy of Wine Business Research Conference, Auckland, NZ. Thach, E.C., Olsen, J.E., 2006. Market segment analysis to target young adult wine drinkers. Agribusiness 22 (3), 307–322. Thomson, J., 2007. What motivate women when buying wine? New Zealand Winegrower Futures, October/November, 2007. Vigar-Ellis, D., Pitt, L., Caruana, A., 2015. Knowledge effects on the exploratory acquisition of wine. Int. J. Wine Bus. Res. 27 (2), 84–102. Waller, D., 2006. Wine Tourism: The Case of Alsace, France (Unpublished master thesis). Bournemouth University, Dorset, UK. Zaichkowsky, J.L., 1988. Involvement and the price cue. Adv. Consum. Res. 15 (1), 323–327.

Further reading Cohen, E., 2009. Applying best-worst scaling to wine marketing. Int. J. Wine Bus. Res. 21, 8–23. Crenn, C., Demossier, M., Techoueyres, I., 2004. Wine and globalisation: foreword. Anthropology of food. Available from: https://aof.revues.org/308 (Accessed December 2016). OIV (Organisation Internationale de la Vigne et du Vin), 2016. State of the vitiviniculture world market. Available: http://www.oiv.int/public/medias/4587/oiv-noteconjmars2016-en.pdf (Accessed December 2016). Platania, S., Santisi, G., 2016. Determinants of choice and intensity of wine consumption: analysis of local and marketing strategies. Calitatea 17, 192–198. Santisi, G., Platania, S., 2014. Il rapporto tra il consumatore e il mass marketing brand: la determinante di scelta del centro commerciale. Micro Macro Mark. XXIII (3), 461–476.

Sensory and consumer sciences: What is their role as a business tool in the wine sector?

4

Giovanni Sogari⁎,†, Elena Casprini‡, Matteo Devigili‡,§, Tommaso Pucci‡ ⁎ Department of Food and Drug, University of Parma, Parma, Italy, †Dyson School of Applied Economics and Management, Cornell University, Ithaca, NY, United States, ‡ Department of Business and Law, University of Siena, Siena, Italy, §Doctoral School of Social Sciences, University of Trento, Trento, Italy

4.1 Introduction Consumer-driven innovation is becoming more and more central and decisive as a way to understand what makes consumers choose the product that maximizes their satisfaction. In the last decades, modern marketing research methods have been applied to understand and better predict the consumer behavior of specific target groups. The need of introducing techniques that can explain more accurately how individuals perceive and respond to new products is becoming a crucial topic, especially in the food and beverage sector where, due to an increasingly global competition regarding quality and quantity, product differentiation is a key element. In today’s wine market, producers tend to include a more consumer-oriented approach to understand what influences the overall liking and purchase intent of products (Danner et al., 2016). In general, the food choice process is very complex and personal and considers many factors. For wine products, consumers’ choices are guided by a multitude of criteria, such as price, brand, country of origin, vintage, grape, and previous exposure. Moreover, food and beverage choices also reflect and are influenced by sensory perceptions and preferences (mainly appearance, flavor, and taste). Among the many risks that consumers take into consideration while purchasing wine, taste is one of the most important (Mitchell and Greatorex, 1988). In particular, taste is to all intents and purposes a sensory element of marketing considering the significant weight in our final judgment when choosing wine (Horska et al., 2016). Besides sensory aspects, the overall perception is also influenced by different information of a wine such as typicality (Scozzafava et al., 2016), sustainability aspects (Santini et al., 2013; Schäufele and Hamm, 2017; Sogari et al., 2016), and “organic” and “nonadded sulfite” label (Amato et al., 2017; Costanigro et al., 2014). Understanding how all these stimuli influence expectations and impressions of the sensory properties is crucial. The multidisciplinary approach of sensory and consumer science can support the wine industry to meet the consumers’ need. Consumer science is focusing on how people make decisions, in the prepurchase phase, about products, and rarely, p­ articipants Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00004-5 Copyright © 2019 Elsevier Ltd. All rights reserved.

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taste the food in such studies, whereas the core element of the sensory science is the consumption and the sensory impressions of food (Grunert, 2015). This chapter aims to create an integrated and comprehensive framework regarding the most impactful consumer and sensory methods and themes to assess wine consumers’ behavior and perception.

4.2 Methodology To respond to the research objectives, the research team performed a critical literature review that was (January 2018) starting from the works extracted in the SCOPUS database and published in the period 2000–17. Bibliographic research entailed the following specific phases: (1) Data collection (phase 1): In the first step, a query on the SCOPUS database was carried out to extract all the “articles and reviews” (excluding therefore books, chapters, and conference proceedings) published in the period 2000–17, with English the language of publication. The keywords used for the query were “wine*” AND “consumer*” or “vine* AND “consumer*” in the title, abstract, or keywords of the study. The star “*” was used to consider also the words with the same common root (e.g., sensory, vineyard, and consumerism). At the end of this phase, 1991 potentially useful papers were identified. (2) Data cleaning (phase 2): A manual data cleaning operation excluded false positives from the analysis. In particular, the researchers excluded (a) the works containing the reference to “sensory” or “nonsensory” aspects of the wine but that are not actually treated in the article; (b) the work in which the word wine is mentioned but where the object of analysis is a collateral product (e.g., grape juice and raisins); and (c) the works that, while presenting a reference to the sensory or nonsensory aspects of wine, do not focus directly on the involvement of the consumer (e.g., chemical treatments of the soil). The final database consisted of 190 studies for sensory and 530 studies for nonsensory. (3) Data classification (phase 3): The database was divided into three distinct groups: (a) The first group consists of all the studies that dealt exclusively with the sensory aspects of the wine (with specific reference to its intrinsic attributes) in relation to the consumers’ involvement (purchase behavior, preferences, willingness to pay, etc.) (n = 98); (b) the second group consists of 92 works that dealt with both sensory and nonsensory aspects of wine (intrinsic and extrinsic attributes); (c) the third group comprises 530 studies dealing with nonsensory aspects (i.e., extrinsic attributes or whose focus is on consumers’ characteristics).

4.3 Results 4.3.1 Analytical framework The data collection procedure highlights the presence of two large heterogeneous blocks of studies. The first group includes studies that assess how the sensory aspects of wine can influence the behavior of purchase or consumption. In the second group, instead, the works explain how nonsensory characteristics of the product explain the same behavior. At the intersection of the two groups, the researchers identified a series of studies that use both aspects to analyze the consumer involvement.

Sensory and consumer sciences: What is their role as a business tool in the wine sector?49

To identify the main methods that define the role of consumer science as a business tool in the wine sector, it is useful to highlight the role that sensory analysis can play in the studies examined (Fig. 4.1). In the two extreme cases (define as “pure”), the relationship is clear: in the first case (A), the sensory analysis is the only predictor of a certain consumer behavior/perception; in the second case (B), the sensory analysis (tasting the product) is absent. After analyzing the studies that use both sensory aspects (aroma, flavor, etc.) and nonsensory aspects (brand, knowledge, etc.), two main conceptual relationships are identified. In the first case (C), the sensory analysis acts as a mediator between the influence of an extrinsic attribute and the consumer’s response. In this case, the sensory evaluation is the first response variable that is determined starting from the influence of an extrinsic attribute. The consumer behavior/ perception is subsequently determined on the basis of this “influenced” sensory analysis. For example, the evaluation of some sensory aspects of a wine tasted before and after receiving specific information about the product (e.g., extrinsic attributes) or the sensory evaluations are carried out in different contexts of consumption (in a lab or restaurant or at home). In the second case (D), sensory and nonsensory evaluations are analyzed simultaneously (with or without interaction between them). In this case, the extrinsic attributes do not determine a direct sensory evaluation, but together with the sensory analysis, they help to explain the behavior of the consumer (e.g., willingness to pay is evaluated starting from sensory aspects and followed by information on environmental sustainability). Sensory analysis

Influence and predict

(A) Non–sensory attributes analysis

Influence and predict

(B) Non–sensory attributes analysis

Influence

Sensory analysis

(C) Sensory analysis

Influence and predict

(D)

Non–sensory attributes analysis

Fig. 4.1  Role of sensory and nonsensory analysis.

Predict

Consumer response analysis (behavior/perception)

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This conceptual distinction is crucial for understanding two fundamental elements of the role that consumer science can play as a business tool in the wine sector. Firstly, it is important the role that some extrinsic variables can have in the design of a survey experiment and also in a research study. Experienced pleasantness (EP) from consuming a good does not depend only on its intrinsic attribute (Plassmann et  al., 2008); extrinsic variables can in fact directly influence sensory evaluation. In the case of a wine, extrinsic properties (e.g., price) have a crucial role in shaping the overall pleasantness and experienced sensory attributes after the tasting. For example, a wine with a well-written description on its label can evoke higher expectations before drinking a wine (Danner et al., 2016). The same extrinsic attribute can interact with sensory aspects to explain the consumption behavior. For instance, the attribute country of origin (COO) can directly influence the sensory evaluation of a wine because it is inextricably linked to the terroir of production. Moreover, independently of the sensory aspects, this attribute can influence the purchase/consumption behavior because of the perception of the image that a consumer has of a certain country or region (e.g., Pucci et al., 2017). Secondly, this distinction helps to better understand and classify the methods and tools that can be implemented in relation to the specific purposes of the investigations. The results of the analysis are presented starting from the framework represented in Fig. 4.2. The methods emerged from a critical literature review are not exhaustive in terms of the field; however, they are considered to have merit for studies in the wine field.

Mixed methods

Sensory methods

A

C

Nonsensory methods

D

Consumer response analysis Fig. 4.2  Analytic framework.

B

Sensory and consumer sciences: What is their role as a business tool in the wine sector?51

4.3.2 Sensory methods “Sensory evaluation is a scientific discipline used to evoke, measure, analyze, and interpret reactions to stimuli perceived through the senses (ASTM 2005)” (Lesschaeve, 2007, p. 253). Giacalone (2018) defines sensory methods as a heterogeneous set of tools aimed at understanding “how different ingredients, formulations, and processing parameters are reflected in the sensory profile of the products.” Methods have been classified based on the aim of the response provided by the respondents. The aim may be to compare two or more wines based on a set of “objective” attributes (objective difference) or to express preferences with respect to one or more wines (subjective difference) or a combination of both (combined). In the following, a description of the various methods is provided: Objective difference methods comprise sensory profiling and different testing: ●

●

Sensory profiling: through a descriptive analysis (DA), different products are evaluated by a panel of expert assessors with respect to a series of sensory attributes, using intensity scales (e.g., Mirarefi et al., 2004; Lee and Ahn, 2010). The data produce perceptual maps that characterize the main differences in the evaluated product sample. Difference testing: a set of techniques used to detect the degree of difference between two very similar products (Giacalone, 2018, p. 94). Within this category, the most used methods are as follows: Paired-comparison test (also known as two-alternative forced choice, 2-AFC): an assessor or a panel is asked to assess the differences between two products with reference to one or more specific criteria (appearance, flavor, taste, aroma, etc.—e.g., Matthews et al., 1990). Same-different test: an assessor or a panel is asked to evaluate if products are identical or not (Martin et al., 2008). ●

●

Subjective difference methods comprise preference mapping, just-about-right scaling, and response surface methodology (Giacalone, 2018): ●

●

●

Preference mapping: consumers use hedonic scales for expressing their like/dislike of each product (Malherbe et al., 2013; Biasoto et al., 2014; McMahon et al., 2017). Just-about-right scale (JAR): through this method, a consumer is asked to evaluate on a Likert scale a product with respect to specific attributes. A variant of this method is the “penalty analysis.” Response surface methodology (RSM): it predicts the value of a dependent variable (observed result) based on some controlled experimental factors (e.g., ingredient levels) (Tzeng et al., 2009).

Combined methods comprise methods with both objective and subjective difference. Two of the most common methods observed were ideal profile and neuroscience: ●

●

Ideal profile method: consumers rate the perceived and ideal product profile intensities from a list of attributes and indicate how much they like each product (liking rating). Therefore, it can be considered a combination of sensory profiling and JAR scaling (Worch et al., 2012, p. 74). Consumer neuroscience: it is a new field in (neuro)marketing that deals with the functioning of the human brain and can help to better understand feelings and choices based on physiological changes and the relationship to different stimuli (e.g., olfactory, gustatory, visual, and auditory inputs in a multidimensional way). In wine business, neuroscience can be used to analyze consumer emotions during the tasting (Horska et al., 2016) (Table 4.1).

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Table 4.1  Sensory methods Objective differences Types of methods used

Sensory profiling Difference testing: Paired-comparison test Same-difference test ●

Subjective differences

Combined

Preference mapping Just-about-right scaling

Ideal profiling Consumer neuroscience

●

Response surface methodology

4.3.3 Mixed methods Mixed methods are when pure-sensory methodologies are combined with extrinsic attributes. Some examples found in wine consumer studies are as follows: ●

●

Check all that apply (CATA): consumers are asked to associate prespecified words or phrases to a product that they are evaluating. Among the various words and phrases, the consumer can choose among both sensory and nonsensory terms (Vidal et al., 2017; Lockshin et al., 2017). Projective mapping: this methodology allows consumers to evaluate products from an overall perspective, generating responses deeply connected to what happened at the time of decision and guaranteeing consumers’ spontaneity (Asioli et al., 2017). Additionally, projective mapping is useful to gather information about associations among products (Lezaeta et al., 2017; Torri et al., 2013).

4.3.4 Nonsensory methods Qualitative and quantitative nonsensory methods on consumers’ preferences and opinions have been widely used in the last decades. We have classified nonsensory methods based on the type of interaction between the researcher and its target group. Based on such interaction collected, data can be considered “bounded” in nature, i.e., they cannot be changed by the interviewee or to be “not bounded.” Here, it is a list of most common methods that focus on the extrinsic attributes of wine (identified in our literature): ●

●

●

●

Surveys: interviewees are bounded by the questionnaire provided by the researcher. Such questionnaires may be conducted online or off-line. Usually, a survey consists of structured, closed-ended questions. Secondary data and review: the researcher is bound by the data collected by others (e.g., institutions) or by the available contributions over a specific topic, respectively. Interviews: participants can express their thoughts about a specific topic. For example, Beverland (2006) conducted 39 interviews with over 20 wine producers and 30 interviews with wine consumers to understand the attributes of authenticity in the commercial context and how firms manage images of authenticity. Focus groups: they are conducted with moderators that lead the discussion among a group of individuals. For example, the work by Neuninger et al. (2017) explores consumers’ evaluation about wine awards.

Sensory and consumer sciences: What is their role as a business tool in the wine sector?53 ●

●

●

Netnography: these studies are conducted using accessible data from online communities and social media. An example is provided by Cuomo et al. (2016) who derived consumers’ insight and mapped wine lovers’ identity on the basis of thematic clusters that emerged from hashtags. Multiple methods: several contributions have used a combination of surveys and interviews. For instance, Fotopoulos et  al. (2003) provided respondents with a list of attributes (i.e., bounded methods) and then on the basis of the most important attributes a “laddering” interview method was used, encouraging the interviewee toward a certain topic. Experiments: participants are bounded with respect to the specific treatment chosen by the researcher; however, they are not bounded in their behavior.

4.3.5 Themes: Product-related and consumer-related Based on a broader analysis, two main themes have been distinguished: product-­ related themes and consumer-related themes. Product-related themes comprise factors that are related to the wine. Here, it is a list of the main important elements: ●

●

●

●

●

●

Price: extrinsic cue often used as a proxy for quality. Its impact on consumer purchasing behavior depends mainly on consumers’ sociodemographic characteristics as well as involvement and knowledge (Lockshin et al., 2006). Origin, wine region, location, and geographic indication: the importance of origin in enhancing both the willingness to pay (Pucci et al., 2017) and the expected quality of wines within a region (Johnson and Bruwer, 2007). Store, restaurant, supermarket, and winery: some studies have focused on understanding the profile of winery’s visitors to design better experiences and activities (Charters and AliKnight, 2002) and on the different determinants of purchasing choices in store and restaurants (Dodd et al., 2005). Brand: the relationship of brand equity, brand image, and authenticity with consumers has grasped researchers’ attention (Beverland, 2006), and the recent literature highlighted that brand prestige outperforms consumer experience in effecting consumer satisfaction (Loureiro and Cunha, 2017). Communication and advertising: the impact of online consumer communication on brands (Quinton and Harridge-March, 2010) or the influence of adverting on purchasing choices of different types of consumers (Dodd et al., 2005). Sustainability (organic and environmentally friendly wines): there has been much interest on the impact of environmental sustainability on millennial consumers (Sogari et al., 2017) and the role of environmental values and beliefs on sustainable labeling of wine (Sogari et al., 2015). Other authors investigated the motivations to purchase organic wine (Fotopoulos et al., 2003), and the premium price consumers are willing to pay for such wines (Ay et al., 2017). Packaging: wine choices are also influenced by cues on the label and packaging of the product (Mueller Loose and Szolnoki, 2012). Recent studies have focused on the role of the green packaging (Barber, 2010), the attractiveness of new and innovative packaging (Nesselhauf et al., 2017), the information provided through the back label (Mueller et al., 2010), and the illustrations (Boudreaux and Palmer, 2007). All these wine packaging cues have an impact on consumers and can significantly affect their purchasing behaviors (Barber and Almanza, 2007). Packaging also refers to bottle. For example, the weight of the bottle has been found as a quality cue (Piqueras-Fiszman and Spence, 2012). ●

●

54 ●

●

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Food: wine is often consumed with food; hence, there is a need to find wine-food patterns. Indeed, in some countries, food matching can represent a relevant influencer of consumer purchasing decisions (Goodman, 2009). Vintage: vintage is a determinant of consumers’ valuation of wines (Angulo et al., 2000) and has a different degree of impact on consumer purchasing choices (Yu et al., 2009; Galati et al., 2017). Recommendation: both friends’ and sommeliers’ recommendations play a core role in consumer choices (Dewald, 2008; Bruwer and Buller, 2012).

Consumer-related themes, in contrast, refer to consumers’ specific characteristics such as their age, income and knowledge, and reasons to buy (e.g., special occasion versus home consumption). Consumer-related themes have often been studied in combination with product-related themes: ●

●

●

●

Involvement: it represents the perceived personal relevance of wine to an individual (Bruwer and Buller, 2013). The level of involvement influences not only the perception of wine quality (Charters and Pettigrew, 2006) and purchase intention (Hollebeek et  al., 2007) but also consumption frequency, quantity, and COO preferences (Bruwer and Buller, 2013). Usually, consumers are segmented between low-involvement and high-involvement consumers. Knowledge and experience: consumers have different levels of knowledge, subjective (i.e., what they think they know) or objective (i.e., what they really know), and are often classified as novices or experts on the basis of whether their level of knowledge is lower or higher than the average (Viot, 2012). Knowledge and experience may influence the impact of other object-related themes, such as country of origin (Famularo et al., 2010) and sources of information (Dodd et al., 2005). Motivation/reasons for buying: consumers may buy wine for ordinary or special occasions (Liu and Murphy, 2007), for home consumption, in restaurants (Lacey et al., 2009), or as a gift (Yu et al., 2009). Different occasions are linked with different perceived risks such as financial, psychological, and social risks (Bruwer et al., 2013) and influence consumers in relying on different cues, such as expert opinions (Aqueveque, 2006). Gender, income, age, and lifestyle: among these, consumers’ age is of great interest. For instance, younger and older generations differ in the information used (Barber et al., 2008), drinking behaviors (Li et  al., 2011), wine consumption preferences (Olsen et  al., 2007), online purchasing (Bruwer and Wood, 2005), and preference toward specific wine attributes (Chrysochou et al., 2012).

4.4 Conclusions and implications Combining pure-sensory and consumer methods is becoming an attractive area of research (Tuorila, 2015), and wineries can benefit from this interaction. For example, when a winery is in the developing stage, the possibility to combine both consumers and sensory methods will result in a better understanding of the overall potential of consumer acceptability and market success of the product. Even if sensory and consumer (marketing and behavioral) scientists started to work more and more together using common methods (Giacalone, 2018), there is still too little interdisciplinary collaboration (Grunert, 2015; Jaeger et al., 2017).

Sensory and consumer sciences: What is their role as a business tool in the wine sector?55

Collaboration is very much needed, and many methods should be shared among food and sensory scientists with behavioral economists, marketing and business professionals, psychologists, and anthropologists as well as geneticists and neuroscientists. These expertises altogether may better help to reveal the mechanisms behind the variation of our perception (Asioli et al., 2017; Jaeger et al., 2017). Combris et al. (2009) developed a protocol that integrates the techniques of hedonic tests with those of economic experiments. They have investigated how sensory and experimental economic techniques can be used side by side in order to understand better what influence consumer’s preferences. Instead, Danner et al. (2017) studied the interaction of different levels of information on a label (wine sensory, quality, and producer descriptors) and intrinsic attributes in combination with preference tasting. They showed how elaborate information level evoked higher expectations before tasting the wines and resulted in higher liking ratings and compared with the blind condition also higher willingness to pay. However, most of the studies analyzed have shown several limitations that cannot be avoided in a lab experiment, such as a restricted number of products, the trade-off between only few wine attributes, and the specific context of the lab where social interaction is missing. The need to increase real-life consumer studies for experimenting in more complex environments is the next challenge for sensory and consumer researchers (Jaeger et al., 2017; Meiselman, 2013).

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Goodman, S., 2009. An international comparison of retail consumer wine choice. Int. J. Wine Bus. Res. 21 (1), 41–49. Grunert, K.G., 2015. The common ground between sensory and consumer science. Curr. Opin. Food Sci. 3, 19–22. Hollebeek, L.D., Jaeger, S.R., Brodie, R.J., Balemi, A., 2007. The influence of involvement on purchase intention for new world wine. Food Qual. Prefer. 18 (8), 1033–1049. Horska, E., Bercik, J., Krasnodebski, A., Matysik-Pejas, E., Bakayova, H., 2016. Innovative approaches to examining consumer preferences when choosing wines. Agric. Econ. 62 (3), 124–133. Jaeger, S.R., Hort, J., Porcherot, C., Ares, G., Pecore, S., MacFie, H.J.H., 2017. Future directions in sensory and consumer science: four perspectives and audience voting. Food Qual. Prefer. 56, 301–309. Johnson, R., Bruwer, J., 2007. Regional brand image and perceived wine quality: the consumer perspective. Int. J. Wine Bus. Res. 19 (4), 276–297. Lacey, S., Bruwer, J., Li, E., 2009. The role of perceived risk in wine purchase decisions in restaurants. Int. J. Wine Bus. Res. 21 (2), 99–117. Lee, S.J., Ahn, B.H., 2010. Sensory profiling of rice wines made with nuruks using different ingredients. Korean J. Food Sci. Technol. 42, 119–123. Lesschaeve, I., 2007. Sensory evaluation of wine and commercial realities: review of current practices and perspectives. Am. J. Enol. Vitic. 58 (2), 252–258. Lezaeta, A., Bordeu, E., Næs, T., Varela, P., 2017. Exploration of consumer perception of Sauvignon Blanc wines with enhanced aroma properties using two different descriptive methods. Food Res. Int. 99, 186–197. Li, J.-G., Jia, J.-R., Taylor, D., Bruwer, J., Li, E., 2011. The wine drinking behaviour of young adults: an exploratory study in China. Br. Food J. 113 (10), 1305–1317. Liu, F., Murphy, J., 2007. A qualitative study of Chinese wine consumption and purchasing: implications for Australian wines. Int. J. Wine Bus. Res. 19 (2), 98–113. Lockshin, L., Jarvis, W., d’Hauteville, F., Perrouty, J.-P., 2006. Using simulations from discrete choice experiments to measure consumer sensitivity to brand, region, price, and awards in wine choice. Food Qual. Prefer. 17, 166–178. Lockshin, L., Corsi, A.M., Cohen, J., Lee, R., Williamson, P., 2017. West versus East: measuring the development of Chinese wine preferences. Food Qual. Prefer. 56, 256–265. Loureiro, S.M.C., Cunha, N.P.D., 2017. Wine prestige and experience in enhancing relationship quality and outcomes: wine tourism in Douro. Int. J. Wine Bus. Res. 29 (4), 434–456. Malherbe, S., Menichelli, E., du Toit, M., Tredoux, A., Muller, N., Næs, T., Nieuwoudt, H., 2013. The relationships between consumer liking, sensory and chemical attributes of Vitis vinifera L. cv. Pinotage wines elaborated with different Oenococcus oeni starter cultures. J. Sci. Food Agric. 93 (11), 2829–2840. Martin, A., Mallikarjunan, K., Zoecklein, B.W., 2008. Discrimination of wines produced from Cabernet Sauvignon grapes treated with aqueous ethanol post-bloom using an electronic nose. Int. J. Food Eng. 4 (2), 1556–3758. Matthews, M.A., Ishii, R., Anderson, M.M., O’Mahony, M., 1990. Dependence of wine sensory attributes on vine water status. J. Sci. Food Agric. 51 (3), 321–335. McMahon, K.M., Diako, C., Aplin, J., Mattinson, D.S., Culver, C., Ross, C.F., 2017. Trained and consumer panel evaluation of sparkling wines sweetened to brut or demi sec residual sugar levels with three different sugars. Food Res. Int. 99, 173–185. Meiselman, H.L., 2013. The future in sensory/consumer research: evolving to a better science. Food Qual. Prefer. 27 (2), 208–214.

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Mirarefi, S., Menke, S.D., Lee, S.-Y., 2004. Sensory profiling of Chardonel Wine by descriptive analysis. J. Food Sci. 69 (6), 211–217. Mitchell, V.-W., Greatorex, M., 1988. Consumer risk perception in the UK wine market. Eur. J. Mark. 22 (9), 5–15. Mueller Loose, S., Szolnoki, G., 2012. Market price differentials for food packaging characteristics. Food Qual. Prefer. 25 (2), 171–182. Mueller, S., Lockshin, L., Saltman, Y., Blanford, J., 2010. Message on a bottle: the relative influence of wine back label information on wine choice. Food Qual. Prefer. 21 (1), 22–32. Nesselhauf, L., Deker, J.S., Fleuchaus, R., 2017. Information and involvement: the influence on the acceptance of innovative wine packaging. Int. J. Wine Bus. Res. 29 (3), 285–298. Neuninger, R., Mather, D., Duncan, T., 2017. Consumer’s skepticism of wine awards: a study of consumers’ use of wine awards. J. Retail. Consum. Serv. 35, 98–105. Olsen, J.E., Thach, L., Nowak, L., 2007. Wine for my generation: exploring how US wine consumers are socialized to wine. J. Wine Res. 18 (1), 1–18. Piqueras-Fiszman, B., Spence, C., 2012. The weight of the bottle as a possible extrinsic cue with which to estimate the price (and quality) of the wine? Observed correlations. Food Qual. Prefer. 25 (1), 41–45. Plassmann, H., O’Doherty, J., Shiv, B., Rangel, A., 2008. Marketing actions can modulate neural representations of experienced pleasantness. Proc. Natl. Acad. Sci. 105 (3), 1050–1054. Pucci, T., Casprini, E., Rabino, S., Zanni, L., 2017. Place branding-exploring knowledge and positioning choices across national boundaries: the case of an Italian superbrand wine. Br. Food J. 119 (8), 1915–1932. Quinton, S., Harridge-March, S., 2010. Relationships in online communities: the potential for marketers. J. Res. Interact. Mark. 4 (1), 59–73. Santini, C., Cavicchi, A., Casini, L., 2013. Sustainability in the wine industry: key questions and research trends. Agric. Food Econ. 1 (1), 9. Schäufele, I., Hamm, U., 2017. Consumers perceptions, preferences and willingness-to-pay for wine with sustainability characteristics: a review. J. Clean. Prod. 147, 379–394. Scozzafava, G., Boncinelli, F., Contini, C., Romano, C., Gerini, F., Casini, L., 2016. Typical vine or international taste: wine consumers’ dilemma between beliefs and preferences. Recent Pat. Food Nutr. Agric. 8 (1), 31–38. Sogari, G., Corbo, C., Macconi, M., Menozzi, D., Mora, C., 2015. Consumer attitude towards sustainable-labelled wine: an exploratory approach. Int. J. Wine Bus. Res. 27 (4), 312–328. https://doi.org/10.1108/IJWBR-12-2014-0053. Sogari, G., Mora, C., Menozzi, D., 2016. Factors driving sustainable choice: the case of wine. Br. Food J. 118, 632–646. Sogari, G., Pucci, T., Acquilani, B., Zanni, L., 2017. Millennial generation and environmental sustainability: the role of social media in the consumer purchasing behavior for wine. Sustain. For. 9 (10), 1911–1927. Torri, L., Dinnella, C., Recchia, A., Naes, T., Tuorila, H., Monteleone, E., 2013. Projective mapping for interpreting wine aroma differences as perceived by naïve and experienced assessors. Food Qual. Prefer. 29 (1), 6–15. Tuorila, H., 2015. From sensory evaluation to sensory and consumer research of food: an autobiographical perspective. Food Qual. Prefer. 40 (PB), 255–262. Tzeng, D.-I., Tai, C.-Y., Chia, Y.-C., Lin, Y.-P., Ou, A.S.-M., 2009. Investigation of fermenting conditions for sugarcane (Saccharum officinarum l.) wine using response surface methodology. J. Food Process. Preserv. 33 (3), 330–346. Vidal, L., Antúnez, L., Giménez, A., Medina, K., Boido, E., Ares, G., 2017. Sensory characterization of the astringency of commercial Uruguayan Tannat wines. Food Res. Int. 102, 425–434.

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Viot, C., 2012. Subjective knowledge, product attributes and consideration set: a wine application. Int. J. Wine Bus. Res. 24 (3), 219–248. Worch, T., Le, S., Punter, P., Pagès, J., 2012. Extension of the consistency of the data obtained with the ideal profile method: would the ideal products be more liked than the tested products? Food Qual. Prefer. 26, 74–80. Yu, Y., Sun, H., Goodman, S., Chen, S., Ma, H., 2009. Chinese choices: a survey of wine consumers in Beijing. Int. J. Wine Bus. Res. 21 (2), 155–168.

Further reading Byrd, E.T., Canziani, B., Boles, J.S., Williamson, N.C., Sonmez, S., 2017. Wine tourist valuation of information sources: the role of prior travel. Int. J. Wine Bus. Res. 29 (4), 416–433.

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Part Two New and Innovative Products: The Role of Consumer Science

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Ignoring consumer science? Three cases from Austria about innovation, philosophies, gut feeling, and intuitive decision-making

5

Albert Franz Stöckl, Michael Lee, Stephanie Tischler IMC Krems University of Applied Sciences, Krems, Austria

5.1 Introduction Many Austrian wineries, distilleries, and cider makers are small family-run and family-owned businesses, utilizing mostly family members and partly semiskilled, mainly Eastern-European workers. Due to small structures and limited budgets, many firms lack professionals with academic or, more specifically, consumer science backgrounds. Thus, affinity toward and knowledge of consumer science is scarce. In fact, many wineries—the vast majority—entirely ignore the application of consumer or marketing research. Entrepreneurs in this field face challenges due to globalization and changing consumer consumption patterns (e.g., in product development) and are disadvantaged compared with big, multinational firms. The interplay of how decisions are made with the necessity to maintain a level of competitive advantage in a complex, consumer-centric market represents a significant challenge. However, SMEs in this field mostly ignore consumer science insights or use them only unconsciously to design new and pioneering products. Nevertheless, numerous cases show that innovative and free-spirited concepts are highly successful. This chapter shows three examples of Austrian firms, who successfully introduced new concepts and products to the market. Furthermore, it presents a contradictory view on consumer science application based on unconventional approaches in innovation management and intuitive decision-making.

5.2 Innovation management Innovation is seen as a multifaceted, fluid paradigm and broadly as a new idea (Van de Ven, 1986). Applying this premise, we can see innovation as including “…the introduction of new or improved processes, products or services based on new scientific or technical knowledge and/or organizational know how” (OECD, 2004).

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This modern definition of innovation has in fact been fundamental in its application throughout the later part of the 20th century as noted by Trott (2012), having followed on from Schumpeter's evolutionary theory and its focus in acknowledging a firm's dynamic capabilities as a pretext to the ability to acquire and utilize knowledge and apply this to the development of new products. Knowledge, both external and internal, plays a consistent part in the process of innovation, manifested through many of the practices undertaken by management. How we relate to and incorporate knowledge into the fabric of a company's culture and ethos could be a singular explanation of innovation in action. Dressler (2013) and his study of innovation management of German wineries revealed the majority of wine-industry-specific literature on innovation focused on two areas. The first, “cluster and networks,” sites the many cases of emerging wine countries catching up with the old-world economies, using these clustering-/network-based innovation initiatives. The second focus addressed mainly managerial studies on individual innovation projects where product differentiation was the main driver, indicating that this form of innovation was still the main focus for competitiveness within the wine industry (Aylward and Glynn, 2006).

5.2.1 Models of innovation Initial insight into models of innovation looks at studies through the 1980s and 1990s that divide into two schools of thought: the market-based view and the resource-based view. The market-based view acknowledges the external environment as being the catalyst for innovative conditions, where the resource-based view focuses on the firm and its resources, capabilities, and skills (Trott, 2012). From the above linear-based models, more complex, interactive models are developed, leading to one of the first “new-wave” processes being the simultaneous coupling model that positioned innovation as a linked process, fluid, and without a commencement point (Trott, 2012). This model suggests that innovation is the result of the interaction (coupling) of the knowledge within all three of the given functions (manufacturing, R & D, and marketing). These interactive models were developed further, resulting in more complex processes that recognized where stimuli and innovation opportunities interact. The flow of information in and out to both stimuli (market and technology) has a major influence on innovation taking place as a sustainable, long-term process. Inspiration or innovative breakthroughs can come from any of the function departments (R & D/manufacturing/marketing) as they act and collaborate within this environment. The most current innovation models reflect very strongly the “new economy” and its influence by technology and the expanse of the Internet. The open innovation model “is an information-creation process that arises out of social interaction” (Trott, 2012). Chesborough (2003) goes on to broaden this position saying that innovation has shifted from one of closed systems, internal to the firm, to a new mode of open systems that all stakeholders up and down the distribution channel are involved. There are numerous successful case studies that have used this open innovation model to

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form co-collaboration networks with its market, leading to innovative new product development, mostly within the start-up community.

5.2.2 The dilemma of innovation management “Within virtually all organizations there is a fundamental tension between the need for stability and the need for creativity” (Trott, 2012, p. 84). This tension is played out especially acutely in SMEs, where individuals are responsible for a number of the management activities affecting the business. Creativity then, also being integral to the innovation process, is largely attributed to management mind-sets. In fact, as Trott points out, environments that are inherently “stable” orientated risk tension if they try to adopt a more creative aspect to their already established structure. This dilemma is therefore critical in understanding the balance that is needed between these two paradigms, as a means of establishing an environment that can adopt innovation management into its culture and activities.

5.2.3 New product development (NPD) and innovation management NPD theories and models have been a difficult area of research to analyze and represent to the market for activation, the reason for this being the default adoption of NPD as a linear process, which in many management books is represented as so (Trott, 2012). This linear process, starting off with how Trott terms it “the fuzzy front end” (2012, p. 434), is concerned with idea generation and concept development. These creative activities then lead to the more structured activities such as business activity, product development, test marketing, commercialization, and finally monitoring (p. 433). More recent research, however, suggests that the process needs to be viewed as a simultaneous and concurrent process with cross functional interaction (Hart, 1993; Barczak et al., 2009). Nambisan (2002) and his insights into a “virtual customer environment” identified three customer roles: customer as resource, customer as cocreator, and customer as user. He explains that these three classifications can provide a useful basis from which to consider customer involvement in the NPD process, something that has become prevalent in today's cocollaboration culture.

5.3 Intuitive decision making Based on Mintzberg and Westley (2001) decision-making approaches, Pina e Cunha (2007) differentiates three modes of entrepreneurial decision-making: rational, intuitive, and improvisational (see Table 5.1). These three modes should be seen more complementary than competitive. Entrepreneurial work requires more than rational or cognitive activities, as intuition and improvisation play a relevant role in certain situations (Pina e Cunha, 2007).

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Table 5.1  Three modes of entrepreneurial decision-making

Logic Operation Process

The entrepreneurial material The mental process Conditions

Temporal perspective

Rational

Intuitive

Improvisational

Science Thinking first Define Diagnose Design Decide Facts

Art Seeing first Preparation Incubation Illumination Verification Ideas

Craft Doing first Enactment Selection Retention

Planning and programming Clear issue Reliable data Structured world Objective time

Visioning and imagining Combination of ideas Commitment Out of time

Venturing and learning Time pressures Confusing situations

Experiences

Subjective time

From Pina e Cunha, M., 2007. Entrepreneurship as decision making: rational, intuitive and improvisational approaches. J. Enterp. Cult. 15 (1); based on Mintzberg, H., Westley, F., 2001. Decision making: it’s not what you think. MIT Sloan Manag. Rev. 42 (3), 89–93.

Glöckner and Witteman (2009, p. 1) claims that “intuitive-automatic processes are crucial for making judgements and decisions.” These authors divided intuitive processes in four general types: associative intuition, matching intuition, accumulative intuition, and constructive intuition. Expert intuition is a special type of intuition, which is based on explicit learning but sometimes difficult to trust because the specialists cannot explain their decisions reasonably (Glöckner and Witteman, 2009). Intuition is based on automatic, reflex practices, which mostly operate without people's awareness and end as feelings, signals, or interpretation. The less sophisticated sense of “gut feel” is one of several signs of intuition when someone follows his/her instinct and experience (Khandelwal and Taneja, 2010, pp. 150–151).

5.4 Three cases from Austria Traditionally, wineries in Austria are family-run and family-owned small- and ­medium-sized companies with an average size of 2.26 ha (AWMB, 2010). The following case studies represent three traditional and typical family-run and family-owned companies in the Austrian wine industry and exemplify characteristic product innovation approaches that innovative Austrian vintners are following at the moment.

5.4.1 Methodology To obtain these three Austrian case studies, expert interviews were carried out. For the interviews, a structured interview guideline with 12 questions was developed. The topics covered were innovation processes, consumer science approaches, consumer

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behavior of current customers, marketing strategies, innovation drivers and barriers, learnings based on the innovation process, and ideas and strategies for the future. The length of each interview was between 40 and 50 min. All interviews were done faceto-face, held in German (which is the mother tongue of all experts), audio recorded, and summarized, and finally, qualitative data analysis was done using a coding system.

5.4.2 Distillery Farthofer—“Mostello” The distillery Farthofer, located in Lower Austria, is run as a fifth-generation family business. From a volume perspective, the distillery is one of Austria's midsized distilleries. Regarding the assortment, it offers a broad portfolio of brandies, liqueurs, and noble spirits of the finest organic quality. The family cultivates a large proportion of mostly pears but also apples, berries and vegetables themselves. Fruit that they do not produce themselves is purchased from regional suppliers. In 2003, the distillery became the first one in Austria to convert to organic practices and processes. Earlier, the family experienced that their harvested high-quality fruit could not be sold at reasonable prices, but the production of spirits and infusions of high- and organic-quality product created much higher value. This led to the fact that the production of organic spirits and infusions has now gained significant importance in the company's portfolio (Fig. 5.1). In 2000, with an increasing interest of many Austrian consumers in port and sherry wines, coupled with 27 years' experience in must production, the family started to experiment with the idea of creating the “Mostello.” The Mostello product line is a unique and out-of-the-ordinary composition created from pear cider and pear brandy—in its style reminiscent of a port wine or a Madeira but with the enchanting freshness and fresh notes of the Austrian subalpine region. After a few years of experimentation, 2005 was the first vintage of Mostello. This particular specialty was released to the market in 2014 after 9  years of gentle maturing. With the creation of the so-called Mostelleria in 2010—a theme park and main wine tourism offer in the region—sales ex cellar door were stimulated, which turned out to be a very successful channel to sell the distillery's products and to create a very loyal customer base. During the product development of “Mostello,” neither a systematic idea generation nor a consumer-science-based approach was followed. The product is developed out of trial and error, the product line “Dry Mostello” being developed completely by chance. Based on the family's experience, consumer science can help to test new products beforehand and to avoid trial and error approaches. However, they did not use any consumer science approaches for their own product development. The family simply trusted in their own capabilities and the knowledge of skilled partners such as graphic designers for label design. No broad consumer tastings and tests were made; only internal staff tastings and discussions (e.g., on new label designs) were done. According to Josef Farthofer, external partners and people unrelated to the industry are very valuable providers of new input and new ideas in product development. Regarding idea generation and product development, he mentions that it is important to observe national and international competitors. However, a successful innovator has to follow his/her own authentic process and has to be open for innovations and taking risks.

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Fig. 5.1  Mostello.

He also mentions that innovations in the wine industry take their time (usually at least 3–5 years). Therefore, a pioneer has to follow an idea consistently and be patient when striving for innovations. Furthermore, an innovator has to be aware of the fact that a considerable budget has to be provided for marketing as well, not only for product development. A sound wine-industry-related education is seen as very important in order to be able to predict innovation needs and find new perspectives. Gathering new ideas and exchanging with colleagues—regionally, nationally, and internationally—and combining them for one's own authentic product development are considered as a key point in innovation management. Cooperation is regarded as a vital innovation driver, whereas innovation barriers are mostly seen in legal frameworks.

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In the future, the distillery wants to increase export shares and act as one of the drivers in the upcoming vodka trend in Austria.

5.4.3 Winery H.P. Harrer—Natural wines The winery H.P. Harrer is run by the owner Hans Peter Harrer and located in Burgenland, near Lake Neusiedl. The winery owns 6 ha of wine-growing area and is run as a sole proprietorship. Hans Peter took over the company from his parents in 2011, who tried to follow the rules of organic production of grapes as closely as possible. Grapes have always been sold to a regional wine-producing company. Due to the change of this purchaser to organic production, the winery was externally forced to also change to organic production. Hans Peter was—based on family tradition—also intrinsically motivated to try new approaches while protecting nature and started to switch to completely natural and organic production little by little. Before Hans Peter was striving for organic certification for his company, he tested many new and organic wine production approaches based on his previous work experience obtained in different wineries. Hans Peter found out that it was necessary to deeply engage in this topic and started to extensively study and observe the vineyards in order to get a better and deeper knowledge of them. His work is characterized by trial and error and developing new approaches step by step. Investments are also done on a small scale year by year, which provides financial independence from banks. He feels that his (financial) freedom gives him the chance to produce his wines slowly and sustainably and gives them time to age, as he sees an increasing demand of consumers interested in slowly produced wines (Fig. 5.2). Besides this financial freedom, he believes that a conglomerate of innovative and younger-generation vintners in a region may also stimulate innovations. Additionally, the political and economic situation influences the innovativeness strongly.

Fig. 5.2  H.P. Harrer.

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Nevertheless, Hans Peter mentions that today's wine business education needs to be questioned, as the focus is still on traditional and industrial production and it does not give perspectives on new and other innovative methods of how to produce wine. He also highlights that it is important to gather experiences in different companies and wineries and to have an eye on the work of colleagues to gather new ideas. However, he also says, “In the end, you have to develop your own ideas; you should not copy existing products and approaches. Many vintners try to copy award-winning wines, but products and approaches have to be authentic and regionally specific.” According to Hans Peter, the extensive use of consumer science approaches in the wine industry may lead to the fact that wines are becoming more and more standardized to meet the consumer's taste. He believes that today, consumers tend not to think about their purchasing decisions but rely more and more on ratings and awards. This will lead to a higher market dominance of large companies selling standardized products to achieve economies of scale. This could endanger the freedom of consumers to choose, as the products are tailored to low-involved consumers for their daily purchase decisions. These wines may be easy to purchase and decide on as they meet the average consumer's taste and are therefore suitable for most target groups and many situations. Nevertheless, niche products, which may not be designed according to consumer science, may find a clearer unique selling proposition, especially in the target group of highly involved consumers with a higher willingness to pay. Hans Peter thinks that those vintners, who try and follow new and innovative approaches, will then offer wines to consumers who especially look for these different, challenging, innovative, and handmade products. This may counterbalance the trend toward mass-produced wines based on consumer science approaches. The winery Harrer does not make use of any communication tools such as a website. Hans Peter solely believes in the quality of the product as his marketing approach, which turned out to be more successful and sustainable (e.g., organic farming brought higher resistance to bad weather conditions; more biodiversity in the vineyards leads to higher product quality). The most sale-enhancing measure is word of mouth through restaurants/bars. With this approach, Hans Peter is able to achieve higher prices compared with the competition. His high-quality products come in limited volumes and are usually sold out quickly. The vintner also highlights that he does not want his business to grow significantly in the future, as this would lead to limitations in his (financial) freedom and creativity as he would then be forced to go in the direction of mass production that he wants to strictly avoid.

5.4.4 Winery Preiss—Unfermented single grape variety juices The family-run winery Preiss in Theyern (Lower Austria) owns about 11 ha of winegrowing area. The winery is specialized in the production of unfermented single grape variety juices and produces three white varieties (Grüner Veltliner, Sauvignon blanc, and Gelber Muskateller) and one red unfermented juice from Zweigelt grapes. All juices are available in classical 0.75 L bottles and in 0.25 L bottles. The family's philosophy is that the grape juice production shall have the same importance compared with their regular wines. This is also clearly marketed (e.g., same price ratio as for regular wines) and communicated (e.g., by serving the juices in 1/8 L high-quality wine glasses).

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The motivation and main reason why the Preiss family started to produce unfermented single grape variety juices in the beginning of the 2000s can be found in the company's history and its traditional portfolio. The family has always produced single grape variety unfiltered apple juice and had customers who were fascinated by these special products. Due to the fact that the family is highly interested in fruit juice production and as technical equipment and knowledge were available, it was easy to start an experiment: the production of single grape variety juices. The second important impulse was the family's enthusiasm to provide customers with a unique assortment, which clearly differentiates the winery from its competitors. However, this step was not taken because of any planned differentiation strategies. Viktoria Preiss, the daughter and next-generation winemaker of the family, highlights that the decision to produce grape juices was made out of high family interest, out of experience, and out of gut feeling. The family started to produce small quantities of two unfermented grape juices in the first years. After initial success, the family expanded their production step by step. Today, the family sees high interest from different media and customers in their highly specialized product. Furthermore, the family was able to develop another very important niche market: high-end and luxury restaurants, where the family's single grape variety juices are served instead of wines as an aperitif, corresponding to the menu or with desserts. Besides this, the family was also able to approach another important target group that was completely neglected by the wine industry so far: consumers, who do not drink because of health conscious reasons or because they are not allowed to drink, but who are highly interested in wines and wine production. All these target groups show high involvement and interest in this special, unique product and are willing to pay higher prices. However, people who do not like the particular kind of sweetness of grape juices are usually not attracted by the products (Fig. 5.3). Based on the family's experience and their discussions with regular customers, the juices and their production improved each year. However, these achievements are not based on consumer science approaches. No sensory testing, tastings with a jury, or structured research was done before launching and modifying of the product. Consumer science was used rather unconsciously or not at all. Friedrich Preiss, the father, and Viktoria Preiss, the daughter, both emphasized that in family-owned businesses, information and skills are usually transmitted from generation to generation and experience is more important than science and research. However, this could change in the future because there are two significant developments: Firstly, younger generations of vintners are usually better educated, and secondly, it is much easier to access different kinds of information needed to do consumer research nowadays. Due to her studies, Viktoria could apply consumer science approaches more easily than her father. However, she mentions that consumer science alone will not prevent her family from failure, as there are too many internal and external influences that have to be considered. It can however help their decisions to be a somewhat more successful.

5.4.5 Discussion The three examples of small and family-run and family-owned Austrian businesses presented show that innovative Austrian vintners tend to ignore the existence of consumer science. Instead, they follow their gut feeling to face new challenges and to foster product development.

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Fig. 5.3  Preiss’ Sauvignon blanc unfermented.

Most of them are mainly intrinsically motivated to experiment, follow, and develop new approaches. They are also open to trial and error practices and allow themselves to take risks and fail. Consumer tests and tastings are usually not made and partly ignored, as they are seen as too costly. Instead, ongoing education, the observation of national and international competitors, discussions with colleagues and external partners, and the cooperation with well-skilled and educated professionals are preferred. The extensive use of consumer science approaches in the wine industry is seen critically by all case participants, as this may lead to the assumed belief that wines are getting more and more standardized to meet the consumer's taste and the mass market. This could endanger highly specialized and niche products due to price issues. Considering that some of these innovative Austrian vintners were ridiculed for their new approaches at the beginning, most of these innovations and product developments turned out to be successful in the long run as all of them followed their ideas and approaches consequently. The only aspects that limit their freedom in innovation management are bureaucracy and the tight legal framework in Austria.

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5.5 Conclusion Despite the complexities and challenges presented to SMEs in a maturing wine industry and the small scale of its entrepreneurs within the local Austrian wine market, the high degree to which businesses are willing to embark on new product development projects should be seen in a positive light. What is consistent across the three presented cases is an endeavor to experiment, to challenge the status quo, and ultimately to take risks. The stimuli or motivation to “innovate” is somewhat unclear, most likely due to the fact that at this scale of business and possibly also due to the nature of what is still a producer-led agricultural industry, innovation management as a process is not an established managerial consideration. Although “innovation” is part of the vernacular of the businesses studied, it is used more as a generic term describing certain aspects of the process, either idea generation or technological adjustment, and does not represent a complete model of activity that is consciously performed. At best, when considering the literature on innovation models, the closest model fitting the sort of activities and stimuli represented in these SMEs is that of the more basic linear models, with particular attention on the internal, p­ roduction-based models, where decisions mostly occur with the closed loop of the owners. What becomes then the dominant form of how critical decisions are made in respect to new product development is that of intuition and to a lesser degree gut feel, combined with a healthy attitude toward experimentation. Consumer science insight is limited at best, although it is recognized as important among the businesses, but ultimately is kept at arm's length due to the perception that establishing customer research and insight is costly and time-restrictive. A highlight and potential area for further research and consideration is the understanding of how “knowledge,” both internal and external, plays a role in to what extent successful projects are cultivated and activated. This inherent knowledge of a business, regardless of size, has a complex, silent hand in almost every aspect of managerial activity, resulting in what some of the business owners expressed as the protection of their “authenticity.” This seemed key to the Preiss family, noting that in small family-owned businesses, this “knowledge” is passed on from generation to generation and represents a stronger foundation on which to make decisions than with consumer science and research. A fundamental shift in the above thinking and application, especially within industries such as wine, is the ever development of the “new economy,” the adoption of technology into every aspect of our business and consumer lives, and the democratization of information and resources. This is clearly established with the most modern of innovation models, open innovation, shifting innovation from closed loop, internal systems to one of open systems, where collaboration is conducted up and down the distribution channel, relying on “knowledge” being cultivated across barriers. Awareness of this was touched on within the case studies, seen as a transition to a generation that is better educated and willing to access information via external sources. Will this transition challenge the stated “innovation dilemma” where the established stability-based position moves to incorporate a more fluid, evolving, and ultimately creative equilibrium? As the wine industry continues to become more mature, complex, and competitive and that innovation is seen as a way to strategically foster differentiation, new product

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development, and sustainable success, players especially within traditional wine markets like Austria may need to challenge the established practices in respect to how strategic marketing decisions are cultivated. Inclusion among this dialogue would need to be the industry stakeholders and policymakers, as well as universities and the broader science and technology community.

References AWMB, Austrian Wine Marketing Board (Österreich Wein Marketing GmbH), 2010. Dokumentation 2010–Aufbau Weinland Österreich (No. Teil 1). Österreich Wein Marketing GmbH, Wien. Aylward, D.K., Glynn, J., 2006. SME innovation within the Australian wine industry: a cluster analysis. Small Enterp. Res. 14, 1–16. Barczak, G., Griffin, A., Kahn, K.B., 2009. Perspective: trends and drivers of success in NPD practices: results of the 2003 PDMA best practices study. J. Prod. Innov. Manag. 26 (1), 3–23. Chesborough, H., 2003. Open Innovation: The New Imperative for Creating and Profiting from Technology. Harvard Business School Press, Boston, MA. Dressler, M., 2013. Innovation Management of German Wineries: From Activity to Capacity–An Explorative Multi-Case Study. University of Ludwigshafen and Competence Center of Wine Research Neustadt/Weinstraße, Competence Center for Wine Research, Breitenweg, Neustadt. Glöckner, A., Witteman, C., 2009. Beyond dual-process models: a categorisation of processes underlying intuitive judgement and decision making. Think. Reason. 16 (1), 1–25. Hart, S., 1993. Dimensions of success in new product development: an exploratory investigation. J. Mark. Manag. 9 (9), 23–41. Khandelwal, P., Taneja, A., 2010. Intuitive decision making in management. Indian J. Ind. Relat. 46 (1), 150–156. Mintzberg, H., Westley, F., 2001. Decision making: it’s not what you think. MIT Sloan Manag. Rev. 42 (3), 89–93. Nambisan, S., 2002. Designing virtual customer environments for new product development: toward a theory. Acad. Manag. Rev. 27 (3), 392–413. OECD, 2004. Improving the capacity to innovate. In: Proceedings of 2nd OECD Conference of Ministers Responsible for Small to Medium Sized Enterprises, Istanbul. Pina e Cunha, M., 2007. Entrepreneurship as decision making: rational, intuitive and improvisational approaches. J. Enterp. Cult. 15 (1), 1–20. Trott, P., 2012. Innovation Management and New Product Development, fifth ed. Pearson Education, Essex. Van de Ven, A.H., 1986. Central problems in the management of innovation. Manag. Sci. 32, 590–607.

Further reading Bisson, L., Waterhouse, A., Ebeler, S., Walker, M., Lapsley, J., 2002. The present and future of the international wine industry. Nature 418, 696–699. Crossan, M.M., Apaydin, M., 2010. A multi-dimensional framework of organizational innovation: a systematic review of the literature. J. Manag. Stud. 47, 1154–1191. Hauschildt, J., 2004. Innovations Management. Verlag Vahlen, München. Tidd, J., 2001. Innovation management in context: environment, organization and performance. Int. J. Manag. Rev. 3, 169–183.

Sensory sciences and competitiveness in the wine business

6

Lucia Irene Bailetti‡,†,§, Cristina Santini*, Stefania Supino* * Dipartimento di Scienze Umane e Promozione della Qualità della Vita, Università San Raffaele, Rome, Italy, †CIAS Innovation, Centro Italiano di Analisi Sensoriale, Matelica (MC), Italy, ‡Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata, Italy, §CIAS Innovation, Centro Italiano di Analisi Sensoriale, Matelica (MC), Italy

6.1 Sensory science as a tool for improving competitiveness: An introduction The wine business has progressively become extremely competitive. Researchers have investigated the degree of competitiveness of wines or countries (van Rooyen et  al., 2010; Esterhuizen and Van Rooyen, 2006). It emerges from the literature that competitiveness is a dynamic process that engages companies in the continuous improvement of their global performance, and it requires not only an efficient use of resources but also adaptation, innovation, and understanding of the market and the rapidly changing consumer needs. Given the globalization that is occurring in the wine industry (Anderson, 2004), and the forces that are shaping this business (Santini et al., 2010; Hussain et al., 2008, and other sources), the issue of competitiveness is becoming more complicated. As described by COGEA (2014), competitiveness in wine is based on two levels. First, different countries produce wines, but their target is the same geographical market (e.g., an EU Wine versus an Australian Wine on the UK market). Second, different countries directly compete (e.g., the EU system versus the non-EU system). These two levels jointly operate. In this scenario, scholars have analyzed how countries or companies could improve their advantage, and they have adopted a micro or a macro approach (Takeuchi and Porter, 1986; van Rooyen et al., 2010). In a scenario designed by institutions and policymakers who establish trade agreements and financial support, firms still have a lot to do at a micro level. Wineries must define how to compete according to the macro environment and its competitive settings. The wine business is characterized by an intense international and export activity that plays a central role in gaining prosperity and profitability for the sector (Santini and Rabino, 2012). Generally, a proper degree of internationalization helps in achieving a sustainable competitive advantage (Takeuchi and Porter, 1986). Regarding what emerges from the theory, firms can increase their competitive potential and can manage the competitive process (Buckley et al., 1988). In particular, wineries can improve cost-effectiveness by realizing a high degree of quality to differentiate their products; Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00006-9 Copyright © 2019 Elsevier Ltd. All rights reserved.

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they can also reinforce their presence on international markets; they can address their strategic efforts to improve customer loyalty, and so forth. Under this perspective, sensory science can be particularly useful at a micro level, and it can provide firms with the needed tools for strengthening their competitiveness. In the field of sensory science, sensory analysis initially was a tool for quality control. It has since evolved in one of the most diffused and sophisticated toolkits because it can achieve an exhaustive description of the characteristics of products (Varela and Ares, 2012). The literature provides a detailed description of the main techniques employed and diffused for defining and evaluating the characteristics of an examined product (Varela and Ares, 2012). According to Stone et al. (2012), “Sensory evaluation is a scientific discipline used to evoke, measure, analyze and interpret reactions to those characteristics of products as they are perceived by the senses of sight, smell, taste, touch, and hearing.” From the research, the linkage emerges between the “sensory” disciplines and the consumers. From this linkage, the relationship between sensory tools and marketing becomes evident: managers and entrepreneurs could gain useful information for reducing risk in decision-making or for improving new products’ rates of success. Wine is a complex and multifaceted product, whose attributes are intrinsic (sensory attributes) or extrinsic (denomination of origin, brand, image and so forth). Sensory analysis, when applied to wine, involves the measurement and evaluation of its sensory properties. It is a dynamic discipline that introduces a dialogue that encompasses three “levels”: technology, product development, and marketplace. By establishing a link between the levels mentioned previously, experts in the field of product processing and development can forecast the impact of a product on a given marketplace. Similarly, marketing and brand specialists must be confident that a product’s sensory properties are consistent with the consumer target and with the message delivered to the market. Research has shown how firms that operate in the food industry can use sensory science and related sensory tools. Although most of the research has focused on the food industry, less has been done to investigate how the implementation of sensory science by wineries can facilitate a match with consumer preferences and the improvement of firms’ competitiveness. The collaboration between marketing researchers and sensory scientists has promoted research in the marketing field: sensory science can provide answers to questions about the perception of attributes and the role of information in purchasing a product. Some questions that producers have—such as “should I emphasize this issue on the label?”— received an answer with consumer science. Furthermore, sensory analysis helped the monitoring of new product development, processes, and improvements in wine production. As we have outlined earlier, in the wine business sensory science can find an application in various fields for improving firms’ competitiveness. This chapter analyzes in the following sections the practical implication of sensory science in the wine business.

6.2 Product and process development As previously outlined, in the actual consumer-driven scenario, sensory science can be employed for developing new products or for upgrading the existing ones. Thus,

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sensory science can be a useful tool for introducing product innovation according to consumer flavor preferences. The work by Raz et  al. (2008) provides a protocol for employing sensory analysis in the development of innovative products; the initial step in the described process is a marketing brief. The company takes some decision about the product concept in the areas of image, promise, and use. The company also chooses the target to address the product, defining the sociodemographic and consumption profiles of potential customers; in the next step, firms explore through qualitative tools (focus groups) the most relevant sensory variables that are congruent with the product image that has emerged from the marketing brief. Therefore, the company uses different tools in product design to evaluate whether the designed product meets consumers’ expectations. Raz et al. (2008) show a multisensory design method that combines qualitative and quantitative tools and depicts the role that methodologies and tools can play in defining a product according to the chosen strategy. Also, in the wine business, sensory analysis has been widely used in new product or processes development. Therefore, for every stage of product development, firms can adopt specific tools according to their purposes. Some examples emerge from the literature: Iranzo et  al. (2000) underline that, given the increasing consumer demand for young white wines with “strong fresh, fruity aromas evocative of the grape variety from which they have been made” (p. 143), dry yeasts of Saccharomyces have found a great diffusion among winemakers. In this specific case, sensory analysis has been particularly useful for evaluating wine attributes and for deciding processes. The sensory characteristics of wine are critical in determining its acceptability and repeat purchases. Different sensory analysis methods might be used. Triangle tests can be employed to evaluate packaging materials. The use of scaling methods helps to evaluate changes in particular sensory characteristics as a result of modifications in processing parameters. Sensory profiling can be employed to characterize wine and to determine changes that occur during storage or aging; consumer testing can work toward understanding the sensory characteristics of a product that play crucial roles in a particular market segment. The sensory profile of a bottle of wine can identify the elements of typicality to obtain scientifically defined information to enhance and protect their production. This scientific method can avoid a personal interpretation that results in fostering the distance between the product and the reference stereotype; sensory profiles also allow the identification of sensory peculiarities in raw material and the production technology. The sensory profile of a product can be defined as its “identity card”: it expresses products’ linkages to a territory according to the historical, geographical, cultural, and sensory attributes of a product to achieve effective communication with the consumer. From background research, a variety of methodologies emerge that are employed for understanding the sensory properties of Protected Designated of Origin wines produced in a given area, with the precise aim of defining the sensory attributes of terroir. Therefore, when examining the background literature, research on sensory evaluation in food and wine shows methodological issues as its primary focus. Research on sensory profiling has registered growth around the end of the 20th century and the beginning of the 21st: Varela and Ares (2012) describe the emerging

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techniques in sensory descriptive analysis and sensory profiling, and they show how vibrant the debate among academicians has been. This, therefore, explains why a relevant body of research has focused on methodological issues, as previously outlined. Practitioners, given the emergence of new techniques and academicians’ emphasis on new methodologies, had to reflect on the employability of proposed techniques. “What is the best method to perform sensory tests on wine?” is a question often asked by industry professionals. Time is money for people in business, and it is no wonder that the current objectives of sensory research are to find cost-effective and less time-consuming methods that are sustainable in the long term. Development of new sensory methods, as well as optimization of existing ones, is also one of the focus areas of research in the field. Thus, new needs emerge from the industry: the market demands for new products and the growing competition in the wine business have led companies to focus on the distinctive traits of the product while maintaining cost efficiency. One of the most useful methods that wineries should consider, because of its efficiency, is the Descriptive Analysis (DA) for complete sensory profiling of wine. Descriptive analysis is the best known and most widely used method of sensory analysis, in which a trained panel is used to identify qualitative and quantitative sensory characteristics of a product and to score their intensities through a set of selected attributes. According to Murray et al. (2001), DA tests are sophisticated, and their growing diffusion finds an explanation in the fact that DA introduces firms to the “desired composition” of attributes that a product should have. Therefore, DA is an effective method when firms need detailed sensory information about the products or when a comprehensive list of all the attributes of a single product is required, or when there is the need to quantify specific taste/aroma differences between a few products. In other words, DA is widely used in product development or in monitoring of how the product changes during its shelf life or if its ingredients change. As Murray et al. (2001) observe, there are many types of DA tests, and the variation across methods is influenced by the approach and philosophy of researchers, and a general descriptive analysis that combines some of the methods is frequently applied. Firms may also need to profile a considerable number of wines as quickly and as accurately as possible. To fulfil this need for less time consuming and less expensive sensory analysis, firms have carried out an array of alternative and more rapid sensory profiling methods, along with training requirements. These methods are useful for understanding the product and the potential market, and they can be clustered into two broad groups: Verbal-based methods (descriptions), and Similarity-based methods (grouping). For example, Check-all-that-apply (CATA) is a quick method: the panelist receives the samples and a list of descriptors or phrases. The panelist smells or tastes the wine and is asked to select among the received list the descriptor that best describes the wine; the number of panelists should exceed 50 people, and by rating the products, the company can quickly understand the appraisal for the product and its sensory characterization. A variant of the CATA method has been added to the portfolio of sensory methods and includes the frequency of citation method. Panelists in this

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method receive training for using the list of descriptors; as suggested by Wineland (see the website wineland.co.za), the training aims toward “improving consensus regarding the meaning of words and simplifying data analysis.” This method is a bridge between Sensory Analysis and Consumer Science. Other alternative sensory profiling methods are Free Choice Profiling and Flash Profile. In the first, assessors use their own words to describe a wine sample, without training and without a list of descriptors. Flash Profile is an attribute-based approach introduced by Sieffermann (2002). The panelists are required to realize a comparative assessment of the whole sample box, through a free-choice terms selection, to define an individual attribute list. FP is an excellent method to use when there is the need to identify rapidly the most critical attributes of a products set.

6.3 Understanding the consumer The interest in sensory science has grown over the years (Stone et al., 2012) and new centers and associations bloomed worldwide. The role of sensory science changed and its importance grew: the adoption of scientific methodologies has improved the consistency and rigor of the discipline (Parr, 2008). In the wine business, sensory science found ample employment for the evaluation of the impact of treatments on finished wines (Lesschaeve, 2007); over the years, the usage of sensory science has evolved. Sensory science helps in understanding consumers; more specifically it is useful for evaluating consumer liking and for assessing consumers’ preferences toward branded or unbranded products. Gathered inputs can answer the following questions: What is the role of brand in wine quality evolution? What is the strength of a wine brand? Information obtained can be used in developing marketing and advertising campaigns and in establishing optimal selling prices. Some investigations have highlighted the interactions between sensory and marketing attributes in consumer choice. Mueller et al. (2011) provided an example of this sort of investigation. They outline the effect of sensory characteristics according to the presence of marketing cues (region or visual cues on the packaging, and so forth). Consumers base their choices on a complex mix of sensory and nonsensory attributes. At the same time, a crucial question arises: Who defines the goodness of a product? Who determines the standards of liking or disliking? Sensory science can provide tools for establishing a dialogue between consumers, companies, and expertise. Parr et al. (2011) point out another interesting issue: there are differences regarding concept representations between consumers and wine professionals. Parr et  al. (2011) introduce a reflection on the widely used term “complexity,” and they underline the discrepancies between the mental representation of wine complexity in consumers and in professionals. A broader discourse on the communication language arises, and further applications for sensory science—seen as a tool for shortening the distance between consumers and wine professionals—emerge.

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Lesschaeve (2006) has provided a correlation study between sensory descriptive data and consumer-free wine description; she writes: The multivariate analysis aimed at investigating correlation between sensory descriptors and other lexicons indicated that similar words may refer to different perceptions for connoisseurs and consumers. When consumers indicated they did not like the oak flavor, it meant they did not like the smoky character of the wine. Contrarily, when consumers liked the oak flavor in wine, it is likely they liked its vanilla character.

Emerging results underline that there is a difference between consumers’ and experts’ languages. Sensory science can provide an answer to this question: how can we align experts’ languages with consumers’ language? Moreover, what does it mean “I like this wine”?

6.4 A case study The company Velenosi is settled in Ascoli Piceno, in the Marches region of Italy, and it was founded in 1984. It was a family estate, which produces typical wines and more specifically red wines whose main grape varietals are Sangiovese and Montepulciano, which are the two varietals that characterize the DOC Rosso Piceno. The vineyards cover 150 ha (105 ha are 100% owned) and they are located in various provinces. Annual sales account for 2 million bottles of wine with a strong presence on foreign markets (United States, Japan, Canada, France): 65% of the production reaches international markets (http://innovazionecambiamento.it). The turnover in 2015 reached 6.7 million Euros (Source: it.elite-growth.com). The company has been a pioneer in the implementation of sensory analysis in the Marche Region, and it has decided to employ analytical tools for understanding both buyers and consumers. The work performed by the local Consortium (IMT) for the definition of typical profiles of the Marche wines represented the initial spark for a further work carried out by the Velenosi winery. It is fully recognized that wine’s typical features derive from its terroir: this creates not only a deep linkage with the territory, but it also represents a competitive leverage for pursuing a differentiation strategy. The evaluation of the sensory quality of a typical product can be challenging; therefore, sensory science can provide reliable tools that reduce subjectivity in product evaluation. The company has decided to continue working with sensory science to discover the typical traits of their products: after the definition of territorial attributes, it was interesting to understand which elements characterize the productive style of the winery. Sensory tools were useful for highlighting the issues that differentiate Velenosi’s products. The sensory characteristics of 11 wines of the Velenosi Winery have been identified. The aim was to evaluate the printing of the varieties and the “corporate sensory mark” (in this case, is possible to talk about “originality characteristics”) deriving from the methodologies of cultivation, production, and edging that could identify a winery style. The corporate sensory marks could only enrich the peculiarity sensory characteristics of a denomination. The company has perceived the need to establish a

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dialogue with buyers, so to educate them to understand and recognize the distinctive traits of the product to be sold. The company has seen as crucial the need for reaching the consumer to establish communication with buyers. The employment of sensory analysis was a way for ensuring objectivity in product evaluation. For the study, the Flash Profile method was chosen as the descriptive method of sensory analysis. This type of test uses judges selected and trained by ISO 8586 Parts 1–2 and allows the procurement of the sensory mapping of the study references and a sensorial profile of each reference; it allows a description and a quantification of the sensory characteristics perceived in the products analyzed. Sensory data were gathered through two steps of connected and consecutive analyses: 1. Elicitation of descriptors through the free profile technique, as per the ISO 11035 standard, and reduction of the number of descriptors. 2. Conducting a Flash Profile for mapping the sample sensory characteristics according to the descriptors selected from the first step of analysis and generating the sensory profile of the references.

Each taster performed the sensory analysis by operating in individual tasting booths (ISO 8589: 1988 Sensory analysis—general guidance for the design of test rooms). The characterization was conducted under red lights to exclude the visual evaluation and any induced influence that may result from this, thereby resulting in a mistake (psychological mistakes). The references of red and white wines were analyzed in separated sessions from one another, with a panel of 8 professional tasters trained and monitored at standard ISO EN UNI 8586 Parts 1–2. Results are shown in Fig. 6.1. Two parts are distinguished in the image: the “red” wheel (on the left) and the blue one (right). The left part of the graph shows the originality flavor characterization of Velenosi 2015 Lacrima Morro d’Alba; the right shows the peculiarity characterization of Lacrima Morro d’Alba produced in the Region. It emerges that the Velenosi wine respects the standards of the wines, but some traits are accentuated: the wine is enriched in its profile, and it stresses some issues such as the flower notes. The following step is to communicate insights, and the company is currently planning a communication strategy. The leitmotif is “keep it simple and objective”: the wheels represented in Fig. 6.1 are visual representations of a differentiation strategy pursued by producing typical products. The company is working on releasing marketing materials that take inspirations from the graphical representation of products’ characteristics.

6.5 Conclusions Sensory food science is a scientific discipline that encompasses the description, measurement, and interpretation of product characteristics that can be recognized by human perceptions. It plays a central role in understanding the responses of different consumer segments to traditional and emerging trends in food production, processing, and consumption.

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Fig. 6.1  Results for Lacrima Morro d’Alba (2015).

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During the past decades, sensory evaluation of food quality has evolved and became a discipline that deals with many aspects of sensory and consumer research in the food and beverage sector. The vast employment of sensory science tools confirms the growing interest in the discipline by the food and beverage industry. This chapter has depicted how tools and needs have evolved. Today sensory science has contributed to improving methods for describing and evaluating the sensory cues of wine: the emerging picture is that sensory science is a dynamic discipline, whose purposes are multiple and continuously evolving. There is no doubt that sensory and consumer science can be particularly useful for explaining why consumers like or dislike wine. Nevertheless, for wineries, the pursuit of competitive advantage is often the art of balancing market and consumer needs with the typical traits of inputs and local resources. On one side, it is essential to know what consumers expect and like; on the other, it is crucial to reinforce a product image by underlining its unique and typical traits. For wineries, typicality can represent a strategic tool; thus, as long as typicality remains a vague concept, it can be tough to apply the typical traits of a product when planning strategic development. A lack of understanding of the competitive traits of typicality can reduce the effectiveness of a marketing strategy. Under this perspective, sensory science can be particularly helpful for wineries, as shown in this chapter. Sensory science in the described case helps to reduce the vagueness of typicality: typicality can be measured, defined, and profiled into wines. The above-described process on the one side requires efforts—not only regarding investments but also regarding openness to new strategic tools—on the other, it represents a valuable help for achieving marketing goals. The Velenosi case illustrates how some intangible features can become more tangible and explains their role in the pursuit of a differentiating strategy. The case shows the importance of opening to new tools. New questions emerge: what competencies and resources are needed? How does the company employ the emerging information? How are they communicated? Further research will be performed to develop a longitudinal study.

References Anderson, K. (Ed.), 2004. The World’s Wine Markets: Globalization at Work. Edward Elgar Publishing. Buckley, P.J., Pass, C.L., Prescott, K., 1988. Measures of international competitiveness: a critical survey. J. Mark. Manag. 4 (2), 175–200. COGEA, 2014. Study on the competitiveness of European Wines. Available from: https:// ec.europa.eu/agriculture/sites/agriculture/files/external-studies/2014/eu-wines/ exec-sum_en.pdf. Esterhuizen, D., Van Rooyen, C.J., 2006. An inquiry into factors impacting on the competitiveness of the South African wine industry. Agrekon 45 (4), 467–485.

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Hussain, M., Cholette, S., Castaldi, R.M., 2008. An analysis of globalization forces in the wine industry: implications and recommendations for wineries. J. Glob. Mark. 21 (1), 33–47. Iranzo, J.U., Magaña, F.G., Viñas, M.G., 2000. Evaluation of the formation of volatiles and sensory characteristics in the industrial production of white wines using different commercial strains of the genus Saccharomyces. Food Control 11 (2), 143–147. Lesschaeve, I., 2006. The use of sensory descriptive analysis to gain a better understanding of consumer wine language. In: Academy of Wine Business Research. Proceedings for the 3rd International Wine Business and Marketing Research Conference, July. Unité Mixte de Recherche MOISA, Montpellier, France. Lesschaeve, I., 2007. Sensory evaluation of wine and commercial realities: review of current practices and perspectives. Am. J. Enol. Vitic. 58 (2), 252–258. Mueller, S., Osidacz, P., Francis, I.L., Lockshin, L., 2011. Filling the gap-how do sensory and marketing attributes interact in consumers' wine choice? Internet J. Enol. Viticult. 2 (1), 1–7. Murray, J.M., Delahunty, C.M., Baxter, I.A., 2001. Descriptive sensory analysis: past, present and future. Food Res. Int. 34 (6), 461–471. Parr, W.V., 2008. Application of cognitive psychology to advance understanding of wine sensory evaluation and wine expertise. Appl. Psychol. Res. Trends 55–76. Parr, W.V., Mouret, M., Blackmore, S., Pelquest-Hunt, T., Urdapilleta, I., 2011. Representation of complexity in wine: influence of expertise. Food Qual. Prefer. 22 (7), 647–660. Raz, C., Piper, D., Haller, R., Nicod, H., Dusart, N., Giboreau, A., 2008. From sensory marketing to sensory design: how to drive formulation using consumers’ input? Food Qual. Prefer. 19 (8), 719–726. Santini, C., Rabino, S., 2012. Internationalisation drivers in the wine business: a RBV perspective. Int. J. Bus. Glob. 8 (1), 7–19. Santini, C., Cavicchi, A., Zampi, V., 2010. Old world wineries and market orientation: empirical evidence from the Italian wine industry. In: Lindgreen, A., Hingley, M. (Eds.), Market Orientation: Transforming Food and Agribusiness Around the Customer. Gower Publishing, Ltd., pp. 341–352. Sieffermann, J.-M., 2002. Flash profiling. A new method of sensory descriptive analysis. In: AIFST 35th Convention, July 21–24, Sidney, Australia. Stone, H., Bleibaum, R., Thomas, H.A., 2012. Sensory Evaluation Practices. Academic Press. Takeuchi, H., Porter, M.E., 1986. Three roles of international marketing in global strategy. In: Porter, M. (Ed.), Competition in Global Industries. Harvard Business School Press, Boston, MA, pp. 1–46. van Rooyen, J., Stroebel, L., Esterhuizen, D., 2010. Analysing Competitiveness Performance in the Wine Industry: The South African Case. AARES, AAWE. Varela, P., Ares, G., 2012. Sensory profiling, the blurred line between sensory and consumer science. A review of novel methods for product characterization. Food Res. Int. 48 (2), 893–908.

Websites http://innovazionecambiamento.it/strategia-e-struttura-aziendale/velenosi-eccellenza-marchigianaentra-nellelite-di-borsa-italiana. http://www.wineland.co.za/sensory-evaluation-of-wine-part-1. https://it.elite-growth.com/it/companies/velenosi-vini. https://www.imtdoc.it.

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Further reading Maitre, I., Symoneaux, R., Jourjon, F., Mehinagic, E., 2010. Sensory typicality of wines: how scientists have recently dealt with this subject. Food Qual. Prefer. 21 (7), 726–731. Sidel, J.L., Stone, H., 1993. The role of sensory evaluation in the food industry. Food Qual. Prefer. 4 (1–2), 65–73.

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Part Three Sustaining the growth: Consumer science and market growth

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How consumer science can be employed in a terroir-based market strategy?

7

Chiara Mignani*, Lucia Irene Bailetti†, Alessio Cavicchi‡ * Santa Chiara Lab, Università degli Studi di Siena, Siena, Italy, †CIAS Innovation, Matelica, Macerata, Italy, ‡Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata, Italy

7.1 Introduction The production of wine in the Marches Region in Central Italy was 959 hectoliters (hL) in 2015, of which 348 hL was higher-quality controlled designation of origin (DOC) and controlled and guaranteed designation of origin (DOCG) wines. Over the last 4 years, the overall volume of wine produced in the region has grown by 4%, with a 6% increase of DOC and DOCG wine production in just the last year. Two consortia protect and promote the 20 protected designation of origin wines produced in the Marches Region. The northern provinces are part of the Istituto Marchigiano di Tutela Vini (IMT), while the provinces of Fermo and Ascoli Piceno are linked to the Vini Piceni consortium. The IMT is the biggest consortium and represents 16 of 20 designations of origin. As such, it has been the leader in promoting these wines abroad. The IMT, created in 1999, today includes 45% of the region's vineyards, which cover over 8000 ha. The consortium works with over 850-member wineries in the provinces of Ancona, Macerata, and Pesaro-Urbino. The territory was historically and geographically divided by rivers that form the borders of the various areas of the Marches. The Apennine Mountains to the west and the Adriatic Sea to the east have a great influence on terroir diversification and on the particular sensory characteristics of the wines. The IMT represents 16 appellations, 12 of which are DOC (Bianchello del Metauro, Colli Maceratesi, Colli Pesaresi, Esino, Terreni di San Severino, Lacrima di Morro d'Alba, Pergola, Rosso Conero, San Ginesio, Serrapetrona, Verdicchio dei Castelli di Jesi, and Verdicchio di Matelica) and 4 of which are DOCG (Castelli di Jesi Verdicchio Riserva, Conero Riserva, Verdicchio di Matelica Riserva, and Vernaccia di Serrapetrona) (Fig. 7.1). Although currently the wine industry in the Marches Region holds a marginal share in the regional economy, it has the potential to help relaunch local economies. One of the challenges to meet in this regard is the emergence onto the Italian and international wine markets.

Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00007-0 Copyright © 2019 Elsevier Ltd. All rights reserved.

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Fig. 7.1  Wine map of Marches Region wines by Federdoc.

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Profound structural changes are underway in the wine sector, as the increasing number of new producers in the international market threatens the global position of Marches Region wines. The April 2016 report by the International Organization of Vine and Wine on the state of the viticulture world market indicated that world wine production reached 274.4 million hectoliters, an increase of 5.8 mhL over the amount produced in 2014. In particular, European wine production in 2015 exceeded that of 2014 by almost 6 mhL. Positive data also emerged for Italy: in 2015, total wine production was 49.5 mhL, a significant increase (5.3 mhL) over that of 2014. Data published by the Italian National Institute for Statistics (ISTAT) and elaborated by inumeridelvino.it showed that Italian DOC wine production in 2015 was 18.8 mhL, a 15% increase from 2014 and a 20% increase from 2010. This information indicates that wine producers are moving to a focus on high-quality wines. In countertendency, in the Marches Region, a general reduction in the area dedicated to vineyards and in the overall quantity of wine produced had begun well before and continued through 2013, with a decrease in DOC wine production and an increase in that of common wine. The area dedicated to wine production in the Marches Region decreased gradually from 1990 to 2000, with a further decline of 22% (from 19,960 to 15,475 ha) in the subsequent 10  years. From 2006 to 2013, production remained unvaried, at over a million hectoliters annually. While the total volume remained stationary in this period, there was an upward trend in the quantity of common wines produced and a downward trend in that of DOC wines. Production of common wines in 2006 was 200,000 hL, while in 2013, it had more than doubled to 500,000 hL. Instead, in 2006, the region produced 380 hL of DOC wines, which by 2013 had decreased to 346 hL. Even though overall production remained stable in the Marches Region from 2008 to 2013, this period saw a significant increase in exports, which was a unique trend compared with other Italian regions. In fact, Nomisma Data (2015) reported a 65% increase in export value from 2003 to 2013. The 20 designations of origin from the Marches Region performed particularly well in China (+613% compared with +393% of the national average), Russia (+224% Marches Region and +79% Italy), the United States (+162% Marches Region and +35% Italy overall), and Japan (+90% Marches Region and +50% Italy overall). The top buyers for Marches Region wines were the United States, accounting for 26% of exports, followed by Japan (9%), Germany (8%), Sweden (8%), the United Kingdom (7%), Russia (5%), Canada (5%), and China (4%). In this context, the challenge of the IMT consortium was to define a communication strategy that would take into account wineries that differ in terms of geographic area, size and production volumes, and the variety of products they offer. At the same time, one of the problems in the Marches Region wine industry is its wines are not clearly positioned and recognized by domestic and foreign buyers. As part of the goal of better advertising wines from the Marches Region, in 2010, the IMT enlisted the expertise of the Italian Center for Sensory Analysis (CIAS) to objectively define the sensory characteristics of these products, in order to be able to communicate clearly their distinctive characteristics.

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7.2 Aims Although sensory analysis is widely used in the food industry, the Marches Region is the first in Italy to exploit the results of sensory analysis in its efforts to promote regional wines. The IMT consortium wanted definitions of the objective characteristics of DOC and DOCG wines that it could use for promoting them on the international market. Winemakers can exploit sensory profiles to define the personal style of their company and evoke the memory of the territory and its traditions. Consumers benefit from reading the sensory profiles of a DOC/DOCG wine, because it details the distinctive notes of the product. Daniele Fava, an enologist and senior consultant in wine advertising who curated the IMT promotional campaign, explained that “there was a need for a scientific tool that could objectively define the sensory characteristics of appellations of origin, in order to have specific information for expressing the Marches Region terroir.” In fact, sensory analysis uses quantitative descriptive analysis (QDA), a reproducible method for objectively describing the peculiarities of a wine through language that is easily understood and accessible to all manner of cultures.

7.2.1 Sensory analysis as a development strategy Sensory evaluation is a scientific method used to evoke, measure, analyze, and interpret responses to products based on perception through sight, smell, touch, taste, and hearing (Lawless and Heymann, 2010). Sensory attributes drive consumer acceptance of wines and influence consumer perceptions of wines (Francis and Williamson, 2015). A number of researchers have combined sensory profiling and hedonic ratings to establish the main sensory drivers of consumer preference for wines, the acceptability of wines (Lattey et al., 2010), or the quality perception of wines (Varela and Gambaro, 2006). According to Santini et  al. (2011), sensory analysis allows to establish among the many products which one is preferred and why, to use a common and objectively recognizable language for evaluating products and make comparisons among them, and to highlight typical and unique characteristics of a specific product. Since sensory analysis is a scientific tool based on a valid protocol and replicable methodology that provides an objective evaluation of wine, it is not subject to fads or prejudices. This impartial tool to identify the sensory characteristics of a wine can be exploited to formulate a sort of identity card for a wine. Moreover, the results of sensory analysis can be useful in decisions about marketing, guiding choices about product positioning in reference to competitors, market segmentation, customer relationship management, advertising strategies, and price policies (Iannario et al., 2012). To identify the sensory characteristics of Marches Region wines, the Italian Center of Sensory Analysis used quantitative descriptive analysis, which over the last decades has served to evaluate different types of alcoholic beverages such as whiskies, wines, and beers (Piggott and Jardine, 1979; Udé et al., 1984; Schlich and Issanchou, 1990; Vannier et al., 1999). For example, Guinard and Cliff (1987) used descriptive analysis to identify the sensory characteristics of pinot noir wines from Carneros, Napa, and Sonoma and define the different characteristics of the wines from different areas. In a study on champagne wines, QDA proved useful for evaluating the sensory evolution

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during the maturation process and for defining descriptors to be used in developing a quality control system (Vannier et al., 1999).

7.2.2 Communication strategy Communication strategy plays a key role in the marketing planning process. There is an increasing need to differentiate products in the market, and at the same time, it is becoming more difficult to catch the attention of consumers who are constantly bombarded by commercial messages and overloaded with information (Jacoby, 1984). Consumers' perception of a product or of its brand is the synthesis of information decoded from advertising or word of mouth. The decoding process can be the result of conscious reasoning or unconscious sensation (Kirmani and Wright, 1989) that together affects consumer purchasing intentions. Marketers must understand which communication strategy will be most effective for their target market and choose the communication option that optimizes their marketing communication programs (Keller, 2001). In the highly competitive wine sector, an integrated marketing communication strategy should not be limited to identifying the target audience or developing a promotional program, but should also seek to create a dialogue with customers. According to Charters and Pettigrew (2006), clear communication is needed between supply and demand in the wine sector: Producers and marketers need to develop their ability to communicate to consumers what they should expect from the wine, and consumers should be able to explain their preferences about wine to wine professionals. The influence of culture on consumer behavior is a much debated question by academics and marketers (Levy, 1959). In a social representation study of the concept of wine minerality in experts and consumers, Rodrigues et al. (2015) found an information asymmetry between the two groups, noting that consumers and producers had only a partial congruence in the mind associations. Using the same method, Mouret et al. (2013) compared the social representation of wine in two groups of consumers, the French and New Zealanders, whose cultures and traditions regarding wine differ greatly. He confirmed the importance of culture and expertise in the construction of wine representation and the implications in consumer perceptions. IMT chose sensory analysis as the foundation for building its communication strategy. The consortium enlisted the help of wine advertising experts to devise simplified materials with icons and images rather than text, which were used by consumers. The objective characteristics identified in the sensory profiles offer consumers an explanation of the unique attributes that distinguish the wine. The fact that they are phrased in simple, comprehensible language is especially helpful for novice consumers.

7.3 Material and methods 7.3.1 Materials The wines were chosen for sampling according to four criteria: the representativeness in terms of production and market share, number of bottles distributed annually by the

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producer, harvest year, and date of bottling. Wines that were too characterized by the producer or that were not very representative of the appellations of origin were excluded. All protected designation of origin wines that were selected were homogeneous in terms of harvest year: 2009 for vintage wines and 2007 for reserve wines. The wine samples were stored in a dark and dry place at 12 (±2) °C until testing.

7.3.2 Methods The Italian Center of Sensory Analysis conducted the sensory characterization of Marches Region wines. It trained two panels, composed of 8–10 professional food tasters, to conduct sensory evaluations of the smell, taste, astringency, flavor, and ­aftertaste of wine, according to “Sensory analysis—General guidance for the selection, training, and monitoring of assessors” (ISO, I. 8586-1, 1993; ISO, I. 8586-2, 2008). Each panel member was hired on the basis of interest and motivation, eating behavior, ability to communicate sensory perceptions, ability to concentrate, availability for testing sessions, and training performance in accordance with standard ISO, I, 1993, 2008. Sensory profiles of Marches Region DOC wines were obtained through 80 sensory evaluation sessions conducted from November 2010 to April 2011. A two-step process was used. First, following the methodology defined for quantitative descriptive analysis, the CIAS with the help of the panels articulated a sensory attribute vocabulary for these products and developed reference standards for each attribute. Second, for each wine, the panels evaluated the intensity of these descriptors (UNI 10957:2003—Sensory analysis—Methods for sensory profiling of food and beverages, Sidel and Stone, 1993). In this process, a wine aroma wheel was used (Noble et al., 1987; see Fig. 7.2 for an example of an adaptation of this wheel), and the list of descriptors was identified according to a free-choice profiling technique, excluding irrelevant, redundant, and hedonistic terms (ISO, I. 11035, 1994 Sensory analysis—Identification and selection of descriptors for establishing a sensory profile by a multidimensional approach). In this step, reference standards were defined to analyze each specific descriptor for QDA. Wine samples were served at room temperature, covered to exclude flavor dispersion, and presented in the tasting room (in accordance with ISO, I. 8589, 2007— Sensory analysis: general guidance for the design of test rooms). They were presented in special tasting glasses (ISO, I. 3591, 1977:1977—Sensory analysis: apparatus wine tasting glass) coded with three-digit numbers and served anonymously in randomized sequences. Wines were poured 30 min before the test, except for sparkling wines, which were poured at the beginning of each test (Keller, 2001). Temperature and humidity of the sensory evaluation rooms were optimized and monitored to avoid potential constraints related to the experimental context. Red lighting was used in the tasting rooms so that testers could not distinguish the color of the wine and thus not be influenced by it during the tasting sessions. Software developed by Italian Center of Sensory Analysis was used for data input, while SensTool software was used for analysis.

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Fig. 7.2  Aroma Fan of Verdicchio dei Castelli di Jesi DOCG—(http://imtdoc.it).

On the basis of its findings, the Italian Center of Sensory Analysis created a “Marches Region Wine Aroma Fan” similar to the wine aroma wheel developed by Noble et al. (1987). The “Marches Region Wine Aroma Fan” shows the range of flavors identified during the sensory analysis of Marches Region wines and describes in a simple and original way the distinctive traits of the protected designation of origin wines of the Marches Region, offering a tool that is suitable for implementation in a variety of forms of communication, including new technology. A card with the Marches Region Wine Aroma Fan was prepared for each Marches Region DOC and DOCG wine. Fig. 7.2 provides an example. The bubble chart in the upper-right corner represents the distinctive characteristics of the appellation of origin wine. The bubble size indicates the intensity of the attribute, and this information is also provided in written form in the summary description of color, bouquet, and

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palatability printed below. Three concentric rings in the fan describe the aromas. At the center, the first level indicates the main aromas as floral, spicy, fruity, vegetal, caramel, and woody. In the second ring, each macro aroma is further divided into more specific aspects, so, for example, the fruity macro aroma includes citrus, red, white/ yellow, exotic, and dried. The third ring goes into even further detail, for example, distinguishing between different kinds of white/yellow fruit, such as apricot, peach, apple, and pear.

7.4 Sensory information, communication strategy and the main activities carried out by the consortia While a protected designation of origin provides consumers with the guarantee that a wine has been produced according to strict rules about grape variety, harvest area, alcohol content, and production methods, as well as reliable reporting of the year of production, other aspects of wine quality are not assured by DOC and DOCG labels. Consumers can only trust sommeliers, wine experts, guidebooks, or their own instinct in choosing a wine. The goal of the IMT was to provide consumers with instruments that enable them to be more conscious of the factors to assess when they taste wines and more independent when they choose them. Its strategy was to provide an objective description of the characteristics of protected designation of origin wines through sensory analysis and to communicate the quality of DOC and DOCG wines of the Marches Region by means of a sensory profile on each product. The IMT website posted the “Marches Region Wine Aroma Fan” for each of the 16 designations of origin (http://imtdoc.it/) in support of the communication of Marches Region terroir and specific Marches Region protected designations of origin. This information provides a sort of guide consumers can use when they taste the wine, one that is free of the subjective evaluations of sommeliers or other wine experts. Using these profiles, consumers can be active rather than passive tasters, focusing their senses with the help of a simple and scientific tool. In 2012, at Vinitaly, the most important wine event in Italy, IMT was the first consortium in Italy to present and to use sensory profiles to communicate the quality of wines. In the Marches Region wine exhibition area, IMT set up a special space where over 100 producers could use the objective results to promote their products to buyers and consumers. The work was summarized in exhibition panels and sensory characteristic cards that consumers could read during the free tasting. IMT continued to publicize the sensory profiles of Marches Region wines on its website, on social networks, and on web applications, as well as through traditional advertising and participation at wine events. The Vini Piceni consortium subsequently adopted the same strategy and decided to use the Marches Region Wine Aroma Fans with their DOC and DOCG wines from the southern part of the region. The two consortia collaborated to define a complete set of Marches Region wine sensory profiles, thus providing consumers with a comprehensive overview of the region's high-quality wines.

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7.5 The need for a new communication strategy The difficulties of the current economy have forced wine companies to allocate their economic resources in different ways and have motivated consortia to redefine their goals. The globalization of wine markets has encouraged the growth of Italian wine exports, offering the promise of new consumers, but at the same time, it has brought new competition from producers outside Italy. Today more than ever, it is important to study new strategies for exalting the unique qualities of Marches Region wines and thus creating space for them on the global wine market. By their very nature, protected designations of origin are closely linked to the territory. Terroir, understood as the combination of geographic area and environmental conditions, is not replicable and not exportable, except perhaps in a bottle of wine! However, it is no easy task for wine consortia to market local wines on a global level at low cost. In addition, it is challenging to communicate the quality of Italian wines in other countries, with their different cultures, values, and aesthetics: proper market research is required to define the right tone and approach for traditional advertising. According to Daniele Fava, “Sensory analysis is a direct approach that is much appreciated abroad: it is simple to understand and has a scientific basis. Its systematic approach makes it easy to communicate about the wine, breaking down the distance between the wine and consumers in international markets. In addition, the shared vocabulary reduces problems connected to cultural and social misunderstanding.” Just as the World Wide Web breaks down spatial barriers, so direct explanation of the objective characteristics of a wine reduces the distance between products and consumers.

7.6 Future challenges Daniele Fava said, “The sensory characterization of Marches Region wines is not a final destination, but a starting point. In fact, there is growing interest in sensory analysis on the part of individual producers who want to compete in international markets. They are aware that there has been a decrease in the quantity of wine consumed, in favor of higher quality. Sensory analysis is an instrument for wine valorization. It does not indicate the best wine, but reveals the sensorial differences, leaving consumers the opportunity to make their choices. Therefore, the next step is to involve producers, getting them to consider the opportunities offered when they understand how the sensory characteristics of their wine compares with those of other wines with the same designation, so that they can emphasize the distinctive features of their product in wine tasting events and use them to refine their market strategy.” Speaking about the point of view of consumers, he added, “We should be aware that we are addressing the global market. The traditional Wine Guides that were widely used in Italy in past years to identify quality wine have a different value today, and exclude a large number of consumers, who do not take them into account in their choices of wines.” In this scenario, one can appreciate the growing value of Internet and social media, free as they are of the limitations of space and time, because they offer venues for ­communicating ­sensory analysis information easily and without filters to a large number of consumers.

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One possible drawback to sensory analysis is the risk of impersonal communication lacking the kind of appeal that captures the attention of new consumers. For this reason, IMT should develop an integrated strategy to support the emotional aspect in future wine advertising. Daniele Fava explained, “The use of sensory analysis to communicate objectively about a wine does not exclude the hedonistic and emotional kind of advertising widely used in the wine world. Instead, it opens paths into new markets, reducing the costs associated with social studies of specific markets, and thus costs to consumers.” Other opportunities are offered by consumer science methodologies. For example, correlating sensory profiles and consumer liking scores, it is possible to obtain a preference mapping (Thomson and MacFie, 1994) to understand the drivers of consumer preferences. This methodology identifies what kind of wine in terms of sensory characteristics appeals to each specific group of consumers. The results could be useful for consortia or single producers, helping them to correctly position different wines in different markets and to optimize their spending choices.

7.7 Conclusion In Italy, sensory evaluation understood as a study of objective characteristics according to international standards and not as a result of hedonistic evaluation was not frequently used in wine marketing and communication strategies. The IMT consortium is in the vanguard in its work to promote protected designation of origin wines from the Marches Region and the region's terroir through a sensory strategy. Thus far, IMT has built a new model for communicating the unique profiles of these wines, but now, it needs to share it. In this direction, new media and web communication tools offer many opportunities for involving consumers. The international language of sensory analysis should prove helpful in educating consumers to recognize Marchigian wine. Social media and phone applications could enhance tasting experiences and playful aspects in the choice of wine and its consumption. Furthermore, the IMT consortium would be wise to develop strategies to engage local wine producers in an effort to address the decline of production areas and the reduction of quality wine production in the last decade. It should also consolidate the relationship with consumers, to support the increase in exports in recent years and the achievement of new markets.

References Charters, S., Pettigrew, S., 2006. How effectively do we communicate about wine. In: Proceedings of the 3rd International Wine Business and Marketing Research Conference, July 6–8, Montpellier. Francis, I.L., Williamson, P.O., 2015. Application of consumer sensory science in wine research. Aust. J. Grape Wine Res. 21 (S1), 554–567. Guinard, J.X., Cliff, M., 1987. Descriptive analysis of Pinot noir wines from Carneros, Napa, and Sonoma. Am. J. Enol. Vitic. 38 (3), 211–215.

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Iannario, M., Manisera, M., Piccolo, D., Zuccolotto, P., 2012. Sensory analysis in the food industry as a tool for marketing decisions. ADAC 6 (4), 303–321. ISO, I, 1993. Standard 8586–1. Sensory Analysis—General Guidance for the Selection, Training, and Monitoring of Assessors. Part 1—Selected Assessors. Int. Organization for Standardization, Geneva, Switzerland. ISO, I, 1994. Standard 11035. Sensory Analysis—Identification and Selection of Descriptors for Establishing a Sensory Profile by a Multidimensional Approach. Int. Organization for Standardization, Geneva, Switzerland. ISO, I, 2008. Standard 8586–2. Sensory Analysis—General Guidance for the Selection, Training, and Monitoring of Assessors. Part 2—Expert Sensory Assessor. Int. Organization for Standardization, Geneva, Switzerland. ISO, I. 3591, 1977. Sensory Analysis: Apparatus Wine Tasting Glass. Int. Organization for Standardization, Geneva, Switzerland. ISO, I. 8589, 2007. Sensory Analysis: General Guidance for the Design of Test Rooms. Ente Nazionale Italiano di Unificazione, Italy. Jacoby, J., 1984. Perspectives on information overload. J. Consum. Res. 10 (4), 432–435. Kirmani, A., Wright, P., 1989. Money talks: perceived advertising expense and expected product quality. J. Consum. Res. 16 (3), 344–353. Keller, K.L., 2001. Mastering the marketing communications mix: micro and macro perspectives on integrated marketing communication programs. J. Mark. Manag. 17, 819–847. Lattey, K.A., Bramley, B.R., Francis, I.L., 2010. Consumer acceptability, sensory properties and expert quality judgements of Australian Cabernet Sauvignon and Shiraz wines. Aust. J. Grape Wine Res. 16 (1), 189–202. Lawless, H.T., Heymann, H., 2010. Sensory Evaluation of Food: Principles and Practices. Springer Science & Business Media. Levy, S.J., 1959. Symbols for sale. Harv. Bus. Rev. 37 (4), 117–124. Mouret, M., Monaco, G.L., Urdapilleta, I., Parr, W.V., 2013. Social representations of wine and culture: a comparison between France and New Zealand. Food Qual. Prefer. 30 (2), 102–107. Noble, A.C., Arnold, R.A., Buechsenstein, J., Leach, E.J., Schmidt, J.O., Stern, P.M., 1987. Modification of a standardized system of wine aroma terminology. Am. J. Enol. Vitic. 38 (2), 143–146. Nomisma Data, 2015. http://www.nomisma.it/images/NEWS/2015-03-24_WM_oss_mercato_ paesi_terzi.pdf. Piggott, J.R., Jardine, S.P., 1979. Descriptive sensory analysis of whisky flavour. J. Inst. Brew. 85 (2), 82–85. Rodrigues, H., Ballester, J., Saenz-Navajas, M.P., Valentin, D., 2015. Structural approach of social representation: application to the concept of wine minerality in experts and consumers. Food Qual. Prefer. 46, 166–172. Santini, C., Cavicchi, A., Canavari, M., 2011. The Risk™ strategic game of rural tourism: how sensory analysis can help in achieving a sustainable competitive advantage. In: Food, AgriCulture and Tourism. Springer, Berlin, Heidelberg, pp. 161–179. Schlich, P., Issanchou, S., 1990. Les méthodes de profiles et leurs alternatives. In: léres Journeées agro-industrie & Meéthods Statistiques. Angers. pp. 254–272. Sidel, J.L., Stone, H., 1993. The role of sensory evaluation in the food industry. Food Qual. Prefer. 4 (1–2), 65–73. Thomson, D.M., MacFie, H.J.H. (Eds.), 1994. Measurement of Food Preferences. Blackie Academic.

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Udé, L., Moulin, J.P., Barberot, M., Thuillier, B., Danzart, M., Trecourt, P., 1984. Mise au point d'une méthode d'analyse sensorielle des Champagnes. Sci. Aliment. 4, 111–116. Vannier, A., Brun, O.X., Feinberg, M.H., 1999. Application of sensory analysis to champagne wine characterisation and discrimination. Food Qual. Prefer. 10 (2), 101–107. Varela, P., Gambaro, A., 2006. Sensory descriptive analysis of Uruguayan Tannat wine: correlation to quality assessment. J. Sens. Stud. 21 (2), 203–217.

Further reading ISO, I. 13299, 2003. Sensory Analysis–Methodology-General Guidance for Establishing a Sensory Profile. Int. Organization for Standardization, Geneva, Switzerland.

Emotion in the glass: An innovative study to understand unconscious reactions in wine tasting

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Chiara Mignani*, Venerucci Matteo†, Lucia Irene Bailetti‡, Matteo Bonfini‡, Alessio Cavicchi§ * Santa Chiara Lab, Università degli Studi di Siena, Siena, Italy, †Brain Propaganda, Beograd, Serbia, ‡CIAS Innovation, Centro Italiano di Analisi Sensoriale, Matelica (MC), Italy, §Department of Education, Cultural Heritage and Tourism, University of Macerata, Macerata, Italy

8.1 Introduction Wine consumption is a social and cultural phenomenon; it is difficult to separate its consumption from the context or occasions in which it is consumed. Symbolic universes that make sense in a given culture generate habits and consumption behavior. Most would agree that the senses of smell, taste, touch, and appearance influence the cognitive and emotional perception of wine. In recent years, the role of emotions on consumption behavior has been a much-debated topic, and many studies have explored the nexus between emotions and food intake. Different authors have investigated the implication of feeling states on food consumption, preference, and eating behavior to examine their involvement in eating disorders (Canetti et al., 2002). Mehrabian (1980) identified a relation between greater amount of food intake and such emotional states as depression, boredom, and fatigue. The Lyman (1982) study examining emotions in food consumption found a significant tendency to consume healthy food during positive feeling states and junk food during negative emotion states. Desmet and Schifferstein (2008) examined the emotions experienced by healthy individuals when they taste or eat food. They noted that such pleasant emotions as satisfaction, enjoyment, desire, and amusement were more frequent than unpleasant ones like boredom, disappointment, dissatisfaction, and disgust. They examined five different sources of food emotions: (1) sensory attributes (e.g., the pleasant surprise of the taste of an exotic fruit), (2) experienced consequences (like the relief after drinking a large glass of water), (3) anticipated consequences (when we hope to stay healthy by eating vegetables or we feel guilty after eating unhealthy food), (4) personal or cultural meanings (when a food reminds us of a particular person or moment of life), and (5) actions of associated agents (for instance, if we admire a chef for his skill or are disappointed by food that is worse than expected). Regarding emotions and wine consumption, Ferrarini et al. (2010) identified a set of Italian adjectives to describe the feeling of wine consumers during wine tasting and Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00008-2 Copyright © 2019 Elsevier Ltd. All rights reserved.

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wine consumption experiences. They began with 453 emotion adjectives related to consumption and narrowed them to a final list of 16 adjectives to describe the emotions elicited by wine consumption and then interpreted with the bidimensional model of the Russell's emotional lexicon (1979). According to Wansink et al. (2007), environmental cues have an impact on food intake and can generate positive or negative expectations. Danner et al. (2016) studied the influence of wine quality and wine liking and the effects of consumption context in consumer emotions and indicated the importance of considering context and emotions in marketing strategy. In their experiments, they found that high-quality wines stimulate more intensive positive emotions and, similarly, that the restaurant context generates more intense positive emotions than home consumption or a laboratory context. This research also showed a strong relationship between wine that evoked positive intense emotions and willingness to pay. In fact, they registered an increase in willingness to pay (WTP) in the absence of negative emotions and a significantly high WTP for a bottle of wine when the consumers were enthusiastic and passionate in consumption.

8.1.1 Implicit and explicit methods for studying emotional responses The crucial point of our study was to measure the emotions of wine consumers. In the traditional explicit methods used in consumer studies, participants declare their emotional responses to products, while the implicit methods are used to investigate the unconscious emotional responses. As reported by Mauss and Robinson (2009) in their review, there are different ways to study emotional response, and no one measurement standard is the best, nor are they interchangeable. The authors examined five types of measurements, implicit and explicit, and associated to each one the respective aspects of emotional state best captured by it. With the first type of method, self-report, participants spontaneously declare what they feel; it is more efficient if the emotions are revealed during or immediately after the stimulus, although people may not be aware of or capable of identifying their emotional states. In the second type of study, measurements of emotional response are carried out by monitoring autonomic nervous system (ANS) phenomena such as electrodermal or cardiovascular responses (e.g., in sweat glands or the circulatory system). While this method does not provide explanations for the distinct emotional patterns related to the ANS measurements, it is useful for identifying emotional valence and arousal states. The third type examines startle response magnitude, based on startle reflex in the eye blink; electrodes placed over the orbicularis oculi muscle provide electromyogram measurements. When the avoidance system is activated, the electrodes register a defensive response. This method is more sensitive to negative than to positive stimuli. The fourth method also involved explicit measurements, in this case examining brain states, most commonly by using the electroencephalograph (EEG), which identifies the electric activation of specific brain regions that are linked to states of approach or avoidance. Functional magnetic resonance imaging (fMRI) is a more accurate instrument than EEG, but it is certainly more invasive. The fifth method measures facial or body behavior, specifically with an assessment of vocal characteristics useful for understanding levels of emotional arousal, and micro facial expressions, which are very sensitive to the emotional valence but influenced by gender and sociocultural aspects.

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Besides traditional self-report, many authors focus on other explicit methods such as verbal and visual self-reports. Researchers have examined and assessed different types of questionnaires for defining the emotional profiles of a product. King and Meiselman (2010) developed EsSense Profile, a methodology to measure the acceptability of the product and emotions of consumers during a product test through a questionnaire. After tasting products or while consuming each sample, the consumers have to express their opinion on a hedonic scale and describe their emotional state by selecting the terms on the questionnaire closest to their feelings. The authors provide a list of emotions that can be expanded according to the specific product categories or specific applications. In the questionnaire, the emotions can be indicated by “check all that apply” (CATA) or data scaling. Spinelli et  al. (2014) used a semiotic approach to develop EmoSemio to study the emotions stimulated by the sensory characteristics of products. The questionnaire was designed with a one-to-one interview and a repertory grid approach. Consumers taste a product and start to describe what they feel while tasting the product. Researchers use a semiotic approach to construct the semantic categories that represent the emotions to evaluate. Finally, the consumers rate the items responding to the question “How does it make you feel?” on a five-point scale of the EmoSemio questionnaire. Unlike EsSense, the EmoSemio uses a discursive form to present the list of emotions that were previously identified by the repertory grid method. This aspect is useful for reducing ambiguity and obtaining valuable and consistent results. One criticism of these methods is that verbal measurements necessarily involve ambiguity. To overcome this problem, many authors substituted the list of verbal emotions with a series of images evoking the emotional states, as in the self-­assessment manikin (SAM) technique developed by Bradley and Lang (1994), in which the respondents check the image that in their opinion best portrays their emotion. The advantage of this method is the absence of the verbal self-report instrument, but the disadvantage is that it measures only emotional states and not the different emotions. PrEmo (Desmet, 2003) is another nonverbal self-report instrument, applied to food and nonfood products, that measures 14 emotions. In this case, the consumers express their emotions by choosing from a variety of cartoon animations that simulate facial, bodily, and vocal expressions. However, with PrEmo, respondents cannot recognize themselves on cartoons and are unable to identify their own emotional states.

8.1.2 Neuromarketing tools for understanding consumer emotions In recent years, neuromarketing, which applies the principles of neuroscience to marketing methods, has become widely used. The main instruments are the EEG and fMRI to measure emotional reactions through changes in brain activity states, the face coding to interpret the physical aspects of facial expressions that identify the different moods evoked by given stimuli, and the eye tracking to identify the movements or focus of consumer's eyes when they are exposed to the product or product images. Saarni (1999) highlighted that the people find it difficult to discern, assess, and describe their own emotions. Posner et al. (2005) suggested that it is difficult for people to recognize emotions as isolated or discrete entities, because they perceive them as ambiguous and overlapping experiences.

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In our research, we decided to use an implicit method to investigate unconscious emotional responses. In particular, we have chosen EEG because this method records brain electric activity in a way that is not additional cognitive effort for the consumer during the test. Unlike tests involving self-report, this method does not require consumers to articulate in rational language something that is irrational. As explained by Ariely and Berns (2010), the EEG uses electrodes applied to the scalp to measure electric field activity in the brain region underneath. It is able to record a neuronal event with high frequency. It is a quite old technology in neurology, and new instruments such as fMRI offer more information, but it is still considered a good compromise for measuring brain activity for marketing research (Morin, 2011). When the brain is subjected to a stimulus, it produces electric currents that have different patterns of frequencies associated with different states of arousal. The academic literature based on left-right asymmetry of the frontal EEG signals suggests an association between increased activity of the left frontal region and positive emotional experience or motivational drive to approach to the stimulus (Davidson et al., 1990; Harmon-Jones, 2003; Plassmann et al., 2012). Obviously, the EEG does not enable us to predict with full certitude what reactions or consumer behavior will be generated by the stimulus, but the data it yields do afford some understanding of the unconscious evaluation of the stimulus and some indication of positive or negative influences on consumer behavior. In the last few years, EEG has been frequently used in advertising to test the effectiveness of advertising campaigns. For example, Ohme et al. (2009) compared three TV messages for the same product, the Sony Bravia television set, and observed significant differences in the reactions to the emotional and informational parts. In particular, one of the three messages was significantly more engaging in all the scenes. The EEG data indicated that the first part of the spot, which aimed to communicate the television's unique color, favored consumer attention during the informative scene at the end of the spot. This suggests that the use of EEG is able to provide meaningful feedback about consumer reactions while watching TV advertisements. Other studies attempted to analyze media content integrating traditional survey methods with neurophysiological tools such as EEG (Yang et al., 2015; Venkatraman et al., 2015; Cartocci et al., 2016). In recent research, EEG was utilized in consumer testing to measure the emotions associated with food. Van Bochove et  al. (2016) compared the results of EEG-recorded data with hedonic evaluation of food. They found correlations between posterior parieto-occipital resting state EEG asymmetries and self-report answers on food evaluation questionnaires. To predict purchasing decisions when brand and price changed, Ravaja et al. (2013) examined EEG asymmetry over the prefrontal cortex. Consumers were asked to make purchase decisions about 7 private label products and 7 national brand products with 16 price levels, and after the experiments, the participants filled in a questionnaire about perceived product quality. The results showed an increase in left frontal activation just before the purchase decision and a strong association between affirmative purchase intention for national brand products and left frontal activation. Comparison with the questionnaires indicated that there was an increase of left frontal activation during the purchase predecision for products indicated as high quality in the questionnaire.

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8.2 Aims This study highlights the potential offered by the combined use of consumer science tools and consumer neuroscience methods. In traditional expectation testing, data are gathered through questionnaires compiled by the consumers. Instead, our study took electroencephalogram measurements of participants as they engaged in a three-part expectation test (“blind,” in which participants taste wine but do not know the provenance; “expected,” in which they express their expectations based only on reading the bottle label; and “labeled,” in which they taste the wine and can read the bottle label) for four white wines, homologous in price and vintage, in order to identify and analyze their emotional responses. The three phases of the traditional expectation test provide input on which stimuli (their own sensory experience or information from reading the label) influence consumer emotions as they evaluate the products. In addition, in our study, for each wine in each part of the test, the EEG measurements that indicate intensity and emotional value were recorded and subsequently analyzed following Russell's circumplex model of affect theory (2003). Furthermore, the activities of the temporal lobes that are responsible for memories were recorded and evaluated, to understand the commitment and the difficulty to remember associations with particular stimuli. The results highlighted the variance of emotions during the three phases of the expectation test and identified the strength and weakness of emotions evoked by the different wines. This work offers a new point of view in the evaluation of the cognitive conscious and emotional aspects that together drive consumer decision-making and purchasing behavior.

8.2.1 Integration of consumer science methods and consumer neuroscience research While the electroencephalogram (EEG) has traditionally been used in medicine to diagnose encephalon disorders by measuring electric activity in the brain (Morin, 2011), it has also become a tool for understanding psychological and emotional states through the observation of brain waves. Modern portable EEG devices cause little to no discomfort for those examined and do not disturb consumers during evaluations, thus allowing the collection of a good deal of data without limits due to the observation context and longer period of exposure to the stimulus. The literature presents several studies that used EEG to analyze brain activity during observation of advertisements (Vecchiato et al., 2010) or to investigate consumer attitudes (Lee et al., 2014; Sebastian, 2014). In our research, we investigated the possible opportunities offered by this tool for understanding the expectations of wine consumers by recording measurements indicative of their emotions. The expectation test has proved to be a valuable method for obtaining data for consumer behavior studies. As proposed by Cardello (1994) and suggested by other authors in the wine sector (Mueller and Szolnoki, 2010), the expectation test method allows the evaluation of the sensory and hedonic expectations by comparing the consumer evaluations in a blind test in which consumers only receive sensory stimuli from

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the product (taste, aroma, appearance, etc.) with a test where the subjects have full information about the product. Data are collected through questionnaires answered by participants. The goal of our study was to explore the combination of EEG data, generally devoted to the neuropsychological inquiry, with data produced in expectation tests in order to assess the complementarity of results and the feasibility of implementing this dual-source data, in comparison with data obtained with the traditional method alone. In particular, in this project, we used EEG to record brain activity in reaction to the various stimuli from four different white wines in the blind, expected, and labeled phases of the expectation test. The aim of our experimental research was to explore the following areas: − Evaluate whether the emotional response indicated by EEG could be useful for wine marketing strategy. − Understand the variance in expectation during the blind, expected, and labeled phases. − Identify the degree of impact each wine has on the consumer's emotions in the expectation test.

According to Stefani et al. (2006, 2014) and Santini et al. (2017), expectation tests can be set up in phases to provide consumers in different step stimuli about sensory characteristics, label information, and a combination of the two. In the blind tasting phase, the participants saw, smelled, and tasted the wine but did not know anything about the label and thus could only trust their senses in evaluating the wine. In the second step, the participants had to evaluate the wine exclusively on the basis of information on the bottle label, without tasting the wine. In the last phase, the consumers saw, smelled, and tasted the wine and also saw the label, as in a real tasting test. Thus, in our study, the three-part expectation test provided an understanding of how information affects consumer evaluation of wines but in a different way than in traditional expectation tests, in which data are collected through questionnaires. In our study, the participants did not self-report their opinion, but their EEG data were recorded and analyzed to indicate the degree and kind of emotions evoked. As in the traditional test, the data were compared in each phase of the experiment to understand the impact of the three different stimuli on consumer emotions. In the traditional test, we can analyze evaluations in order to comprehend consumer expectations. Instead, by studying the EEG asymmetry, it is possible to investigate consumer emotions related to expectations. The EEG measurements were analyzed using Russell's circumplex model of affect theory (2003), according to which emotions derive from two independent neurophysiological systems, one related to emotional valence and the other to arousal, activation, or alertness level. Valence refers to a continuum that varies from positive to negative in terms of pleasure and displeasure, while arousal refers to a continuum that varies from calm to excitement (Russell, 1980). According to this theory, every affective experience is a consequence of a linear combination of these two independent systems. Emotions are the product of the degree of intensity of both valance and arousal (Fig. 8.1). Fear, for example, is the result of a combination of negative valence and high level of arousal (Posner et al., 2005). The circumplex model of affect theory was supported by psychometric studies that indicated the two latent dimensions of emotions (Barrett and Fossum, 2001; Gerber et al., 2008).

Emotion in the glass: An innovative study to understand unconscious reactions in wine tasting107 Activation Alert

Tense

Excited

Nervous

Elated

Stressed

Happy

Upset Unpleasant

Pleasant

Sad

Contented Serene

Depressed

Relaxed Bored

Calm Deactivation

Fig. 8.1  The circumplex model of affect: The horizontal axis represents the valence dimension, and the vertical axis represents the arousal or activation dimension.

Using facial electromyography (fEMG), heart rate, and skin conductance, Lang et al. (1993) correlated the increase in skin conductance and heart rate with ratings of arousal. To confirm the consistency of the dimensional theory of valence and arousal, Bradley et al. (2003) used fMRI while subjects looked at emotionally evocative pictures and found correlations between signal intensity in the visual cortex and arousal levels. Similar studies with EEG discovered the same evidence in relation to cerebral activation and subjective ratings of arousal (Keil et al., 2001). Furthermore, emotional valence seems to be associated with fEMG measurements that record the corrugator and zygomatic musculature. In this direction, experiments by Cacioppo et al. (1986) that exposed 28 subjects to positive and negative scenes indicated an incremental increase of corrugator activity with negative valence, measured by fEMG, when the subjects described a specific affective state. Advanced techniques of neuroimaging have allowed researchers to better understand the neural substrates of emotion involved in the elaboration of emotional valence and arousal.

8.3 Materials and methods 8.3.1 Participants Eight volunteer consumers (two females and six males) were recruited by the Italian Center of Sensory Analysis, a consulting company in R & D and marketing for the agro-food sector, based in Matelica, Central Italy. The subjects, Matelica residents

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b­ etween the ages of 26 and 60, were selected randomly among wine lovers, enthusiasts, sommeliers, professional tasters, or people employed in wine sector with medium to high knowledge about wines and high involvement in wine tasting.

8.3.2 The expectation test Samples were randomized and coded with three-digit numbers for each step of the expectation test. To minimize external errors relating to the test setting, consumers received the products in a different sequence from each other. The four Italian white wines tested were Verdicchio di Matelica DOC, Verdicchio dei Castelli di Jesi DOC, Pecorino Offida DOC, and Soave DOC. The first three are designations of origin wines produced in the Marches Region, while the fourth is produced in the Veneto Region. All the wines had the same vintage and price range. Before the tests, participants received information about the test and the use of EEG. They were invited to relax and behave naturally. Before starting the test, brain activity was measured by EEG when the subjects were at rest, without any stimuli. The test began when consumers felt at ease. The test was divided into three phases: − In the blind phase, consumers received wine samples without information, and thus, the stimulus consisted only in the sensory characteristics of the product. − In the second phase (expectation), consumers received information about the wines by reading the labels but did not see or taste the wines. − In the last phase (labeled), consumers had full information about the wines, in that they could read the labels of the wine bottle as they tasted the sample.

In the first two phases, consumers were free to explore stimuli for 1 min. For example, they could taste the wine more than once in the first phase or read the label leisurely in the second phase. Instead, in the third phase, they had 2 min to taste the wine and look at the labeled bottle. During the test, consumers did not know the sequence of presentation of the wines.

8.3.3 EEG recording The brain electric activity was recorded by EEG in order to identify the inference associated with the stimulus. The EEG used during the experiment was able to detect brain activity with a frequency of 128 Hz. The equipment made it possible to record the performance over the time and not only as a static datum. For each consumer, reactions to the stimuli were recorded during the whole performance. In the circumplex model of affect (Fig. 8.1), the emotional valence is described by the x-axis, while the y-axis represents the intensity of emotions indicated by differences in the activation of the left and right temporoparietal lobes. According to Russell (2003) and the literature, based on left-right asymmetry of the frontal EEG, the activation of the left hemisphere is associated with the approach behavior to the stimulus and positive emotions, while greater right-hemisphere activation is related to avoidance behavior and negative emotions (Fig. 8.2).

Emotion in the glass: An innovative study to understand unconscious reactions in wine tasting109

Fig. 8.2  Example of brain activation of one subject during blind stimuli. Images 1–4 are related to Pecorino DOC, 5–8 Verdicchio di Jesi DOC, 9–12 Verdicchio di Matelica DOC, and 13–16 Soave DOC.

8.4 Results and discussion In the blind phase, the Verdicchio di Matelica DOC and the Verdicchio di Jesi DOC obtained very similar average positive emotional valence values (Fig. 8.3), though the Matelica wine had lower emotional intensity values (Fig. 8.4) and thus a lower index of involvement. In the expected phase, the Verdicchio di Jesi DOC produced a markedly better reaction, while the Verdicchio di Matelica evoked markedly negative emotional valence values (Fig. 8.3), even though with a very limited intensity (Fig. 8.4). Only the Soave evoked negative reactions for both variables. In the third part of the test, consumers were presented with a wine sample and the labeled bottle. In this phase, the Verdicchio di Matelica DOC was differentiated from the others in that it received more positive values, while the Soave DOC and the Verdicchio di Jesi DOC were positioned at the same level. Instead, the Pecorino Offida DOC obtained results that were not excellent.

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Case Studies in the Wine Industry Emotive valence

4000 3000 2000 1000 0 –1000

Blind

Expected

Labeled

–2000 –3000 –4000 Pecorino

Verdicchio di Jesi

Verdicchio di Matelica

Soave

Fig. 8.3  Emotional valence values of the four wines in the three phases of the expectation test, namely, blind, expected, and labeled. Emotive intensity 3000 2000 1000 0 –1000

Blind

Expected

Labeled

–2000 –3000 –4000 Pecorino

Verdicchio di Jesi

Verdicchio di Matelica

Soave

Fig. 8.4  Emotional intensity levels for the four wines in the blind, expected, and labeled phases.

As can be noted from the chart of emotions organized according to Russell's affect theory (Fig. 8.5), the general results show that the most positive emotion descriptors, such as excited and happy, were found for the two Verdicchio wines analyzed. The Verdicchio di Jesi DOC seemed to have a constant performance in the different phases of the test and above all in the expected phase, in which the consumers saw the bottle label but did not taste the wine. The Verdicchio di Matelica DOC obtained positive results in the blind phase, when the consumer focused on the sensorial aspects alone. Instead, the results worsened markedly in the second phase when the only stimulus was the bottle label. The emotional valence of the Verdicchio di Jesi DOC label in and of itself was confirmed and was coherent with the blind evaluation. The Verdicchio di Matelica DOC, in the second phase with just the bottle label, was penalized by a negative emotional valence, while in the third phase, when tasting was combined with information on the bottle label, the positive emotions were markedly higher than those evoked by the other wines. The reason probably lies in the consumers' previous knowledge about and experience of this wine.

Emotion in the glass: An innovative study to understand unconscious reactions in wine tasting111 10.00 8.00 Soave

6.00

Nervous

Verdicchio Matelica

Distressed

Pecorino

Distressed

Pecorino

Distressed

–10.00

–5.00

Verdicchio Matelica

Verdicchio Jesi

Excited

Excited/Elated

4.00

Verdicchio Jesi

2.00

Excited

Verdicchio Jesi Happy

0.00

0.00

5.00

–2.00 –4.00 Soave Bored

–6.00 –8.00

Pecorino

10.00

Contented

Soave

Calm

Verdicchio Matelica

Relaxed

–10.000 Blind Expected Labeled

Fig. 8.5  Chart of emotions according to Russell's affect theory.

The Pecorino Offida DOC obtained opposite results from those obtained in the various sessions with the Verdicchio di Matelica DOC. It was interesting that the Pecorino phase 2, with just the label, evoked positive emotions, while in the blind test of tasting alone, the wine elicited negative emotions. This implies that the brand or DOC status creates very high expectations, but in the third phase, when consumers taste the wine and see the label, the opposite occurs, probably because their expectations have been disappointed. The Soave DOC received the least satisfying results in all three phases of the test. Slightly positive emotional reactions were recorded only in the third phase when consumers could taste the wine and see the bottle label.

8.5 Conclusion Emotions play a relevant role in wine consumption and choice: marketers often try to make the most of emotions as a strategic leverage for promoting or selling wine. The emotional components of consumer behavior regarding product choice and purchasing cause are the consequence of psychological and physiological processes that are difficult to monitor univocally with one instrument alone. Certainly, by combining a number of techniques, such as questionnaires, qualitative research, and instruments of neuromarketing, researchers can obtain a more complete set of information for understanding and foreseeing with greater precision the behavior that guides consumer decision-making. Though our study was only exploratory and based on the observation of a small number of consumers, it shows some of the possibilities offered by the integration of consumer science methods and neuropsychological techniques and instruments.

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The use of EEG enabled the exploration of the cognitive and conscious aspects and above all the evaluation of the emotional and unconscious aspects associated with wine, which are much more difficult to perceive with traditional instruments. The research protocol applied made it possible to measure the emotion elicited by both sensory stimuli and the appeal of the label and the designations of origin of different wines. The work methodology enabled the registration of unconscious emotional evaluations that together influence consumer behavior related to wine. It emerges that label design should explicitly consider the emotional components of consumers: since information contributes to creating expectations, consumer science can be particularly helpful in understanding how expectations can be confirmed by tasting the wine. This preliminary study opens the way for future inquiries to define with greater precision the decision-making process and thus also the purchasing process, in particular through the integration of neuroscientific methods and traditional ones used in consumer science.

Acknowledgments Authors would like to thank CIAS Innovation for sharing data and information.

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Desmet, P., 2003. Measuring emotion: development and application of an instrument to measure emotional responses to products. In: Funology. Springer, Netherlands, pp. 111–123. Desmet, P.M., Schifferstein, H.N., 2008. Sources of positive and negative emotions in food experience. Appetite 50 (2–3), 290–301. Ferrarini, R., Carbognin, C., Casarotti, E.M., Nicolis, E., Nencini, A., Meneghini, A.M., 2010. The emotional response to wine consumption. Food Qual. Prefer. 21 (7), 720–725. Gerber, A.J., Posner, J., Gorman, D., Colibazzi, T., Yu, S., Wang, Z.…Peterson, B.S., 2008. An affective circumplex model of neural systems subserving valence, arousal, and cognitive overlay during the appraisal of emotional faces. Neuropsychologia 46 (8), 2129–2139. Harmon-Jones, E., 2003. Clarifying the emotive functions of asymmetrical frontal cortical activity. Psychophysiology 40 (6), 838–848. Keil, A., Müller, M.M., Gruber, T., Wienbruch, C., Stolarova, M., Elbert, T., 2001. Effects of emotional arousal in the cerebral hemispheres: a study of oscillatory brain activity and event-related potentials. Clin. Neurophysiol. 112 (11), 2057–2068. King, S.C., Meiselman, H.L., 2010. Development of a method to measure consumer emotions associated with foods. Food Qual. Prefer. 21 (2), 168–177. Lang, P.J., Greenwald, M.K., Bradley, M.M., Hamm, A.O., 1993. Looking at pictures: affective, facial, visceral, and behavioral reactions. Psychophysiology 30 (3), 261–273. Lee, E.J., Kwon, G., Shin, H.J., Yang, S., Lee, S., Suh, M., 2014. The spell of green: can frontal EEG activations identify green consumers? J. Bus. Ethics 122 (3), 511–521. Lyman, B., 1982. The nutritional values and food group characteristics of foods preferred during various emotions. J. Psychol. 112 (1), 121–127. Mauss, I.B., Robinson, M.D., 2009. Measures of emotion: a review. Cognit. Emot. 23 (2), 209–237. Mehrabian, A., 1980. Basic Dimensions for a General Psychological Theory Implications for Personality, Social, Environmental, and Developmental Studies. Oelgeschlager, Gunn & Hain Inc., Cambridge, MA. Morin, C., 2011. Neuromarketing: the new science of consumer behavior. Society 48 (2), 131–135. Mueller, S., Szolnoki, G., 2010. The relative influence of packaging, labelling, branding and sensory attributes on liking and purchase intent: consumers differ in their responsiveness. Food Qual. Prefer. 21 (7), 774–783. Ohme, R., Reykowska, D., Wiener, D., Choromanska, A., 2009. Analysis of neurophysiological reactions to advertising stimuli by means of EEG and galvanic skin response measures. J. Neurosci. Psychol. Econ. 2 (1), 21. Plassmann, H., Ramsøy, T.Z., Milosavljevic, M., 2012. Branding the brain: a critical review and outlook. J. Consum. Psychol. 22 (1), 18–36. Posner, J., Russell, J.A., Peterson, B.S., 2005. The circumplex model of affect: an integrative approach to affective neuroscience, cognitive development, and psychopathology. Dev. Psychopathol. 17 (03), 715–734. Ravaja, N., Somervuori, O., Salminen, M., 2013. Predicting purchase decision: the role of hemispheric asymmetry over the frontal cortex. J. Neurosci. Psychol. Econ. 6 (1), 1. Russell, J.A., 1979. Affective space is bipolar. J. Pers. Soc. Psychol. 37 (3), 345. Russell, J.A., 1980. A circumplex model of affect. J. Pers. Soc. Psychol. 39, 1161–1178. Russell, J.A., 2003. Core affect and the psychological construction of emotion. Psychol. Rev. 110 (1), 145. Saarni, C., 1999. The Development of Emotional Competence. Guilford Press. Santini, C., Cavicchi, A., Seghieri, C., Bailetti, L., 2017. How can consumer science help to reduce the risk of market failure? An academician–practitioner approach in the Italian olive oil industry. In: Case Studies in the Traditional Food Sector. Elsevier, pp. 153–169.

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Rebranding wine using sensory profiling data: A case study

9

Camilo Peña⁎, Annamma Joy⁎,a, Karine Lawrence† ⁎ The University of British Columbia—Okanagan, Kelowna, BC, Canada, † Sirocco Consulting, Kelowna, BC, Canada

Since the 1990s, the consumer goods industry and the food and beverage industry in particular have increasingly incorporated consumer science to ensure and improve business and product performance (Moskowitz et al., 2012). Consumer science takes many forms—consumer tastings, focus groups, interviews, and surveys, among ­others—that provide insight into consumer behavior and perception, which in turn informs market preferences and captures trends in consumption and taste. This sensory study focuses on wines from British Columbia’s Okanagan Valley and the US Columbia Valley regions. BC in particular has seen a rapid rise in locally produced wine that has led to a concomitant increase in wine purchases. This is so much the case that the locally produced BC wine purchases are a recognized trend in Canada’s consumer goods industry. The BC wine industry is said to have matured after the first Okanagan’s subappellation (Golden Mile Bench) was approved. Consequently, there is growing interest among industry stakeholders to market wines from specific geographic locations within BC to showcase the region’s “terroirs” (Shore, 2015). Wine purchases in British Columbia reached Can$1 billion for the first time in 2014. Data from the British Columbia Liquor Distribution Branch (BCLDB) confirmed this trend with wine sales for 2014 increasing 5.68% to a total of 68.9 million liters (Korstrom, 2015). The BC Vintners Quality Alliance (VQA) appellation remains the second-best-selling category in BC, representing a market of approximately 17% of sales in liters (British Columbia Wine Institute, n.d.). This fast-growing category is ahead of wine imports and behind British Columbia non-VQA wines among which is included the “Bottled in British Columbia—From International and Domestic Wine” category. According to the same source, the average price for a bottle of VQA wine was Can$17.69 in 2015. To investigate the elements of a developing taste culture unique to the region’s artisanal wines, we organized two sensory evaluations of nine merlot wines from the Okanagan Valley (Canada) and one from the Columbia Valley (the United States). The commercial wines were chosen based on their availability locally and reflected multiple vintages. They came from distinct grape-growing areas within the Okanagan Valley and the Columbia Valley (see Figs. 9.1 and 9.2), with each region representing a “terroir.” Widely used in wine research for sensory profiling, quantitative descriptive analysis is a sensory method that decodes the likes and dislikes of consumers (Lawless and Heymann, 2010) and requires a panel of trained tasters to objectively a

Contact person for article publication.

Case Studies in the Wine Industry. https://doi.org/10.1016/B978-0-08-100944-4.00009-4 Copyright © 2019 Elsevier Ltd. All rights reserved.

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Fig. 9.1  Map of the Okanagan Valley. Reproduced with permission from http://www.okanagan.com/maps.html [25 July 2016].

rate the sensory characteristics of a food product. In our study, six local wine professionals with ­recognized credentials in the industry assessed the 10 wines. This type of experiment uses precise wine descriptors that have meaning for the winemaker. These descriptors inform consumer preferences on a particular region or market niche and can be fundamental in educating other consumers on the organoleptic profiles of wines. In this chapter, the authors present a case study where 10 wines of designated appellation are sensorially assessed using a widely accepted scientific methodology. The tasting methodology is presented followed by experimental results. The reader should refer to the bibliography for an overview of the sensory analysis field and how it is applied to the sensory evaluation of wine. The last section offers expert insights and its implications for the BC wine producer.

Rebranding wine using sensory profiling data: A case study117

Fig. 9.2  Map of the Columbia Valley. Reproduced with permission from https://www.washingtonwine.org/trade/documents/details/ washington-state-ava-map [25 July 2016].

9.1 Methodology 9.1.1 Wines The 10 merlot wines sampled for this study are detailed in Table 9.1. The decision to include one American wine among the nine Canadian wines was based on the assumption that a merlot produced in a geographic region located south of the Okanagan Valley may display a different sensory character. Wines were selected based on availability and were from different vintages. For confidentiality reasons, only wine region and no winery names are mentioned in Table  9.1. For each wine, two bottles were purchased to be used in one of the two implemented tastings.

9.1.2 Methods The six panelists recruited for the study held an enology degree at minimum or a Wine & Spirit Education Trust (WSET) level 3 diploma and were professionally active in the local and international wine industry. All had prior experience rating wines using attribute scales. The panelists evaluated each wine for seven aroma descriptors and eight taste and flavor descriptors, following a descriptive analysis methodology adapted from Guinard (2006). We used a predefined list of red wine sensory attributes

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Table 9.1  Wines’ details Wine no.

Vintage

Region

Alc (%)

Price (CAD)

1

2013

13.8

$18.95

2

2013

14

$19

3 4

2013 2011

14 14.2

$17.50 $35

5

2014

13.9

$14

6 7

2012 2012

14.2 13.5

$17.39 US$17

8

2012

14.5

$20

9

2013

14

$17.49

10

2013

Okanagan Valley—Golden Mile Okanagan Valley—Naramata Bench Okanagan Valley—Oliver Okanagan Valley—Skaha Lake Okanagan Valley—Golden Mile Okanagan Valley—Center Columbia Valley—the United States Okanagan Valley—Naramata Bench Okanagan Valley—Golden Mile Okanagan Valley—Oliver + Osoyoos

14

$15.99

that were well understood by all tasters. The panel received no training on the sensory attributes prior to the evaluations. The panel also assessed the overall quality of the 10 wines using a quality assessment grid based on a 20-point scoring sheet adapted from the University of California at Davis in 1959 (Noble, 1995). Because the evaluations were conducted blind, assessments were based solely on sensory perceptions, free of brand bias or any previous experience with specific varietals. The panel assessed each wine twice. Tastings took place on 2 different days approximately 2 weeks apart for three of the panelists; the other three panelists, due to time restrictions, completed both tastings on the same day. In both cases, the wines were coded with unique three-digit codes and presented in ISO glasses to the panelists who knew only that they were tasting red wine. The sequence in which each participant tasted the wines was randomized to avoid any contrast effects that may impact sensory perception. Rather than using a monadic sequence, we followed Lawless and Heymann (2010) and served all wines at once. We chose this procedure because all samples were similar in size and appearance and thus could be evaluated in one tasting session. The wines were served at room temperature, approximately 30 min before the tastings took place, and glasses were covered with petri dishes immediately after pouring. Samples were first evaluated by orthonasal olfaction, then tasted, and finally expectorated. Judges were given water and salt crackers to rinse their palates between samples. Both tastings took place in the BC Wine Sensory Lab at Okanagan College in Penticton. The panelists assessed the wines using the formats included in Appendix 1 (10 cm linear scales for wine aroma and taste/flavor descriptors) and Appendix 2 (quality

Rebranding wine using sensory profiling data: A case study119

assessment based on the adapted UC Davis 20-point scale). As shown in the format, the descriptive analysis included the following attributes: “vegetative” (aroma), “vegetal” (aroma), “berry” (aroma), “green bell pepper” (aroma), “cassis” (aroma), “spicy aroma,” “oak aroma,” “berry flavor,” “oak flavor,” “bitterness,” “astringency,” “acidity,” “mouthfeel,” “length of finish,” and “balance.” For quality assessment, participants were asked to rank the wines according to appearance and color, aroma, defects and faults, residual sugar (bitterness/acidity), body and mouthfeel, flavor length of finish and balance, astringency, and overall quality. Each attribute was scored resulting in a total overall quality score out of 20.

9.1.3 Statistical models We used a complete randomized block design with two replications for the experiment design. The descriptive analysis was statistically evaluated using a 3-factor analysis of variance (balanced ANOVA), with judge, wine, and replication as main effects and judge*wine, judge*replication, and wine*replication as interaction effects (Minitab 16, Kivuto, Ottawa, Canada). We also performed a principal component analysis (PCA) with the significant sensory attributes that emerged from the ANOVA procedure. Mean differentiation for all 10 wines was achieved by implementing a protected Fisher’s least significant difference test (LSD).

9.1.4 Qualitative analysis We asked participants to comment on the different wines and attributes and used these qualitative comments to complement the findings in the statistical analysis. The additional comments also provided a more complete analysis and informed the conclusions of the study.

9.2 Experimental results As shown in Table 9.2, the 10 wines were significantly different for the five following attributes (P ≤ 0.029): “oak aroma,” “oak flavor,” “berry flavor,” “balance,” and “length of finish.” “Astringency” showed an interesting trend toward significance at the 95% confidence limit (P = 0.087). The overall quality attribute showed not only a significant main wine effect but also a significant judge*wine interaction. The F value was recalculated (Cliff et al., 2015) using the judge*wine error term to identify whether the variance in the scores was primarily due to the wines as opposed to the judges. The resulting calculation indicated that overall quality showed that this attribute was significant at P = 0.081 despite the judges’ lack of consensus and was therefore included in further calculations. With regard to judge reproducibility, the judge*wine interaction terms were not significant, which suggests a strong concept alignment among the panelists. As shown in Table 9.2, judge effects had a significant value for all attributes; this was expected in the descriptive analysis because judges used different parts or ranges

Table 9.2  Three-way ANOVA summary of F values and P values indicating the source of variation among 10 merlot wines evaluated by six judges in duplicate Judge

Wine

Replication

Judge*wine

Judge*rep

Wine*rep

Attribute

F value

P value

F value

P value

F value

P value

F value

P value

F value

P value

F value

P value

Oak flavor*** Quality score*** Oak aroma** Balance** Length of finish** Berry flavor* Cassis Astringency Acidity Bitterness Vegetative Green bell pepper Vegetal Mouthfeel Berry aroma Spicy aroma

10.269 35.478 15.249 13.653 15.595 32.927 14.896 24.573 25.572 8.287 18.414 45.584 21.205 10.642 22.87 13.873

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

4.446 4.335 2.976 2.908 2.885 2.337 1.939 1.84 1.783 1.548 1.334 1.221 1.155 0.896 0.603 0.493

0 0 0.007 0.008 0.009 0.029 0.07 0.087 0.098 0.161 0.247 0.306 0.346 0.537 0.788 0.872

3.911 4.994 5.201 4.57 0.705 0.254 7.329 8.348 9.274 3.6 0.512 0.749 0.398 0.568 0.069 2.245

0.054 0.03 0.027 0.038 0.406 0.617 0.01 0.006 0.004 0.064 0.478 0.391 0.531 0.455 0.794 0.141

1.304 2.428 1.254 1.218 1.165 1.554 1.289 1.59 0.454 1.06 0.866 1.172 1.45 1.216 1.951 0.988

0.188 0.002 0.226 0.255 0.305 0.072 0.199 0.062 0.995 0.423 0.684 0.298 0.108 0.257 0.014 0.516

0.527 2.164 1.519 1.53 0.567 2.318 0.273 3.063 1.197 0.497 0.285 1.666 1.528 0.843 0.705 0.394

0.755 0.075 0.203 0.199 0.724 0.059 0.926 0.018 0.326 0.777 0.919 0.162 0.2 0.526 0.623 0.85

1.072 1.192 0.574 1.708 0.774 0.428 0.744 1.25 0.669 0.643 1.539 1.066 0.548 1.343 0.741 0.38

0.402 0.323 0.811 0.115 0.641 0.913 0.667 0.29 0.732 0.754 0.164 0.406 0.831 0.243 0.669 0.939

Significant attributes are highlighted. Level of significance for F wine values (P ≤ 0.05, P ≤ 0.01, and P ≤ 0.001) is indicated by *, **, and ***, respectively.

Rebranding wine using sensory profiling data: A case study121 Oak aroma 7 6 5 Quality scores/3

4

Berry flavor

3

1

2

3

2 4

1

5

0

6 7 8 9

Balance

Oak flavor

10

Length of finish

Fig. 9.3  Cobweb diagram with wines’ sensory profile for significant sensory attributes and quality score. Quality scores were divided by 3 for a better visualization.

of the scales. This does not compromise the statistical analysis of the sensory data (Guinard, 2006; Lawless and Heymann, 2010). The judges were discriminant and noticed differences among the wines in terms of woody sensory character (e.g., “oak aroma” and “oak flavor”; Noble et al., 1984, 1987) as opposed to vegetal attributes (e.g., “vegetative,” “vegetal,” and “green bell pepper”), which were not significantly different. Similarly, the wine descriptors “mouthfeel,” “astringency,” and “acidity” were not significantly different (P ≤ 0.05). The statistical analysis also revealed significant replication effects for the significant attributes “oak aroma,” “balance,” and “overall quality,” indicating that the overall sample means for these attributes were different across replications. This may have been caused by experimental error (tasting times and dates and room temperature control). A look at the judge*replication and wine*replication interaction effects indicated that they were not significant—proof that the judges were in agreement and that the wine samples used in the two replications were consistent. For the six significant attributes, a cobweb diagram shows sensory differences among the 10 merlots (Fig. 9.3). Sensory scores represent the intensity of the sensory perception, which is measured using an attribute scale ranging from 0 to 10, with 0 representing “no intensity” and 10 representing “high intensity.” We then used the post hoc LSD test (Table  9.3) to identify differences between sample means. Means that share the same subscript letters are not significantly different (P 56 7%

21–35 34%

Income level of the respondents 7000–9000 UAH 31%

> 9000 UAH 17%