Successful Strategies for Wine-Makers
What is the secret of success for the world’s most renowned wine producers? Recent research co-authored by Valéry Michaux, Director of Research at NEOMA Business School, breaks the myth that a good wine is due only to the chemistry of the soil, the climate and local know-how.
In the book "Strategies of Wine-making territories, Clusters, Governance and Territorial brand", Professor Michaux reveals another kind of recipe for success: that between the cluster effect, strong governance and a single territorial brand.
"With this research we aimed to answer the following question: beyond taste and marketing, what explains the success of a vineyard?" said Valéry Michaux. The research identified three main factors essential to the success of a wine-growing area, beyond the organoleptic quality of the wine itself: the alliance between professionals in a local cooperation, the presence of a strong and implicated governance and the cluster effect.
"The cluster effect has a positive impact on certain wine-growing areas, such as in California’s Silicon Valley,” said Prof Michaux. Indeed, with an alchemy between different virtuous circles linked together (a strong entrepreneurial culture, direct competition, strong emulation and cooperation, continuous experimentation, innovation, mutual help and solidarity), the cluster effect is the impulse without which parts of the world would never have emerged onto the international wine scene.
"The presence of a strategic alliance between professionals contributes significantly to the development of a single territorial umbrella brand and thus its influence. A strong local self-governance is also essential for a territorial brand to exist," said Prof. Michaux. Thus, the complimentary governance structure between local industry professionals enforces a higher standard of quality and regulates the forces making possible collective communication between all local actors in direct competition.
The book, part of the "Management & Forecasting" series co-published by EMS editions and MPE, was written by a team of French and international researchers from different disciplines within economics and management who analyzed various case studies of successful vineyards around the world such as Champagne and Rioja, vineyards that are changing such as those in Cahors or Armenia, and dispersed growers and cooperatives such as those in northern Italy and the Beqaa Valley in Lebanon.