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Chapitre D'ouvrage Année : 2019

To Make or to Buy? A Managerial Trade-Off of Winemaking Process in the Burgundy Vineyards

Résumé

The share of harvest sold as fresh grapes, grape must or juice increased from 10% to 16% between 2000 and 2010 in the French wine-producing region of Burgundy. This outsourcing pertains to the core stage of business for wineries: the winemaking process. We explore the strategies of 3430 wine estates operating in Burgundy in 2011 with respect to outsourcing versus integration of winemaking. A cluster analysis was carried out in order to identify the main differences among Burgundian wine estates in terms of winemaking outsourcing versus integration. A principal component analysis was then used to highlight the latent variables underlying the different strategies. Finally, the difference in profitability existing between wine-grape growers making their own wine and those outsourcing the winemaking process is shown. The results indicate that winemaking integration has a positive effect on estates’ profitability in Burgundy.
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Dates et versions

hal-02079253 , version 1 (25-03-2019)

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Georges Giraud, Abdoul Diallo. To Make or to Buy? A Managerial Trade-Off of Winemaking Process in the Burgundy Vineyards. The Palgrave Handbook of Wine Industry Economics, Chapter 20, Springer Nature Switzerland AG, 2019, 978-3-319-98632-6. ⟨10.1007/978-3-319-98633-3_20⟩. ⟨hal-02079253⟩

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