Introduction: Outsourcing Versus Integration, a Key Trade-Off for Wine Companies?

  • Georges GiraudEmail author


While outsourcing is considered to be a basic principle of good management for modern companies, it is sparsely applied in the wine industry with respect to the core stage of winemaking, although it is likely to be used for peripheral activities. Given that the majority of wine estates are not loss-producing, the goal of this chapter is to study whether outsourcing or vertical integration of the wine companies is a factor of growth and profitability.


  1. Amadieu, P., and J.L. Viviani. 2011. Intangible expenses: A solution to increase the French wine industry performance? European Review of Agricultural Economics 38 (2): 237–258.CrossRefGoogle Scholar
  2. Atkinson, J. 2011. Terroir and the Côte de Nuits. Journal of Wine Research 22 (1): 35–41.CrossRefGoogle Scholar
  3. Cadot, J. 2013. Agency costs, vertical integration and ownership structure: The case of wine business in France. In AAWE 7th Annual Conference, Stellenbosch, June.Google Scholar
  4. Castriota, S. 2018. Does excellence pay off? Quality, reputation and vertical integration in the wine market. AAWE Working paper, 227, March, 46 p.Google Scholar
  5. Chiffoleau, Y., F. Dreyfus, R. Stofer, and J.-M. Touzard. 2007. Networks, innovation and performance, evidence from a cluster of wine cooperatives in Languedoc, France. In Vertical markets and cooperative hierarchies, ed. K. Karantininis and J. Nilsson, 35–59. Dordrecht: Springer.CrossRefGoogle Scholar
  6. Corsi, A. 2013. To make wine or to sell the grapes: Determinants of on-farm wine-making in Piedmont. In AAWE 7th Annual Conference, Stellenbosch, June.Google Scholar
  7. Cross, R., A.J. Plantinga, and R.N. Stavins. 2011. The value of terroir: Hedonic estimation of vineyard sale prices. Journal of Wine Economics 6 (1): 1–14.CrossRefGoogle Scholar
  8. Del Campo, F.J.G., D.B. López Lluch, and F. Vidal Jiménez. 2009. Corporate and farmer objectives in the wine business: The key to success of failure. International Journal of Wine Research 1: 27–40.Google Scholar
  9. Dilger, A. 2009. In vino veritas: The effect of different management configurations in German viticulture. Journal of Wine Research 20 (3): 199–208.CrossRefGoogle Scholar
  10. Fares, M. 2009. Brokers as experts in the French wine industry. Journal of Wine Economics 4 (2): 152–165.CrossRefGoogle Scholar
  11. Fill, C., and E. Visser. 2000. The outsourcing dilemma: A composite approach to the make or buy decision. Management Decision 38 (1): 43–50.CrossRefGoogle Scholar
  12. Gade, D.W. 2004. Tradition, territory, and terroir in French viniculture: Cassis, France, and appellation contrôlée. Annals of the Assoc. of American Geographers 94 (4): 848–867.Google Scholar
  13. Kremic, T., O.I. Tukel, and W.O. Rom. 2006. Outsourcing decision support: A survey of benefits, risks, and decision factors. Supply Chain Management: An International Journal 11 (6): 467–482.CrossRefGoogle Scholar
  14. Maumbe, B.M., and C. Brown. 2013. Entrepreneurial and buyer-driven local wine supply chains: Case study of Acres of Land Winery in Kentucky. International Food and Agribusiness Management Review 16 (1): 135–157.Google Scholar
  15. Pappalardo, G., A. Scienza, G. Vindigni, and M. d’Amico. 2013. Profitability of wine grape growing in the EU member states. Journal of Wine Research 24 (1): 59–76.CrossRefGoogle Scholar
  16. Visser, E.J., and P. de Langen. 2006. The importance and quality of governance in the Chilean wine industry. Geojournal 65 (3): 177–197.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  1. 1.AgroSup, Graduate School of Agronomy and Food ScienceUniversity Bourgogne Franche-ComtéDijonFrance

Personalised recommendations