Advertisement

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

  • Georges GiraudEmail author
  • Abdoul Diallo
Chapter

Abstract

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.

References

  1. Abdi, H., and L.J. Williams. 2010. Principal component analysis. Computational Statistics 2 (4): 433–459.CrossRefGoogle Scholar
  2. Brivet, H. 2013. Résultats économiques 2011 des vignerons bourguignons. CER 71, Vinomarket, BIVB 28 janvier, 19 p.Google Scholar
  3. Bruley, S. 2011. La viticulture en Bourgogne, RGA 2010. Agreste Bourgogne 125, 6 p.Google Scholar
  4. Cadilhon, J., O. Catrou, and A. Renaud. 2011. Strong geographical identities, Census agriculture 2010, Wine industry. Agreste Primeur 271, 4 p.Google Scholar
  5. Gordon, A.D. 1999. Classification, monographs on statistics & applied probability. 2nd ed. London: Chapman & Hall/CRC.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

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

Personalised recommendations