Diversity and a Shifting Power Balance: Negociants and Winegrowers in Bordeaux

Abstract

What is so unique about the wine market? Diversity! There are an extremely large variety of wines, as well as producers who make them. What is important to understand about this diversity? It is organized: it is embedded in a complex set of social relationships and is governed by various institutions. From this perspective, the organization of this level of variety can be seen as a historical process. The actors involved constantly seek to ensure their business models are coherent with the current production and market environment. To achieve this, they do not simply adjust their own strategy or the way they implement it but also try to change the environment, where it is needed, by interacting with other decision-makers. In the wine industry this manifests itself as the power game between winegrowers and merchants. The wine region of Bordeaux is a striking example of how historically organized diversity can be transformed into the basis of market success. At the same time this example shows the fragility of a regional production system which is only temporarily coherent.