Marketing Strategies For Organic Wine Growers In The Veneto Region

The Italian organic wine sector has dramatically increased, recently. In the last two years, the organic vineyard area has doubled reaching more than 50.000 hectares, while organic wineries account are more than 9.000 farms. In particular, the Veneto Region accounts for 4% of total area and for 15% of organic wine makers. This study analyzes the organic wine sector in the Veneto Region mainly focusing on marketing issues. Two organic wine enterprises are recognized: 1) small wine growers and 2) large-size wineries. The former are specialized in producing organic grapes while the latter are highly specialized in both cultivating grapes and processing wine employing sophisticated technology, especially in making wine. Almost total production is certified and it includes a great variety of red, white and old growing wines; most of the product is sold in foreign market, especially in Germany, USA, Japan while domestic market is limited. So far, specialized organic stores and restaurants have been traditional retailing for organic wine. Now, the increasing size of production is sold especially through supermarket chains. Two main marketing strategies have been detected among small wine growers and wineries. The latter are mainly focused on price and product variety while small wine growers, selling wine to traditional retailing, prefer a wine quality strategy. Big size wineries selling to foreign or domestic supermarket chains or to final consumers have high market power inside wine supply-chain. These producers usually set the price through a mark-up on production cost. Uncertainty coming from both high yield variability and market volatility is faced by increasing wine quality and marketing strategies reinforced by their own brand name. Traditional tools, such as wine exhibitions, and new ones, such as e-commerce, drive organic wine promotion. An information campaign on organic food products should be also encouraged to alleviate informational asymmetries. Although a great share of the increasing production of organic wine is well appreciated on foreign market, insufficient marketing activities may slow or impede the future growth. The ambiguous definition of organic wine plays also a critical role hindering further overseas market growth, as well. Actually, Italy is a leading organic wine producer in the world, also its product features is perceived as high quality standard. However, lack of well design marketing plan could be a weakness for Italian wine-makers and exporters, as more and more competitors, such as the US, Canada, Australia with well planned marketing strategy, may affect Italian overseas market.