German Bulk Wine Market
Marianne E. Steinschulte Geisenheim studied and reported that the bulk wine trade plays a very important role in the wine business in Germany as it covers a large quality of the market.
The aim of this study is to contribute to the understanding of the German bulk wine market complexities and long-term development. The study is based on an exploratory analysis of the trade flow of wine. A new database of the bulk-wine transports in the Rhineland-Palatinate region in combination with official statistics provides a detailed insight into the structure and changes of the market.
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The trade flow of the transported wine volume shows different developments within the wine-growing regions. Structural changes on a long-term basis are motivated by the improvement of wine quality management requested by the customers and successful strategic management of the companies.
The concomitant creation of a two-step trade model reflects the intensive networking including a division of labour and as such represents a concentration process in the German wine business. Vintage-related short-term variability, however, doesn’t show a great impact on the trade flow organization of German bulk wine.
Practical implications: The detailed overview about the development of the bulk wine market is interesting for all managers concerned as well as politicians to assess the competitiveness of their own or the domestic wine production regarding prospective strategic decisions.
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