Quantity and quality regulation in the wine sector: the Chianti Classico appellation of origin

Giulio Malorgio · Cristina Grazia

9 citations0/0 files storedInternational Journal of Wine Business Research

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Wine Industry and Tourism Organic Food and Agriculture Global trade, sustainability, and social impact

Abstract

Purpose This paper aims to illustrate the mechanisms for the economic regulation of quantity and quality in the Chianti Classico appellation of origin, focusing on the role of the sectorial organization in regulating the intermediary market, reinforcing the product's identity and the reliability of the quality signal. Design/methodology/approach Starting from some background elements (literature review and legislation framework) and given the supply chain organization and the main market mechanisms, the quantity and quality regulatory tools are illustrated and it is suggested how to improve the role of the sectorial organization in achieving the effectiveness of the system. Findings Reinforcing the quantity constraint established by the production code, controlling and certifying the compliance process to the minimum quality standard from upstream grape production to downstream commercialization, reinforcing the link with the terroir and improving the promotional activity are some of the main strategies identified to improve the effectiveness of the system. In addition, a more operational role should be recognized to the sectorial organization, in order to stabilize and regulate the transactions on the intermediary market and attract a more market‐oriented approach. Research limitations/implications Using a case study and not a quantitative approach represents the limit of this paper. Originality/value The paper provides an original contribution in the sense that some empirical evidences are highlighted, which both support the theoretical arguments for an economic regulation of supply by the sectorial organizations and provide some suggestions, which might be useful outside the Chianti Classico to improve the effectiveness and reliability of the appellation of origin.

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References

1970The Market for "Lemons": Quality Uncertainty and the Market Mechanism 1987The Economic Institutions of Capitalism 1966A New Approach to Consumer Theory 1976A New Approach to Consumer Theory 1970Information and Consumer Behavior 1982Moral Hazard in Teams 1973Free Competition and the Optimal Amount of Fraud 1981The Role of Market Forces in Assuring Contractual Performance

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