Value Creation In Relationships Between Australian Wineries And Their Wine-Grape Suppliers

Abstract

A global oversupply of wine, international and domestic retail consolidation and decreasing returns for wineries and grape growers are key challenges currently facing the Australian wine industry. Addressing these concerns, both wine-grape growers and the wineries are adopting a value-driven relational marketing approach to profitably grow the demand jor Australian wine. Wineries are developing closer long-term relationships with their contracted grape suppliers to obtain grapes that will enable them to produce the wine styles necessary to meet market demands. In order to prosper, these customer-supplier relationships must achieve the desired benefits and fair value for both parties. However, conceptualising relationship value raises a number of important questions. What are the main determinants of relationship value for customers and for suppliers in the wine-grape industiy? How do these two parties create value in their relationships? To answer these questions a theoretical model is proposed to examine the relationship value that is created befrveen Australian wineries and their grape suppliers Essentially, these dyadic relationships will be examined from both the customers and the supplier's perspective.

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