Winery Integration Strategies in the Mid-South and Mid-Atlantic States

Abstract

Winery numbers in the Mid-South and Mid-Atlantic States have increased substantially in recent years. This paper examines the integration and sourcing strategies utilized by these wineries. Contracting is considered, along with a mix of other less formal kinds of interactions between wineries and grape growers. While the standards for interaction within this regional value chain are still forming, there is evidence that winery age and, to a lesser extent, varietal focus influences the extent of outsourcing. An index is constructed to examine factors influencing other, less formal types of relationships within the value chain. Expansion intentions of wineries increase these interactions, as well as have a focus on higher-priced grape varieties.

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