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Distribution Channel Choices of Wineries in Emerging Cool Climate Regions

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  • Sun, Lin
  • Gómez, Miguel I.
  • Chaddad, Fabio R.
  • Ross, R. Brent

Abstract

The number of wineries in nontraditional cool climate regions of the United States has increased dramatically in the last decade. We examine factors influencing distribution channel choices by these wineries, including winery characteristics, marketing strategies, and the extent of vertical and horizontal integration. Using a survey of winery operators in Michigan, Missouri, and New York, we developed fractional logit models to test hypotheses regarding their distribution channel choices. We find that the share of wine sold through intermediated channels increases with winery size, years of operation, increased vertical and horizontal integration, and greater promotional intensity and levels of self-reported marketing challenges.

Suggested Citation

  • Sun, Lin & Gómez, Miguel I. & Chaddad, Fabio R. & Ross, R. Brent, 2014. "Distribution Channel Choices of Wineries in Emerging Cool Climate Regions," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(01), pages 1-17, April.
    • Handle: RePEc:ags:arerjl:165906
    DOI: 10.22004/ag.econ.165906
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    Cited by:

    1. Woods, Timothy A. & Deng, Xueting & Nogueira, Lia & Yang, Shang-Ho, 2015. "Local Wine Expenditure Determinants in the Northern Appalachian States," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(2), pages 1-21, July.
    2. Franken, Jason R. V. & Bacon, Kevin J., 2014. "Organizational Structure and Operation of the Illinois Wine Industry," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(01), pages 1-21, April.
    3. Eric T. Micheels & Andreas Boecker, 2017. "Competitive strategies among Ontario farms marketing direct to consumers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-23, December.
    4. Fabio R. Chaddad & Jason R.V. Franken & Miguel I. Gómez & R. Brent Ross, 2017. "Coordination of Winegrape Supply Chains in Emerging Markets," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 289-301, June.
    5. Gillespie, Jeffrey & Sitienei, Isaac & Bhandari, Basu & Scaglia, Guillermo, . "Grass-Fed Beef: How is it Marketed by US Producers?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-18.

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