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Balancing profitability and adaptability at the global and local levels: The future strategies for the European wine sector

Author

Listed:
  • Mladen Krstic

    (University of Salento)

  • Snezana Tadic

    (University of Belgrade)

  • Donatella Porrini

    (University of Salento)

  • Daniele Congedi

    (University of Foggia)

Abstract

The European Union dominates global wine exports and production. The EU’s wine sector is primarily supported by the Common Agricultural Policy (CAP) and Geographical Indications systems (GIs). On an international point of view, the sector is experiencing remarkable economic repercussions due to US tariffs. In order to overcome the identified challenges, it is crucial for wineries to implement a tailored sales distribution strategy, particularly for small wineries. The distribution landscape for small wineries is characterized by limited resources, diverse channel options and rapidly changing market conditions, making the selection of an optimal mix both complex and critical for profitability and resilience. This study formulates the choice of distribution strategy as a multi criteria decision making (MCDM) problem and introduces a hybrid framework that combines the Best–Worst Method (BWM) for deriving consistent criterion weights with the novel Axial Distance based Aggregated Measurement (ADAM) technique for robust alternative ranking. Seven evaluation criteria, economic profitability, resource availability, implementation feasibility, strategic alignment, market opportunity, competitive advantage, and flexibility, are applied to five distribution strategies: direct sales; online and social media channels; local partnerships; distributor partnerships; and participation in festivals and events. Expert assessments generate the decision matrix and weight vectors, yielding a final ranking that places local partnerships highest, followed by direct sales, online channels, distributor partnerships, and festivals. The results demonstrate the value of community-based collaborations and experiential marketing, while the hybrid MCDM approach offers a transparent, adaptable tool for strategic decision-making. Limitations linked to expert subjectivity and criterion scope are discussed, and avenues for incorporating sustainability and dynamic updates are outlined.

Suggested Citation

  • Mladen Krstic & Snezana Tadic & Donatella Porrini & Daniele Congedi, 2026. "Balancing profitability and adaptability at the global and local levels: The future strategies for the European wine sector," Transformations and Sustainability, Centre for Productivity and Sustainability Analysis, vol. 2(1), pages 81-101.
    • Handle: RePEc:dbj:trasus:v:2:y:2026:i:1:p:81-101
    DOI: 10.63775/19dnft89
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    References listed on IDEAS

    as
    1. Jeremiás Máté Balogh & Tamás Mizik, 2022. "Impacts of Marketing Strategy and Social Media Activity on the Profitability of Online Wine Shops: The Case of Hungary," Economies, MDPI, vol. 10(12), pages 1-15, November.
    2. Mladen Krstić & Giulio Paolo Agnusdei & Snežana Tadić & Pier Paolo Miglietta, 2023. "Prioritization of e-traceability drivers in the agri-food supply chains," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-26, December.
    3. Mladen Krstić & Giulio Paolo Agnusdei & Snežana Tadić & Milovan Kovač & Pier Paolo Miglietta, 2023. "A Novel Axial-Distance-Based Aggregated Measurement (ADAM) Method for the Evaluation of Agri-Food Circular-Economy-Based Business Models," Mathematics, MDPI, vol. 11(6), pages 1-27, March.
    4. Kira Gartzou-Katsouyanni, 2024. "How can public policies facilitate local cooperation? insights from the EU’s wine policy," New Political Economy, Taylor & Francis Journals, vol. 29(4), pages 597-615, July.
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