Varietals of Capitalism A volume in the series Cornell Studies in Political Economy edited by Peter J Katzenstein A list of titles in this series is available at www.cornellpress.cornell.edu Varietals of Capitalism A Political Economy of the Changing Wine Industry Xabier Itỗaina, Antoine Roger, and AndySmith Cornell UniversityPress Ithaca and London Copyright © 2016 by Cornell University All rights reserved Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850 First published 2016 by Cornell University Press Printed in the United States of America Library of Congress Cataloging-in-PublicationData Itỗaina, Xabier, author Varietals of capitalism : a political economy of the changing wine industry / Xabier Itỗaina, Antoine Roger, and Andy Smith pages cm — (Cornell studies in political economy) Includes bibliographical references and index ISBN 978-1-5017-0043-9 (cloth : alk paper) 1. Wine industry—Economic aspects—European Union countries 2. Wine industry—Government policy—European Union countries I. Roger, Antoine, author II. Smith, Andy, 1963 July 24– author III. Title IV. Series: Cornell studies in political economy HD9365.A2I73 2016 338.4'7663200904—dc23 2015032412 Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books Such materials include vegetable-based, low-VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of nonwood fibers For further information, visit our website at www.cornellpress.cornell.edu Cloth printing 10 9 8 7 6 5 4 3 2 1 Contents List of Figures, Tables, and Text Boxes vii Acknowledgmentsix List of Abbreviations xi Introduction: Wine and the Politics of Economic Change PART I The Analytical Challenge of Economic Change Existing Approaches to Change in and beyond the Wine Industry 11 Structured Contingency: Institutions, Fields, and Political Work 32 PART II Shaping and Negotiating Deep Reform 55 Knowledge and Power in the Scientific Field 57 When Political Work Shifts to the Economic Field 85 Adopting Reform within the Bureaucratic Field 114 vi Contents PART III Implementing Change: Reinstitutionalization or Reproduction? 133 The End of Interventionism? 135 From New Wine Categories to Resegmented Markets? 163 Microeconomic Support: New Instruments in Old Bottles? 192 Conclusion: A Glass Half Full 221 References235 Index257 Figures, Tables, and Text Boxes Figures Institutionalist economics Regulationist economics Sociological institutionalism Actor-network theory An industry as an order of four institutionalized relationships The internal logic of a field An industry as a set of fields and an institutional order Tables The four dominant approaches to socioeconomic change as applied to the wine industry Percent of wine distributed by supermarkets in 2004 by value Distribution of wine in France by volume Top five specialized wine companies in 2005 Wine sold by multibeverage corporations in 2005 Representatives at the Challenges and Opportunities for European Wines seminar Volume of wine produced and used for crisis distillation by region in 2009 Vines grubbed out in France, Spain, and Italy, 2008–2011 Number of AOCs and VdPs per select EU member state in 2012 12 14 21 26 36 39 45 30 93 93 95 95 125 140 145 167 viii Figures, Tables, and Text Boxes Text Boxes Basic principles of actor-network theory Azpilicueta, Domecq, Pernod Ricard: A story of concentration/deconcentration in La Rioja Grands Chais de France: From outsider to dominant player The history of six Romanian wineries Tuscany: Antinori and Chiantigiane Timeline of the reform The “reflection document” issued to the participants at the February 2006 seminar A comparison of the European Commission’s proposal and the regulation adopted by the European Council and European Parliament 24 96 97 98 99 115 126 130 Acknowledgments The research for this book was financed by the French Agence Nationale de la Recherche within the program Gouvernement européen des industries led by Andy Smith and Bernard Jullien from 2010 to 2014 Along the way, our reflections have been nourished by the following colleagues who all, in different but decisive ways, contributed to our work by commenting upon our initial results and papers We thank in particular Thierry Berthet, Marc Blyth, Caitriona Carter, Clarisse Cazals, Pierre Franỗois, Philippe Gorry, ưColin Hay, Bernard Jullien, Laura Michel, Matthieu Montalban, Tomaso Pardi, Claudio Radaelli, Sigfrido Ramirez, Filippo Randelli, Raphaël Schirmer, Jean-Marc Touzard, and Axel Villareal Sigfrido even took an active part in some of our fieldwork in Italy and Madrid We also thank Cornell University Press’s anonymous reviewer and Peter Katzenstein for their perspicacious and encouraging comments on earlier versions of this manuscript Responding to their promptings for more clarity and rigor has been a challenging but rewarding experience More generally, Peter and Roger Haydon at Cornell have been highly supportive throughout Notwithstanding all this assistance, we of course take total responsibility for what follows From a different but equally supportive angle, we also take this opportunity to thank those who have provided us with technical and logistical support where we all work, at Bordeaux University’s Centre Emile Durkheim Particular thanks go to Myrtille Birghoffer, Dominique Nguyen, and Caroline Sagat Finally, we thank all the practitioners who gave up their time to be interviewed for this study Without the input of such people, the political economy we practice would be both impossible and meaningless 252 References Reustle, Götz, and Guenther Buchholz 2009 “Recent Trends in Grapevine Genetic Engineering.” In Grapevine Molecular Physiology & Biotechnology, edited by Kalliopi Roubelakis-Angelakis, 495–508 Dodrecht: Springer Robert, Cécile 2010 “Who Are the European Experts? 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“Status Inconsistency and Product Valuation in the California Wine Market.” Organization Science 22(6): 1435–1448 Index Academia dei Georgofili, 52 Academy for Wine Business Research, 77 – 78 actor-network theory, 4 – 5, 16, 23 – 31, 38 – 39, 58 – 60, 83, 86 – 87, 131, 137 – 38, 162, 227, 229 – 30 Agreement on Mutual Acceptance of Oenological Practices, 73 Agreement on Trade-Related Aspects of Intellectual Property Rights, 185 – 86 American Association of Wine Economists, 71, 76 – 77, 81, 159 American Economic Review, 71 American Journal of Enology and Viticulture, 70 American Society for Enology and Viticulture, 70 appellations d’origine (AOs), 27, 64 – 66, 80 appellations d’origine contrôlée (AOCs), 27, 33, 62, 64 – 68, 92, 94, 103, 110 – 12, 137, 151 – 57, 160, 165 – 75, 189 appellations d’origine protégée (AOPs), 219 Applied Oenological Biotechnology, 75 – 76 Apulia region, 142 – 43 Aquitaine region Aquitaine Regional Council, 48 collective action, 108 – 9, 182 distillation practices, 140, 162 economic field, 140 exports, 109 geographical indications (GIs), 171 interview subjects, 51 intrafirm investment, 208, 210 marketing strategies, 196, 199 planting rights, 151 – 52 production volume, 50, 140 Union of Organic Wine Makers of Aquitaine, 91 vine grubbing, 146, 162 vins de pays, 111, 171 Argentina, 22, 28, 72 – 73, 202 Ashenfelter, Orley, 71, 77 Association Nationale Interprofessionnelle des Vins de France, 180 Association of American Geographers, 79 Association of European Wine Regions, 158, 160 – 61 Australia Agreement on Mutual Acceptance of Oenological Practices, 73 Australian Wine Foundation, 70 biochemical research, 77 – 78 exports, 1, 74, 90, 228 planting rights, 158 production volume, 89 – 90, 182 production zones, 79 Roseworthy Agricultural College, 72 scientific field, 69 – 74, 77 – 78 sociotechnical alliances, 27 – 28 South Australia, University of, 72, 77 – 78 Strategy 25, 70 Wine2030 Research Network, 78 World Wine Trade Group role, 72 Autonomous University of Madrid, 76 Azpilicueta, 96 Bacardi-Martini, 106 Berthomeau, Jacques, 89 – 92, 94, 110 258 Index Biotecnología Enológica Aplicada, 75 – 76 Bodegas Domecq, 96 Boel, Mariann Fisher, 124, 131, 135 – 36, 151 Bordeaux region AOC model challenge, 103, 111 Bordeaux School of Management, 78 categorization, 20, 111, 175, 198 – 99 collective action, 109, 111 Fédération des Grandes Vins de Bordeaux, 67 geographical indications (GIs), 171, 175 Interprofessional Body of the Bordeaux Wines (CIVB), 67, 103 – 4, 141, 182, 196, 198 – 99 legal protections, 64, 67 – 68 marketing strategies, 196, 198 – 99 terroir, 27, 48 Union des Maisons de Bordeaux, 104, 106 Bourdieu, Pierre, 2, 5, 31, 37 – 43, 219, 234 Bourgogne, 67, 170 Boyer, Robert, 31 Buchler Vaslin, 75 bureaucratic field capital accumulation, 43 classification creation, 43 commissioning evaluations, 119 – 20 Common Market Organization (CMO) reforms, role in, 58, 123 – 32, 138 – 39, 143, 193 – 95, 207, 218 – 20, 229 DG-AGRI role, 115 – 21 economic field, relationship with, 45, 123, 165, 193 – 94, 219 – 20, 224 – 25 European Commission, role in, 83, 116 – 21, 123 – 24, 127 – 32, 163 France, 43 – 44, 165, 183, 200 Italy, 43 – 44, 154, 165, 184 Rioja region, 145 Romania, 44, 144, 187, 205, 207 scales, 43 – 45, 116 scientific field, relationship with, 45, 86, 123, 158, 223 – 25 Spain, 44, 153, 169 statistical reports, 121 – 22 Tuscany, 143, 214 California, 20 – 22, 28, 71, 76 Callon, Michael, 23 – 25 Campo Viejo, 95 – 96 Capus, Joseph, 66 Carlo Rossi, 95 Castany, Joël, 105, 113 Castel Group, 78, 95, 226 Castilla La Mancha region, 77, 141, 145, 162, 165, 168, 178 Catalonia, 75 César, Gérard, 110 Chianti region, 1, 51 – 52, 147 – 48, 155, 173 – 75, 186, 204 – 5 Chile, 22, 72 – 73, 89, 202 China, 15, 89, 187, 194, 197, 199, 201 – 2, 204 – 5 Cioloş, Dacian, 155 Coldiretti, 154 – 55 Comité des Organisations Professionnelles Agricoles—Comité général de la coopération agricole de l’Union Européenne (COPA-COGECA), 106, 112 – 13, 118, 161 Comité Européen des Entreprises Vins (CEEV), 105 – 6, 118, 161, 184, 224, 226 commerce institutionalized relationship, 34 – 36, 46 – 47, 85, 88, 102 – 3, 107, 136, 193, 222 – 23, 231 Common Agricultural Policy (CAP), 117, 126, 147, 151 Common Market Organization (CMO) reforms acceptance, 124, 130, 139 bureaucratic field, role of, 58, 123 – 32, 138 – 39, 143, 193 – 95, 207, 218 – 20, 229 causes, 3, 58, 221 – 24 distillation subsidies, 2, 135 – 44, 192, 221 economic field, role of, 58, 138, 140, 193 – 95, 207, 219 – 20, 223 – 25, 228 – 29 European Commission (EC), role of, 85, 114 – 15, 120 – 32 geographical indications (GIs), 166 – 75, 178 – 89 intrafirm investment, 2, 208 – 20 marketing subsidies, 2, 192 – 207, 218 – 21 planting rights, 13, 135 – 39, 150 – 62, 195, 221 scientific field, role of, 57 – 58, 138 – 39, 223 – 25, 228 – 29 vine grubbing grants, 2, 13, 135 – 37, 139, 144 – 50, 162, 192, 218, 221 World Trade Organization, role of, 163 See also European Union (EU) wine industry Confederación de Cooperativas Agroalimentarias de España (CCAE), 51, 211 Confédération des coopératives viticoles de France, 209 Confédération des Organisations Professionnelles Agricoles, 224 Index 259 Confédération européenne des entreprises vin (CEEV), 86, 158 Confédération Nationale des Appellations d’Origine Contrôlée, 157, 173 Confédération paysanne, 90 – 91 Confederazione Italiana degli Agricoltori, 155 Conference of the Academy of Wine Business Research, 78 Conseil Interprofessionnel des Vins de Bordeaux (CIVB), 67, 103 – 4, 141, 182, 196, 198 – 99 Consejo Regulador del Cava, 75 Consejo Regulador of Rioja, 51, 86, 109, 112, 142, 145 – 46, 153 – 54, 168, 202 – 3, 212 Consejo Superior de Investigaciones ientíficas, 76 C consorzio, 22 – 23 Constellation Brands, Inc., 95 constructivist institutionalism, 2, 5, 34 – 35, 108 Consulenti per la Gestione Aziendale (COGEA), 140, 146, 195 – 97, 200, 205, 215 Controlled Designation of Origin (DOC), 169 – 70 Coordinadora de Organizaciones de Agricultores y Ganadores (COAG), 51, 141, 145, 153 – 54, 178, 202, 211 Costa, Olivier, 196 Cotnari, 98, 101, 169 – 70 Cox, Philip, 98 Cramele Recas, 98 – 99, 206 De Maillard, Jacques, 196 Deleanu, Constantin, 98 Delhaize, 111 Denominaciones de Origen Protegidas (DOP), 168 – 69, 178 Denominazione di Origine Controllata (DOC), 111, 202, 227 Denominazione di Origine Controllata e Garantita (DOCG), 99 – 101, 155 – 56, 204 Denumiri de Origine Controlată (DOC), 169 – 70 Devic, Bernard, 183 Diageo, 95 DiMaggio, Paul, 17 Directorate-General for Agriculture and Rural Development (DG-AGRI), 106, 115 – 21, 124 – 25, 128, 131, 160 – 61, 224 distillation subsidies, 2, 135 – 44, 162, 192, 221 distribution See wine trading E. & J Gallo, 69, 71, 95 economic field Aquitaine region, 140 bureaucratic field, relationship with, 45, 123, 165, 193 – 94, 219 – 20, 224 – 25 Common Market Organization (CMO) reforms, role in, 58, 138, 140, 193 – 95, 207, 219 – 20, 223 – 25, 228 – 29 France, 44, 64, 91 – 92, 140, 152 Italy, 44, 175 New World wine production, role in, 83 political work, 85 – 86 Rioja region, 153 – 54 Romania, 44, 143, 148 scales, 43 – 45 scientific field, relationship with, 44 – 45, 61, 68, 86, 158, 223 – 25 Spain, 44, 110, 141 – 42, 144, 169 wine trading, role in, 88, 91 – 95, 102, 106 – 7, 112 – 13 ecophysiology, 63, 82 Emilia-Romagna region, 102 employment institutionalized relationship, 34 – 37, 46 – 47, 222 endogenous changes, 19, 32, 52, 166, 224 – 26 Enometrica, 76 – 77 estate wines See vins de châteaux Eurodia, 75 European Association of Wine Economists, 76 – 77 European Commission (EC) academic research, 81, 118 – 19 Better Regulation Agenda, 123 – 24 bureaucratic field, role of, 83, 116 – 21, 123 – 24, 127 – 32, 163 Challenges and Opportunities for European Wines seminar, 124 – 27 Directorate-General for Agriculture and Rural Development (DG-AGRI), 106, 115 – 21, 124 – 25, 128, 131, 160 – 61, 224 Green Paper, 127 – 30 Legal Service, 43 negotiation techniques, 123 – 24, 127 – 29, 136 policy procedures, 115 – 17, 219 reform proposals, 85, 114 – 15, 120 – 32, 219 260 Index European Commission (EC) (continued) reports, 51, 115, 119 – 22, 127 – 31 technicization, 123, 131 White Paper on European Governance, 129 Wine Unit, 116 – 22, 131, 151, 225 – 26 European Court of Auditors (ECA), 149 – 50, 214, 218 – 19 European Economic Community (EEC), 50, 112, 140 European Federation of Origin Wines, 157 – 58, 161 – 62 European Federation of Wine Traders, 86 European Parliament (EP), 51, 115, 129, 157, 160 – 61, 203, 219 European Union (EU) Council of Ministers, 114 – 15, 126 – 29, 131, 136, 151, 161, 163, 192, 219, 226 European Union (EU) wine industry actor-network theory, 28 Challenges and Opportunities for European Wines seminar, 124 – 27 Comité Européen des Entreprises Vins (CEEV), 105 – 6, 118, 161, 184, 224, 226 consumption patterns, 1, 15, 89, 200, 228 European Farmers’ Organizations Committee-European Agri-Cooperatives (COPA-COGECA), 106, 112 – 13, 118, 161 exports, 1, 74, 89 – 90, 99, 101, 105, 109, 111, 177, 180, 196 – 97, 202 institutionalist economics model, 13, 30 marketing strategies, 192 – 207 politicization, 123 – 27, 131, 195 problematization, 89 – 91, 193 production volumes, 50, 98, 101, 109 – 10, 145 – 47, 151, 154, 166 – 68, 177 – 79, 182 regulationist economics model, 15, 30 sociological institutionalism model, 22 – 23, 30 third-order changes, 49, 222 wine trading, role of, 87 – 88, 99 – 101 World Trade Organization, role of, 3 – 4, 163, 224 See also Common Market Organization (CMO) reforms; individual countries exogenous shocks, 5, 15, 19, 32 – 34, 47, 166, 191, 228 exports See wine trading Farm Accountancy Data Network, 160 Federación de cooperativas agrarias de la Rioja (FECOAR), 51, 154 Federación Espola del Vino (FEV), 51, 89, 104 – 6, 141 – 42, 152 – 53, 177, 200 – 201 Fédération des Grands Vins de Bordeaux, 67 Felici, Francesco, 173 finance institutionalized relationship, 34 – 37, 46 – 47, 193, 222 – 23, 231 Fligstein, Neil, 18 – 19, 31, 41 Foncalieu, 112 FoodDrinkEurope, 161 Fosters Wine Estates, 95 Fourcade, Marion, 163 France appellations d’origine (AOs), 27, 64 – 66, 80 appellations d’origine contrôlée (AOCs), 27, 33, 62, 64 – 68, 92, 94, 103, 110 – 12, 137, 151 – 52, 157, 171 – 72 biochemical research, 75 bureaucratic field, 43 – 44, 165, 183, 200 Challenges and Opportunities for European Wines participation, 125 classification principles, 63 – 69, 171 – 72 Confédération paysanne, 90 – 91 consumption patterns, 15, 89 distillation practices, 140 – 41 economic field, 44, 64, 91 – 92, 140, 152 exports, 89, 180, 197 farmers’ unions, 90 – 91 French Institute for the Vine and Wine, 75 geographical indications (GIs), 167, 171 – 72, 180 – 84 intrafirm investment, 208 – 11, 213 legal frameworks, 63 – 66, 81 – 82 marketing strategies, 63 – 65, 103 – 4, 193, 199 – 200 microeconomic grants, 193, 199 – 200 ministry of agriculture, 94, 110, 183 National Confederation of Registered Designations of Origin, 157 National Institute of Designations of Origin, 66, 111 Nature et Progrès, 90 Plan Chirac, 68 planting rights, 150 – 52, 158 production volume, 182 regulation history, 50, 64 – 66, 139, 150 scientific field, 44, 61 – 63, 74 – 77 statistical reports, 89, 91 – 92, 94, 110 supermarket distribution, 93 – 94, 103 Vin sans IG (VSIG) adoption, 180 – 84 vine grubbing, 145 – 46 wine companies, 95 – 97 See also Aquitaine region; Bordeaux ưregion Index261 Franỗois, Pierre, 34 Friedman, Harriet, 14 General Agreement on Tariffs and Trade, 89, 117 geographical indications (GIs), 163 – 73 Georgakakis, Didier, 115 – 16 Georgopoulos, Theodore, 81 Germany, 66, 89, 93 – 94, 125, 158, 167, 175, 186 Glavany, Jean, 91 – 92 Grands Chais de France (GCF), 96 – 97 Granovetter, Mark, 18 Greece, 125, 167 Grupo de investigación en Tecnología Enológica, 75 Gusfield, Joseph, 47 Halewood România, 99, 206 Hall, Peter, 49 Hanin, Hervé, 181 Hay, Colin, 34 – 35 Hayes, Peter, 74 Helfrich, Joseph, 97 Herranz, Esther, 203 historical institutionalism, 33 – 37, 47, 195, 227, 230 – 31 Hungary, 65, 125, 158 Indication Géographique Protégée (IGP), 106, 186 Indicazione Geografica Tipica (IGT), 99 – 101, 186 Innovative Corrective Techniques, 75 Institut agronomique mộditerranộen, 77 Institut Franỗais de La Vigne et du Vin, 75 Institut National des Appellations d’Origine, 66, 111 Institute for Wine Biotechnology, 70 Institute of Vine and Wine Sciences, 76 institutionalist economics, 4 – 5, 11 – 13, 29 – 31, 58 – 59, 86 – 87, 94, 108, 113 – 14, 137 – 38, 159, 162, 164, 193, 220, 227 – 28 International Federation of Organic Agriculture Movements, 90 – 91 International Journal of Food Microbiology, 70 International Journal of Wine Business Research, 78 International Journal of Wine Marketing, 72, 78 International Office of Wine and Vine (OIV), 65, 72 – 73 International Organization of Wine and Vine (OIV), 73 – 74, 83, 119, 125, 130 International Vine and Wine Lawyers Association, 80 – 81 International Wine Marketing Conference, 77 Interprofessional Association of Organic Wines of Languedoc-Roussillon, 91 Interprofessional Body of the Bordeaux Wines (CIVB), 67, 103 – 4, 141 Interprofessional Committee of Wines from Languedoc, 112 Italy biochemical research, 77 – 78 bureaucratic field, 43 – 44, 154, 165, 184 Business Management Consultants (COGEA), 140, 146, 195 – 97, 200, 205, 215 Challenges and Opportunities for European Wines participation, 125 Coldiretti, 154 – 55 consumption patterns, 89 cooperatives, 52, 101 – 2, 147, 154, 214 – 15 distillation practices, 142 – 43 economic field, 44, 175 exports, 89 geographical indications (GIs), 167, 172 – 73, 184 – 86 intrafirm investment, 208, 213 – 15 Italian Farmers’ Union, 155 Italian Federation of Designations of Origin, 154 Italian Sensory Science Society, 78 marketing strategies, 193, 200, 203 – 5, 220 microeconomic grants, 193, 200, 203 – 5 ministry of agriculture, 52, 159 planting rights, 154 – 56, 158 production volume, 147, 151 Protected Designation of Origin (DOP), 178 Protected Geographical Indication (IGP), 106, 186 Registered and Guaranteed Designation of Origin (DOCG), 99 – 101, 155 – 56, 204 regulation history, 50 scientific field, 44, 77 – 78 supermarket distribution, 93 Typical Geographical Indication (IGT), 99 – 101, 186 University Center for the Strategic Development of the Wine Sector, 77 Vin sans IG (VSIG) adoption, 184 – 87 vine grubbing, 145 – 48 See also Tuscany 262 Index Jacob’s Creek, 69, 95, 97 Jidvei, 98 Journal of Economic Perspectives, 71 Journal of Wine Economics, 71, 76 – 77 Judgment of Paris, 20 Kendall-Jackson, 97 Kessler, Bruno, 180 La Blache, Paul Vidal de, 65 – 66 La journée viticole, 63 La Rioja See Rioja region Laferté, Gilles, 66 – 67 Languedoc-Roussillon region, 91, 108 – 9, 112, 140, 146, 180 – 81, 183, 196, 208 Latour, Bruno, 60 Lebaron, Frédéric, 122 Leclerc, 94 Legacoop federation of cooperatives, 52, 142, 147, 154, 184, 215 Lockshin, Larry, 72, 77 – 78 Luxembourg, 65, 111, 125, 158 LVMH, 95 Mahoney, James, 34 Marchese Antinori, 99 – 100 Mata Casanovas, 75 McAdam, Doug, 18, 41 McGuigan Simeon, 69 McMichael, Philip, 14 Mediterranean Agronomic Institute, 77 Médoc region, 67, 164, 171 Mendoza, 22, 28 Midi region, 68, 165, 226 Mildara Blass, 70 Mildon, Russell, 117 Moët & Chandon, 95 Moët-Hennessy, 106 Montaigne, Etienne, 159 – 60 Moulton, Kirby, 73 Murfatlar, 98, 101, 169 – 70 Napa Valley, 20 – 21, 27 National Association of Vineyard and Wine Production Employers (PNVV), 187 – 89, 205 – 6 National Institute of Designations of Origin, 66, 111 National Interprofessional Wine Producers’ Organization (ONIV), 143 – 44, 156 – 57, 187 – 89, 205 – 6, 216 National Office for Vine and Wine Products, 157 Nature et Progrès, 90 négociants, 87, 104 New World wine production actor-network theory, 27 – 30 business models, 89 classification system, 169 commercial policies, 69 – 72 consumption patterns, 3, 88 – 89 contractual agreements, 12 – 13 customer attachments, 28 – 30, 58, 71 demand emphasis, 58, 62, 70 economic field, role of, 83 exports, 1, 22, 69, 74, 228 globalization advantages, 15, 27, 73 – 74, 90 growth, 12 – 13, 27, 69, 89, 165 institutionalist economics, 12 – 13, 30 marketing strategies, 70 – 74, 92, 104 networking strategies, 20 – 22, 27 – 28, 58 production costs, 58 regulationist economics, 14 – 15, 30 research strategies, 70 – 74 scientific field, role of, 59, 70 – 78 sociological institutionalism, 20 – 22, 30 standardized wine demand, 58 transaction cost reductions, 12 – 13 New Zealand, 22, 72 – 73 North Carolina, 22 Observatorio Español del Mercado del Vino, 51, 105, 176, 200, 211 – 12 Oenological Research Groups Network, 76 Office International de la Vigne et du vin (OIV), 65, 72 – 74, 83, 119, 125, 130 Office national des vins (ONIVINS), 93 – 94, 186 Olmos, Fernández, 203 Opus One, 95 Parker, Robert, 27 Pascual, Victor, 179 Penfolds, 95 Pernod Ricard, 95 – 96, 106, 112 Piat d’Or, 95 Pierre Chanau, 94 Pinot Gris, 99, 156 Pinot Noir, 156, 217 Plan Chirac, 68 planting rights, 13, 135 – 39, 150 – 62, 195, 221 Pomarici, Eugenio, 159, 172 Portugal, 65 – 66, 89, 125, 158, 167, 173 Powell, Walter, 17, 59 Prahova, 169 Producta, 109 Index 263 Promalvin, 111 Prosecco, 185 – 86, 204 Protected Designation of Origin (DOP), 168 – 69, 178, 187 Provence region, 196, 208 Randelli, Fillipo, 173 Red de Grupos de Investigación Enológica, 76 Registered and Guaranteed Designations of Origin (DOCGs), 99 – 101, 155 – 56, 204 Registered Designations of Origin (DOCs), 101, 111, 170, 227 regulationist economics, 4 – 5, 11 – 15, 30 – 31, 86 – 87, 113 – 14, 137 – 38, 162 – 64, 192, 220, 227 – 28, 231, 234 Research Group for Oenological Technologies, 75 Riesling, 156 Rioja region Agrarian Association of Young Farmers (ASAJA), 51 – 52, 146, 154, 213 Azpilicueta brand, 96 bureaucratic field, 145 collective action, 108 – 12, 196 Consejo Regulador, 51, 86, 109, 111, 142, 145 – 46, 153 – 54, 168, 202 – 3, 212 distillation practices, 142, 162 economic field, 153 – 54 exports, 111, 202 farmers’ unions, 51 – 52 Federation of Wine Cooperatives of Rioja (FECOAR), 51, 154 geographical indications (GIs), 168 – 69, 175, 178 – 79 intrafirm investment, 212 – 13 marketing strategies, 202 – 3 microeconomic grants, 202 – 3 planting rights, 152 – 53 production volume, 50, 109 – 12, 145 – 46, 154, 168, 179 Protected Designation of Origin (DOP), 168 – 69, 178 Registered Designations of Origin (DOCs), 111, 227 supermarket distribution, 96 Union of Farmers and Breeders from the Rioja, 154 vine grubbing, 145 – 46, 162 wine companies, 111 wine trading, 109 – 10 Robert Mondavi, 20 – 21, 70, 95 Roca, Pau, 105 Rodriguez, José Manuel Silva, 161 Romania Association of Romanian Wine Producers and Exporters (APEV), 143 – 44, 156, 205 – 7, 216 – 17 bureaucratic field, 44, 144, 187, 205, 207 collectives, 101, 148 Controlled Designation of Origin (DOC), 169 – 70 distillation practices, 143 – 44 economic field, 44, 143, 148 European Union (EU) accession, 50, 149, 187 exports, 99, 101 geographical indications (GIs), 167, 169 – 71 intrafirm investment, 213, 215 – 17 marketing strategies, 205 – 7 microeconomic grants, 193, 205 – 7 ministry of agriculture, 205 – 6 National Association of Vineyard and Wine Production Employers (PNVV), 187 – 88, 205 – 6 National Interprofessional Wine Producers’ Organization (ONIV), 143 – 44, 156 – 57, 187 – 89, 205 – 6, 216 National Office for Vine and Wine Products, 157 planting rights, 156 – 58 production volume, 50, 97 – 98, 101, 143, 148 – 49 regulation history, 50 scientific field, 44 Vin sans IG (VSIG) adoption, 187 – 88, 191 vine grubbing, 148 – 49, 227 wine companies, 97 – 98, 169 – 71 wine trading, 99, 101 Roseworthy Agricultural College, 72 Rowell, Jay, 115 – 16 Royo, Barco, 168 – 69 Sacramento Unified Wine & Grape ymposium, 76 S Saint-Émilion, 1, 48, 67, 196 Saint-Julien, 67 Sardone, Roberta, 159 – 60 Schenley, 96 scientific field actor-network theory, 59 – 60 Australia, 69 – 74, 77 – 78 bureaucratic field, relationship with, 45, 86, 123, 158, 223 – 25 264 Index scientific field (continued) Common Market Organization (CMO) reforms, role in, 57 – 58, 138 – 39, 223 – 25, 228 – 29 defined, 37, 41 – 42 demand principles, 69 – 74 economic field, relationship with, 44 – 45, 61, 68, 86, 158, 223 – 25 France, 44, 61 – 63, 74 – 77 hierarchies, 60 – 61, 66 – 69, 82 – 83, 121, 223 Italy, 44, 77 – 78 networking strategies, 59 – 60 New World wine production, role in, 59, 70 – 78 political work, 63, 66 – 69, 139 Romania, 44 scales, 43 – 45, 61 sociological institutionalism, 59 Spain, 44, 75 – 78, 169 supply principles, 66 – 69 technological advances, 60, 70 wine marketing, role in, 163, 223 Sicily, 140, 142 – 43 Smith, Andy, 196 sociological institutionalism, 4 – 5, 16 – 17, 20 – 25, 29 – 30, 37 – 38, 59, 82 – 83, 86 – 87, 108, 137 – 38, 162, 165, 194, 220, 227, 229 Sofralab, 75 Sonoma County Grape Growers Association, 71 Sonoma State University, 71 sourcing institutionalized relationship, 35 – 37, 46 – 47, 85, 88, 94, 102 – 3, 107, 136, 139, 164, 208, 222 – 23, 231 South Africa academic spheres, 69 – 70 biochemical research, 70 demand emphasis, 62 exports, 1, 74, 228 Institute for Wine Biotechnology, 70 legal frameworks, 82 marketing strategies, 70 production zones, 79 sanctions, 89 sociological institutionalism model, 22 sociotechnical alliances, 28 Stellenbosch University, 70, 74, 76 Vision 2020, 70 wine production, 89 World Wine Trade Group role, 72 South Australia, University of, 72, 77 – 78 Spain Applied Oenological Biotechnology, 75 – 76 Aragon Center for Research in Food Technologies, 77 – 78 biochemical research, 75 – 78 bureaucratic field, 44, 153, 169 Challenges and Opportunities for European Wines participation, 125 Confederation of Agrifood Cooperatives of Spain (CCAE), 51, 211 Consejo Regulador del Cava, 75 consumption patterns, 1, 200, 228 Coordination of Farmers’ and Breeders’ Organizations (COAG), 51, 141, 145, 153 – 54, 178, 202, 211 distillation practices, 140 – 41 economic field, 44, 110, 141 – 42, 144, 169 European Economic Community accession, 50, 112 exports, 1, 89, 105, 177 geographical indications (GIs), 167 – 69, 177 – 78, 201 Institute of Vine and Wine Sciences, 76 intrafirm investment, 208, 211 – 13 marketing strategies, 104 – 5, 168 – 69, 193, 200 – 203, 220 microeconomic grants, 193, 200 – 203 ministry of agriculture, 51, 105, 178 National Scientific Research Council, 76 Oenological Research Groups Network, 76 planting rights, 152 – 53, 158 production volume, 145, 168, 177 Protected Designation of Origin (DOP), 168 – 69, 178 Registered Designation of Origin (DOC), 111, 170, 202, 227 Research Group for Oenological Technologies, 75 scientific field, 44, 75 – 78, 169 Spanish Observatory of Wine Markets, 51, 105, 176, 200, 211 – 12 Spanish Wine Federation, 51, 89, 104 – 6, 141 – 42, 152 – 53, 177, 200 – 201 statistical reports, 89 supermarket distribution, 93 Vin sans IG (VSIG), 176 – 79 vine grubbing, 144 – 46 Viñedos de España, 103, 177 – 78, 191 Vinos de la Tierra system, 103, 168 wine companies, 103 – 4 See also Rioja region Index 265 Stellenbosch University, 70, 74, 76 Strategy 25, 70 subsidies See wine production supertuscans, 101, 173 surpluses See wine production Switzerland, 111, 201 – 2 Symposium on Wine Chemistry, 70, 74 table wines See vins de table Tanqueray, 95 terroir, 27, 48, 66 – 68, 76, 79 – 80, 82, 108, 113, 139, 186, 222, 234 Thelen, Kathleen, 33 – 34 Tignanello, 99 Tuscany bureaucratic field, 143, 214 cooperatives, 48, 52, 101 – 2, 196, 204, 227 distillation practices, 140, 143, 162 geographical indications (GIs), 173 – 74, 204 intrafirm investment, 214 – 15 marketing strategies, 204 – 5 microeconomic grants, 204 – 5 planting rights, 156 prestige level, 101 production volume, 50, 101 – 2, 140 Registered and Guaranteed Designations of Origin (DOCGs), 99 – 101, 155 – 56, 204 Registered Designations of Origin (DOCs), 101 Tuscan Regional Council, 143 Typical Geographical Indications (IGTs), 101 vine grubbing, 147 – 48, 162 wine companies, 99 – 102 wine trading, 101 Typical Geographical Indications (IGTs), 101 Unified Wine & Grape Symposium, 71 Unión de agricultores y ganaderos de la Rioja, 154 Union des Maisons de Bordeaux, 104, 106 Union of Organic Wine Makers of Aquitaine, 91 United Kingdom (UK), 89, 93, 95, 108, 169 United States, 69 – 71, 73 – 74, 76 – 77, 79, 81 – 82, 89, 95, 97, 159, 201 – 2, 204 Universal Exhibition, 25, 207 Val d’Orbieu, 95, 112 Verdier, Denis, 209 Veuve Cliquot, 95 Villa Veroni, 95 Vin sans IG (VSIG), 165 – 67, 176 – 84, 186 – 91 Vincon, 98 vine grubbing, 2, 13, 119, 127, 130, 135 – 37, 139, 144 – 50, 162, 192, 218, 221, 227 Viñedos de España, 103, 177 – 78, 191 Vineyards Data Quantification Society, 76 Vinos de la Tierra system, 103, 168 vins de châteaux, 94, 103, 226 vins de pays, 68, 92 – 93, 103, 110 – 12, 163, 167, 169 – 72, 181 vins de table, 67 – 68, 92, 94, 103, 110, 112, 163 – 64, 169 – 71, 190 Vision 2020, 70 viticulteurs, 67 Weber, Max, 2, 5, 47, 231 White, Harrison, 16, 18 Williamson, Oliver, 12 Wine Economics and Policy, 77, 159 wine marketing Australia, 70, 72 Bordeaux region, 103 – 4, 198 – 99 brands, role of, 72, 76, 79, 94 – 100, 103 collective action, 104 – 7 consumer expectations, 69, 71, 79 – 80, 135 discipline recognition, 72 France, 63 – 65, 103 – 4, 193 International Journal of Wine Business R esearch, 78 International Journal of Wine Marketing, 72, 78 International Wine Marketing onference, 77 C Italy, 193, 200, 203 – 5, 220 market segmentation, 73 New World successes, 58, 70 – 73, 92, 104 origins, 72 research techniques, 69 Rioja region, 202 – 3 Romania, 205 – 7 scientific field, role of, 163, 223 sensory descriptive analysis, 72 sensory properties, 71 South Africa, 70 Spain, 104 – 5, 168 – 69, 193, 200 – 203, 220 subsidies, 48, 192 – 207 Tuscany, 204 – 5 useful measures, 198 – 99, 203 – 4, 207 Wine Marketing Research Group, 72 Wine Marketing Research Group, 72 266 Index wine production actor-network theory, role of, 25 – 30, 60 Aquitaine region, 50, 140 classification principles, 63 – 69 cooperatives, 34, 64, 92, 108, 141 – 42 cost controls, 15, 92 diseases, 63, 68 excessive production, 90 – 92 extended networks, 27 fertilizer usage, 63 geographic considerations, 79 – 80 institutionalist economics model, 12 – 13, 30 legal protections, 63 – 68 networking strategies, 59 plastering, 64 regulationist economics model, 14 – 16, 30 Rioja region, 50, 109 – 12 Romania, 50, 97 – 98, 101, 143 sociological institutionalism model, 20 – 23, 30 South Africa, 89 standardized wine demand, 58 subsidies, 103 – 4, 120 – 21, 127, 130, 135 – 44, 162, 192 – 207, 218 – 20 surpluses, 90 – 92, 135 – 37, 140, 150 – 51 technological procedures, 59 transaction costs, 12, 17, 160 Tuscany, 50, 101 – 2, 140 vins de châteaux, 94, 103, 226 vins de pays, 68, 92 – 94, 103, 110 – 12, 163, 167, 169 – 72, 181 vins de table, 67 – 68, 92, 94, 103, 110, 112, 163 – 64, 169 – 71, 190 volume statistics, 48, 50, 98, 101 – 2, 109 – 10, 140 See also New World wine production Wine Specialty Group, 79 wine tastings, 21, 198 wine trading business models, 88 – 89, 103, 106 collective action, 102 – 4, 108 – 9 distribution changes, 93 – 95 economic field, role of, 88, 91 – 95, 102, 106 – 7, 112 – 13 economic/political reorganization, 87 – 94 European Union (EU) wine industry, role in, 87 exports, 1, 13, 22, 69, 74, 83, 89 – 90, 99, 101, 105, 108 – 11, 130, 177, 180, 196 – 97, 202, 228 instrumentation, 87 – 88, 107 – 8 négociants, 87, 104 oversupply, 90 – 92, 135 price fluctuations, 71, 88 Rioja region, 109 – 10 Romania, 99, 101 specialized wine companies, 95 supermarkets’ impact, 93 – 94, 175, 223 Tuscany, 101 vertical integration, 94 – 95 volatility, 88 See also individual companies Wine2030 Research Network, 78 World Trade Organization, 3 – 4, 73, 80 – 81, 89, 163, 185, 224, 233 World Wine Forum, 76 World Wine Trade Group, 72 – 73, 83 yeasts, 26 – 27, 60, 69 – 70 Yellow Glan, 95 Yellow Tail, 97 ... Congress Cataloging-in-PublicationData Itỗaina, Xabier, author Varietals of capitalism : a political economy of the changing wine industry / Xabier Itỗaina, Antoine Roger, and Andy Smith pages... Exporters) Asociación Agraria de Jóvenes Agricultores–Asociación Riojana de Agricultores y Ganaderos (Agrarian Association of Young Farmers–Association of Farmers and Breeders from La Rioja) Common Agricultural... www.cornellpress.cornell.edu Varietals of Capitalism A Political Economy of the Changing Wine Industry Xabier Itỗaina, Antoine Roger, and AndySmith Cornell UniversityPress Ithaca and London Copyright