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Distribution Channel Choices of Wineries in Emerging Cool Climate Regions

Published online by Cambridge University Press:  15 September 2016

Lin Sun ,
Miguel I. Gómez ,
Fabio R. Chaddad  and
R. Brent Ross
Lin Sun
Affiliation:
Dyson School of Applied Economics and Management at Cornell University
Miguel I. Gómez*
Affiliation:
Dyson School of Applied Economics and Management at Cornell University
Fabio R. Chaddad
Affiliation:
Department of Agricultural and Applied Economics at the University of Missouri
R. Brent Ross
Affiliation:
Department of Agricultural, Food, and Resource Economics at Michigan State University
*
Correspondence: Miguel Gómez ▪ 321 Warren Hall ▪ Ithaca, NY 14853 ▪ Phone 607.255.8159 ▪ Email [email protected].
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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.

Keywords

cool climate regionsdistribution channelsmarketingwine
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 43 , Issue 1 , April 2014 , pp. 87 - 103
Copyright
Copyright © 2014 Northeastern Agricultural and Resource Economics Association 

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