Revealed strategies in wineries¿ grape supply: the case of the Canary Islands

Abstract

Purpose: This paper aims to deal with the grape sourcing strategies of wineries in the Canary Islands. Design/methodology/approach: Sourcing decisions are analysed from official registers of transactions between wineries and their external suppliers. The main sources of information are harvest reports submitted by wineries containing data about observable dimensions of their purchasing decisions. The general behaviour in the wine-grape zones that make up the grape market in the Canary Islands is described, and different strategies of individual wineries are revealed. Grape purchasing decisions are interpreted in terms of the potential explanatory factors involved in the undeclared objectives of wineries’ sourcing strategies. Two research questions are considered in this study: the spatial dimension, which refers to plot location, and the social dimension, which refers to the relationships between wineries and winegrowers. Findings: The location of grape producers is a key factor in achieving the desired wine quality for wineries. The sourcing strategy of wineries is also influenced by size, but the impact of size varies depending on the short and long-term objectives of wineries.

Originality/value: Typically the literature on grape sourcing strategies relies on interviews with winemakers. However, this paper analyses wineries’ sourcing decisions based on records and reports that reveal their decisions in the specific context of the Canary Islands.