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correlation between VQPRD wine production and exportation, which confirms the general trend towards the ‘economy of quality’ in the wine sector (correlation = 0.42; significance 0.1). However, the correlation is far from perfect and it shows how quality production is not always associated with a high degree of competitiveness in the international market. In the same way, the amount of wine exports can be high even with small amounts of VQPRD wine (lower right quadrant) (Figure 1). Thea nncitinninga af Italian reoinne in the different clictere je the nitcnme of

Figure 1 correlation between VQPRD wine production and exportation, which confirms the general trend towards the ‘economy of quality’ in the wine sector (correlation = 0.42; significance 0.1). However, the correlation is far from perfect and it shows how quality production is not always associated with a high degree of competitiveness in the international market. In the same way, the amount of wine exports can be high even with small amounts of VQPRD wine (lower right quadrant) (Figure 1). Thea nncitinninga af Italian reoinne in the different clictere je the nitcnme of

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change the alcoholic proof of wine. Italy had an over-production problem so in the past the scandal merchants, not estate wineries, made money. It was only about 15-20 years ago that wineries started being successful (Negro et al. 2007). It was clear from the beginning that there was a concentration of frauds in Northern Italy and in particular in the Piedmont provinces of Asti, Alessandria and Cuneo, although the first investigations: found a link with Apulia and Emilia-Romagna. naz ae | i? a 1 ae ee r - ~ oar
change the alcoholic proof of wine. Italy had an over-production problem so in the past the scandal merchants, not estate wineries, made money. It was only about 15-20 years ago that wineries started being successful (Negro et al. 2007). It was clear from the beginning that there was a concentration of frauds in Northern Italy and in particular in the Piedmont provinces of Asti, Alessandria and Cuneo, although the first investigations: found a link with Apulia and Emilia-Romagna. naz ae | i? a 1 ae ee r - ~ oar
New Schumpeterian and innovative producers had imported cultivation and wine growing techniques from France, thus creating a new production market. Schumpet- er’s entrepreneur is an agent of change that is the source of his well-known ‘creative destruction’. He introduces a new good or a new method of production, opens a new market or discovers a new source of supply, or carries out a new organisation of an industry (Schumpeter 1949).
New Schumpeterian and innovative producers had imported cultivation and wine growing techniques from France, thus creating a new production market. Schumpet- er’s entrepreneur is an agent of change that is the source of his well-known ‘creative destruction’. He introduces a new good or a new method of production, opens a new market or discovers a new source of supply, or carries out a new organisation of an industry (Schumpeter 1949).
Figure 5: Enrolment of VQOPRD producers. Province of Asti Source: data from the Asti Chamber of Commerce, 2008.
Figure 5: Enrolment of VQOPRD producers. Province of Asti Source: data from the Asti Chamber of Commerce, 2008.
Dai UVUUVEUCKLIdD. In which way, after the crisis of VQPRD classification, are the wine production market in Piedmont and the quality conventions currently organised? These points will be depicted through data taken from structured interviews to 50 local wine producers in the three provinces where nearly 90 per cent of the regional wine production is concentrated (Asti-Cuneo-Alessandria). The selection of cases was structured according to five types of firms that make up the backbone of the Pied- mont wine market: vertically integrated firms, large bottlers, small niche vineyards, cooperative vineyards and small organic firms. The producers are strongly linked to the ‘quality revolutions’ that took place in Piedmont in the last three decades. The 66 per cent of producers began their entrepreneurial activity after 1986, the year of ‘methanol wine scandal previously illustrated. They are ‘new wine producers’ whose family belong to the ‘old’ peasant class (60 per cent) and with high-level educationa attainment, since 70 per cent of them have a degree or post-degree. The following Table 1 shows some key economic data, whose analysis of variance is statistically significant with respect to ‘type of wine producer’. We are dealing with small and medium sized wine producers (median value of workers=7; median value o
Dai UVUUVEUCKLIdD. In which way, after the crisis of VQPRD classification, are the wine production market in Piedmont and the quality conventions currently organised? These points will be depicted through data taken from structured interviews to 50 local wine producers in the three provinces where nearly 90 per cent of the regional wine production is concentrated (Asti-Cuneo-Alessandria). The selection of cases was structured according to five types of firms that make up the backbone of the Pied- mont wine market: vertically integrated firms, large bottlers, small niche vineyards, cooperative vineyards and small organic firms. The producers are strongly linked to the ‘quality revolutions’ that took place in Piedmont in the last three decades. The 66 per cent of producers began their entrepreneurial activity after 1986, the year of ‘methanol wine scandal previously illustrated. They are ‘new wine producers’ whose family belong to the ‘old’ peasant class (60 per cent) and with high-level educationa attainment, since 70 per cent of them have a degree or post-degree. The following Table 1 shows some key economic data, whose analysis of variance is statistically significant with respect to ‘type of wine producer’. We are dealing with small and medium sized wine producers (median value of workers=7; median value o
Table 1: Wine producers — key economic data foreign markets. The local market structure is rather concentrated since, in average, 20 per cent of revenue depends on a single key customer and 40 per cent is determined by the first three most important customers. It is worth highlighting that key customers are located mainly outside national borders: 71.4 per cent of the answers with regard to the first customer, 72.1 per cent for the second and 80 per cent for the third. Wine producers are thus clearly oriented towards foreign markets. These long-distance market ties goes together with short-distance supplier and advice ties: wine producers have a rich and localised social capital. On average, wine producers have nearly one hundred stable suppliers of goods and tens of services. Goods suppliers provide mainly caps, barrels, grapes/musts and bottles (Go per cent for the first three suppli- ers), less relevant are other goods such as machines (15 per cent for the first three suppliers). As far as services suppliers are concerned, we find mainly packaging (20 per cent), chemical analysis (30 per cent) and wine consultancy (15 per cent), followed by transports (11 per cent) and legal and commercial consultancy with percentages less than ro per cent. The first three suppliers of goods are located in the same region, with percentages ranging from Go per cent to 70 per cent for the main three suppli- ers. Services suppliers as well are located in Piedmont, with percentages ranging from 75 per cent and 84 per cent for the first three. Finally, the richness of local social capital emerges also with regards to the advice network, namely the names of the people from whom wine producers seek advice for their entrepreneurial activity. In this case also, we find a rich local social capital: 40 per cent of the people named live in the very same local area of the wine producers and 40 per cent live in Piedmont. Just 20 per cent of advice ties live outside Piedmont. Along with market structure and social ties. the interviews also included some
Table 1: Wine producers — key economic data foreign markets. The local market structure is rather concentrated since, in average, 20 per cent of revenue depends on a single key customer and 40 per cent is determined by the first three most important customers. It is worth highlighting that key customers are located mainly outside national borders: 71.4 per cent of the answers with regard to the first customer, 72.1 per cent for the second and 80 per cent for the third. Wine producers are thus clearly oriented towards foreign markets. These long-distance market ties goes together with short-distance supplier and advice ties: wine producers have a rich and localised social capital. On average, wine producers have nearly one hundred stable suppliers of goods and tens of services. Goods suppliers provide mainly caps, barrels, grapes/musts and bottles (Go per cent for the first three suppli- ers), less relevant are other goods such as machines (15 per cent for the first three suppliers). As far as services suppliers are concerned, we find mainly packaging (20 per cent), chemical analysis (30 per cent) and wine consultancy (15 per cent), followed by transports (11 per cent) and legal and commercial consultancy with percentages less than ro per cent. The first three suppliers of goods are located in the same region, with percentages ranging from Go per cent to 70 per cent for the main three suppli- ers. Services suppliers as well are located in Piedmont, with percentages ranging from 75 per cent and 84 per cent for the first three. Finally, the richness of local social capital emerges also with regards to the advice network, namely the names of the people from whom wine producers seek advice for their entrepreneurial activity. In this case also, we find a rich local social capital: 40 per cent of the people named live in the very same local area of the wine producers and 40 per cent live in Piedmont. Just 20 per cent of advice ties live outside Piedmont. Along with market structure and social ties. the interviews also included some
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