Branding and the Cyprus wine industry

Demitris Vrontis, Stanley J. Paliwoda

Research output: Contribution to conferencePaper

25 Citations (Scopus)

Abstract

A traditional industry confronting market change is examined here, for the wine industry is important to the economy of Cyprus. Cyprus had to reinvent itself as a wine producer after receiving a double blow: losing its main product, sherry, as a result of nomenclature protection by the European Union and the loss of its largest market after the fall of communism. The objective here is to examine the product (wine) and how it may be improved and upgraded for a more sophisticated market. Product quality and branding then immediately rise to the fore but to ensure that all the issues are being properly addressed, soundings were taken from local, Greek and international wine professionals as well as local consumers. There are 52 wineries in Cyprus but the industry is controlled by four main companies and tied mainly to a local grape variety, Mavro. The grapes are grown by people independent of the wineries and this has been a long-standing issue--affecting wine quality--as has the distance between where the grapes are grown and the wineries themselves. The methodology involved focus groups, depth interviews and an e-mail survey. Respondents were local consumers and wine experts who fell into three groups: local Cypriot, Greek and International. The findings reveal an industry that is still growing, but fragmented and dominated by the big four Cyprus wineries--KEO, ETKO, SODAP and LOEL, formulating the Cyprus Wine Producers' Association (ΣOK--Συ´νδ[varepsilon]σμο[varsigma] Oινοπαραγωγω´ν Kυπρου), that possess 75.5 per cent of the market. Way below is the market share of imported wines (16 per cent) and small local wineries (8.5 per cent) that fall under the umbrella of the Bacchus Association (Bacchus is equated with Dionysus, the god of wine in Greek mythology). There is also great secrecy and unwillingness on behalf of local wineries to work together, which serves to perpetuate existing weaknesses and work against attempts to develop branding associations. The inescapable conclusion is that necessary change will require the adoption of branding that in turn will require greater investment in the product and then its promotion and labelling.

Conference

ConferenceAcademy of Wine Business Research Conference
CitySiena, Italy
Period17/07/0819/07/08

Fingerprint

Cyprus
Wine industry
Branding
Wine
Industry
Focus groups
Mail survey
Electronic mail
Product quality
Mythology
Secrecy
Labeling
European Union
Market share
Deity
Communism
Methodology

Keywords

  • wine industry
  • branding
  • Cyprus

Cite this

Vrontis, D., & Paliwoda, S. J. (2008). Branding and the Cyprus wine industry. Paper presented at Academy of Wine Business Research Conference, Siena, Italy, .
Vrontis, Demitris ; Paliwoda, Stanley J. / Branding and the Cyprus wine industry. Paper presented at Academy of Wine Business Research Conference, Siena, Italy, .
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title = "Branding and the Cyprus wine industry",
abstract = "A traditional industry confronting market change is examined here, for the wine industry is important to the economy of Cyprus. Cyprus had to reinvent itself as a wine producer after receiving a double blow: losing its main product, sherry, as a result of nomenclature protection by the European Union and the loss of its largest market after the fall of communism. The objective here is to examine the product (wine) and how it may be improved and upgraded for a more sophisticated market. Product quality and branding then immediately rise to the fore but to ensure that all the issues are being properly addressed, soundings were taken from local, Greek and international wine professionals as well as local consumers. There are 52 wineries in Cyprus but the industry is controlled by four main companies and tied mainly to a local grape variety, Mavro. The grapes are grown by people independent of the wineries and this has been a long-standing issue--affecting wine quality--as has the distance between where the grapes are grown and the wineries themselves. The methodology involved focus groups, depth interviews and an e-mail survey. Respondents were local consumers and wine experts who fell into three groups: local Cypriot, Greek and International. The findings reveal an industry that is still growing, but fragmented and dominated by the big four Cyprus wineries--KEO, ETKO, SODAP and LOEL, formulating the Cyprus Wine Producers' Association (ΣOK--Συ´νδ[varepsilon]σμο[varsigma] Oινοπαραγωγω´ν Kυπρου), that possess 75.5 per cent of the market. Way below is the market share of imported wines (16 per cent) and small local wineries (8.5 per cent) that fall under the umbrella of the Bacchus Association (Bacchus is equated with Dionysus, the god of wine in Greek mythology). There is also great secrecy and unwillingness on behalf of local wineries to work together, which serves to perpetuate existing weaknesses and work against attempts to develop branding associations. The inescapable conclusion is that necessary change will require the adoption of branding that in turn will require greater investment in the product and then its promotion and labelling.",
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author = "Demitris Vrontis and Paliwoda, {Stanley J.}",
note = "Also published in Journal of Brand Management, 2008, 16 (3). pp. 145-159. (This is a variant record); Academy of Wine Business Research Conference ; Conference date: 17-07-2008 Through 19-07-2008",
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Vrontis, D & Paliwoda, SJ 2008, 'Branding and the Cyprus wine industry' Paper presented at Academy of Wine Business Research Conference, Siena, Italy, 17/07/08 - 19/07/08, .

Branding and the Cyprus wine industry. / Vrontis, Demitris; Paliwoda, Stanley J.

2008. Paper presented at Academy of Wine Business Research Conference, Siena, Italy, .

Research output: Contribution to conferencePaper

TY - CONF

T1 - Branding and the Cyprus wine industry

AU - Vrontis, Demitris

AU - Paliwoda, Stanley J.

N1 - Also published in Journal of Brand Management, 2008, 16 (3). pp. 145-159. (This is a variant record)

PY - 2008

Y1 - 2008

N2 - A traditional industry confronting market change is examined here, for the wine industry is important to the economy of Cyprus. Cyprus had to reinvent itself as a wine producer after receiving a double blow: losing its main product, sherry, as a result of nomenclature protection by the European Union and the loss of its largest market after the fall of communism. The objective here is to examine the product (wine) and how it may be improved and upgraded for a more sophisticated market. Product quality and branding then immediately rise to the fore but to ensure that all the issues are being properly addressed, soundings were taken from local, Greek and international wine professionals as well as local consumers. There are 52 wineries in Cyprus but the industry is controlled by four main companies and tied mainly to a local grape variety, Mavro. The grapes are grown by people independent of the wineries and this has been a long-standing issue--affecting wine quality--as has the distance between where the grapes are grown and the wineries themselves. The methodology involved focus groups, depth interviews and an e-mail survey. Respondents were local consumers and wine experts who fell into three groups: local Cypriot, Greek and International. The findings reveal an industry that is still growing, but fragmented and dominated by the big four Cyprus wineries--KEO, ETKO, SODAP and LOEL, formulating the Cyprus Wine Producers' Association (ΣOK--Συ´νδ[varepsilon]σμο[varsigma] Oινοπαραγωγω´ν Kυπρου), that possess 75.5 per cent of the market. Way below is the market share of imported wines (16 per cent) and small local wineries (8.5 per cent) that fall under the umbrella of the Bacchus Association (Bacchus is equated with Dionysus, the god of wine in Greek mythology). There is also great secrecy and unwillingness on behalf of local wineries to work together, which serves to perpetuate existing weaknesses and work against attempts to develop branding associations. The inescapable conclusion is that necessary change will require the adoption of branding that in turn will require greater investment in the product and then its promotion and labelling.

AB - A traditional industry confronting market change is examined here, for the wine industry is important to the economy of Cyprus. Cyprus had to reinvent itself as a wine producer after receiving a double blow: losing its main product, sherry, as a result of nomenclature protection by the European Union and the loss of its largest market after the fall of communism. The objective here is to examine the product (wine) and how it may be improved and upgraded for a more sophisticated market. Product quality and branding then immediately rise to the fore but to ensure that all the issues are being properly addressed, soundings were taken from local, Greek and international wine professionals as well as local consumers. There are 52 wineries in Cyprus but the industry is controlled by four main companies and tied mainly to a local grape variety, Mavro. The grapes are grown by people independent of the wineries and this has been a long-standing issue--affecting wine quality--as has the distance between where the grapes are grown and the wineries themselves. The methodology involved focus groups, depth interviews and an e-mail survey. Respondents were local consumers and wine experts who fell into three groups: local Cypriot, Greek and International. The findings reveal an industry that is still growing, but fragmented and dominated by the big four Cyprus wineries--KEO, ETKO, SODAP and LOEL, formulating the Cyprus Wine Producers' Association (ΣOK--Συ´νδ[varepsilon]σμο[varsigma] Oινοπαραγωγω´ν Kυπρου), that possess 75.5 per cent of the market. Way below is the market share of imported wines (16 per cent) and small local wineries (8.5 per cent) that fall under the umbrella of the Bacchus Association (Bacchus is equated with Dionysus, the god of wine in Greek mythology). There is also great secrecy and unwillingness on behalf of local wineries to work together, which serves to perpetuate existing weaknesses and work against attempts to develop branding associations. The inescapable conclusion is that necessary change will require the adoption of branding that in turn will require greater investment in the product and then its promotion and labelling.

KW - wine industry

KW - branding

KW - Cyprus

UR - http://strathprints.strath.ac.uk/9379/

UR - http://www.winesiena.unisi.it/

M3 - Paper

ER -

Vrontis D, Paliwoda SJ. Branding and the Cyprus wine industry. 2008. Paper presented at Academy of Wine Business Research Conference, Siena, Italy, .