The Wine Sector Management in Portugal: An Overview on Its Three-Dimensional Sustainability

Abstract

The paper scrutinizes wine sector sustainability management in Portugal, which is a traditional wine producer. In Portugal, wine is strategic to its agri-food industry. As the wine market faced changes in consumption and an increase in the quality of the wine offered, new green products (organic, biodynamic) appeared for market niches concerned with environmental and health issues, as well as new ways of communication through the Internet and social media. First, we discuss a global wine market that affects wine market in Portugal, and then we present the internal situation and tendencies, including some examples of sustainable management of this sector in the economic, societal, and ecological dimensions. In the present work, the perspective is essentially of an entire economic sector, since in the Portuguese wine market the Old-World model prevails. This situation comprises high market fragmentation, and strong power exercised by distribution and consumers; it also means that wine production is subject to strict national and common market regulations. However, we do not abandon the micro analysis at the level of the company’s relations with its stakeholders. The methodology adopted in this review is qualitative and it consists of critical analysis of the literature from diverse disciplines, but it also uses secondary sources, such as institutional and technical reports, databases, statistics, notes and media news.

Sustainability Determinants in the Iberian Wine Industry

“…These variables are strictly related to the concept of sustainable management in this sector, which is defined as "a long-term strategy connecting the environmental, heritage, cultural, economic and social components" (Rebelo, 2017). The positive effect found for VI corroborates the study of Swiatkiewicz (2021) that finds that Portuguese wine producers are following the trends in sustainable wine market management, with the renovation of viticulture being one way to do this. The quality related to environmental and health issues is becoming increasingly appreciated by consumers, which is supported by the findings of previous studies (Pinto et al, 2022;Swiatkiewicz, 2021), particularly in a highly globalised winemaking sector, (OIV, 2023), which gives rise to strong international competition in terms of quality (Sotés Ruiz, 2018).…”

“…The positive effect found for VI corroborates the study of Swiatkiewicz (2021) that finds that Portuguese wine producers are following the trends in sustainable wine market management, with the renovation of viticulture being one way to do this. The quality related to environmental and health issues is becoming increasingly appreciated by consumers, which is supported by the findings of previous studies (Pinto et al, 2022;Swiatkiewicz, 2021), particularly in a highly globalised winemaking sector, (OIV, 2023), which gives rise to strong international competition in terms of quality (Sotés Ruiz, 2018). Hypotheses 1 and 2 are fulfilled but only in one item of each.…”

“…The relationship with the rest of the interest groups is not significant. One of the reasons for this is that the Portuguese suppliers cover this need by paying a tariff, so that public institutions, associations and producer associations, distributors, cooperatives and distilleries can promote Portuguese wine (Swiatkiewicz, 2021). Therefore, Hypothesis 3 is partially confirmed.…”

“…With respect to the level of interaction with the interest groups, Portugal focuses on suppliers and clients while Spain is more open to Regulatory Councils and other wineries. One of the reasons for this difference is that in Portugal awareness raising programmes are required in order to increase the sensitivity of the consumers, winemakers and oenologists (Santos et al, 2018;Swiatkiewicz, 2021).…”

Dynamic Capabilities and Firm Performance in Travel Agencies and Tour Operators in Mombasa County, Kenya

“…Kenya could have already been losing approximately USD$ 1.5 million in tourism revenue per year as a result of other factors such as global competition, domestic instability, inadequate infrastructure among other reasons (Adundo, 2023;Manoa et al, 2023;Muragu et al, 2023). By August 2020, the travel and tourism sector had lost US$ 7300 billion in export revenues, eight times the amount lost in 2009 during the global economic and financial crisis (Romeo et al, 2021;Swiatkiewicz, 2021).…”