Cooperatives in the wine industry: Sustainable management practices and digitalisation

Abstract

In Europe, cooperatives have a long tradition and are widespread in the agricultural sector. Cooperatives in the wine sector of some EU countries even surpass a market share of more than 50%. In Germany, the first wine cooperative was established in 1868 in the Ahr region. Despite the decline in the number of cooperatives, of members and of the vineyard area cultivated by cooperatives, wine cooperatives are still accountable for roughly a quarter of the German vineyard area. Due to developments in the field of sustainability and digitalisation, cooperatives are facing increasing pressure. Based on the definition of cooperatives by the International Co-operative Alliance, one can conclude that cooperatives are a sustainable form of enterprise. A previous study from 2019 showed that sustainability and digitalisation were not mentioned by cooperative management as important topics in the competitive analysis. Also, sustainable management practices have not been analysed explicitly for wine cooperatives so far. We therefore consider sustainability and digitalisation in the context of the strategic management of wine cooperatives. Our article does not aim to show further development in the areas of sustainability and digitalisation but rather to unveil existing managerial practices in order to provide a basis for management decisions. As only limited knowledge exists, a qualitative approach was chosen. Interviews were conducted with the management of wine cooperatives (n = 13) and representatives of the regional and national cooperative associations, which in turn represent the wine cooperatives as a whole (n = 4). A data content analysis was performed. The results describe state of the art of sustainable management practices and digitalisation in wine cooperatives. Even if the understanding of sustainability and digitalisation is quite similar among the respondents, the operationalisation in the cooperatives differs strongly. However, it is clear that innovation, adaptability and sustainability are strongly interlinked. Options for future research and the limitations of the study are provided as well.