Business models and firm’s performance in the Italian wine industry

Abstract

The paper focuses on the comparative analysis of the Italian companies’ performance in the wine sector. Using the database from the Food Industry Monitor, which tracks 850 companies operating in the Food and Beverage sector, we analyze the performance of 183 wine companies from 2009 to 2023. The Italian wine sector constitutes a privileged observatory for the study of business models, being characterised by a competitive structure polarized between many small companies and a few large enterprises covering most of the production. We identify three clusters associated to the corresponding business models: Cooperatives, Integrated Producers, and Traders.

Traders emerge as the most successful cluster in terms of profitability, measured through the ROS and ROIC. The Integrated Producers, thanks to an efficient integration between production and commercialization, also exhibit good performances, while Cooperatives are borne by a high debt ratio and lower profit margins.

An ANOVA and the Tukey post-hoc test, confirmed the greater effectiveness of the Trader and Integrated Producer business models compared to that of Cooperatives in delivering higher ROIC and ROS levels. The results suggest that a growth-oriented business model and effective capital management may lead to a competitive advantage in the sector.

In conclusion, the Traders and Integrated Producers emerge as the most competitive business models, whereas Cooperatives should undergo strategic changes to ensure sustainable growth and enhanced competitiveness.