Understanding the hierarchy governance choice of some wineries in Brazil - case study of 3 Brazilian wineries

ABSTRACT This study aims to contribute towards understanding the multiple factors, which influence firm's governance decisions. To identify some of these factors, three cases in the Brazilian wine industry were analyzed: Miolo located in Vale dos Vinhedos (South of Brazil) and in Vale do Rio São Francisco (Northeast of Brazil); Don Laurindo located in Vale dos Vinhedos; and ViniBrasil located in Vale do Rio São Francisco. For the most part, all three firms procure the grapes they use for their wine production in-house. Only Miolo purchases an insignificant amount of grapes outside of its production. By Brazilian standards, these regions have a long tradition of grape production and it is not difficult to purchase sufficient quantity of grapes to produce wine. However, the wineries are concerned also about the quality of the grapes they use and purchasing high-quality grapes might be critical issue. On the other hand, the quality of grapes is easily measured and the cost to buy in the market is cheaper than producing in-house. Furthermore, also the level of asset specificity present in the grape-grower-wine-producer transaction seems, by itself, insufficient to justify the use of hierarchical governance forms. Then, the aim of the article is to analyze the reasons why these wineries largely rely on hierarchy governance forms to procure their grape-inputs. What explains their use of hierarchy governance, given that both asset specificity and measurement problems appear to be relatively low?

Discrimination of Brazilian red wines according to the viticultural region, varietal, and winery origin

This work evaluated the physicochemical composition of 171 red Brazilian wines from the 2006 vintage, which were represented by 21 varietals. These wines were produced by 58 Brazilian wineries in different regions of the country, with latitudes varying from 9º to 31º South. Physicochemical wine analysis was performed in the same year and discrimination in the viticultural regions, varietal wines, and wineries was performed by means of the principal component analysis (PCA). The main results show that wines from São Joaquim had higher values of A420, A520, A620, color intensity, total phenolic compounds, anthocyanins, and dry extracts, while those from Toledo had lower values of these variables; those from Vale do São Francisco had higher values of potassium, pH, density, and volatile acidity; from Serra do Nordeste A, they had higher titratable acidity; and from Planalto Superior B, higher hue. Regarding the varietal wines, PCA mainly discriminated the wines produced from the varieties Ancellotta, Teroldego, Egiodola, Refosco, Marselan, Cabernet Sauvignon, Pinotage, Pinot Noir, Malbec, Arinarnoa, Barbera, and Alfrocheiro. In relation to wineries, twenty two of them were discriminated by their higher values of some variables, i.e., three were characterized by color intensity; three by hue; eight by alcohol content; six by potassium, dry extract, density, and pH; and two by titratablel acidity.