Grape grower and winery relationships: a segmentation approach

Purpose – This paper aims to discuss a study that investigated the relationship between grape growers and wineries in Australia. The results of the study led to the formulation of market segments which provided a better understanding of the relationship. Design/methodology/approach – Quantitative data were collected through an online survey, distributed to grape growers in all states of Australia. A total of 396 valid responses were obtained. Findings – Cluster analysis highlighted three segments based on relational variables such as relationship quality and power and details of the grape growers' business and trading relationships. The paper showed that grape growers attained higher levels of relationship quality and power if they resided in cool climate wine regions, had short-term relationships with wineries and were in relationships with small and medium enterprise (SME) wineries. The paper also highlighted the interaction of relational variables and the price that a grower received for their grapes. Research limitations/implications – The research was limited in terms of its geographic context. Future research could involve a wider geographic study based on the constructs used in this research and also focus on the winery perspective of the relationship in order to gain a dyadic perspective. Practical implications – The Australian wine industry is experiencing difficult economic conditions. The paper has highlighted relationships that may not be sustainable and certain growers that may require assistance from government and wine industry peak bodies. Originality/value – This paper presents a quantitative exposition of Australian grape grower and winery relationships that takes into account relational variables and trading and business details.