Pioneering, old-vine category pricing research in the retail sector, undertaken in collaboration between Winetech, The University of Cape Town Graduate School of Business (UCT GSB) and Stellenbosch University (US) has revealed some exciting results. Co-authors Jonathan Steyn and Associate Professor David Priilaid constructed a hedonic pricing model to answer the question of: whether, to what extent and how wine price-setters in the supply chain prioritise old vine cues, relative to more conventional cues of worth?
Steyn said of the findings: “In addition to the contribution of established cues such as aggregate ratings, exemplar brands, prototypical varieties, and origin, our study confirmed that vine age contributes significantly to wine price.” He goes on to add that, “The introduction of the certified heritage vineyard seal is an important step and is likely to sharpen and further shape the category boundaries globally.”
It is clear that communicated Old Vine attributes possess marketing value and significantly influence pricing decisions in the wine supply chain, says Old Vine Project Manager, Andre Morgenthal.
The paper was recently awarded the Oxford University Press Best Marketing track paper at the South African Institute of Managements Scientists Conference (SAIMS), held at the University of Stellenbosch.
UNLOCKING VALUE IN SOUTH AFRICA’S OLD VINE RESOURCES
SASEV-WineTech Conference: 2-4 October 2018
The question of whether, how and why market value in South Africa’s 3200 hectares of old vine resources may be unlocked and leverage the South African wine category, is gaining momentum.
However, scientific, sensory and business research about this category is still in its infancy. The purpose of the workshop is to facilitate conversations around research and business initiatives in this category. Two tutored tastings will assist in illustrating the distinctiveness of certified heritage vineyard wines.
- Jonathan Steyn on “Unlocking value in SA’s Old Vine resources”
- André Morgental on “Certified Heritage Vineyards – marketing and shaping the old vine category & old vine initiatives around the world.”
- Rosa Kruger on “Old Vine viticultural practices”