Sour grapes and sweet harmony: Historicizing collective action problems in the South African wine industry
Paul Nugent
Journal of Wine Economics, 2023, vol. 18, issue 4, 332-340
Abstract:
The article addresses how merchants and wine producers interacted while oscillating between competition and collaboration in their internal relations. Spanning a period of more than a century, it addresses three chronological periods: 1900–1940, 1940–1994, and 1994 to the present. In the first, producers were able to forge a common front against the merchants in the shape of the Koöperatieve Wynbouwers Vereniging van Suid-Afrika, which was granted devolved regulatory powers over distilling wine in 1924 and then all wine in 1940. In the second, the antagonism between good and distilling producers was sublimated at a time of relative prosperity, while the merchants engaged in fierce competition. In the final phase, the regulatory system imploded while the export market re-emerged. Quality producers found common ground in appealing to terroir, whereas marginal producers supplied merchants and supermarkets with low-priced bulk wines.
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:cup:jwecon:v:18:y:2023:i:4:p:332-340_6
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