The role of innovation and organization in small size wineries: The case of malvasia delle lipari PDO wine1

Given the current lack of studies concerning the innovation and organization of PDO sweet wines we examined the degree of organization of the wineries producers of aSicilian wine sweet: Malvasia delle Lipari. This paper aims at analyzing organizational and market aspects of this wine and at suggesting adequate market policies in order to increase the competitive potential of the Aeolian wineries. Study was focused on of the universe of wineries involved in production and bottling the Malvasia delle Lipari PDO. We analyzed marketing and distribution channel of wineries of Aeolian PDO area and highlighted a very high market potential of Malvasia PDO wine, but the small physical and economic size of these farms prevents them to undertake a renewal process in order to ensure adequate levels of competitiveness. Results also show a lack of collective marketing strategies and a low organizational level of producers, first of all in terms of trade and distribution. Study conclude that market of sweet and niche wines requires an adequate support of public communication policies to get a sufficient visibility in foreign markets and increase their reputation.