Wine Economics and Policy 9(1): 3-4, 2020 Firenze University Press www.fupress.com/wepWine Economics and Policy Citation: P. Hayes (2020) Creating Opportunity from Crisis, Progress from Research: Redefining the Wine Sector. Wine Economics and Policy 9(1): 3-4. doi: 10.36253/web-8333 Copyright: © 2020 P. Hayes. This is an open access, peer-reviewed arti- cle published by Firenze University Press (http://www.fupress.com/wep) and distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distri- bution, and reproduction in any medi- um, provided the original author and source are credited. Data Availability Statement: All rel- evant data are within the paper and its Supporting Information files. Competing Interests: The Author(s) declare(s) no conflict of interest. ISSN 2212-9774 (online) | DOI: 10.36253/web-8333 Discussion Creating Opportunity from Crisis, Progress from Research: Redefining the Wine Sector Peter Hayes AM1 Honorary President of OIV E-mail: grapwine@senet.com.au Change, for some, is reluctantly accepted, yet, for others, it’s welcomed and embraced. This decade shall likely entail even more changes in our world and the wine sector than has ever been experienced, requiring a significant reliance on the knowledge, experience, resilience and innovative capacity of col- leagues, academic and professional in securing a sustainable and prosperous future. Perhaps, in its own way, the transfer of this journal from hosting by Elsevier to the Florence University Press signifies a preparedness for timely adaptation to the pressures facing, in this case, the publication of peer- reviewed research. A decade on from the founding of this journal, and having been invited to contribute this editorial comment, I reviewed the editorial we prepared for the first issue; Editorial / Wine Economics and Policy 1 (2012) 87–88. It is evi- dent that many of the issues noted at that time remain relevant, albeit now accompanied by additional emerging and important themes. Back in 2012 the issues we identified spanned the gamut of economics, finance, business management and policy and identified several key issues which might now, a decade on, be considered even more relevant and topical. These issues include the drivers and facilitators of adaptation and innovation within the sector; adequacy and timeliness of data collection, analysis and interpretation, now much more broadly developed with “big data” and arti- ficial intelligence; and the restructured and alternative distribution pathways, now reinforced by innovation in IT, e-commerce and social media. Without ignoring the relatively recent and substantial development of China, the wine industry is a mature industry in much of the producing and 1 Peter Hayes is WEP Business Editor, Honorary (former) President of the OIV and has other current roles; President, Lien de la Vigne/Vine Link; Presiding Member, Wine Australia Board Selection Committee; Member, Wine Australia Geographic Indications Committee; Independent Chairman, Almond Board of Australia. He has been an active promoter of R&D, and professional development activity contributing to adaptation and innovation within the sector and now oper- ates as an independent Wine Industry Strategist and Advisor with activity in Australia, the UK, China, and India. 4 Peter Hayes consuming world. Growth opportunity in such markets appears limited as do the prospects of new markets, not- withstanding the frequently expressed potential for such candidates as China and India. Addressing the future of the wine world, what then might be some of the key themes warranting R&D, adaptation and innovation to assist in securing a viable and prosperous sector? First, the consumer: We observe and see commen- tary on the dramatic changes in consumer demograph- ics, consumer preferences and behaviours, the influence of novel and evolving models of communication, and the role of competing products, services and experiences. Attention to the publication and promotion of insights, models and adaptive strategies to recruit and retain a rejuvenated and enduring consumer base and to frame the appropriate development of innovative wine and wine-based products should be highly valued. Second, the supply or (preferably), the value chain: Although likely to be contested by some, the current sup- ply or value-chain arrangements encourages excess sup- ply in the interests of access to “cheap” supplies, fails to deliver reliable, predictable supply, poorly allocates risk and reward and imposes considerable stress on natural resources and social licence. Global economic and pub- lic health crises or conflicts, as arise from time to time, impose further uncertainty in securing inputs to the production process, visitation by tourists and in deliver- ing products and services. This situation offers consider- able challenges to both the wine sector and to others con- cerned with food security and resource use accountability. To retain and enhance legitimacy of trade in wine (and other foodstuffs), the industry shall require improved models of supply-demand balance, value allocation, food security and risk mitigation, along with development of transparent, credible resource -use accounting (perhaps a “resource -return quotient”) and reporting systems, their validation and promotion, accompanied by policy devel- opment to facilitate their adoption. Third, just what is “The Wine Industry”? Is it a sup- plier of commodity or product, cultural or lifestyle expe- rience, hospitality or tourism destination or some com- bination thereof ? A range of market and commercial factors in combination with economic policy, social and resource pressures shall likely see further diversifica- tion and specialisation in strands of wine-business and related activity. Considerable potential and value lie in describing, devising and validating alternative models to meet the pressures for commercial adoption and adapta- tion across the future decade. In closing, there remains enormous potential for the academic research & development community to engage with the professional sector for the benefit of each of the parties, the broader community and the environ- ment. Assessment and reporting on effective models for such engagement, the related investment funding and evaluation of system and process improvements would be much welcomed. This should provide a solid founda- tion for adapting this journal, and assisting the industry itself, to meet forthcoming challenges and opportunities. Since 4th March 2020, when I first drafted this dis- cussion for the Journal, much has changed with whole societies severely disrupted, the wellbeing of individu- als and families under considerable stress and national and international economies and trading in turmoil. The future of the many business enterprises and employment of many individuals within the sector is clearly threat- ened, as is the financial security and confidence of its consumers, and broader society; this prompts the ques- tion of what could and should be the nature, form and scale of the wine sector of the future? My view is reinforced that R&D, and its publica- tion and promulgation, must actively adapt to better envisage, project, and analyse prospective scenarios, to inform future policy, planning and strategy at all lev- els. This shall demand better interaction and integration with, and recognition by, other elements of the sector and society, and is especially crucial given that under the anticipated economic conditions, financial support for R&D is likely to be further constrained. For all players to plan and secure their future rel- evance, legitimacy, efficiency, and effectiveness from which a prosperous future may be attained, demands a serious reorientation of focus. A successful reorientation would create opportunity from crisis, greater progress from research, and would substantially contribute to redefining the wine sector, globally. Wine Economics and Policy Volume 9, Issue 1 - 2020 Firenze University Press Creating Opportunity from Crisis, Progress from Research: Redefining the Wine Sector Peter Hayes AM1 US Wine Industry Preparedness For Unforeseen Crises And Disasters: An Empirical Test Armand Gilinsky, Jr.1, Astha Sen2, Judith Ford3, Sergio Canavati de la Torre4, Sandra K. Newton5,* A Cross-Cultural Comparison of Wine Consumption and Purchasing Behaviour in Germany and Hungary Gergely Szolnoki1,*, Gedeon Totth2 Assessing the Effects of the Environment on Consumers’ Evaluations for Wine Gioacchino Pappalardo, Gaetano Chinnici*, Roberta Selvaggi, Biagio Pecorino The Speed of the Internationalisation Process and the Institutional Networks of Family SMEs in the DOC Rioja Wine Industry Marta Fernández-Olmos1,*, Giulio Malorgio2 The Impact of Changes in Regulatory and Market Environment on Sustainability of Wine Producers: A Structural Equation Model Chinedu Obi1,2,*, Daniele Vergamini1, Fabio Bartolini1, Gianluca Brunori1 Emerging Consumer Preference for Wine Attributes in a European Transition Country – the Case of Kosovo Edvin Zhllima1, Drini Imami1,*, Njazi Bytyqi2, Maurizio Canavari3, Elvina Merkaj4, Catherine Chan5 Price Determinants of Sparkling Wine in Poland: Does Reputation Really Matter? Authors: Samuele Trestini1,*, Alice Stiletto1, Stefanella Stranieri2