Should consumers pay a premium for sustainable wine? If yes, how much?
According to Sellers (2016), producing sustainable wine is both a challenge to the winery and the marketing team to differentiate the product in the highly competitive market. However, the two most crucial factors are high production cost (25 to 30% higher than conventional wines) and the willingness of consumers to accept this premium. In his survey based on the Spanish wine market, result showed the percentage of Spanish respondents as high as 77.9% were willing to pay the premium of an average of 12.87%. But how can it be compared globally? The percentage of willingness to pay customers were off to a good start but it seemed the selling price would not be economical sustainable to the winery. What can wineries do to increase the amount of premium to pay on these 77.9% consumers? If we think critically, there are vast amount of factors such as cost of certification; fine wine sectors which many had good reputation may had already started sustainable practices; consumers’ behaviour to...