Purpose: Consumer likeability and willingness to pay (WTP) for two Italian sparkling wines, (Conegliano Valdobbiadene Prosecco DOCG and Prosecco DOC) are evaluated through a non-hypothetical Becker-DeGroot-Marschak (BDM) auction during a wine-tasting experiment. The purpose of this paper is to estimate individual WTP and relate it to likeability for both wines, with and without supplying additional information on their features.Design/methodology/approach: Data were collected in May–June 2019 from a sample of 99 consumers in Northern Italy. A non-hypothetical BDM auction in a wine-tasting experiment was implemented.Findings: The results show that the additional information plays a significant role in widening the WTP gap between the two geographical indications (GIs), while the blind tasting narrows this gap. The “superiority” of the Conegliano Valdobbiadene Prosecco DOCG is confirmed but relies more on its better reputation than its better taste.Research limitations/implications: The authors are aware of two main limitations in the study. The first is the territorial composition of the consumer sample. The second is the selection of the Prosecco bottles used in the experiment. The results are considered pioneering and need to be verified by additional experiments with different consumer and bottle samples.Practical implications: Promotional suggestions for the Tutelary Consortia of the two GIs stem from the results. The Prosecco DOC should primarily stress its likeability, while the Conegliano Valdobbiadene Prosecco DOCG should primarily emphasise the reasons for its “superiority”.Originality/value: To the best of the authors' knowledge, no previous study has related likeability and WTP for similar GI wines produced in contiguous areas. Moreover, the current research has applied a non-hypothetical BDM auction in a wine-tasting experiment.

Purpose: This paper bridges the gap between theory and practice in the application of the Income Stabilisation Tool (IST). With an application to the dairy sector, the purpose of this paper is to propose methodology for the quantification of reference income when farm structural change occurs and estimate the role of farm attributes on the probability of income loss, offering an ex ante evaluation of farm resilience to risk. Design/methodology/approach: Based on a balanced Farm Accountancy Network farm-level panel ranging from 2008 to 2014, three hypotheses of reference income calculation are tested to assess whether farms structural changes over the years significantly affect the level of IST indemnification. The role of farm characteristics on the probability of an income reduction is then evaluated by estimating a multinomial logit model. Findings: Results show that farms’ structural changes significantly affect IST indemnities and need to be considered in calculating the reference income. The estimated model suggests that farm characteristics significantly affect the probability of a severe income drop and hence risk resilience. Extensive livestock systems seem to reduce the probability of an income drop, while farms in upland areas managed by young farmers seem to experience increased risk exposure. Originality/value: The research provides one of the first attempts to define risk profile of dairy farms by modelling the probability of an income reduction on observable attributes. Indeed, among different sectors, dairy farms emerge as the main candidates for the application of the IST.

This study analyses the degree to which wine consumers are truly able to intrinsically evaluate the meaning of a designation of origin certification or whether they generally consider such a certification to be a vague credence attribute. This issue was addressed through an empirical analysis of Homescan Panel data in the Italian and German markets, using a Heckman probit model to assess the role of consumers’ characteristics and habits in the choice of ‘Prosecco’ wines characterized by two different levels of the denomination of origin certification. Our results suggest that Prosecco sparkling wine is perceived as a product of medium-high positioning and is preferably purchased by households that buy wines with a higher unit price. In contrast, consumers who appreciate sparkling wine did not show any preference towards a specific type of Prosecco, especially outside the area of production, such as in the German market, which suggests that they still do not completely understand the difference between the certification levels.

Nowadays, the wine sector’s entrepreneurs are increasingly aware of the relevance of sustainability representing a crucial point for society, economy and the environment. This paper aims to describe Conegliano Valdobbiadene Prosecco DOCG (Controlled and Guaranteed Denomination of Origin) firms’ behaviour focusing on how strategic incorporation of environmentally sustainable practices and social actions contribute to strengthen their competitiveness and deliver shared value for the community. Using partial least squares structural equation modelling (PLS-SEM), survey data from 128 sparkling wine firms are analysed. The results highlight the roles of carbon footprint and employment as drivers in the creation of shared values (SVs), considering the major export markets of Prosecco Superiore DOCG. This empirical evidence may be of interest to firms in the wine sector when considering, in their business decisions, the added commercial value that is derived for the adoption of environmental practices and sustainable social actions. Hence, following this logic, they can manage more inclusive and virtuous paths towards positive social entrepreneurship and an environmental externality to the community.

Despite attention to sustainability growing in the last decade in the wine sector, the rate of association with wine sustainability programs still appears to be limited. This is mainly related to the uncertainty about the economic benefits related to the implementation of sustainable best practices. In this regard, some studies highlighted that the presence of professionals capable of managing the requirements promoted by the standards generally leads to a positive perception of their impact on the economic performances of companies. Therefore, to encourage participation in sustainability programs, the adoption of a collaborative approach to share the skills and knowledge necessary to manage the transition from a conventional organization to a sustainable one seems to be a functional strategy. This paper presents the Prosecco Sustainability Project as a case study to investigate how a structured set of activities must be deployed through a participatory/collaborative approach to significantly improve the level of sustainability of a wide and heterogeneous community of grape and wine producers. The case study highlights that the collaboration between different actors and the guidance from a coordinating figure capable of fostering dialogue and cooperation among the various stakeholders represent key elements to the large-scale deployment of a sustainable management system.

This paper aims at understanding what affects farmers’ choices to buy insurance against biotic threats. Using a survey-based dataset with 1187 observations on Veneto wine grapes farms, we regress a probit model with endogenous variables with a maximum likelihood (ML) routine. The results corroborate the microeconomic theory according to which risk-adverse individuals are more propense to insure. In our framework, the farmers’ socioeconomic characteristics are treated as endogenous variables, which exist/are predetermined before the choice to insure (or not). This paper discusses the results in a policy perspective.