Hungarian Wine - Business Models

Hungarian Wine Economy: Innovative Business Models

Introduction

  • Hungarian wine market experiencing dynamic changes with a new generation seeking quality wines.
  • Smaller producers are building modern wineries due to EU subsidies, increasing wine-making capacity.
  • Competition exists among wineries and vine varieties.
  • Climate change affects viticulture and winemaking.
  • New wineries need proper marketing and market surveys to gain market share.
  • Wine-producing enterprises can be remunerative in the long run.

Innovation Examples

  • Winery managers are reaching bigger market shares through innovation.
Licence Koch Winery – New Clones, New Wines
  • Csaba Koch cultivates vineyards in the Hajos-Baja wine region since 1991.
  • Koch Winery produces about 900,000 bottles of wine yearly and exports to several countries.
  • Experimenting with new clones for 12–13 years with scientific cooperation.
  • Experiment aims to breed clones resistant to downy mildew, powdery mildew, or grey rot through cross-breeding and gene manipulation.
  • Koch winery is devoted to ecological grape production, minimizing chemicals.
  • Bacska clone is grown on 15 hectares, Pannonia clone on 12 hectares.
  • BacskaBacska clone matures into mid-quality grape, suitable for high volume base wine.
  • PannoniaPannonia clone is a good quality variety with outstanding resistance, reminds of Reisling type.
Junibor – Association of Young Winemakers/DiVino
  • Junibor association founded in 2008 to help professional development of young winemakers (under 35).
  • The association propagates responsible wine consumption.
  • DiVino wine bar opened in 2011 in Budapest, featuring wines made by Junibor members.
  • Great amount of young dedicated wine makers cooperating with each other is an inimitable possibility and a spiritual capital to start with.
  • Franchise system extended to other cities in Hungary, with plans for international expansion.
  • Marketing is managed by a special professional company.
  • The Budapest DiVino bar organizes the Junibor Wine Festival.
  • DiVino wine bar has received "Michelin" and "Bib Gourmand" recommendations and sells over 200,000 bottles yearly.
Wines&Roses – Wines with Flowers
  • Csaba Miklos, a winemaker and horticulturist, opened a shop in Budapest combining wines and flowers.
  • The Mor wine district produces primarily white wines.
  • Miklos sells only his own wines and obtains flowers from Kenyan and Dutch producers.
  • The shop sells flowers in traditional and creative ways, recommending wine pairings.

Summary

  • Competition drives wine makers to innovate.
  • Innovative ideas and unique, quality wines are essential for Hungarian wine makers to succeed against international competition.
  • The relation between scientific and economic domains has an increasingly important role as well.
  • Cooperation, technological transfer from science to production and the direct involvement of researchers into the economical processes could provide kind of an advantage that should not be lost.