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.
- Bacska clone matures into mid-quality grape, suitable for high volume base wine.
- Pannonia 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.