Wine Industry Resilience and Strategy Under Crisis: The Case of Sicilian Cooperatives

Abstract

The chapter "Wine Industry Resilience and Strategy Under Crisis: The Case of Sicilian Cooperatives" examines the impact of the COVID-19 pandemic on Sicilian wine cooperatives and the strategies they employed to navigate this unprecedented crisis. The Italian wine industry, particularly in Sicily, is a significant component of the national economy, with a long history of cooperative winemaking aimed at protecting winemakers from market pressures. The chapter outlines the research context, detailing the resilience of the national wine cooperative system and contrasting it with the more severe impact on Sicilian cooperatives due to their structural weaknesses and lower levels of innovation and digitalization. The study involves data collection from eight Sicilian wine cooperatives through surveys and the analysis of their structural, technical, and economic data over the period 2017-2020. The results show a 12% contraction in the number of cooperatives and significant declines in grape and wine production in 2020 compared to previous years. Despite these challenges, the cooperatives implemented various adaptation strategies, such as diversifying sales channels, enhancing digital tools, and utilizing government and EU support measures to sustain their operations. The chapter concludes by highlighting the critical role of digitalization, skill development, and strategic financial management in enhancing the resilience of wine cooperatives. It emphasizes the need for continuous innovation and adaptation to mitigate the impacts of future crises, ensuring the long-term sustainability of the Sicilian wine industry.