Latin America in the Wine Market: The Country of Origin Effect on Consumers `Preferences

Abstract

This study provides a theoretical understanding of consumer wine preference and country of origin effect (COE) with a special focus on the comparison of wine producers from Latin America (Chile and Argentina) to the most popular countries that import wine into the UK. Our study includes consumer perceptions of country of origin, which according to the literature is a factor that influences consumers’ decision. Our results show that the new world wine producers play a crucial role in the wine industry. They lead in areas such as value for money, reputation as wine producers and have even started to create the concept of premium wines. Chile leads the new world wine countries, while Argentina still struggles in the Uk wine market but has been working its competitiveness and internationalization process.