Factors of the attractiveness of Slovak wine market and their influence on the Czech wine export to Slovakia

Abstract

Th e contribution follows the development of Czech wine exports to Slovakia, depending on the development of the wine industry attractiveness in Slovakia. Wine export from the Czech Republic to Slovakia in the terms of volume and value of exports, both globally and in the division of export bulk and bottled wine, is confronted with the development of factors infl uencing the wine sector attractiveness in Slovakia. Th e Slovak wine market is a market in the phase of growth, the wine consumption per capita in 2011 reached 14.7 Lt.; the domestic production covered only 46% of the domestic consumption. Th e level of the industry concentration is high, the 6 largest companies produce more than 18.5 mill. Lt. of wine -50% of the total domestic production. Wine legislation is comparable to the Czech legislation, the purchasing power of the customers shows a positive development, but the cheap table wine imports still represent more than 50% of the total domestic consumption. Th e opportunity for Czech exporters is the factor represented by the size and growth of the market and the legislation, too. Th e situation is rather more positive for the re-export of cheap wine from other countries than the direct export of Czech wine to Slovakia in case of other analyzed factors.

The Performance of Grape Production in the Czech Republic

“…Historically, Slovakia and Czechia has experienced intra-industry trade in wine products, as both countries have been the largest trading partner with one another (Kučerová, 2014). Nonetheless, wine trade between the two economies has not been solely depended on domestic production.…”

“…The growth potential of demand and the market size might have been the factors that drive the attractiveness of Czechia and Slovak wine markets (Kučerová, 2014). Nevertheless, there is a need for market diversification (Zdráhal and Bečvářová, 2018) for grape products beyond the European borders to reduce global market shocks, stimulate competitiveness, and for more earnings to be ensured.…”

“…Even though the Czech Republic (Czechia) is widely well-known for beer production and consumption, wine is also produced and consumed in the country. The most important input (crop) used for winemaking in the country are grapes, substantially grown in the South Moravian region (Žufan, 2004;Hejmalová and Šperková, 2011;Kučerová, 2014;Svobodová et al, 2014;Syrovátka et al, 2015). Prior to the Czechia joining the European Union (EU), there were high expectations that all facets of agricultural activities, such as grape production would be improved.…”

Innovative approaches to examining consumer preferences when choosing wines

“…Moreover, the wine sector (as a part of the agrarian and food sector as the key sectors of any economy around the world (Svatoš 2008), is in many European countries a sector of a great importance, the Slovak wine market including, where additionally we can observe the positive development of the annual consumption of wine per inhabitant in terms of volumes, but also of the culture and habits of drinking. According to the research of Kučerová (2014), consumption of wine in Slovakia does not reach the EU average, which is approximately 33 litres per inhabitant. That provides space for the further growth potential of the wine market in Slovakia.…”

Factors of profitability of the grapes production

“…The issue of a systematic examination of the wine production's profitability is neglected both for the subjective and objective reasons. According to Kučerová (2014), it can be assumed that the price of the basic raw material will impact the price of the bottled wine, which will increase the possibilities of the export abroad. Despite the importance of wine making in the region of Bohemia and, particularly, in Moravia, an institutional frame of economic research and a general research into viticulture and wine making industry is missing.…”