1. Paolo Dinis, Richard Sagala
Kedge,
Larry Lockshin
UNISA
Importance of eco-logo and closure types on consumer expectations, price perception and willingness to purchase wines in Canada
AAWE,Conference
Bordeaux 2016
Richard Sagala, presenter
In Vino Veritas Wine School, Montréal, Canada

2. Introduction Increase in eco-consciousness worldwide
Consumers are integrating eco values in their lifestyle choices
(Smith and Marsen, 2004)
Producers, retailers and others use sustainability to support their brand and develop products offers to generate competitive advantage
(Straughan and Roberts, 1999)

3. Introduction Wineries motivation:
personal and satisfaction, regulation, product quality, market demand (Gabzdylova et al., 2009)
Gatekeepers are the main drivers : improve market power, increase efficiency of logistic s and enhance their eco-friendly image
Availability increase consumer awareness and therefore consumer demand for eco-friendly food & wine (Remaud et al., 2010)

4. Introduction
Environmental friendly products are credence goods (Crespi and Marett, 2005)
Packaging acts as eco-labeling, providing information about the eco credentials of the product (Leire and Thidell, 2005)
Several packaging attributes need to be combined for effective eco-label Leire (2004)
Can closure enhance or disrupt the eco-friendly brand image?

5. Aim
To understand the relative importance of the different extrinsic wine attributes such as closures types and eco-label logos in price and purchase intent of bottled wines in two Canadian provinces (Québec & Ontario)

6. Self-administered internet based questionnaire assessed
Methodology
Self-administered internet based questionnaire assessed
Characteristics
Québec ,1% (n=299)
Ontario 49,9% (n=298)
Total respondents 100% (n=597)
Gender
female
54%
51%
52% (n=312)
male
46%
49%
48% (n=285)
Age
L.A*- 24 9% 8%
9% (n=51)
32%
37%
34% (n=204)
34%
30%
32% (n=191)
16%
13%
15% (n=87)
> 64
12%
11% (n=64)
Wine consumption
More than once a week
44%
23%
34% (n=202)
Once a week
19%
24% (n=146)
Once or twice per month
24%
28%
26% (n=155)
Less than once per month
16% (n=94)
The data for this report was collected in third week of May 2011
Data was gathered via web-panel provider (GMI - Global Market insight Inc., Paris, France)
Response rate of around 40%
Respondents were required to have purchased wine in the last three months and be above the legal drinking age (18 and 19 years old in Québec and Ontario,
The survey is representative of Canada regular wine drinkers in terms of age, gender and state

7. Methodology Traditional Conjoint Analysis (CVA)
Scenario: Purchase in retail of an eco-labeled wine to drink by themselves or with other people at home

8. Key findings
Importance of the closures and eco-label logos in likelihood to buy (%) bottled wines in two Canadian provinces
Claims
Québec (n=299)
Ontario (n=298)
Natural cork
Synthetic
Screw cap
Natural cork
No claim
69 (20)a
61 (22)bc
59 (22)c
64 (21)ab
58 (20)c
Organic
63 (22)a
59 (23)b
60 (22)ab
61 (22)a
57 (21)b
59 (21)b
Biodynamic
65 (21)a
59 (20)b
63 (21)a
56 (21)b
58 (21)b
100% E. friendly
66 (21)a
65 (23)ab
61 (21)bc
63 (22)b
62 (21)bc
59 (21)c
Values represent mean values and standard deviations (within parenthesis) obtained from responses based upon the likelihood of buying the wine bottle on a scale from 1= no chance, to 5 = about a 50% chance to 10 = 100% likely to buy
Values with different subscript letter in each row are significant different at 95% confidence level
Similarly in both provinces, natural cork increase likelihood to buy vs alternatives closure, regardless of the eco-label logo

9. Overall likelihood of buying = 61%
Key findings
Importance of the closures and eco-label logos in likelihood to buy (%) bottled wines in two Canadian provinces
Overall likelihood of buying = 61%
100% Eco-friendly claim increase respondents’ willingness to buy, while organic and biodynamic generated a negative effect
Corks boosts 4.6% on respondents’ willingness to buy, while screw caps and synthetic closures generated a negative effect of 2%

10. Key findings
Importance of the closures and eco-label logos in the price (CAD$) of bottled wines in two Canadian provinces
Claims
Québec (n=299)
Ontario (n=298)
Natural cork
Synthetic
Screw cap
Natural cork
No claim
16.1 (5.3)a
15.3 (6.9)ab
14.3 (5.5)b
15.8 (7.9)a
15.2 (9.1)ab
14.6 (8.4)b
Organic
15.9 (6.4)ab
15.2 (5.8)b
14.9 (6.4)b
16.7 (11)a
15.5 (9.3)ab
15.6 (10)ab
Biodynamic
16.2 (7.6)a
15.1 (5.7)b
15.0 (6.1)b
16.2 (9.1)a
15.3 (9.2)ab
15.7 (10)ab
100% E. friendly
16.0 (5.9)ab
16.1 (6.3)ab
14.8 (5.8)b
16.5 (9.8)a
15.5 (8.4)ab
15.2 (8.9)ab
P value?
Values represent mean prices values and respective standard deviations (within parenthesis) obtained from responses.
Values with different subscript letter in each row are significant different at 95% confidence level.
Ontario and Québec wine drinkers are willing to spend more in wines sealed with natural cork closure, regardless of the eco-label logo

11. Overall average value= CAD$15.53
Key findings
Importance of the closures and eco-label logos in the price (CAD$) of bottled wines in two Canadian provinces
Overall average value= CAD$15.53
Respondents are willing to pay more for 100% Eco-friendly; while organic and biodynamic are quite neutral
Natural corks give a pricing advantage of CAD$1.69 and CAN$1.39 per bottle compared with screw caps and synthetic closures

12. Key findings
Importance of the closures and eco-label logos in the purchase intent (%) of bottled wines in two Canadian provinces
Claims
Québec (n=299)
Ontario (n=298)
Natural cork
Synthetic
Screw cap
Natural cork
No claim
85%
78%
88%
81%
Organic
72%
75%
73%
76%
Biodynamic
79%
80%
74%
100% E. friendly
77%
82%
84%
Values represent the percentages of respondents that stated that they would you realistically purchase the each wine bottle with different environmental claim and type of closures for the price they wrote.
In general, bottles sealed with natural corks were most chosen within each province than those sealed with synthetic closures and screw caps

13. Key findings
Importance of the closures and eco-label logos in the price and purchase intent (%) of bottled wines in two Canadian provinces
Overall purchase intent = 78%
Overall average value= CAD$15.53

14. Conclusions
Canadians did not display a greater interest in bottles carrying eco- friendly claims even if they have marginally valued some of it;
Claims which includes words such as “eco-environmental friendly” seems to be easier to understand and are more meaningful and appealing than “organic” or “biodynamic”;
Consumers were most likely to buy, and would pay more for wines sealed with natural corks, compared to the same bottles sealed with synthetic or screw cap closures;
Closures and eco-claims were not perceived having a combined utility to respondents’. (Closures do not enhance or disrupt the brand image)

15. Thank You for your attention!
AAWE,Conference,
Bordeaux 2016
Richard Sagala
In Vino Veritas Wine School, Montréal, Canada