"Bottling Location and the Global Wine Supply Chain: Dollar, Water and Carbon Trade-offs"

Mohsen Varsei, Katherine Christ, Roger Burritt

Research output: Contribution to journalArticlepeer-review


Best Paper Proceedings of the Academy of Management ISSN: 2151-656. (Finalist for the Academy of Management Carolyn Dexter Award, Honourable Mention in the NBS Research Impact on Practice Award).
Each year over 10 billion litres of wine are transported long distances to overseas consumers. Decisions about the large scale movement of wine influence company profitability and have critical environmental implications. One main environmental impact associated with the international movement of wine to markets is carbon emissions, while another issue growing in importance relates to water. This paper provides a foundation for understanding the trade-offs between cost, water use and carbon emissions in decisions about the form of distribution, bulk or bottled, and location of wine bottling plants. Given there has been little prior research into such trade-offs, our aim is to examine optimisation across alternative packaging, distribution and bottling scenarios using financial and environmental data from a wine company with global operations based in Australia. The paper makes two key contributions. First, a mathematical business model is developed for assessing scenarios using multiple indicators of economic and environmental impacts--supply chain costs, risk-weighted water usage and greenhouse gas emissions. Second, an anonymised case study helps highlight trade-offs required when considering optimal supply chain design.
Original languageEnglish
Article number12112
JournalAcademy of Management Proceedings
Issue number1
Publication statusPublished - 30 Nov 2015


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