Sustainability as Value of Cooperatives-Can (Wine) Cooperatives Use Sustainability as a Driver for a Brand Concept?

Similar to the number of agricultural cooperatives in the European Union, the number of German wine cooperatives is decreasing. The main purpose of the wine cooperatives is to support the member businesses with the highest possible payouts for their grapes. Wine cooperatives can fulfil this purpose by implementing a differentiation strategy. On the one hand, brands can be used for differentiation. On the other hand, cooperatives can use particular values in the communication with customers that correspond to the target group's values. Based on the definition of the International Co-operative Alliance, cooperatives are a sustainable form of enterprise. Therefore, the question arises whether it is possible to use sustainability as a value that corresponds to cooperatives as a form of enterprise as well as to a strong societal value that gains importance. Which role does social capital play in the context of social sustainability? The aim of this paper is to shed light on the understanding of brands, to show which cooperative-specific characteristics might pose a challenge to cooperatives in terms of brand management and to examine the understanding of the sustainability construct as well as sustainable management practices applied by wine cooperatives to date. Two exploratory, qualitative studies have been conducted.

Automated summary

Similar to agricultural cooperatives in the EU, the number of German wine cooperatives is decreasing. These cooperatives aim to support member businesses by implementing a differentiation strategy based on brand communication and values aligned with target groups. Exploratory qualitative studies have been conducted to examine brand management challenges and sustainable practices in wine cooperatives.