From vineyard to bottle: How blockchain improves trust and sensing in the wine value chain

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The wine sector faces increasing consumer demand for transparency, authenticity, and reliable information about production methods, grape origin, sustainability, and ethical practices. Many of these characteristics fall under the category of credence attributes, which cannot be confirmed by consumers even after consumption.

This inability to verify claims results in significant information asymmetry and creates challenges for value creation, since consumers rely on signals, certifications, and firm reputation to assess product quality. Blockchain has been increasingly presented as a tool capable of addressing these issues.

This study examines how Blockchain Technology (BCT) shapes value creation processes in the wine sector by analyzing its dual role: (1) as a mediator of the relationship between credence attributes and consumers’ trust, and (2) as a moderator of the impact of sensing capabilities on innovation capability and strategic decisions. The research positions blockchain within the framework of dynamic capabilities (DC), with particular focus on the sensing dimension, and investigate how its adoption influences the transmission and credibility of information related to key quality attributes in wine supply chains.

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The paper argues that blockchain can mediate the transmission of credence attributes by ensuring secure, immutable, and verifiable data across the supply chain. The technology creates a distributed ledger in which supply-chain actors record events and information transparently, reducing space for opportunistic behaviors, fraud, and misrepresentation. The authors highlight how traditional paper-based systems and fragmented digital tools limit data integration, whereas blockchain allows fine-grained, tamper-proof traceability from vineyard to final consumer.

At the same time, blockchain acts as a moderator of sensing capabilities — the firm’s ability to detect changes in the environment, identify technological opportunities, and anticipate market expectations.

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According to the dynamic capabilities view, sensing is essential for recognizing value creation opportunities. The authors propose that blockchain adoption strengthens sensing by improving access to real-time data, facilitating information flows, and increasing understanding of internal and external conditions. As firms collect more reliable data and structure it within blockchain architectures, they become better equipped to interpret trends, consumer preferences, and supply-chain dynamics.

The empirical section is based on qualitative case studies of wine firms that have introduced blockchain into their traceability systems. Data collection involved semi-structured interviews with winery managers and blockchain service providers, complemented by document analysis. The cases show that wineries use blockchain to record production processes, grape origin, environmental data, certifications, and logistic steps. Consumers can retrieve this information by scanning a QR code, gaining access to a verified product history.

The findings reveal that blockchain positively affects credence attribute communication. When wineries encode relevant information on the ledger, consumers gain greater confidence in claims such as organic cultivation, low environmental impact, compliance with geographical indications, or artisanal production. The immutable nature of blockchain increases perceived credibility and reduces the need for costly third-party verification. Producers benefit from improved reputation and differentiation based on trustworthy product narratives.

Regarding sensing capabilities, the study indicates that blockchain supports firms by enabling enhanced information integration. Through the digitalization and real-time recording of production events, wineries can more easily detect inefficiencies, monitor quality parameters, and respond to external pressures or emerging trends. The technology helps firms better understand consumer concerns about authenticity and food safety, leading to the development of new strategies and offerings.

However, the analysis also highlights several barriers to adoption. Many wineries, especially smaller ones, face difficulties due to limited internal expertise, lack of digital skills, the complexity of integrating blockchain with existing systems, and financial constraints related to implementation costs. Organizational resistance and uncertainty about long-term benefits also slow down adoption.

Importantly, the paper emphasizes that sensing capabilities are critical for overcoming these barriers. Wineries with stronger sensing capabilities are more likely to recognize the strategic relevance of blockchain, understand how it aligns with market expectations, and anticipate the challenges associated with implementation. These firms are better equipped to interpret external signals, identify complementary investments, and evaluate the potential benefits of transparency-driven differentiation.

The study provides significant theoretical and practical contributions for the wine sector and related industries. On the theoretical side, it offers a new perspective by linking blockchain to the concepts of trust and transparency within the dynamic capabilities framework, clarifying how BCT shapes organisational capabilities in traditional, vertically coordinated supply chains. It also shows how intangible elements such as authenticity and trust can be systematically supported and validated through technological solutions, enriching the discourse on dynamic capabilities and digital transformation.

Furthermore, the findings reinforce established theories on consumer behaviour, demonstrating that increased transparency enhances consumer trust, relationship strength and brand loyalty. The study also advances understanding of how disruptive technologies like blockchain can strengthen dynamic capabilities—particularly sensing, strategic decision-making, and innovation—thereby improving operational efficiency and competitive positioning.

From a practical standpoint, the results indicate that blockchain enables wineries to better address evolving consumer expectations by ensuring verifiable authenticity, origin and quality, thereby reinforcing trust, brand loyalty and reducing opportunistic behaviour. By identifying the main drivers and opportunities associated with blockchain adoption, the study supports firms in making informed strategic decisions to enhance competitiveness and adaptability.

For policymakers, the study highlights the importance of establishing clear guidelines for digital tokens and smart contracts, and of considering incentives for firms adopting transparency technologies, while also acknowledging challenges such as education efforts, adoption costs, stakeholder-related barriers and the need for international standards in global supply chains.

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Prof Demetris Vrontis
Prof Demetris Vrontis
Prof Demetris Vrontis, Visiting Professor of Strategic Marketing, SP Jain School of Global Management.

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