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

Date:

Trending

- Advertisement -

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.

- Advertisement -

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.

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.

- Advertisement -

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.

- Advertisement -

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.

THE SNAPSHOTS

Sign up to get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

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

More Latest Stories

More Articles

MochaTrade Raises Pre-Seed Funding From Y Combinator and Pioneer Fund

MochaTrade, a global trading platform focused on offering perpetual futures linked to U.S. stocks, commodities, and indices, has raised an undisclosed pre-seed funding round...

Borade AI Founder Shiv Kumar Borade on Building an AI Growth Engine for Small Businesses

Speaking with TechGraph, Shiv Kumar Borade, Founder & CMD of Borade.AI, discussed how many growing businesses continue to struggle with disconnected software tools that add operational complexity instead of simplifying day-to-day growth, and explained how Borade.AI was built as a centralized platform that brings...

When AI-Generated Documentation Hurts More Than Helps

AI-generated documentation has quickly become a selling point for modern SaaS and developer platforms,...

How Agentic AI Is Personalising the End to End Salon Experience

Walk into a salon today, and more often than not, the experience still depends...

Apple Reports $111.18 Billion Revenue in Q2 FY26, Net Profit Rises to $29.6 Bn

Apple Inc. (NASDAQ:APPL) has reported its financial results for the quarter ended March 28,...

Hermès vs MetaBirkin: The NFT Case That Redefined Ownership on Ethereum

The NFT boom of 2021 and early 2022 pushed digital assets into the mainstream,...

What India’s developers are building in crypto despite regulatory uncertainty

India’s crypto story has largely been framed through the lens of investment and regulation....

Gen Z Shops Differently: How E-commerce Backend Systems Are Adapting to ‘Always-On’ Buying

Gen Z’s influence is not limited to new preferences for purchases. It has redefined...

From Black Box to Trusted AI: Why Defence Needs Constitutional AI Models

For decades, the defence and intelligence agencies have followed one non-negotiable rule: trust nothing you can’t verify. Every piece of information, every source, and...

Reframing AR for Consumers: Luxid Tech’s Siddhant Agarwal on Building Screen-First Smart Glasses for Everyday Use

Speaking with TechGraph, Siddhant Agarwal, Founder of Luxid Tech, discussed how the AR and...

How Tech-Driven Hiring Models Are Closing India’s Employability Gap

The paradox of employment in India becomes increasingly pronounced every year, as many students...

GPS Renewables’ GPSR Arya Raises ₹500 Million from Axis AMC to Scale CBG Projects Across India

GPSR Arya, the asset platform of GPS Renewables, has raised ₹500 million in mezzanine...

Rethinking Hospital Security: TrioTree Technologies CEO Surjeet Thakur on Securing Fragmented Hospital IT Environments

In an interaction with TechGraph, Surjeet Thakur, Founder and CEO of TrioTree Technologies, outlined...

Rethinking Growth Metrics: Thrive Global AI’s Priyanka Aeron on Scaling Intelligence for Business Growth

Speaking with TechGraph, Priyanka Aeron, Director and Co-founder of Thrive Global AI, discussed how organisations across sectors are no longer limited by access to...

What the Next Phase of Growth Looks Like for Indian and Global E-commerce Players

For close to a decade, metrics for evaluating the growth of e-commerce included customer acquisitions, geographical footprint, and catalog size. The next frontier of e-commerce looks different from what the previous one did. In the future, growth would no longer be seen as the...

India Is Building Cities Without Building the Systems That Make Them Work

India is in the middle of the largest urban expansion in its history. By 2050,...

Ethnic Wear Brand Alaya By Stage3 Raises Seed Funding Led by LC Nueva AIF

Gurugram-based Alaya By Stage3, a modern Indian wear brand operated by Cosmo Brands, has...

Sawai Capital Executes ₹300 Crore Structured Credit Transactions in Q4

A Gurugram-based wealth and investment platform, Sawai Capital, has executed structured credit transactions in...

Matrix Geo Solutions Wins ₹5.14 Crore Narmada Survey Project from MPSEDC

Matrix Geo Solutions Limited has received a Letter of Acceptance (LoA) from Madhya Pradesh...

Why Reliability and Security Are the New Differentiators in Enterprise Tech

For years, enterprises competed on features, scale, and speed. Today, the real differentiator is...

Mytek Launches Reverse Auction Model, Reports ₹48.29 Crore Revenue

Mumbai-based commerce platform Mytek on Tuesday launched a reverse auction model, introducing a bidding-based...

Cisco Report: Cybersecurity Remains Top Challenge as Industrial AI Adoption Expands

Cisco Systems (NASDAQ:CSCO) has released its latest State of Industrial AI Report, highlighting how...

Motilal Oswal Alternates leads $280 Mn Series E Round for KreditBee

India based digital lending platform KreditBee (KrazyBee Services PVT Ltd) has raised $280 million...

Cambodia Installs Statue Honouring Mine Detection Rat Magawa

Magawa, a landmine detecting rat who was awarded a gold medal for his service,...

GPS Renewables’ GPSR Arya Raises ₹500 Million from Axis AMC to Scale CBG Projects Across India

GPSR Arya, the asset platform of GPS Renewables, has raised ₹500 million in mezzanine...

“Budget should focus on reducing taxes on capital gains,” Says Abhishek Gupta of Hex N Bit

Speaking in the upcoming Union Budget 2021, Abhishek Gupta, Founder, and CEO, Hex N...

“China is a Global thief” Rep. Tom Rice on Uyghur Forced Labor Prevention Act

Speaking at the House on Uyghur Forced Labor Prevention Act, Rep. Tom Rice (R-SC)...

Meta Platforms, Broadcom Partners to Co-Develop Multi-Gen Silicon AI Chips

Facebook parent Meta Platforms (NASDAQ: META) has expanded its partnership with Broadcom to co-develop...

Practo Names Srijesh Kumar as Global CPTO

India-based online doctor consulting platform, Practo has announced the appointment of Srijesh Kumar as...

Rethinking Hospital Security: TrioTree Technologies CEO Surjeet Thakur on Securing Fragmented Hospital IT Environments

In an interaction with TechGraph, Surjeet Thakur, Founder and CEO of TrioTree Technologies, outlined...

Alphabet Discloses $2.14 Billion in Public Equity Holdings as of June 30

Alphabet Inc. disclosed $2.14 billion in equity securities held across 39 positions as of...

Gaming for Good: Boosting the Indian Gaming Community through Technology

The Indian gaming industry is transforming remarkably, driven by technological advancement and a growing...

India to generate $100 bn from telephonic investments

India expects to attract $100 billion in investments in the telecom sector, a union...