Sogrape: The Art and Science of Blending in the World of Wine

The case describes how Sogrape has grown to become Portugal’s largest wine company, with 35 own brands, 500 agency brands, 1,200 employees worldwide, and turnover of €333 million in 2023. From its origins in the Douro Valley, the family-owned company now has more than 1,600 hectares of vineyards in Portugal, Spain, Chile, Argentina, and New Zealand, with a devotion to diversity as well as high quality wines and brands. Sogrape sees itself as a catalyst for positive societal change and a protector of the natural environment in constructing a more sustainable and inclusive future. For over 100 years the company has achieved a balance between tradition and innovation – from the iconic Mateus Rosé to the prestigious Barca-Velha. In the face of contemporary challenges for the global wine industry – notably the effects of climate change and demand for more sustainable production methods – Sogrape has set a target of being carbon neutral by 2042, has invested in grape varieties that are more resilient, and is considering new geographies for expansion. Meanwhile, potential new regulations to impose health warnings on wine bottles are a cause for concern.

Students learn how even in the most traditional industries, innovation can be combined with established methods to respond to environmental and societal change. They are asked to consider the evidence on the current state of the wine industry (no longer New vs Old World wines) and how it is evolving as a result of climate change, among other influences. They will discover how the company systematically assesses and strategically responds to market demand, competitive forces, government, and public pressure for more sustainable production.