Maltese wineries in the EU accession aftermath: the financial implications

Abstract

Purpose: This dissertation aims to analyse the financial implications of EU accession on Maltese wineries. Maltese wineries were faced with several key challenges, namely trade liberalisation, law reforms, raw material issues, customer taste, new excise tax and the 2007/08 global financial crisis. Moreover, this research aims to contribute towards building further knowledge about the theory of resilience within SMEs. Design: A qualitative approach was implemented, whereby 7 semi-structured interviews were conducted with Maltese wineries and another interview was conducted with a representative from the Ministry for Sustainable Development, the Environment and Climate Change. Findings: This research found that the Maltese wine industry is subject to various limitations and obstacles, in particular economies of scale, raw material (grapes) insufficiencies and the prejudice on local wine. Findings also show that generally, the financial health of the local wineries has been and remains, to some extent, influenced by the analysed challenges faced after the accession. Incessant investments and the industrial shift towards the production of quality wine were important for Maltese wineries to adapt to the EU wine market. Moreover, findings show that the local wineries will continue to face further challenges that might influence their financial position and performance. Conclusion: The researcher concluded that, generally, the local wineries were resilient in the face of key challenges which emerged after EU membership. This study further determined that through the implementation of effective strategies at the appropriate time and possibly due to the support of EU aids, the Maltese wineries were capable of thriving in this sector. Value: This study has set forth suggestions on how the Maltese wineries could retain their survival in the EU wine industry and eventually improve their financial health.