The paper assesses the ability of French wineries to prevail over the French wine crisis in the 2000s. Corporations are distinguished from co-operatives.Over the 2000-2006 period, in spite of sales fluctuations, French wineries did not increase their financial debt level substantially. Such a result supports the traditional static trade-off theory (TOT). Co-operatives were able to absorb part of the impact of the wine crisis at the expense of their members, in increasing account payables to members. Corporations have not increased trade account payables to vine growers. Since the mid-2000s, the French wine crisis has not been strong enough to shake the financial structure of co-operatives and corporations. But co-operatives do appear to be more affected. However, sales of French wines dropped substantially in 2009, and financial data are not yet available to observe the consequences.
DECLERCK, F. and VIVIANI, J.L. (2012). Solvency and Performance of French Wineries in Times of Declining Sales: Co-operatives and Corporations. International Journal on Food System Dynamics, 3(2), pp. 106-122.