Wine Economics

Global value chain (GVC) analysis examines the dynamics of economic globalisation and
international trade. The concept of GVC governance illustrates how ‘lead firms’ achieve
certain functional divisions of labour along a value chain – resulting in specific allocations
of resources and distributions of gains. In this article I argue that agri-food lead
firms do not govern chains solely on the basis of buyer power, market share, and/or
economies of scale or scope but also through normative work. In order to do so, I apply
convention theory to the analysis of governance in the value chain for South African
wine. I analyse how wine quality conventions applied in the UK are translated in South
Africa into specific functional divisions of labour and supply relations, themselves underpinned
by local configurations of quality conventions. The case study of wine suggests
that lead firms are able to drive a value chain only when industrial and market conventions
are dominant, such as in basic quality wine. These conventions are more portable
and thus easier to transmit at a distance. Where other, less portable, conventions are
more important in discovering quality, as in mid-range and top quality wines, the value
chain is much more fragmented and less driven.

The reported research examines the impact of product portfolio labeling strategies on
brand reputation and equity. A netnographic approach allowed to observe winery portfolio labeling
approaches and create a typology of winery labeling strategies. Expert evaluation served to assess the
dependent variable brand equity by deploying a regression analysis. For the observed wine industry,
being part of the food industry, creating consistent and recognizable brands has a direct relevance for
reducing (sustainability-related) food information overload and thereby building sustainable brand
equity. The results uncover the relative importance of each of the six identified labeling strategies as
well as their impact on reputation and brand equity creation. The results point to the need to establish
a consistent strategically founded product communication. Such an approach with a positive effect on
reputation building can serve to build sustainable brand equity. “Stuck in the middle”-type strategies
apparently diminish winery brand equity exploitation. The findings contribute to the knowledge on
food labels in product communication strategies and their impact on organizational brand equity, thereby having high relevance for the implementation of environmental certification initiatives in an organizational context. The article deploys a novel research approach in an under-researched area to provide new insights for further research as well as implications for practice.

The market share of NewWorld wines sold in many European countries has increased dramatically
over the past decade+ More aggressive marketing, together with a more distinct and recognizable
labeling scheme, are often regarded as the keys to the marketing success of these new wines+ This
article employs hedonic price analysis to identify the values that marketers and consumers place on
the information carried by the label of Australian wines in the British wine retail market+ Although
many grape varieties are given a highly distinct valuation by market participants, our results also
suggest that consumers consider regions jointly with grape varieties as proxies for brands+ This
contrasts with the general observation that grape varietal labeling is the distinctive feature of New
World wines+ Marketing implications are examined by considering the revenue impact of changes
in labeling at the retail level+ @JEL citations: L150, D12, C21+#

The wine market in the European Union is heavily regulated. Despite the many distortions in the wine market as a consequence, reforming the regulations has proven difficult. This paper analyzes the political economy mechanism that created existing wine regulations. We document the historical origins of the regulations and relate these to political pressures that resulted from international integration, technological innovations, and economic developments. (JEL Classifications: K23, L51, N44, N54, Q13)

We tested the hypothesis that individuals may act differently when buying a bottle of wine for themselves than they do when buying wine as a gift. Using a between-subject design, we estimated the differences in consumer preference for these two occasions. We conducted a choice experiment on 618 Italian wine consumers and included the attributes of price, geographical indication (i.e. IGT, DOC, or DOCG), organic claim, and brand (i.e. famous producer or a non-famous producer). By applying an error component random parameters logit model, we detected relevant differences between the two scenarios in terms of the relative importance of the studied attributes. The gift-giving scenario was further investigated using a latent class model, which identified three segments of consumers; we profiled these according to personal attitudes and wine knowledge. Our results show a relevant heterogeneity among consumers’ preferences for the gift-giving scenario, with geographical indication having a low impact and brand and organic claim playing a pivotal role. This study provides relevant insights for winemakers and retailers regarding diversifying marketing strategies.

We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir – as proxied for by locational attributes – is not significant. (JEL Classification: C2, Q11)

Recent research in psychology and sociology has established a connection between political beliefs and unhealthy behaviors such as excessive alcohol, tobacco, and illegal drug consumption. In this study, we estimate the relationship between political ideology and the demand for beer, wine, and spirits using a longitudinal panel of fifty U.S. states from 1952 to 2010. Controlling for various socioeconomic factors and unobserved heterogeneity, we find that when a state becomes more liberal politically, its consumption of beer and spirits rises, while its consumption of wine may fall. Our findings suggest that political beliefs are correlated with the demand for alcohol. (JEL Classifications: D3, D12, I1)

This paper explores the emergence of the terroirist social movement in Spain and the controversies arising from it. We assess its role in transforming the Spanish wine scene and wine regions from the combined perspective of rural and social movement studies. Spain boasts the largest surface area of vineyards and the largest volume of wine exports of any country, yet it also sells the cheapest wine and lacks wine zoning policies, which makes Spain unique among traditional wine-producing countries. Considering this situation, a group of terroir-driven winemakers are challenging the Spanish industrial wine establishment. They have built networks in rural areas throughout the country and are actively involved in local grassroots movements, aiming to produce quality wines with added value, recover neglected wine regions and grape varieties, and reinstate traditional wine culture. While the movement displays certain elite and populist tendencies, it remains radical in its attempt to challenge a deep-seated economic model dominated by large companies with a powerful lobby that influences the government.

Through a history of the uses of the concept of identity in France, it is possible to identify an essentialist definition that is typical of both common sense and of some of the social science literature, and another, constructivist meaning that has imposed itself on the social sciences against the concept of culture, thereby establishing the current approach to the construction of identities. It seems as if the heuristic advantages of the latter formula have drained themselves, since they tend to privilege the analysis of discourse at the expense of practice, conferring an excessively plastic view of the social. Hoping to re-introduce institutions and social structure into the analysis, I propose an alternative vocabulary of identifications, social images and belonging. I then proceed to a case study of the construction of social image, that of Burgundy in the 3rd Republic, so as to make evident the set of structural and institutional evolutions that are indispensable to the success of a discursive change concerning territories.

Purpose
The complexity in determining the quality of a credence good like wine increases due to the lack of mandatory ingredient labeling. This has generated a significant information asymmetry in the wine market, leading consumers to delegate their purchase decisions to expert rankings and wine guides. This paper explores whether expert assessments reduce the information asymmetry caused by the absence of ingredient labeling in the wine market.

Design/methodology/approach
By employing analysis of variance (ANOVA) in a sample of 304 wines included in the Wine Guide of the Spanish Consumers Organization (OCU), this paper assesses the extent to which expert assessments based on sensory evaluations converge with the objective cues provided by laboratory analysis in wine quality evaluations.

Findings
Results reveal a mismatch between expert assessments and laboratory analyses. Chemical aspects such as SO2 levels or volatile acidity, sensorial factors such as intensity and persistence, and extrinsic variables such as the region of origin or wine type play an important role in the quality ranking of wines.

Originality/value
These findings call for the inclusion of objective intrinsic cues in expert sensory assessments to provide consumers reliable information about wines and to resolve the apparent dissonances in wine quality assessments.

This paper analyzes the causes of the rise and the fall of the Algerian wine industry. It is hard to imagine in the twenty-first century global wine economy, but until about 50 years ago Algeria was the largest exporter of wine in the world—and by a wide margin. Between 1880 and 1930 Algerian wine production grew dramatically. Equally spectacular was the decline of Algerian wine production: today, Algeria produces and exports little wine. There was an important bidirectional impact between developments in the Algerian wine sector and French regulations. French regulations had a major impact on the Algerian wine industry, and the growth of the Algerian wine industry triggered the introduction of important wine regulations in France at the beginning of the twentieth century and during the 1930s. Important elements of these regulations are still present in European wine policy today. (JEL Classifications: K23, L51, N44, N54, Q13)

In the coming years, social media technology will have a crucial role in environmental involvement and in encouraging sustainable behaviors in the wine industry. Sustainable development is becoming a crucial topic for many consumers. Also, in the wine industry much research has been carried out to decrease the environmental impact, with a particular focus on renewable energy use, greenhouse gas emissions, pesticides reduction, water and waste management, biodiversity, soil and landscape preservation. In recent years, social media technologies have gained increased attention for their potential to amplify environmental concerns and encourage sustainable behaviors among people. This study aims to study the role of social media in the consumer purchasing behavior for wine between the millennial and non-millennial generations. A total sample of 2597 Italian wine consumer responses were collected and a structured questionnaire was used to test our hypothesis. The main results show that the greater the import the consumer places on the product/process dimension of environmental sustainability, the higher the self-selection in market segments. This is true for both millennials and non-millennials. The results show the power of social media to increase sustainability awareness and consecutively influence the consumer's buying behavior for wine (higher price segment). From a marketing perspective, companies should improve their capacity to share and communicate their environmental activities through social media.

In this paper, we use a revised, expanded, and updated version of a global model first developed by to project the wine markets of its 44 countries plus seven residual country groups to 2018. Because real exchange rate (RER) changes have played a key role in the fortunes of wine market participants in some countries in recent years, we use the model to analyze their impact, first retrospectively during 2007-11 and then prospectively during the period to 2018 under two alternative sets of RERs: no change, and a halfway return to 2009 rates. In both scenarios, we assume a return to the gradual trend toward premium wines and away from nonpremium wines. The other major development expected to affect the world's wine trade is growth in China's import demand. Alternative simulations provide a range of possibilities, but even the low-growth scenario suggests that China's place in global wine markets is likely to become increasingly prominent. (JEL Classifications: C53, F11, F17, Q13).

This paper explores the strategic relevance for communities of properly managing collective symbolic capital under a neoliberal context, focusing on the impact of neoliberal policies in the capacity of communities to control the appropriation of value of their agro-food productions. The current economic crisis in Spain increases the pressure on the social and economic reproduction of the lower classes within local communities, and threatens the virtuous balance between the management of common resources and the collective symbolic capital associated with them. Entrepreneurial and institutional logic favors the capturing of collective symbolic capital by local bourgeoisies and transnational companies, while depleting the local common resources that had been exploited sustainably by local communities for centuries. The case study of the cultivation of clams in Carril, Spain, illustrates this process, while the
conclusions from previous research on other Spanish agro-food systems are presented to provide a comparative analysis and potential development alternatives based on different strategies for the management of collective symbolic capital.

The period between the two world wars (1919–1939) saw a flowering of French regional culture. Held up as a more authentic complement (and sometimes alternate) to national French culture, Burgundian regionalism was anchored in the concept of terroir, the belief that local geography played a role in contributing specific qualities to local culture and products such as wine. Gaston Roupnel, a Burgundian folklorist, was especially important in efforts to link terroir and Burgundian regional culture through the figure of modern rustic vignerons and vigneronnes.

Globalization has created an international wine market and global brands. However, consumers continue to regard regional origin as a dominant criterion in their wine buying decisions. Indicators of collective regional reputation as well as individual producer (or brand) reputation guide consumers in their buying decisions. We measure regional and brand reputation indicators for 27 growing regions around the world. Regional reputation is based on a region's overall quality performance through time. Positive and negative brand reputation based on relative regional peer performance is a distinct feature of this empirical application. Noting competing as well as common interest among regional producers, we hypothesize that wines from producers with a high quality reputation rely more on their own strengths and will depend less on their region's reputation and vice versa. We also test whether this assertion is valid over time covering six recent vintages. We apply a hedonic model to measure the significance of these regional and brand reputation indicators in determining wine prices. Our model largely confirms our hypothesis, but it also suggests that for some regions (Germany and New Zealand), high quality brands rely heavily on overall regional reputation. In other regions (including Napa and Sonoma Valley), high reputation brands seem to lose their strength and start to rely on regional reputation. Regions holding on to their strong individual brand reputations include the Rhone Valley, Spain, and Bordeaux. The analysis sheds light on how regional and producer brands are performing as wine markets mature in terms of global branding and consumers becoming more knowledgeable about wine regions, quality, and reputation. (JEL Classification: D4, L1, Q13) * I would like to thank, without implicating, the two anonymous reviewers for their valuable comments on an earlier version of this paper. They are not responsible for any errors.

Similar to other foods, the concept of natural wine is much debated due to the lack of a clear and regulated definition, leading to a proliferation of heterogeneous norms and standards proposed from different natural wine associations at national levels. The current study explored the aspects which mediate individuals' information and perception of natural wine, and the rationale behind natural wine consumption behavior among Italian (n = 501) and Spanish (n = 527) regular wine consumers. The results reveal a quite low self-reported degree of perceived information by Italian respondents and slightly higher levels among Spanish ones. The key drivers of natural wine consumption in both countries are wine consumption frequency, information, and natural product interest. In contrast, higher wine involvement levels decrease natural wine consumption frequency in both Italy and Spain. The findings also show that different perceptions lead to diverse motivations, suggesting the need for more homogeneous standards to mitigate the level of information asymmetry currently on the market.

In empirical studies of the real estate market, Pierre Bourdieu shows that the structuring of the ‘economic field’ is closely linked to that of the ‘bureaucratic field’. Through its regulatory activity, government plays a part in the legitimation of particular forms of economic activity as well as in the construction of the resulting hierarchies. This analytical framework is generally applied at the level of the State. Our point is to extend the scope of that analysis. An extension of the bureaucratic field can be characterized if one takes the view that international and supranational administrations play an active role in the organization of economic activities. In order to assess the relevance of this interpretative standpoint, light is shed on the case of the Romanian wine-making economy. The aim is to study a sectoral policy over which the European Commission has recently taken control and to measure its effects within a new Member State. This perspective is even more informative because Romanian wine production is being restructured: new operators have made their presence felt over the last decade, while the national government has lacked the means to make a determined effort to place these operators within a hierarchy. The Commission offers support to various agents who speak on behalf of Romanian ‘wine-making interests’ and influences the directions taken by conflicts between these interests. At the same time, it maintains a structural contradiction which prevents the formation of an economic field in the full sense of the term: the points at issue are defined in such a way as to conflict with the shape of any stable coalition between the dominant agents. The demonstration is supported by qualitative data collected during field studies carried out in 2010 and 2011.

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Ecolabels are part of a new wave of environmental policy that emphasizes information disclosure as a tool to induce environmentally friendly behavior by both firms and consumers. Little consensus exists as to whether ecocertified products are actually better than their conventional counterparts. This study seeks to understand the link between ecocertification and product quality. We use data from three leading wine-rating publications (the Wine Advocate, Wine Enthusiast, and Wine Spectator) to assess quality for 74,148 wines produced in California between 1998 and 2009. Our results indicate that ecocertification is associated with a statistically significant increase in wine quality rating. Being ecocertified increases the scaled score of the wine by 4.1 points on average.

The Italian market of sparkling wines increases as volume and assortment (such as brands, appellations, typologies) mainly because of sparkling Prosecco consumption. We investigate the repeated purchase behavior of sparkling wines in two years within the supermarket channel through scanner data collected from a consumer panel. We propose a Hidden Markov Model to analyze these data, assuming an unobservable process to capture consumers’ preferences and allowing us to consider purchases sparsity over time. We consider multivariate responses defining types of purchases, namely price, appellation, and sugar content. Customers’ covariates influence the initial and transition probabilities of the latent process. We identify five market segments, and we track their evolution over time. One segment includes Prosecco-oriented consumers, and we show that loyalty to Prosecco changes strongly over time according to the region of residence, income, and family type. The findings improve the under...

The motivation to assemble those historical data was to enable comparisons between the current and the previous globalization waves. This unique database reveals that, even though Europe’s vineyards were devastated by vine diseases and the pest phylloxera from the 1860s, most ‘New World’ countries remained net importers of wine until late in the nineteenth century. Some of the world’s leading wine economists and historians have contributed to and drawn on this database to examine the development of national wine market developments before, during and in between the two waves of globalization. Their initial analyses cover all key wine-producing and -consuming countries using a common methodology to explain long-term trends and cycles in national wine production, consumption, and trade. They are available in Wine Globalization: A New Comparative History, edited by Kym Anderson and Vicente Pinilla (Cambridge University Press, February 2018).

Wine is an integral part of life on the Croatian island of Hvar. Its significance is multivalent, from the importance of home production and consumption to its functions as a trade commodity and symbol of community and identity. Much of Hvar’s wine grapes are grown in the Stari Grad Plain, a UNESCO World Heritage-listed cultural landscape. Economic factors mean grape and wine production can be a precarious pursuit, and although wine retains a central cultural position many farmers on the Plain are abandoning agriculture in favour of tourism industries. To increase value of their product, grape and wine producers seek to tap into discourses of ‘heritage’ that are understood locally and shaped by globalised discourses of authenticity and quality. Wine producers have identified autochthonous grape varieties, particularly bogdanuša, as important elements in the promotion of Hvar wine. These grapes are able to simultaneously access multiple registers of value due to their uniqueness, perceived quality, heritage significance, emplaced ‘belonging’ on the island, and relationship to cultural practices and other important elements of cultural patrimony, and producers are optimistic about their role in the future success of the wine industry on Hvar.

The purpose of this paper is twofold: first, to explore the concept of consumers’ perception of sustainable wine and second ,to investigate different clusters based on three factors identified (belief about environmental protection, beliefs about sustainable wine certification and attitude towards sustainable-labelled wine) and willingness to pay (WTP). Then, socio-demographic characteristics have been considered to assess whether group’s composition differ considerably

Domestic products have a disproportionately high market share on many goods markets. We examine the contribution of preferences to such “home bias”, using detailed data on wine sales in New Hampshire (weekly sales by brand by store for one year). In counterfactual simulations, where we use the same set of products as currently available, the U.S. market share falls from 58 percent to 38 percent if all country-of-origin effects are set equal. Home bias on this market is not explained by higher marginal costs for imports or by lesser store coverage of imported brands. The evidence rather points to higher foreign fixed costs of entry, coupled with a preference for U.S. wines, as the main sources for the high domestic market share. (JEL Classification: F12, F14, L13, L66)

The chapter represents the challenges of creating a new wine brand in Croatia based upon an autochthonous wine grape variety Malvazija Istarska. As a product the wine has a long tradition of winegrowing and strong historical background. With novel technologies which create high quality wines with numerous positive attributes and current presence on national and international markets, there is strong evidence that branding could be the next step. The demand for Malvazija Istarska exists and consumers are aware of the attributes and quality. From the producers point of view Malvazija Istarska should maintain its quality and positive image and geographic origin which warranties uniqueness. The brand should be distinctive from other similar products with distinctive and protected package and bottle design and size. Producers are willing to promote the new brand in their wine cellars directly to consumers and expect existing sales networks to participate in promotion, especially catering and lodging facilities. On international level promotion should be done by producers associations and tourist boards with expectations of future increase of sales, price and global competitiveness.

Information theory, while having a limited direct impact on the study of graphic communication, left a metaphor for communication that, reflecting the transient nature of electronic signals rather than the permanence of the printed media, is, it is argued, unhelpful and somewhat misleading. The metaphor is adapted to draw attention in particular to four aspects of the relationships of the originator and the user to the communication medium: the problem of encoding information in graphic form; diagrams as tools for enquiry and thought; illustrations as aids to learning; and illustrations as aids to problem-solving.

This study revisits the relationship between economic variables and alcohol consumption from a macro perspective. Focusing explicitly on the asymmetries of the responsiveness of alcohol consumption during the expansion and contraction phases of the business cycle, asymmetric panel estimators are employed. We employ a nonlinear autoregressive distributed lag model for a panel of 24 countries for the period 1961 to 2014. Findings show that expansion leads to a long-term increase in average alcohol consumption, while during contraction, the level of average alcohol consumption persists. Expansion, together with a pronounced reduction in the unemployment rate could, however, lead to a net reduction of gross alcohol and wine consumption. Nonetheless, if the recession corresponds with a surge in unemployment, this leads to a long-run increase in the level of total gross alcohol consumption but a decrease in wine and beer consumption. Reduction in unemployment does not lead to a reduction ...

At the heart of political organization, we find weak and atomized individuals who aggregate their power to challenge concentrated power. Wine politics show us that within market economies we find the same political movements. Markets, like politics , consist of institutions that differentially embed, codify and distribute power. In the case of France, small, individually weak wine producers became powerful in the aggregate; unified French grape growers came together to force a deal with the economically dominant wine merchants. Their joint political power was institutionalized in power-sharing, state-backed corporatist producer organizations. In contrast, small Italian producers failed to cooperate systematically and aggregate their power. Stronger organization enabled the construction of an institutional comparative advantage and higher prices for regulated French terroir wines. Economic sociologists claim markets are 'socially embedded'. This article demonstrates markets are 'politically embedded': French market dominance results from effective power sharing mechanisms across the supply chain.

Natural wine is a small but rapidly growing sector within the wine industry. Expertise in the field has been advanced by wine experts and professionals, while publications to aid in further understanding the topic lag behind. This manuscript highlights the need to develop more rigorous methodologies to better understand the market segment of natural wine, its consumers, and their composition and behaviour. Moreover, it calls for a deeper theoretical engagement with the notion of natural wine, which positions it among other sustainable and ecological certifications, including organic, biodynamic or sulphite-free. This would allow researchers to advance from the current state of knowledge, which continues to limit our 'practical' capacity for advice to policy makers but not to winemakers and marketers. These theoretical and methodological developments would allow scholars to catch up with debates being held by different social actors in the natural wine scene, including winemakers' and consumer associations, bloggers, writers and professional marketers.

This commentary argues for strengthening the dialogue between the social and natural  sciences as part of a more comprehensive sustainable approach to ecological farming practices that go beyond a focus on specific labels and certifications. It nuances the approach provided by Home et al. in their study of Swiss farms converting to organic agriculture, in emphasizing the need to deepen the study of such farming practices by including a broad vision of global value chains and a pragmatic approach to innovation and the different stakeholders involved. Ultimately, it calls for a more complex approach to eco-agriculture in its widest sense, that goes beyond dichotomies about conversion, certification and labeling. This would provide alternatives for researchers and other actors to move forward in theory and practice.

Grape phylloxera is an insect pest that has destroyed vineyards and brought ruin to winegrowing regions worldwide. In South Australia, however, strong biosecurity regulations have ensured it has remained absent. In this absence phylloxera takes on powerful symbolic value, and regional viticultural identities may be imagined in relation to the presence of phylloxera elsewhere. This paper draws from ethnographic
research with grape growers and wine producers in McLaren Vale, a region whose vineyards are understood through this ‘phylloxera-free’ paradigm. The article specifically explores controversies around modification of South Australian biosecurity regulations in a way that favoured large winegrowing corporations’ need to more easily move material between regions, to the perceived detriment of vineyard security. The phylloxera risk has economic, social and symbolic dimensions in McLaren Vale, where the insect has become symbolically aligned with the most impersonal, pervasive and destructive aspects of globalised wine capitalism.

Because wines are aged for several years before they are released, newly hired winemakers arrive as wines made by their predecessors enter the market. An analysis of winemaker hiring events reveals that wines released right after a new winemaker's arrival from a prominent competitor are priced significantly higher than corresponding wines released in the preceding year. However, the wines released before and after the hiring event are indistinguishable in terms of quality. These findings isolate a "purely symbolic" effect of employee mobility, which affirm sociological accounts of markets—under conditions of uncertainty, inter-organizational affiliations condition producers' returns to quality demonstrations.

Judge performance is a critical component of a wine competition's success. A number of studies have shown that wine judges may differ considerably in their opinions. In this paper, we have conducted an in-depth examination of wine judge performance at a U.S. wine competition. Three characteristics of judge's performance are examined: bias, discrimination ability, and variation. Based on the analysis, we can identify the judges who had discrepant scoring patterns and can gain insight into which of the three characteristics cause particular judges to disagree. The evaluation of wine judge performance through these three characteristics may provide useful information for training them to have consistent performance and in assisting competition coordinators in judge selection. (JEL Classification: C1, D8, Q13)

This study investigates factors influencing coordination of the California grape and wine supply chain. Results corroborate prior findings that quality considerations and needs to protect investments in specialized or durable assets significantly increase usage of more formal coordination mechanisms, such as formal contracts and vertical integration or ownership. Consistent with findings for other industries, such investments are associated with greater contract complexity and inclusion of enforcement provisions, while trade partners' prior experience working together decreases contract complexity. Furthermore, our results suggest that quality considerations extend to greater use of formal contracts further downstream. (JEL Classifications: L1, L2, Q13)

Unlike other south European Union countries with tradition in wine production, Greece has not yet exploited the industry's export potential. However, there are expectations that under certain policy orientations, a competitive industry with internationally recognized labels could emerge. This paper explores the drivers of wine production in Greece from a macro perspective and assesses their impact vis-à-vis international trade in order to contribute to these orientations for the development of a competitive industry that will assist Greece in the search for an exit from economic depression. The findings indicate that international trade impacts more on wine production in Greece than domestic consumption of Greek wine and that productivity boosts wine production at the same time as personnel costs are a significant impediment. Policy orientations based on the findings are discussed. & 2017 UniCeSV, University of Florence. Production and hosting by Elsevier B.V. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

In the literature, there is no standard approach for estimating the return to wine or testing for a portfolio risk diversification benefit from holding wine. Using auction data for Australian wine, we show that the estimation method has a material impact on the estimated wine return distribution and that the type of diversification benefit test used influences whether or not wine is found to provide a portfolio risk diversification benefit. Our results indicated that a simple modification to the hedonic model, which we call a pooled model, is an appropriate method for estimating the return to infrequently traded heterogeneous assets such as wine. Across the various approaches to testing for a risk diversification benefit, we find direct estimation of the efficient frontier with bootstrapped confidence intervals to be the most transparent and comprehensive method of illustrating wine's potential for lowering portfolio risk. (JEL Classifications: G11, C61, C13)

The purpose of this paper is to provide a tutorial of data analysis methods for answering questions that arise in analyzing data from wine-tasting events: (i) measuring agreement of two judges and its extension to m judges; (ii) making comparisons of judges across years; (iii) comparing two wines; (iv) designing tasting procedures to reduce burden of multiple tastings; (v) ranking of judges; and (vi) assessing causes of disagreement. In each case we describe one or more analyses and make recommendations on the conditions of use for each. (JEL Classifications: C10, C12, C13, C59, C90)

For many purchases, consumers often possess only limited information about product quality. Thus, observable product characteristics are used to determine expected quality levels when making purchase decisions. We use more than 1 million weekly scanner-level observations from grocery stores across ten U.S. markets between September 2009 and August 2012 to examine how consumers value a wine bottle's closure type (i.e., cork or screw cap). We focus on lower-priced wines—those with sale prices less than $30 per 750 milliliter bottle—to more accurately evaluate decisions of consumers for whom seeking additional information about wine quality is likely more costly than the benefits derived from that information. Using both pooled ordinary least squares and quantile regressions to estimate price premiums for bottles with corks or screw caps, we find that U.S. consumers are willing to pay, on average, approximately 8% more (about $1.00) for a bottle of wine that has a cork closure. In ...

The establishment of quality assurance systems is an important development in the wine sector, particularly so for new and emerging wine regions. Focusing on the Canadian wine industry, this article examines the determinants of a winery's decision to adopt Vintners Quality Alliance (VQA) certification for wines. The analysis also examines whether wineries seek VQA certification for higher-priced wines or whether VQA certification leads to higher wine prices. To examine the certification decision, a probit model is applied to a detailed data set of Canadian wines sold in Ontario over the period 2007–2012. Wines from wineries that supply large volumes of wines (more than 1,000 cases) are more likely to have VQA certification, as well as ice wines and wines from specific regions. A Hausman specification test for endogeneity suggests that VQA certification leads to higher wine prices and not the other way around. (JEL Classifications: D22, L15, L66, Q13)

Agricultural cooperatives’ economic performance and efficiency today have great economic and social relevance. Consistent with the recent literature, this article examines wine cooperatives and compares them with wine investor-owned firms, studying their innovation capabilities, Miles and Snow strategies, and performance. A survey was conducted in all the wineries in Spain, with 339 responses. The interactions between the independent variables and the dependent variable were analyzed using the logit regression model. The study points out that cooperatives do not have fewer innovation capabilities, nor are they more inefficient, than investor-owned firms, although the factors that modulate their economic performance are different. (JEL Classifications: L66, M10, P13, Q13)

In 2008 the European Union adopted an apparently radical reform of its wine policy. However, whether this policy change actually reinstitutionalizes the regulation of this industry is dependent on how it is implemented and represented by both commercial operators and regulators located at national and intra-national scales. Using interview and documentary data generated on this process in France, Spain and Romania, this article sets out to compare and explain the differentiated institutionalization of the reform that has actually occurred to date. Its key empirical finding is that reinstitutionalization is dependent on the degree to which change has been legitimated within such regions. More precisely, durable change or maintenance of the status quo stems from how conflicts over different parts of the EU's reform have been framed and debated locally. This finding has two wider implications for institutionalist theories of political change. First, constructivist accounts of the framing of collective and public problems need to be brought to the fore. Second, at least when studying contemporary Europe, the question of scale and its institutional effects should be systematically built into research strategies and methodologies.

In this paper, we study if the leading French gastronomic guidebook, the “Guide Rouge Michelin,” only rates the quality of food, as it claims, or if it also considers environmental variables when attributing stars. We then check how Michelin ratings affect the market, and more specifically, the price charged by restaurants. Using some simple econometric techniques, we find that a small improvement in environment boosts the probability of receiving Michelin stars. Since we also find that a Michelin star is associated to a high price premium stuck (independently of the quality of food), we conclude that expertise induces distortions in the market

We develop a simple model of the effects of reputation on wine prices. An increasing fraction of consumers who are "naïve" (less well informed about wine quality) results in a stronger sensitivity of wine prices to ratings of quality. We then use data on prices and Robert Parker's ratings of wines, to show that prices have become more related to Parker ratings over time. In addition, we find that a change in Parker rating has a stronger effect on price, the stronger is the wine's reputation.

The Norwegian per capita sales of wine have more than doubled over the past 20 years, while the sales of sprits and beer have declined. These changes are likely to be the effect of changes in economic, demographic, and attitudinal factors as well as the availability of wine. We estimated age-period-cohort (APC) logit models using data from a large repeated cross-sectional survey over the period 1991–2015. The estimation results indicate substantial effects of the APC variables as well as income, availability, and attitudes. The model was used to simulate wine consumption over the life cycle in different birth cohorts. The simulation results indicate that wine consumption frequency increases by age, and younger cohorts are expected to increase their consumption frequencies more than older cohorts, which suggests an increased wine consumption over time. (JEL Classifications: D12, J10, Q13)

Weather derivatives are a relatively new form of financial security that can provide firms with the ability to hedge against the impact of weather related risks to their activities. Participants in the energy industry have employed standardized weather contracts trading on organized exchanges since 1999 and the interest in non-standardized contracts for specialized weather related risks is growing at an increasing rate. The purpose of this paper is to examine the potential use of weather derivatives to hedge against temperature related risks in Canadian ice wine production. Specifically we examine historical data for the Niagara region of the province of Ontario, Canada, the largest icewine producing region of the world, to determine an appropriate underlying variable for the design of an option contact that could be employed by icewine producers. Employing monte carlo simulation we derive a range of benchmark option values based upon varying assumptions regarding the stochastic pro...

This paper provides a constructive critique of Corrine Cash's paper " Good governance and strong political will: Are they enough for transformation? " , published in volume 58 of Land Use Policy in 2016. By focusing on how intra-sector dynamics influence land use policies in conflicts revolving around urban sprawl, this paper aims to complement and, to some extent, widen the analytic lens deployed by Cash. The examination of the Spanish wine sector and its lack of zoning policies confirms Cash's argument about the need to go beyond discourses of 'good governance' and 'strong political will' to understand the dynamics underpinning real spatial processes. However, this exploration underscores the need to add layers of complexity to land use analyses, showing the relevance of intra-sector conflict and logics. In complicating any simplistic reduction of urban sprawl conflicts to rural–urban oppositions, the paper ultimately calls for a more dynamic and multiscalar planning theory to address complex governance issues.

We exploit the duality between the cost function and the directional distance function in value space to recover hedonic prices of product or asset characteristics. An application is offered for 96 Oregon vineyards located in the Willamette Valley of Oregon that sold between 1995 and 2007. Specifically, we recover hedonic prices for the number of high-, medium-, and low-quality vineyard acres and the number of nonvineyard acres sold in the parcel. Not surprisingly, higher-quality vineyard acres have a higher estimated hedonic price than medium-or low-quality acres, but as the number of high-quality acres increases, the hedonic price falls. (JEL Classification: D24, C61, Q10)