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JWE Volume 18 | 2023 | No. 1

Journal of Wine Economics Volume 18 | 2023 | No. 1

Obituary

Obituary Roman L. Weil (1940–2023)

Karl Storchmann
Pages: 1-2
Full Text PDF
Full Text

Roman-L.-Weil

Roman L. Weil (1940–2023)

The American Association of Wine Economists (AAWE) and the wine economics community were saddened to learn of the passing of Dr. Roman Weil on February 1, 2023, after a yearlong battle with cancer. He was 82 years old.
Roman Weil was born on May 22, 1940, in Montgomery, Alabama. He received his BA in mathematics and economics from Yale University in 1962 and his PhD in economics from Carnegie Mellon in 1966.
Roman Weil was the V. Duane Rath Professor Emeritus of Accounting at the University of Chicago Booth School of Business. His Chicago Booth career started in 1965 and lasted until his retirement in 2008. He co-authored more than 12 text- books, including the popular Accounting: The Language of Business. Outside of academia, he served as a consultant to the U.S. Securities and Exchange Commission, the U.S. Treasury, and the Financial Accounting Standards Board.
Roman Weil was an AAWE member from its inception in 2006. AAWE members will remember the blind triangle tests he conducted at our wine economics meetings as they reflect his inquisitive mind. Two different wines were served in three different glasses; that is, two glasses contained identical wine, and one was different—can one detect the singleton? To our surprise, even wine economists did not do better than random.
For the Journal of Wine Economics, Roman authored one research article and three book reviews. His wine economics work has been experimental, often using wines from his own cellar, which he generously provided. In his highly cited article “Debunking Critics’ Wine Words: Can Amateurs Distinguish the Smell of Asphalt from the Taste of Cherries?” (Weil, 2007) presents support for his hypothesis that wine consumers cannot match critics’ descriptions of wines with the wines them- selves. In another, much earlier paper, he analyzes the returns to cellaring wine by referring to his own wine collection (Weil, 1993). The title already reveals his results: “Do not invest in wine, at least in the U.S., unless you plan to drink it, and maybe not even then. Or: As an investment wine is a no corker.”

AAWE and its members will greatly miss Roman. He was a dear friend to many of us and will not be forgotten.

Karl Storchmann
Editor, Journal of Wine Economics
New York University karl.storchmann@nyu.edu

References

Weil, R. (1993). Do not invest in wine, at least in the U.S., unless you plan to drink it, and maybe not even then. Or: As an investment wine is a no corker. Mimeo, University of Chicago.

Weil, R. (2007). Debunking critics’ wine words: Can amateurs distinguish the smell of asphalt from the taste of cherries? Journal of Wine Economics, 2(2), 136–144.

© The Author(s), 2023. Published by Cambridge University Press on behalf of American Association of Wine Economists. This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (https://creative- commons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.

The economics of saignée in winemaking

Christopher Costello, Olivier Deschênes, Charles Kolstad, Andrew J. Plantinga and Tyler Thomas
Pages: 3–14
Full Text PDF
Abstract

The winemaking technique of saignée is common for some varietals, and the ensuing fla- vor profiles have been carefully analyzed by oenologists. However, we argue that saignée is fundamentally about economic tradeoffs between the quantity of primary wine that is ulti- mately produced, the quality (and thus, price) of that wine, and the amount of rosé wine that is bled off in the process. We develop the first theoretically-grounded economic model of saignée and analyze the model to shed light on the winemaker’s optimal choice of saignée, and on the properties of wine and wine markets that should empirically give rise to more, or less, saignée. The model helps to explain several real-world regularities such as the absence of saignée for most Bordeaux wines, the specialization in rosé for many wines in Provence, and the practice of moderate amounts of saignée for varietals such as grenache and pinot noir.

Keywords: rosé; saignée; wine theory

Making wine, selling grapes, or delivering to a cooperative? Determinants of grape allocation

Alessandro Corsi, Simonetta Mazzarino and Vito Frontuto
Pages: 15–38
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Abstract

A typical characteristic of the wine supply chain in the Old World is the significant share of cooperatives in wine-making that coexists with investor-owned firms and on-farm wine-makers. This paper analyzes the determinants of whether grape growers deliver their grapes to a cooperative winery of which they are members, sell their grapes to outside wineries, or make their own wine on their farm. Our analysis is based on data from a typ- ical wine-producing area in Northern Italy. The explanatory variables comprise the poten- tial prices linked to the different grape allocations and various farmer and farm characteristics. The high share of farmers delivering their grapes to cooperatives can, to a large extent, be explained by their higher price relative to one of the spot markets. On-farm wine-making is favored by larger farms and more educated farmers.

Keywords: cooperatives; grapes allocation; multinomial logit; nested logit; on-farm wine-making

Efficient pricing of Bordeaux en primeur wines

Philippe Masset, Jean-Philippe Weiskopf and Jean-Marie Cardebat
Pages: 39–65
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Abstract

This paper proposes an approach to determine efficient release prices on the Bordeaux en primeur (primary) market. The model exploits information from the secondary market to estimate efficient release prices. We apply the model to a representative sample of wines from the 2021 vintage. The results show that most chateaux released their wines at prices that were too high. The median overpricing is 5.2% but exceeds 30% for some wines. This situation may be partially attributed to excessively uniform pricing caused by the tendency of chateaux with similar status to release their wines at similar price levels.

Keywords: Bordeaux wine; pricing; primary market; secondary market

The emergence of lower-alcohol beverages: The case of beer

Kym Anderson
Pages: 66–86
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Abstract

Another quiet revolution is taking place in the alcoholic beverage markets: a trend toward lower-alcohol and even no-alcohol beverages, especially in the world’s higher-income countries. This new trend adds to the long-term consumer trend in affluent countries of substituting quality for quantity in many of their purchases (premiumization), which, in the case of alcoholic beverages, has been driven largely by a desire for a healthier lifestyle. More-affluent consumers also desire a greater variety than is typically available from large producers of regular products, which has led to a craft beverage revolution. Both desires—for lower-alcohol beverages and a greater variety of quality offerings—are driving this so-called low- or no-alcohol revolution. The trend is just beginning to show up in wine (and spirits) markets, but it began developing much earlier in beer mar- kets. The purpose of this paper is to explore the extent of the latter and the consumer forces behind it. Since Australian brewers are leading the way globally in building various Lo-No beer categories, and thereby contributing substantially to lowering that nation’s alcohol consumption, its trends are highlighted and compared with global trends. The paper concludes by drawing out lessons and prospects for lower-alcohol beer and wine.

Keywords: craft beverage revolution; excise taxation of alcohol; Lo-No alcohol; premiumization

Book & Film Reviews

Wines of the Rhône

By: Matt Walls
Reviewer: Larry Coia
Pages: 87-90
Full Text PDF
Book Review

What is a “Rhône style” wine? The Rhône region stretches over 250 km and produces distinctly different winemaking styles from north to south. This major grape-growing region in southeastern France is rich in history, which continues to evolve in the types of wine produced despite stringent rules for grape production and winemaking. In Wines of the Rhône, author Matt Walls provides a detailed, interesting, and insightful analysis of the region and its wine, based on personal travels and extensive research.
Walls is a freelance writer and contributing editor for Decanter, specializing in the Rhône region, where he is based. The book is part of the Infinite Ideas Classic Wine Library, currently comprising 22 books on wine-growing regions. Together, these books are designed to form a comprehensive guide to the world of wine for an intended audience of wine professionals and students, wine lovers, tourists, and arm- chair travelers.
The book is organized into three main parts: Part 1, a general description provid- ing the necessary background to understand this complex region; Part 2, a description of the Southern Rhône region, which produces 95% of Rhône wine; and Part 3, a description of the Northern Rhône region, which, despite its smaller output, produces many of the best wines. Complementing the author’s descriptions of these regions are six maps, which orient the reader. There are 28 color and several black and white illustrations that depict important aspects of terroir. Interesting “asides” are provided in boxed descriptions that help the reader understand specific terms or concepts such as negociants, rotundone, and Syrah decline. A useful appendix provides vintage rat- ings and guidelines for the aging of wines. A glossary, a bibliography, and an index are also helpful.
The general description of the Rhône wine region in Part 1 includes a bird’s eye view to establish a sense of place, along with summaries of geology and soils, climate, winemaking history, grape growing and winemaking styles, and the appellation sys- tem. An edited version of an interview with geologist George Truc describes the geo- logic history of the Rhône Valley. Climate is one of the most important determinants of terroir, and the author correctly notes that it is rare to see identical weather in the Northern and Southern Rhône, as a continental climate prevails in the North and a Mediterranean climate in the South.
But it is disappointing that a table comparing the climates of Lyon (North) and Orange (South) includes only average minimum and maximum monthly tempera- tures, total annual precipitation, and the number of days with precipitation. More important climate factors for grape growing are the monthly temperature and rainfall during the growing season and the length of that season. The relevance of the Mistral, a wind due to high pressure in the Bay of Biscay and low pressure in the Gulf of Genoa, cannot be overlooked, as it blows with speeds reaching up to 100 km per hour about one day out of three, mostly during winter and spring.
This region’s rich wine-growing history is reviewed from the Roman era to the pre- sent. Three events are given special attention: the Roman era, the Papal era of influ- ence, and the introduction of phylloxera. Commercial viticulture began in the 2nd century BC in the Rhône Valley with the growing and transport of grapes along the Rhône River. In the Middle Ages, the Popes encouraged winegrowing and established a papal seat in Avignon in 1309. Phylloxera, the root louse that became the scourge of European grapevines, was introduced in the early 1860s when an American sent a gift of vines to his French friend in the Lirac region of the Rhône. While the cause of the scourge was identified in 1868, it took decades to introduce solutions: grafting Vitis vinifera to “American” rootstock, which was resistant to the louse, or hybridization of the two species to develop resistant varieties.
The winemaking styles and grape-growing methods presented in Part 1 provide a sense of the many changes that have been occurring over the past few decades. Adoption of “green values” has been an economic boon because it has reduced the oversupply of grapes that the region had tended to produce. Organic farming was introduced in the 1950s, biodynamic in 1974, and “natural” farming more recently, all of which have generally resulted in decreased yields. However, the percentage of vineyards that are organic or biodynamic represented only 9% of the Rhône harvest in 2018. Co-operatives continue to have a large influence on wine production, partic- ularly in the Southern Rhône, where they account for 62% of production.
The prevalence of all grape varieties grown in the Rhône is presented, along with important winemaking characteristics such as acidity and sugar content. In general, 80% of the grapes grown in the Rhône are red and 20% are white. Syrah, a variety recently shown to have originated in the Rhône Alpine region, is the only red grape permitted in the cru designated wines of the North. There it can be blended with up to 20% white varieties of Marsanne and Rousanne (except in Cornas where no white is allowed, or in Cote Rotie where only Viognier can be blended up to 20%). In the Southern Rhône, the predominant red varieties include Grenache, Syrah, and Mourvedre. Grenache is the second most planted red grape in all of France, second only to Merlot. It makes up 80% of the wines from the Chateauneuf du Pape appellation. Its fruity flavor, high sugar content (high alcohol), and moderate to low acidity make it easy to drink even at a young age, but also make it good for blending with other varieties.
While white varieties are grown in lesser quantities, the author lists those grown, along with their important characteristics. Grenache Blanc, grown in the Southern Rhône, comprises 20% of all white grape plantings and serves as a blending grape. Viognier, the third most planted white grape, with a delicious apricot bouquet and flavor, is the only white grape used in Condrieu. Marsanne makes one of the few moderate- to full-bodied white wines, and when used in white, Hermitage can pro- duce an extraordinary wine. Rousanne, with its floral bouquet, is a great variety to complement others.
This first part of the book ends with a discussion of wine quality assessment, largely represented by the appellation system of the Rhône. The appellation d’origine contrôlée (AOC) regions of the Rhône constitute the second largest AOC in all of France. Its five levels generally represent a quality pyramid, with the lowest level com- prising lower quality and greater volume, and the uppermost level of higher quality and lesser volume. The author describes each AOC in terms of size, number of com- munes, and allowed yields. The allowed yields for even the bottom appellations of the pyramid are surprisingly low at less than 51 hectoliters per hectare (about 3.5 tons/ acre). Eight of the 17 “cru” (top-level AOC) are in the North. There is no designation of grand cru or premier cru, and the author examines the pros and cons of the absence of such designations. A keen understanding of the importance of climate, soil, and other characteristics also allows him to divide the North into 2 sections (zones) and the South into 10 sections. The reader is advised not to rely entirely on AOC designations for quality for several reasons, including the fact that some pro- ducers simply “opt out” of the system since they feel too many restrictions can stifle creativity. Some excellent producers may only bottle under the broad classification of Vins de France for that reason.
The remainder of the book (70%) is a tour de force of informative writing about the Rhône. The descriptions of the producers and terroir of the Southern Rhône (Part 2, 179 pages) and the Northern Rhône (Part 3, 83 pages) are both useful and enjoyable to read. Here, key historical and current individuals, terroir, producers, and domains are described. Insightful observations, such as that “the size of the sign outside the estate is in inverse proportion to the quality of the wine,” are not uncommon. Each AOC is offered as a separate section, and within each section are useful facts, such as when the appellation was formed, the total area under vine, grape varieties permitted, average yield, and recent production types.
A listing of key producers with detailed descriptions of their wines is one of the most important offerings of this book for wine consumers. Such descriptions are the result of the author’s on-site research and meetings with the people responsible for wine production. Also, the traveler or wine tourist will find recommendations for picturesque sites to visit and wines to purchase. While excellent descriptions of some of the topics covered in Part 1 can be found on the internet, there is no single source that offers as comprehensive a presentation of the wines of the Rhône as this one.

While I highly recommend this book as the most comprehensive, useful, and entertaining book currently available on the wines of the Rhône region, there are some deficiencies. First, as a grape grower myself, I am cautious about the value of biodynamic farming, and the author lists many of the key producers using biody- namic methods. While I do not doubt the author’s assessment of the high quality of the wines of the biodynamic producers he lists, I do wonder if the quality is not related to some other factors, such as the producers being more attentive to the needs of the vines, balancing fruit and vine growth. Second, soil is often emphasized over climate in the book when describing important terroir factors of various producers. This is appropriate when the climate is similar, but otherwise, it is less clear. Fortunately, the author does mention that “wines grown in close proximity on different soil types have more in common than those grown far away but on the same soils.”
Third, while the author’s command of the French language is superb and his use of French terms to describe winemaking, grape growing, and terroir-related items aids in developing a sense of place for the reader, he occasionally does not define terms in the text or glossary. Examples of such terms include “sans souffre,” “agriculture raisonne,” and “cahier des charges.” Fourth, while the recommendations of wine producers and negociants made in the book are sound, a few important producers may have been omitted. I searched the inventories of one large U.S. and one small regional (mid-Atlantic) wine retailer to ascertain the number of Rhône wine produc- ers (or negotiants) in their inventories that were referenced in this book. Forty of the 100 wines of the large retailer and two of the 8 wines of the small retailer inventories were referenced, but several wines in the retailers’ inventories that have received high ratings from acclaimed experts were not included in the book. Fifth and finally, sometimes the descriptions of wines were beyond my ability to interpret them. For example, descriptors used for a Hermitage wine mention a nose of “hung game, forest floor, noble woods and a whiff of woodsmoke and firewood.” And “a mature Hermitage exhales the breath of Smaug.” (Perhaps Tolkien would be amused, but I am befuddled.)

These minor criticisms notwithstanding, this book provides a truly enjoyable and in-depth immersion into the Rhône Valley and its wines. Wines of the Rhône by Matt Walls will be a welcome addition to any wine library.

© The Author(s), 2022. Published by Cambridge University Press on behalf of American Association of Wine Economists

From Vines to Wines: The Complete Guide to Growing Grapes and Making Your Own Wine

By: Jeff Cox
Reviewer: Kevin Visconti
Pages: 90-93
Full Text PDF
Book Review

It may surprise the reader to learn that this is the 5th edition of Jeff Cox’s guide to winemaking. Perhaps even more unexpected is the fact, proudly stated on the cover, that the book has sold over 200,000 copies. That is a lot of readers, and possibly a lot of homemade wine. In the early pages of his book, Cox asserts, “I’m writing this book to express my enthusiasm for the backyard vineyard and basement bodega” (p. x). As the author of more than 20 books on food, wine, gardening, and landscap- ing, Cox has built a reputation.
In the book’s foreword, Tim Mondavi of the Mondavi wine family states, “From Vines to Wines helps provide you with the knowledge you need to become a wine- grower in the best sense of the word” (p. vii). From the early stages of selecting the vines and growing grapes, all the way to fermenting and bottling the wine, Cox walks the reader through the entire process of winemaking to offer necessary infor- mation and his interpretation of how anyone can journey from grape to glass.
Complemented by an extensive glossary and an impressive number of tables and illustrations, the book is broken into three distinct parts: Part 1: “Selecting the Vines”; Part 2: “Growing the Grapes”; and Part 3: “Making the Wine.” With romantic state- ments peppered across his pages like “Wine is truly a collaboration of vine and human, and the consummation of their affinity” (p. viii) and “Whether man or woman, you are the husband of the grapes; you have to understand your partner’s needs and fulfill them” (p. x), Cox does not veil his love for home winegrowing.
In Part 1, “Selecting the Vines,” Cox builds on his expertise as a longtime grower and home winemaker, and notes that skill and attention to detail are necessary parts of the “delicate task of home winemaking” (p. 10). In this section of his book, he shares a brief history of wines accompanied by an excerpt on the evolution of modern wine grapes, before moving to topics related to self-education in wine, including descriptions of several popular wine grape categories. After a thorough exploration of vinifera in the United States, including a list of the official American Viticultural Areas, Cox coaches the reader with his recommendations for planting wine grapes in specific U.S. regions. After all, Cox believes, “Identifying the grape that … grows well and ripens consistently in your climate is perhaps the single most important decision you’ll make in your quest for homemade wine” (p. 22).
In Part 2, “Growing the Grapes,” Cox begins with a quote attributed to Galileo: “The sun, with all those planets revolving around it and dependent upon it, can still ripen a bunch of grapes as if it had nothing else in the universe to do” (p. 35). This process begins with selecting the right site to grow grapes. Making use of 8th-grade algebra and a grapevine model, Cox leads the reader through his ratio to calculate the correct size of a vineyard. He makes further use of mathematics to help determine appropriate vine spacing, the correct slope, and the amount of nec- essary sunlight. These quantitative measures help the novice winemaker connect with concrete data to make informed winegrowing decisions.
Importantly, Cox discusses the necessity of examining soil quality and appropriate soil preparation before spending a significant amount of time on grape trellises and trellis systems. Cox leads the reader through multiple trellis options (e.g., one wire, two wire, three wire, lyre or moveable wire, Geneva double-curtain, etc.) before offer- ing his own construction tips to craft a full-scale vineyard trellis, including a list of necessary supplies and tools, and drawings to illustrate his guidance.
At this point, Cox informs his reader that it is time to order and plant grapestock and let “the real adventure begin” (p. 60). Techniques for the management of vine- yard rows and aisles, along with irrigation tips and first years’ pruning practices, are reported, followed by numerous illustrations of vine growth at various lifecycle stages. Cox provides a 13-step tutorial on how to prune a grapevine and choose a vine training system (e.g., head training, vertical cordon, four-arm Kniffen training, Hudson River umbrella, etc.).
The last section of Part 2 focuses on pest control strategies. As farming is a largely organic process, Cox cautions the home winegrower to allow for “natural occurring controls” to keep pests at bay and encourages the reader to “learn to tolerate a certain amount of insect presence and damage” (p. 102). Realizing that some pest control may be necessary, Cox discusses the benefits of traps, repellants, sprays, and even insecticides and fertilizers when used sparingly and in moderation. He closes this por- tion of his book with a discussion of determining the proper ripeness and harvestabil- ity of the grapes by explaining brix, titratable acid, and pH ratios.
Finally, in Part 3, “Making the Wine,” Cox is ready to disclose his secrets to home- made winemaking, starting with crushing and fermenting the grapes, including choosing the right primary fermentation vat (e.g., stainless steel drum, food-grade plastic, fresh whiskey barrels, five-gallon glass carboys, etc.). Cox offers his readers specific formulas to apply to determine the precise amount of sulfites, sugars, and acidity to add to the mix. While the continued presence of algebra could be intimi- dating to the stay-at-home winemaker, Cox uses simple equations to add clarity to an otherwise potentially confusing element of winemaking.
Next, Cox brings his reader through the two stages of primary and secondary fer- mentation with a step-by-step process to turn grape juice into wine. He discusses stor- age conditions for wine during the racking, topping, oaking, and aging processes. After a brief overview of filtering, fining, and blending the wine, the author recom- mends taking final measurements of the pH, acidity, sugars, and alcohol before the bottling stage.
After some sensible guidance on wine bottle selection, corking, and labeling, Cox dedicates a considerable number of pages to making sparkling wine, before discussing best-practice tips for cellaring, including cellar temperature and insulated storage areas. To wrap up Part 3, he shares his preferences for corkscrews and wine glasses, before ultimately closing with a sensory guide for wine evaluation, focusing on clarity, color, rim, legs, nose, aroma, and, finally, the taste and body of the wine. In the final pages, Cox concludes with multiple appendices for the interested reader to learn more about recordkeeping, selected references, supplies, and grapevines, as well as detailed information on vineyard pests and diseases.
In the preface of From Vines to Wines: The Complete Guide to Growing Grapes and Making Your Own Wine, Cox quotes a colleague who says, “The best wine to drink in the whole world is homemade wine” (p. x). At the conclusion of the book, Cox chal- lenges his reader to strive to make a wine as superb as the 57-year-old Bordeaux he had the pleasure of drinking one night. After complimenting the exquisite taste and elegance of the wine, Cox asks, “I’d like to make a wine as good as that. Wouldn’t you?” (p. 211).
While the home winemaker may never rise to the reputation of that bottle of fine Bordeaux, Cox seems to genuinely believe that his readers are capable of making good wine, and he strives to enable them to enjoy the process of homemade winemaking. Perhaps that is Cox’s main point: to highlight “the unique affinity between grapevines and humankind” (p. viii), no matter the outcome of the actual wine. And, whether or not a homemade wine is great or barely palatable, Cox believes that much satisfaction can be derived during the process of home winemaking and time spent experiencing such a symbiotic relationship with nature.

Champagne in Britain, 1800–1914: How the British transformed a French luxury

By: Graham Harding
Reviewer: Richard L. Schmalensee
Pages: 93-96
Full Text PDF
Book Review

Champagne in Britain is an academic monograph, the third in a series on Food in Modern History that aims to pay “serious attention to food as a focal point in histor- ical events from the late eighteenth century to the present day.” Its 189 pages of some- times dense text are supported by 106 pages of endnotes, bibliography, and index. It seems to be written mainly for British readers, who presumably understand, without any explanation, the significance of the relief of Ladysmith and the lifting of the siege of Mafeking. The author turned to academic history after 40 years as a branding and marketing consultant specializing in food and drink. He is an associate of the History Faculty at Oxford, and this book seems to have been based at least in part on his PhD dissertation.

All this is to say that this is not a standard wine book, nor is it a particularly easy read, particularly for non-British readers. On the other hand, if you are interested in wine, history, and the evolution of markets and marketing, Champagne in Britain tells—and thoroughly documents—two fascinating, intertwined stories. The first describes the evolution in 19th century Britain of both the product sold as cham- pagne and its social role in the country. The second story focuses on the establish- ment, around 1880, of a relatively small set of champagne brands that were among the world’s first mass luxury brands, able to command premium prices from a rela- tively large audience despite considerable competition. Many of those brands, includ- ing Moët & Chandon, Louis Roederer, Veuve Clicquot, Pol Roger, and Pommery, have been on the British market since the early 19th century and remain premium brands today. In Britain and elsewhere, they continue to command prices signifi- cantly above those of well-made sparkling wines from Italy, California, and other regions.

As I expect readers of this Journal know, the province of Champagne in northern France has always had a favorable location near wealthy markets but an unfortunate climate for wine-making. Grapes grown there ripen late, and fermentation is often halted by winter frosts. In warmer springtime weather, fermentation might re-start and create a carbonated, sparkling wine. At least by the mid-17th century, it was understood that adding sweet liquids could enhance secondary fermentation, but the process was not well understood for decades. Some, particularly among the nobil- ity, appreciated sparkling wine before the 19th century, and it had established a clear image of luxury, hedonism, and celebration. Unfortunately, the gas created by sec- ondary fermentation broke a high proportion of the flimsy bottles then available, and, in part as a consequence, sparkling champagne was exceedingly expensive.
Early in the 19th century, alcohol in Britain was mainly consumed as beer and spirits. Periodic drunkenness was common and, indeed, somewhat fashionable. Until the middle of the century, port and, especially, sherry from the Iberian Peninsula dominated wine consumption; they accounted for around 70% of British wine consumption until the 1860s. The high alcohol content of these fortified wines retarded spoilage, and their sweetness had mass appeal. Even as late as 1843, French wines accounted for only 5% of British wine consumption, and champagne sales were negligible.
Between 1843 and 1898, sales of champagne in Britain increased by roughly a fac- tor of 20, and the product changed almost as dramatically:

In 1800, champagne was as often still as sparkling. When sparkling it was almost universally sweet – a wine to be drunk after rather than with food. In colour it was grey or amber (even red). By 1900 … champagne in Britain had been trans- formed. In colour it was typically pale gold, unequivoucally sparkling, and almost universally dry.

Champagne in Britain describes a number of factors that drove these profound changes. First, wine was traditionally shipped in casks to Britain and bottled there, but to retain its effervescence, sparkling wine had to be shipped in bottles. This reduced the risk of adulteration, but, as noted, champagne bottles were very prone to breakage until stronger bottles were developed in Britain around 1800. This devel- opment reduced the relative transport costs of sparkling wines.
Second, beginning in the 1820s, the British upper classes led a (mild) temperance movement that discouraged drunkenness and the consumption of fortified wines and spirits and encouraged the drinking of lighter wines, like champagne. Champagne was indeed sometimes advertised as a health drink, particularly for women, because of its low alcohol content. Dryer wines became more popular during the course of the century, in part to limit consumption of sugar for health reasons. This is not to say that champagne’s celebratory image became a disadvantage: the “saucer” glass, used only for champagne, came into widespread use in the 1840s entirely because it enhanced the visual appeal of the wine’s effervescence.
Third, by the 1840s, champagne producers had more or less mastered blending and “dosage” with sweetener so that they could produce a consistent product year after year—a consistency that producers of unfortified still wines could not match. In part, as a consequence, sparkling champagne had largely replaced still champagne by 1850.
Finally, the Gladstone budgets of 1860–1862, aimed to enhance the nation’s health by basing beverage taxation on alcohol content and thereby sharply reducing the relative costs of champagne and other unfortified wines. In addition, licensing restric- tions on sales of wine by restaurants, grocers, and other shopkeepers were reduced. The wholesaler, W. & A. Gilbey, aggressively expanded its number of outlets after these restrictions were reduced. It initially sold its many products, including sparkling champagne, under the “Castle” brand, which was perhaps the first “range” brand (like “Heinz 57” much later) that was attached to a diverse array of products. By 1868, the scale of Gilbey’s business was so impressive that an observer in the trade press could assert that “competition is futile.”
This leads to Champagne in Britain’s second story, the rise of premium cham- pagne brands, particularly during Britain’s post-1860 prosperity. As a consequence of the dominance of premium champagne brands, despite its scale and its reputation for low prices and good quality, in 1882, Gilbey dropped its “Castle” brand for cham- pagne, but kept the brand for all its many other products. Gilbey switched to promot- ing the more expensive brands of Moët & Chandon (which had been sold in Britain since at least 1800) and other French houses, instead of its own brand. Champagne had become a mass luxury good, a focus of Veblenesque conspicuous consumption available to many beyond the nobility and the very rich.
Champagne had a number of attributes that made it a natural mass luxury good, particularly after dinner parties became popular in Britain in the 1860s. Since the champagne came to the table in its original bottle, rather than in a decanter, the host could automatically show off his good taste and, because champagne was always expensive, his wealth. Hosts did not need expertise or a butler to serve champagne well; it is easy to store, and it does not need to be decanted. By the 1860s, most pro- ducers were able to deliver consistent quality, so a host could be sure of serving good champagne if he bought a known brand—and the brand name on the cork was a good guarantee against fraud or adulteration. Finally, since saucer glasses were used only for champagne, guests who did not regularly drink champagne could avoid any awkwardness about which glass to use to imbibe it.
For all of those reasons, it might have been inevitable that champagne became an important focus of conspicuous consumption in Britain after 1860. But, the author argues, there was nothing inevitable about the dominance of a handful of premium brands. These were produced by French houses that had no direct knowledge of the British market and employed agents who played a key role in marketing. As British fashion shifted toward ever dryer champagne, with the elite leading and others following, the agents generally pressed their clients to follow that fashion—even though the British demanded dryer wines than other nations, and even though many argued that Britons drank very dry champagne only because it was fashionable, not because they liked it.
Successful champagne agents innovated what have since become standard market- ing tactics for luxury goods. They limited distribution to select hotels, clubs, restau- rants, and merchants, sometimes offering bribes to ensure that their brand was available in choice locations. They worked to be suppliers to the Queen or other nobles and to have that fact widely known. The prestige brands did some advertising in suitable media, but many of their agents worked harder at getting positive men- tions in editorial content—as suppliers to royalty or as having enlivened major social events, for instance. Having your label visible in a cartoon in Punch was apparently worth more than a lot of paid ads.
As major champagne brands became established as luxury goods, their agents con- tinually pressed the shippers for price increases, and some of these agents engaged in forms of resale price maintenance to ensure that their price increases were passed through to consumers. After 1874, the premium producers began vintage dating, cre- ating an illusion of scarcity that supported raising prices. Between 1875 and 1905, the average price for premium champagne rose 20%; even though wine prices were gen- erally falling over this period, premium champagne seems not to have suffered any loss of share.
Two significant courtroom achievements reduced the competition faced by pre- mium champagne brands. It had long been held in British law that a man was free to do business under his own name. Thus, somebody named John Roederer could sell sparkling wine with a label that closely resembled that of Louis Roederer. A British court in 1874 outlawed that sort of deception. In addition, the term “cham- pagne” had come to be a generic label that could be applied to any sparkling wine. In 1887, a French court held that only wine produced in the province of Champagne could be so labeled. This important decision laid the foundation for the broader AOC regime adopted in France in the 1930s.
I enjoyed this book and learned a good deal from reading it and trying to organize its most important findings into this review. Neither was an easy process, however. Given its steep price, I would not recommend purchasing Champagne in Britain unless you are potentially very interested in the development of champagne as a lux- ury good during the 19th century in Britain—and perhaps even then, only if you can get the book at a deep discount.

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