Skip to content
Have an account?
Login
or
Register
  • About
    • People
    • Fellows
    • Tastings
    • In the News
    • Awards
      • Christophe Baron Prize
      • AAWE Scholarships
      • AAWE Awards of Merits
    • Downloads
    • Contacts & Copyright
  • Journal
    • Online Journal Member Access
    • Online Journal Library Access
    • Editors
    • JWE – All Issues
    • Submission Guidelines
  • Working Papers
  • Meetings
    • 2023 Stellenbosch
    • 2022 Tbilisi
    • 2019 Vienna
    • 2018 Ithaca
    • 2017 Padua
    • 2016 Bordeaux
    • 2015 Mendoza
    • 2014 Walla Walla
    • 2013 Stellenbosch
    • 2012 Princeton
    • 2011 Bolzano
    • 2010 Davis
    • 2009 Reims
    • 2008 Portland
    • 2007 Trier
  • Membership
Menu
  • About
    • People
    • Fellows
    • Tastings
    • In the News
    • Awards
      • Christophe Baron Prize
      • AAWE Scholarships
      • AAWE Awards of Merits
    • Downloads
    • Contacts & Copyright
  • Journal
    • Online Journal Member Access
    • Online Journal Library Access
    • Editors
    • JWE – All Issues
    • Submission Guidelines
  • Working Papers
  • Meetings
    • 2023 Stellenbosch
    • 2022 Tbilisi
    • 2019 Vienna
    • 2018 Ithaca
    • 2017 Padua
    • 2016 Bordeaux
    • 2015 Mendoza
    • 2014 Walla Walla
    • 2013 Stellenbosch
    • 2012 Princeton
    • 2011 Bolzano
    • 2010 Davis
    • 2009 Reims
    • 2008 Portland
    • 2007 Trier
  • Membership
DONATE
  • Data
  • Jobs & Programs
  • Data
  • Jobs & Programs
Home
»
Working Papers
»
Working Papers
»
Page 3

All Working Papers

More results...

Search in title
Search in content
Year of Publication
Filter by Working Paper Categories
Economics
Business
History
History & Politics
Law
Policy
Unkategorized

Working Paper No. 216

Published: 2017
Category:
Economics

Wine and cheese: two products or one association? A new method for assessing wine-cheese pairing

Mara V. Galmarini, Lucie Dufau, Anne Loiseau, Michel Visalli & Pascal Schlich
Full Text PDF
Abstract
The aim of this study was to identify which attributes impacted the dynamic liking of
cheese and wine individually as well as when consumed together. Three wines (a white one, Pouilly Loché; and two red ones Maranges and Beaujolais) and three cheeses (Comté, Époisses, Chaource) were individually evaluated by a group of 60 consumers using mono- intake Temporal Dominance of Sensations (TDS) with simultaneous hedonic ratings. The same data acquisition screen was used for all products showing a unique list of 14 descriptors (covering cheese and wine perception) and a hedonic scale for dynamical rating of liking. The dynamic hedonic data was associated to the TDS profiles obtaining Temporal Drivers of Liking (TDL). The nine wine-cheese associations were evaluated by multi-bite and multi-sip TDS, consumed in a free manner. Individually, Chaource had practically no TDL, in Comté mushroom flavor was a positive TDL, and in Epoisses salty was a negative TDL. All wines presented TDL, but negative were only present in the red ones: bitter, sour and astringent. In wines, the positive TDL were: fruity, spicy and woody. Dynamic perception changes had a bigger impact on liking in wine compared to cheese. For the associations, the negative TDL were only three and mostly wine related: sour (for 7/9 combinations), bitter (6/9) and astringent (5/9). Positive TDL were more varied (a total of 10 descriptors) and were related either to wine or cheese. As opposed to what was found in cheese alone, salty was a positive TDL in two of the combinations. It was observed that the dynamic sensory perception had a more important impact on liking in wine-cheese combinations than when consumed separately. This shows that TDS and TDL have a big potential in the study of food pairing which should be further exploited.

Working Paper No. 215

Published: 2017
Category:
Economics

Identifying Hysteresis Non-linearities in Trade: Evidence from European Wine Exports to the US

Laura M. Werner
Full Text PDF
Abstract
It is obvious that exchange rates in uence exports since they add a uctuat- ing component to the costs or rather to the price in the destination country and therefore in uence the international competitive ability. Whether this in- uence on exports is of a special non-linear path dependence, called hysteresis, is investigated in this paper. To identify hysteresis, three methods are pre- sented and compared. First, the spurt method developed by Belke and Göcke [2001], second, the Preisach addition method which was used by Hallett and Piscitelli [2002] and third, the Preisach replacement technique which can be found in de Prince and Kannebley Junior [2013]. Both Preisach approaches use an algorithm provided by Piscitelli et al. [2000] to derive the so called Preisach variable from the exchange rate time series. After nding hysteresis in export values the question arises if the hysteresis descends from hysteresis in prices or quantities, see Göcke and Werner [2015]. Therefore, the study analyses values, quantities and prices, i. e. unit values, of European wine exports to the USA. As the entry into the US market requires sunk costs, for example for dealing with the extensive regulations, see e. g. Beliveau and Rouse [2010], FTA [2015], the requirements for the appearance of hysteresis are conformed. Indeed, the esti- mations revealed hysteresis for values in case of Italy and Spain and for prices in case of Italy and France.

Working Paper No. 214

Published: 2017
Category:
Economics

The Wine Industry in Germany, Austria and Switzerland 1835-2016

Karl Storchmann
Full Text PDF
Abstract
Although grapevines have been cultivated in present day Germany since Roman times (e.g., Bassermann-Jordan, 1907), compared to European wine growing nations such as France, Italy, and Spain, Germany has never been a major wine producing country. Its geographical location between the 48th and 54th parallel and the resulting marginal climate restricts grape growing to the valleys of the Rhine river and its tributaries Ahr, Mosel, Nahe, and Main in the south-west. In addition, some professional viticulture, though at a much smaller scale, can also be found in the valleys of the Saale-Unstrut and the Elbe river in the eastern part of present day Germany.

Working Paper No. 213

Published: 2017
Category:
Economics

Estimating the Value of California Wine Grapes

Olena Sambucci & Julian M. Alston
Full Text PDF
Abstract
The California Grape Crush Report includes summaries of quantities produced and estimates of the average prices and value of wine grapes crushed in California, and serves as an authoritative source of information on production and returns per ton by variety of wine grapes. The data provided in the Crush Report are used to calculate the total value of wine grape production as reported in the annual Agricultural Statistics reports published by the United States Department of Agriculture and in major industry publications. We use the differences among crush districts in the shares of production crushed to growers’ accounts to show that the current mechanism of calculating average statewide returns per ton understates the true total value of the crush by 14– 20 percent. We show that a more accurate estimate of the total value and average price can be obtained if the prices of the wine grapes that are sold are used to infer the prices of wine grapes that are not sold before computing the weighted averages.

Working Paper No. 212

Published: 2017
Category:
Economics

Analyzing Barrel Purchasing Decisions on Winery Costs

Eric Sims & Sarah Quintanar
Full Text PDF
Abstract
French Oak barrels are considered a vital input for the finest wines, and comprise a very large portion of wine production costs. Wineries in the United States purchase French oak barrels priced in Euros, and have the opportunity to pay for their barrels early, in April, with a discount or in September with no discount. Given the inherent complexities in fluctuating exchange rates and limited resources of the average winery, little consideration has been placed on this purchasing decision despite potentially large cost implications.

Working Paper No. 211

Published: 2017
Category:
Economics

Vertical differentiation, Perceptions Restructuring, and Wine choices: the case of the Gran Selezione in Chianti Wines.

Marco Costanigro, Gabriele Scozzafava & Leonardo Casini
Full Text PDF
Abstract

We conduct a choice experiment where the number of labels vertically differentiating Chianti wines (Chianti, Chianti Classico, Chianti Classico Riserva, Chianti Classico Gran Selezione) is augmented incrementally in a between-subject design, eliciting both quality perceptions and wine choices. We find that quality expectations are endogenous to the labeling regime, and adding a high-quality label (e.g., Chianti Gran Selezione) decreases the perceived quality of all other Chianti wines (comparative stigma). A model conditioning on subjective quality perceptions with heterogeneous WTP for quality is then proposed, and estimated via random parameter multinomial logit. The endogeneity problem arising from using subjective beliefs as regressors is addressed by means of a control-function approach. Results are compared to reduced form approaches where the marginal utility of quality and subjective perceptions are confounded in a single label-specific estimate, and the model is used to determine how much of the cannibalization observed after introducing higher-tier quality standards is attributable to restructuring of perceptions and comparative stigma.

Working Paper No. 210

Published: 2017
Category:
Business

Drivers of Environmental Sustainability in Wine Firms: The Role and Effect of Women in Leadership

Jeremy Galbreath
Full Text PDF
Abstract
Employing resource-based perspectives of the firm as a theoretical foundation, this article empirically examines the relationship between women in two different types of leadership roles and environmentally sustainable firms. I study an unbalanced panel data set of 2,006 wine firms in Australia for the period 2007–2014. The results suggests that when accounting for their individual, independent effects, women in technical leadership roles are positively associated with environmental sustainability, while women in professional leadership roles are not. However, the potential complementarities of women in both roles are explored, their interactive, co-joint (complementary) effect explains significantly more variance in the environmental sustainability variable than their individual effects. The results are discussed along with limitations and directions for future research.

Working Paper No. 209

Published: 2017
Category:
Economics

Wine Production in Québec: a restatement

J. François Outreville
Full Text PDF
Abstract
Wine production in Québec over the last twenty years has grown rapidly with an increased interest for diversified products in terms of quality and price. The growth of supply is related not only to the number of producers but also to the increased varieties of wines proposed. This paper proposes an economic analysis of wine production in Québec by analyzing the concentration level of producers. The level of competition has increased significantly between 2008 and 2105 due to an increasing number of small wine producers. An index of relative firm position in the market based on relative prices is calculated and we demonstrate that a high price strategy is significantly related to the size of the vineyard rather than the age of the domain or the number of wines produced.

Working Paper No. 208

Published: 2017
Category:
History & Politics

Standards, Tariffs and Trade: The Rise and Fall of the Raisin Trade Between Greece and France in the Late 19th Century and the Definition of Wine

Giulia Meloni & Johan Swinnen
Full Text PDF
Abstract
There is much debate on the impact of product and process standards on trade. The conceptual arguments are complex and empirical evidence is mixed. We analyze the impact of standards and tariffs on the dramatic rise and fall of the raisin trade between France and Greece in the course of 25 years at the end of the 19th century. The case illustrates how product standards can be used to address consumer concerns and to protect producer interests. Economic conditions and French policies first stimulated Greek raisin imports. Later, changing conditions and political pressures led to the introduction of tariffs and wine standards which caused major declines in Greek exports and ultimately the bankruptcy of the Greek economy. Interestingly, this trade episode of more than a century ago still has a regulatory legacy today as it is the origin of the EU’s definition of wine.

Working Paper No. 207

Published: 2016
Category:
History & Politics

French Wine Makers and the Launching of American Viticulture

Sal Westrich
Full Text PDF
Abstract
While one cannot speak of sustained French immigration to the American colonies, some notable examples can be cited. The Labadists were mystics who lived communally on their 4,000 acre Maryland farm. There were the French settlers of Gallipolis in Ohio who, it appears, produced a wine so poor in quality it was named méchant Suresne after a wine known for its sourness produced near Paris. The arrival of French Huguenots in South Carolina is of particular interest because, for the first time, a large group of settlers reached the New World with the primary aim of growing grapes. They had left France for England to escape religious persecution and in 1763 petitioned the British Government to provide them with land in South Carolina so that they could “apply themselves to the cultivation of vines and of silk.” The request was approved. Setting sail a year latter, the Huguenots reached South Carolina founding the township of New Bordeaux in the southern part of the colony. They were joined four years later by another group of co-religionists lead by the forceful Louis de Mesville de Saint Pierre. But now came a setback. The colony’s governing body refused to provide the settlers with the funds needed to purchase vine cuttings. Saint Pierre thereupon decided to return to England and appeal for financial aide to Lord Hillsborough secretary for the American Colonies, but to no avail. Rumors had it that Hillsborough had received a 250,000 British pounds bribe from French wine merchants dismayed at the prospect of losing the lucrative American and British markets.

Working Paper No. 206

Published: 2016
Category:
History & Politics

Bugs, Tariffs and Colonies: The Political Economy of the Wine Trade 1860–1970

Giulia Meloni & Johan Swinnen
Full Text PDF
Abstract
The 1860–1970 period is a particularly interesting period to study wine trade because of dramatic changes in the wine markets and trade over the course of a century. The dramatic changes in trade flows were caused by both “nature” and “men”. Mediterranean wine trade represented around 90% of global wine trade and France was the world’s leading exporter. The arrival of Phylloxera devastated French vineyards and stimulated Spanish and Italian wine exports. When French wine production recovered, French winegrowers pressured their government to intervene, resulting in high tariffs on Spanish and Italian wines and Greek raisins. The protectionist trade regime contributed to the bankruptcy of Greece and to the substitution of wine trade from Spain and Italy to France’s North African colonies. When Algeria, Morocco and Tunisia became independent, France imposed high wine tariffs, effectively killing their wine exports. The decline of the wine industry in North Africa coincided with the trade and policy integration of the South European wine exporters in the EEC—the predecessor of the EU.

Working Paper No. 205

Published: 2016
Category:
Business

Regions, Wine and Woman in Leadership: A Test of Environmental Sustainability

Jeremy Galbreath
Full Text PDF
Abstract
This study examines features of regional clusters and environmental sustainability among member firms. By studying a sample of 646 firms across four regional wine clusters in Australia, the evidence suggests regiona l export intens it y is positive ly associat ed wit h implementation rates of environmentally sustainable practices. Further, as women in leadership roles (as a proxy for social proximity) grow within regional clusters, this strengthens the relationship between export intensity and environmental sustainability. The results advance research on the features of regional clusters that are expected to influence the adoption of organiza tio na l practices among member firms. Conclusio ns are presented along with limitations and future research opportunities.

Working Paper No. 204

Published: 2016
Category:
Economics

Everything You Know About Wine is Wrong

Lee Hannah & Terra Alpaugh
Full Text PDF
Abstract
Everything you know about wine is right -- for now. But by mid-century, global changes will have upended conventional wisdom in the wine industry: climate change, shifting global demand, new vinification techniques, and marketing innovations will transform the industry. Climate change will expand the areas now suitable for grape growing into northern latitudes and higher altitudes, while also changing the climates, and thus suitability, of current growing regions. More advanced and intensive manipulations during the vinification process will facilitate winemaking in new areas and allow adaptation in old ones. The desire for European-style wine by China’s middle class will skyrocket, fueling global demand that will fund the adaptation needed in both viti- and vinicultural sides of winemaking.
This transformation has profound implications for the environmental footprint of the industry and conservation, both in traditional wine regions and in emerging wine- producing areas. The large expansions of vine impinge upon areas of high habitat importance for iconic wildlife, and adaptation to warming and heat stress may mean more water use in current growing regions. Solutions – like those proposed in the Yellowstone to Yukon program and China’s Eco-Compensation program—must balance the needs of the wine industry with those of wildlife, and will therefore require extensive and collaborative land use planning.

Working Paper No. 203

Published: 2016
Category:
Economics

Does the Market Structure of Grape Varieties Impact Exports Performance? a DEA approach

Eric Le Fur & J. François Outreville
Full Text PDF
Abstract
The objective of the paper is to investigate how the market structure of grape varieties affects the performance in the wine industry. We examine the export performance of countries in 2000 and 2010 and analyze the market structure hypothesis applied to grape varieties and the technical efficiency of the market structure of grapes on exports performance using a Data Envelopment Analysis (DEA) methodology. Our results are based on a sample of 20 major wine exporting countries. First, only a few countries are efficient. Second, a small number of prime varieties is not a condition to obtain efficiency. Finally, concentration of top varieties is not sufficient to be efficient.

Working Paper No. 202

Published: 2016
Category:
Economics

Macroeconomic determinants of wine prices

Linda Jiao
Full Text PDF
Abstract
This paper identifies the macroeconomic determinants of fine wine prices and estimates their impacts on a monthly database from 1996 to 2015. The fine wine demand from emerging markets plays a key role in fine wine pricing, and more precisely, on the fluctuation of Bordeaux fine wine prices. Furthermore, the continuous weakening of the U.S. Dollar in real term favors the fine wine prices to increase. Since 2011, the slowdown of economic growth in emerging markets, followed by the depreciation of national currencies has engendered negative effects on the fine wine market. Along with the process of financialization in the fine wine market, fine wine prices have become more volatile. Factors such as money supply, real interest rate and the growth of investment funds start to show their influence on fine wine pricing.

Working Paper No. 201

Published: 2016
Category:
Business

Working Capital Management and Profitability of Wine Firms in France: An Empirical Analysis

Beysül Aytac, Thi Hong Van Hoang, Amine Lahiani & Laure Michel
Full Text PDF
Abstract
This study investigates the impact of working capital management (WCM) on firm profitability in the French wine industry. Based on annual data of 430 wine-producing firms from 2003 to 2014, we estimated the impact of the cash conversion cycle (CCC) and its components (days inventory, receivable and payable) on the return on assets. Other firm factors, such as size, growth, tangibility and leverage, were used for control. We took into account nonlinearity, unobservable heterogeneity, heteroscedasticity and endogeneity through the two-step GMM estimation method and showed that WCM did not have a significant impact on the profitability of French wine firms. Furthermore, we found no optimal level of CCC that would allow the firms to maximize their profitability. Only days account receivable and payable significantly and negatively impacted profitability. These results differ from those of previous studies and suggest that French wine firms should shorten the time both to collect cash from sales and pay providers. Contrarily to what we believe, the delay in converting inventories to cash does not significantly impact profitability. The managerial implications of these results were further explored by interviewing three wine firms in the south of France.

Working Paper No. 200

Published: 2016
Category:
Economics

Importance of eco-logo and closure type on consumer expectations, price perception and willingness to purchase wines in Canada

Paulo Lopes, Richard Sagala & Larry Lockshin
Full Text PDF
Abstract
Québec and Ontario wine drinkers displayed low interest in purchasing environmental friendly even if they were willing to price premium of CAN$1.11 for wines with “100% Eco-friendly” claim when buying a bottle with an average value of CAN$15.53. Organic and biodynamic affected negatively the price and purchase intent. On the contrary, consumers were most likely to buy (~6%) and would pay CAN$1.69 and CAN$1.29 more for wines sealed with natural corks compared to those sealed with synthetic or screw cap closures, respectively. However, closures and eco-label claims did not have a combined utility to respondents’ by signaling higher “environmental friendliness”.

Working Paper No. 199

Published: 2016
Category:
Business

Kegged Wine: Current Perceptions and Experiences within the U.S. Wine Industry

Michaela Nuebling, Rhonda Hammond, Carl Behnke, Barbara Almanza & Sandra Sydnor
Full Text PDF
Abstract

o The purpose of this paper was to investigate perceptions and current experiences with kegged wine (also known as wine-on-tap). Winery owners, winemakers, and other winery employees from various U.S. wine growing regions responded to an online survey.
o Some wineries produce kegged wine on their own, while others use third-party kegging facilities. Eco-friendliness and wine quality preservation were considered important, yet not identified as primary motivators. Increasing sales volume and competitive advantages, on the other hand, were driving the adoption of kegged wine.
o On average, the estimated sales price for a keg (5.16 Gallons) of white wine was US$ 174 and for a red wine keg US$225. Kegged wine accounted for almost 9% of the wineries’ annual production volume. Most wineries used the same brand for their kegged wine as for their bottled wine.
o The findings of this study provide initial insights into experiences, reasons, and perceptions related to the adoption of a recent wine packaging innovation: kegged wine. The sample was mostly comprised of California wineries, a market where distances between wineries and third party kegging specialists are relatively short; therefore, the generalization of the results may be restricted.

Working Paper No. 198

Published: 2016
Category:
Business

A New Wine Superpower? An Analysis of the Chinese Wine Industry

Yuanbo Li & Isabel Bardají
Full Text PDF
Abstract
China is one of the most attractive wine markets and a hopeful wine producer in the 21st century. Current studies of wine in China tend to focus on the wine market but seldom analyze the domestic wine industry which contributes approximately 80% of the total wine consumed in the country while Westerners know little of it. This paper analyzes the current situation and the perspectives of the wine industry in China considering both traditional conditions such as wine history, wine policies as well as recent conditions such as e- commerce, climate change and domestic economy trend. We conduct a “SWOT” of the Chinese wine industry considering four sectors (producing, processing, selling and consuming) and use a SWOT Matrix analysis. Then we provide strategies for the development of the Chinese industry from governmental level, industrial level and enterprises level.

Working Paper No. 197

Published: 2016
Category:
Economics

Survival in the French Wine Industry: Cooperatives Versus Corporations

Justine Valette, Paul Amadieu & Patrick Sentis
Full Text PDF
Abstract
This paper examines the survival rates of cooperatives. Traditional theories suggest that cooperatives are inefficient and consequently are prone to failure, but recent literature suggest they could be more resilient. Can cooperatives cope better? We found that French wine cooperatives survive longer than corporations. This result is robust to semi-parametric and parametric models, even when we control for mergers and acquisitions exits. The higher survival rate of wine cooperatives seems to be associated with an ability to shift the fluctuations of their environment to their members.

Working Paper No. 196

Published: 2016
Category:
Economics

Crowdfunding in Wine

Olivier Bargain, Jean-Marie Cardebat & Alexandra Vignolles
Full Text PDF
Abstract
Crowdfunding has recently emerged as a novel way of financing new ventures. This coincides with a growing interest in wine as an investment good and with a search for new funding opportunities by wine makers. In this study, we first suggest a brief review of the literature on wine and finance as well as on how crowdfunding is entering the wine sector. In particular, we question who are the potential investors willing to engage in wine crowdfunded projects, and what kind of revenue could attract them. To go further, we also exploit an original survey where interviewees are asked about their wine consumption and purchase, their knowledge about crowdfunding, their relation to the Internet, their investment and project related to wine crowdfunding and their expectations concerning the returns from this type of contribution. We suggest that, among all forms of crowdfunding, the donation/voluntary contribution side, driven by intrinsic motivation, is likely to remain marginal compared to crowdfunding as an investment or a form of early purchase - a retail form of the “en primeur” sales. More generally, we ask how the public can help finance this sector and diversify the way wine is sold.

Working Paper No. 195

Published: 2016
Category:
Economics

Factors Impacting Wine Price Mark-Ups in Restaurants

Florine Livat & Hervé Remaud
Full Text PDF
Abstract
Most sommeliers, if not all, have a good understanding and knowledge of the wines they sell. But designing and managing the wine list is a different job, requiring a different set of expertise. As such, the sommelier’s managerial behavior seems critical in the success of a wine list and can be a substantial contributor of the restaurants’ profitability. Part of the profitability of the wine list relates to the mark-up that is applied to the wines available on the list. A mark-up is the amount the restauranteur will charge in addition to the cost of purchase of the wine. The purpose of this study is to analyse empirically the determinants of wine price mark-up size in the case of restaurants and respond to the following question: what are the determinants of wine price markup size?
Thanks to an original survey conducted in 2014 with sommeliers, we regress the declared mark- up against restaurants characteristics, wine list characteristics and wine stewart characteristics. Following a few words about mark-up determinants and the research protocol, we present the findings of the survey and its main managerial implications.

Working Paper No. 194

Published: 2016
Category:
Economics

Gravity Meets Pricing to Market What a Combined- Method Approach tells US on German Beer Exports

Heiko Dreyer, Svetlana Fedoseeva & Roland Herrmann
Full Text PDF
Abstract
Gravity and pricing to market (PTM) models have been used to elaborate determinants of bilateral trade and export pricing for different countries and branches. Typically, only one of the two methods was chosen. We show in a stepwise approach that a combination of both methods yields novel results on the determinants of exports and export pricing behaviour. For the case of German beer exports, we show that structural differences exist between markets on which exporters apply either PTM or non-PTM strategies. German beer exporters apply PTM strategies, in particular local-currency stabilization, on those markets where imports are very sensitive to exchange-rate changes. Non-PTM strategies, i.e. full exchange-rate transmission, occur on export markets with insensitive reactions. Apart from PTM strategies, German beer exports are strongly dependent on policy variables such as the introduction of the Euro and the partner country’s membership in the EU.

Working Paper No. 193

Published: 2016
Category:
Economics

“Tested Quality in the Glass”: Wine Quality Certification in Germany

Henrich Brunke, James T. Lapsley, Rolf A.E. Mueller & Ludwig Tauscher
Full Text PDF
Abstract
Wine is mostly sold in closed bottles that prevent buyers from inspecting their contents. This practice turns wine into an experience good which buyers are unable to asses at the time of purchase. In order to reduce buyers’ information gaps, wine sellers provide information about the wine on one or several labels attached to the bottle. Wine buyers' problem then is to interpret this information and to assess its veracity. Institutional arrangements have emerged in Germany, as in other wine producing countries, that standardize communication between wine sellers and buyers, and that reduce the risk of wine buyers being misled by the information provided by the sellers. Core elements of the institutions are (i) verifiable wine quality categories or grades, (ii) wine examination by independent experts and certification of the information items provided by the wine bottler, and (iii) rules for the content and form of labeling information. Wines that satisfy all legal requirements for a quality wine are deemed to be "Tested Quality in the Glass". They are recognizable by a number that is issued for each wine that has passed examination; the number must be printed on the label. The objectives of this study are three: (i) to provide an English-language description of the German wine quality certification system, together with a summary of its legal basis; (ii) to describe an alternative private wine certification system that has been grafted onto the pubic system, and (iii) to encourage readers to think about how datafication of wine and digitization of wine certification may transform the "Tested Quality in the Glass" system. The study is of interest to all wine experts and scholars with an interest in wine certification, especially of German wines.

Working Paper No. 192

Published: 2016
Category:
Economics

Solving for a Bias in the Standardized Expert Wine Score

Emmanuel Paroissien
Full Text PDF
Abstract
Has been removed

Working Paper No. 191

Published: 2016
Category:
Economics

The Competitive Position of Ontario’s White Table Wines

Paul R. Masson
Full Text PDF
Abstract
Canada has a small, but vibrant winemaking industry. Since the US-Canada Free Trade Agreement (FTA), which went into effect in 1987, growers have shifted to vinifera grapes and modern winemaking techniques and there has been an explosion in the number of wineries, which number about 150 in the Niagara peninsula alone. However, their share of the Ontario wine market, which fell with free trade, has continued to decline. This paper delves into the reasons for the downward trend.
Ontario provides a unique source of data on the wine market, since a single price for each wine is enforced by the Liquor Control Board of Ontario (LCBO). The paper analyses data downloaded from the LCBO’s website at the end of 2012 for all Ontario white table wines available for sale, and for wines from both “old world” (France and Italy) and “new world” (Argentina and Chile) wine producers. It is shown that after controlling for wine characteristics Ontario wines are higher priced than their competitors. This helps to explain why, despite improvements in the quality of Ontario wines, the share of imports in LCBO sales has risen. Certain wine varieties, in particular Chardonnay and Riesling, command higher prices, while in Vintages stores (but not in ordinary LCBO outlets), both the age of the wine and alcohol content have a significant positive effect on price. In terms of exports, Canada is miniscule on the world wine market, and it does not have a revealed comparative advantage in wine (except for ice wine).
In addition to the disadvantage on input costs, Ontario wine production also suffers from an industry structure that limits the extent that most wineries can exploit economies of scale. A limit in the number of off-winery stores--included in the FTA and subsequently NAFTA to prevent further protection of Canadian wines--has led to an uneven playing field in which two firms, one now American owned, operate the vast majority of those stores. Other wineries are limited to selling through the LCBO or at the winery. Further development of Ontario’s wine industry is likely to require opening up wine retailing to allow all wineries to benefit equally. In order to avoid the strictures of NAFTA, this would have to mean opening up competition to a wider range of wine retailers able to sell both domestic and imported wines.

Working Paper No. 190

Published: 2016
Category:
Economics

Does Organic Wine Taste Better? An Analysis of Experts’ Ratings

Magali A. Delmas, Olivier Gergaud, & Jinghui Lim
Full Text PDF
Abstract
Eco-labels 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 eco-certified products are actually better than their conventional counterparts. This paper seeks to understand the link between eco-certification and product quality. We use data from three leading wine rating publications (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 eco-certification is associated with a statistically significant increase in wine quality rating.

Working Paper No. 189

Published: 2016
Category:
Economics

The Costs and Benefits of Collective Reputation: Who gains and who loses from generic promotion programs?

Olivier Gergaud, Florine Livat, Bradley Rickard & Frederic Warzynski
Full Text PDF
Abstract

In this paper we develop an original approach to evaluate the costs and benefits associ- ated to a generic promotion program using an application to Bordeaux wines. The benefit is computed from the marginal impact of the collective reputation of the program on the individual reputation of its members. These different marginal impacts are estimated us- ing detailed survey data about the image of Bordeaux wines in seven European countries. We find positive and significant spillover effects from the umbrella reputation (Bordeaux) that moreover increase with the individual reputation level of the wine. Controlling for the natural endogeneity of the collective reputation in this setup, we capture the impor- tant fact that this relationship is faced with marginal diminishing returns. These spillover effects, when significantly positive, vary from a minimum of 5% to a maximum of 15% of additional favorable quality opinions. We then show that some subregions are more likely to benefit from generic promotion programs, suggesting that fees should be established on a benefit-cost basis.

Working Paper No. 188

Published: 2015
Category:
Economics

Anchoring and Property Prices: The Influence of Echelle Des Crus Ratings on Land Sales in the Champagne Region of France

Olivier Gergaud, Andrew J. Plantinga & Aurelie Ringeval-Deluze
Full Text PDF
Abstract
Although evidence for anchoring effects has been produced in experimental settings, there have been relatively few studies testing for anchoring in actual markets. We analyze a large data set of vineyard sales in the Champagne region of France to de- termine whether Echelle Des Crus (EDC) ratings are an anchor in the land market. The EDC is a set of numerical scores for villages in the region that was used as part of a price-setting system for wine grapes that began in 1919 and persisted until 1990. Although grape prices are now determined in a market and the EDC no longer plays a direct role in determining them, we test whether the EDC continues to be an an- chor for participants in the land market. The econometric challenge is to separately identify anchoring effects from the effects of relevant information the EDC may convey about vineyard quality. We instrument for the EDC using the average attributes of vineyards in neighboring villages, which are unlikely to be correlated with errors in prices because only the characteristics of the vineyard itself affect the rents from grape production. We find strong evidence for anchoring effects in the land market, which is further supported by analyses of grape prices. We also examine whether the anchoring effect is diminishing over time as market participants come to rely more on objective information to determine prices. We find, instead, that effect of the EDC persists many years after it became obsolete.

Working Paper No. 187

Published: 2015
Category:
Business

Word of Mouth Impulses. Evidence from Wines of Germany

Frank R. Schulz
Full Text PDF
Abstract
After decades of inflationary applied advertisement investments in tv-, print and online media, todays’ consumers are exhausted. They switch tv-channels when commercials are being broadcasted, they bin promotion material when checking the letter box, they erase online- newsletters without having read them. ‘Wines of Germany’ (Deutsches Weininstitut DWI) conquers the given situation with word-of-mouth (WOM) marketing and –communications work. Presentations, seminars, press-, online- and social media work as well as conceptual sales impulses for the on- and off trade or gastronomy all serve a common goal: credible WOM recommendations. Combined with innovative and emotional communications work, the WOM action led to an increase in public awareness for Wines of Germany. It correlates with a moderate but steady increase in domestic and export value in an extremely competitive market. On the long run, memorable encounters of real people in real life situations (WOM) play a more effective and therefore central role in the sought-after awareness upswing then solely advertisements.
It must be frustrating for marketing experts that it is increasingly difficult to actually reach people. Social media marketing (SMM) made us believe that there’s an easy way to consumer’s attention – but it turned out to be more complicated: first of all social media activities always ask for authenticity, it never works to simply utilize existing promotion posters vertically through all media channels. People are very sensitive when it comes to credibility. Secondly, e.g. Facebook posts are not automatically being projected in your peer’s timeline any more (without paying for it). The more effective way is to reach influencers and multipliers through memorable situations, in order to make them tell your story/ spread your word (WOM). Therefore, DWI focuses on “ambassadors” - internally within the branch as well as externally in relations to the public – in order to initiate as many WOM impulses as possible.
« Previous Page1 Page2 Page3 Page4 Page5 Page6 Page7 Page8 Page9 Page10 Next »

Submission

Please send your papers as PDF files to the editor, Victor Ginsburgh, at vginsbur@ulb.ac.be
Papers will be quickly reviewed, prior to potential posting on the website. Decision will be to post or not, possibly with short comments, but without referee reports. The decision will be based primarily on the suitability of the paper’s topic to the aims of the Association.
Such decisions are independent of publication decisions for the Journal of Wine Economics.

Working Paper publication requires that at least one author
is a regular member of AAWE.

Subscribe to our Email List

You can cancel your subscription at any time.
SUBSCRIBE HERE

Contact

AAWE
Economics Department
New York University
19 W. 4th Street, 6FL
New York, NY 10012, U.S.A.
Tel: (212) 992-8083
Fax: (212) 995-4186
E-Mail: karl.storchmann@nyu.edu

AAWE

Journal

Working Papers as a List

Membership

Videos

LINKS

Fifthsense

JWE at Cambridge University Press

Liquid Assets

Stuart Pigott

Privacy & Cookies Policy

Privacy Policy

Cookies Policy

Twitter Facebook-f Youtube

© AAWE 2021 - All rights reserved