Abstract
The addition of sulfur dioxide is a longstanding and common practice in the winemaking industry. Sulfur dioxide preserves wine, preventing oxidation and browning. However, in the U.S., wine labeled as organic cannot contain added sulfur dioxide. A petition put forth to the National Organic Standards Board for the allowance of added sulfur dioxide in organic wine was recently rejected. In France, added sulfur dioxide is allowed in organic wine, but not used in all organic wine. This variation in use allows the estimation of the value of added sulfur dioxide in French organic wine, which sheds light on the possible benefits of a policy change in the U.S. For red wines, the addition of sulfur dioxide reduces the suggested retail price of wines to be consumed immediately after purchase, but the effect becomes positive for wines that are intended to be cellared for at least one to three years before consumption. The effect for most white wines is neutral to positive. The magnitude of the effect for both red and white wines varies by eco-certification type.
Highlights
The addition of SO2 in wines is a longstanding and common practice utilized to preserve the quality of wine by preventing oxidation and browning
The petition was rejected at the NOSB meeting in November 2011 (Siegel 2010, National Organic Standards Board 2011a)
This paper determines the effects of adding SO2 on the price of French organic wine, thereby providing potential monetary effects of the current U.S policy that prevents the addition of SO2 to organic wine
Summary
The addition of SO2 in wines is a longstanding and common practice utilized to preserve the quality of wine by preventing oxidation and browning. In the U.S wine market, the addition of SO2 is not allowed for wines labeled as “organic” wine. Wines with this addition that would otherwise meet the requirements to be labeled as organic, must instead be labeled as “made with organic grapes” (Alcohol and Tobacco Tax and Trade Board 2014). In 2010, several wineries and vineyards petitioned the National Organic Standards Board (NOSB) to allow the addition of SO2 in wine labeled as “organic", citing misunderstandings among consumers about the “made with organic grapes” label and the allowance of added SO2 in wines labeled as organic in Europe and Canada as their primary reasons for petitioning for the change. This paper determines the effects of adding SO2 on the price of French organic wine, thereby providing potential monetary effects of the current U.S policy that prevents the addition of SO2 to organic wine
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