Fine Wine Research Articles

Market segments and pricing of fine wines over their lifecycle

Is the fine wine market segmented? The literature shows that this is the case for ordinary wines, and this has significant implications for hedonic analysis. We apply a finite mixture model to a 20-year dataset of auction prices. Our results reveal the existence of five segments in the fine wine market that differ in both their composition and the effects of scores, age, and market conditions on prices. This segmentation helps reconcile the divergent findings in existing research: some wines are highly sensitive to market conditions and have yielded significant returns (investment wines), while prices of other wines are primarily influenced by age (collectible wines) or quality (drinking wines). Our findings enhance the understanding of fine wine pricing and offer new insights into the age-price relationship, which is generally linear but varies by segment and vintage quality.

A tribute to Arne Schousboe's contributions to neurochemistry and his innovative and enduring research in GABA, glutamate, and brain energy metabolism.

This is a tribute to Arne Schousboe, Professor Emeritus at the University of Copenhagen, an eminent neurochemist and neuroscientist who was a leader in the fields of GABA, glutamate, and brain energy metabolism. Arne was known for his keen intellect, his wide-ranging expertise in neurochemistry and neuropharmacology of GABA and glutamate and brain energy metabolism. Arne was also known for his strong leadership, his warm and engaging personality and his enjoyment of fine wine and great food shared with friends, family, and colleagues. Sadly, Arne passed away on February 27, 2024, after a short illness. He is survived by his wife Inger Schousboe, his two children, and three wonderful grandchildren. His death is a tremendous loss to the neuroscience community. He will be greatly missed by his friends, family, and colleagues. Some of the highlights of Arne's career are described in this tribute.

Do Leaders Age Like a Fine Wine? A Meta-Analysis of Leader Age and Leadership Effectiveness

Do Leaders Age Like a Fine Wine? A Meta-Analysis of Leader Age and Leadership Effectiveness

Authenticity Frictions: Harnessing Risk as a Catalyst for Authenticity in Fine Wine Production

Authenticity Frictions: Harnessing Risk as a Catalyst for Authenticity in Fine Wine Production

Finding the Wise and the Wisdom in a Crowd: Estimating Underlying Qualities of Reviewers and Items

Abstract Consumers, businesses and organisations rely on others’ ratings of items when making choices. However, individual reviewers vary in their accuracy and some are biased—either systematically over- or under-rating items relative to others’ tastes, or even deliberately distorting a rating. We describe how to process ratings by a group of reviewers over a set of items and evaluate the individual reviewers’ accuracies and biases, in a way that yields unbiased and consistent estimates of the items’ true qualities. We provide Monte Carlo simulations that showcase the added value of our technique even with small data sets, and we show that this improvement increases as the number of items increases. Revisiting the famous 1976 wine tasting that compared Californian and Bordeaux wines, accounting for the substantial variation in reviewers’ biases and accuracies results in a ranking that differs from the original average rating. We also illustrate the power of this methodology with an application to more than 45,000 ratings of ‘en primeur’ Bordeaux fine wines by expert critics. Those data show that our estimated wine qualities significantly predict prices when controlling for prominent experts’ ratings and numerous fixed effects. We also find that the elasticity of a wine price in an expert’s ratings increases with that expert’s accuracy.

Heterogeneous buyer preferences behind rejecting the law of one price in the fine wines market

Developing a second hedonic step, we show that the heterogeneity of agents' preferences partly explains the rejection of the law of one price in the Bordeaux and Burgundy fine wines. A significant effect of buyer profiles appears on the price.

Message in a bottle: Forecasting wine prices

AbstractCan we predict fine wine and alcohol prices? Yes, but it depends on the forecasting horizon. We make this point by considering the Liv-ex Fine Wine 100 and 50 Indices, the retail and wholesale alcohol prices in the United States for the period going from January 1992 to March 2022. We use rich and diverse datasets of economic, survey, and financial variables as potential price drivers and adopt several combination/dimension reduction techniques to extract the most relevant determinants. We build a comprehensive set of models and compare forecast performances across different selling levels and alcohol categories. We show that it is possible to predict fine wine prices for the 2-year horizon and retail/wholesale alcohol prices at horizons ranging from 1 month to 2 years. Our findings stress the importance of including consumer survey data and macroeconomic factors, such as international economic factors and developed markets equity risk factors, to enhance the precision of predictions of retail/wholesale (fine wine) prices.

When Silence Becomes Overstretched: Exploring the Loud Silence in Women's Struggle for Liberation in Contemporary Nollywood

Lots of debates, contestations and criticisms have continued to trail the subjugation of women in Nollywood narratives. Film scholars and critics, especially those who tow the feminist line, keep bemoaning the manner in which patriarchy and male hegemony take centre stage in many Nollywood movies to the detriment of women. Employing the mixed research methodology (qualitative content analysis and key informant interview), this study explores the loud silence in women’s struggle for liberation in contemporary Nollywood narratives. Three widely acclaimed and contemporary movies – Muna (2019), Omo Ghetto: The Saga (2020) and Fine Wine (2021) – were content analysed to foreground and highlight male chauvinism and hegemony as well as women’s struggle for their liberation. Though women’s silence in the movies is as prolonged as it is loud, the fierce fight they later put up against male oppression comes as a great solace. Therefore, it is concluded that Nollywood film-makers should continue to give preeminence to such issues in subsequent narratives.

Wine prices in economics: A bibliometric analysis

AbstractThis article presents a literature review and a bibliometric analysis of academic research on wine prices in economics. The study comprises a review of 180 articles published in journals between 1992 and 2022. Bibliometric and science mapping methods apply indicators identifying the most prominent journals, authors, countries, institutions, topics, most published and cited articles, co‐authorship, bibliographic coupling, cited references, and keywords. This approach highlights the importance of four clusters in the literature: determinants of the wine prices, demand and consumption of wine, fine wine as an alternative investment, and quality and brand reputation of Bordeaux wines. This study shows many areas for further research within and outside these clusters.

Fine wine recognition and appreciation: It is time to change the paradigm of wine tasting

Wine quality maybe understood under two perspectives: (a) commercial quality, intended to satisfy overall consumers, and (b) fine wine quality, aimed at achieving a product with aesthetic value. The current food sensory techniques (e.g. Descriptive Analysis) have been successfully applied to develop wines accepted worldwide and characterized by pleasant sweetish flavours and smooth mouthfeel. On the contrary, these techniques are not suited to characterize fine wines given their dependence on sensory properties with aesthetic value. The conventional tasting approaches follow the sequence of vision, smell (orthonasal), taste and mouthfeel, ending by an overall evaluation. The sensory descriptors tend to be analytic (e.g. different aromas and tastes) or synthetic (e.g. body, structure) and the quality judgement is left for the final step. Some synthetic attributes may have an aesthetic significance (e.g. complexity, harmony, depth) and are more valued when the analytic or synthetic descriptors are highly praised (e.g. oakiness, silkiness, body, minerality). Consequently, these highly praised attributes are regarded as surrogates of fine wine quality. However, commercial wines are frequently judged of higher quality than fine wines irrespective of the taster expertise. We argue that the conventional sensory analysis sequence makes the overall evaluation secondary in relation to the previous analytical steps blurring the assessment of wine’s aesthetic properties. Probably due to top-down processing, the initial evaluation of colour or flavours governs the final overall quality evaluation that may be inconsistently rated. Then, to promote the recognition of fine wines, tasting should begin by first acknowledging the aesthetic properties and only proceed to the analytical steps if necessary. A tasting method is proposed to consumer educational programs where emotional responses are used to explain the differences between commercial and fine wine styles. Furthermore, cultural aspects should be included to appreciate the wholeness of wine. Hopefully, this holistic perspective would turn wine appreciation more approachable and facilitate the recognition of fine wines among consumers, increasing their appreciation and enjoyment.

“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)

AbstractIn this study, we used the Reference Publication Year Spectroscopy (RPYS) method to explore the historical roots and influential publications of circular economy (CE) studies. Unlike traditional literature reviews, this method allows us to analyze frequently cited works over specified years, assisting in tracing the growth of research subjects over time and quantifying the impact of these citations. We reviewed over 8395 publications and 302,377 cited references, ranging from 1521 to 2021. Our study uncovered three distinct periods in the evolution of CE studies: (i) a precursor phase (1521–1988) that presented foundational yet indirectly related ideas; (ii) the “historical roots” (1989–2017) featuring seminal research during 12 notably influential years; and (iii) a recent period (2018–2021) characterized by other highly cited studies. Additionally, we identified several influential publications that have introduced innovative viewpoints and advocated for a systematic approach to CE, shaping the present direction of CE research. Our study not only provides essential context for future studies, helping scholars identify thematic gaps, but also frame their research within the existing body of knowledge, and contribute toward a comprehensive, multifaceted understanding of CE.

Legitimating taste in cultural fields: Generational classifications and symbolic struggles in representations of ‘natural’ wine

This article addresses the legitimation of taste in cultural fields by examining the role of generational dynamics in the field of fine wine. In the last decade, ‘natural’ wine has become an increasingly influential category in the fine wine field. The article explores how legitimating media institutions in this field represent natural wine, particularly as regards to the symbolic properties of cultural taste. The empirical material consists of articles published in two leading US wine magazines, VinePair and Wine Spectator. The analysis shows that natural wine was represented as a contested category whose aesthetic qualities were only partially legitimated. Moreover, generational and age-coded categories were deployed to construct oppositions between natural wines and other fine wines, as well as between their respective proponents. The aesthetic characteristics of natural wine were associated with emerging forms of cultural capital that partly challenged established aesthetic standards in the fine wine field connected to traditional highbrow cultural capital. Contestations over natural wine are therefore indicative of symbolic struggles over cultural taste in the fine wine field. In conclusion, the article contributes to research in cultural fields by analysing the relationship between generational classifications and contestations over aesthetic standards in the legitimation of taste.

How heterogeneous wine lots result in a price discount relative to homogeneous lots

PurposeThe purpose of this study is to determine whether the fine wine market is efficient between homogeneous lots and heterogeneous lots.Design/methodology/approachAuction price data for homogeneous (or solid) lots of fine wines was analyzed to create price prediction models. Those models were used to predict the expected auction price for the bottles within heterogeneous lots. Lastly, models were created to explain and predict the differences between expected and realized prices for heterogenous wine lots.FindingsThe results show that large inefficiencies exist. The more complex and expensive the heterogeneous lot, the greater the discount relative to what would have been realized if the bottles had been sold individually. This discount can exceed 50% of the expected auction price.Practical implicationsHeterogeneous lots may arise as a practical requirement from the auction house. Restaurant buyers probably have little interest in such lots because of the inclusion of wines the restaurant will be unable to sell. Collectors may be uniquely positioned to benefit from this price discount.Originality/valueThese results are unique in the literature, because the price dynamics of heterogeneous (or mixed) lots of fine wines have not previously been studied.

H18 James Clark White: a pioneer of American dermatology

Abstract James Clark White, a chemist, botanist and eminent dermatologist, was a born to a shipbuilder in Boston in 1833 and from a young age was fascinated by the natural world around him. White proceeded to study medicine at Harvard and spent a further year at the University of Vienna. He was taught by renowned dermatologists, including Ferdinand Von Hebra, whose detailed drawings and lectures in dermatology were pivotal to White’s interest in the field. White’s varied background in both chemistry and botany translated into his prolific academic work on environmental dermatoses. His famous Dermatitis Venenata: An Account of External Irritants Upon the Skin was the first to provide a collective resource of contact dermatitis, before the pathogenesis of these conditions was truly understood. Another instrumental piece, ‘A case of keratosis (ichthyosis) follicularis’ is now recognized as the first description of Darier disease, which was subsequently named Darier–White disease. White authored eight books and over 100 original articles that covered many areas of cutaneous disease. White returned to Massachusetts General Hospital where, after spending a few years in general practice, he devoted his career to skin disease. He developed the dermatology department into a centre of excellence and was ultimately appointed the first chair of dermatology. A founding member of the American Dermatology Society, and twice its chairman, he progressed to become the first full professor of dermatology in the USA. White spearheaded dermatological education at Harvard, extending the specialty training from 2 to 4 years and introduced an exit examination for residents. White is regarded as part of the vanguard that elevated American dermatology to European standards in the late nineteenth century. In his personal time, White was ardent collector of fine wines and china. He devoted much time reading and listing species of birds and plants that he encountered around his residence in Belfast, Maine. He died in September 1916. His family also had distinguished careers, including his son Charles J. White, who took over his practice to also become a professor of dermatology at Harvard Medical School; and a grandson, also named James C. White, a professor of neurosurgery at the same institution. Almost two centuries after his birth, White’s lifelong dedication to dermatology has produced many works that remain relevant and inspire the dermatologists of today.

An investigation of wine quality testing using machine learning techniques

<div class="page" title="Page 1"><div class="layoutArea"><div class="column"><p><span>Quality is the most determining factor for any product. Optimal care and best measures are to be taken in assessing the quality of any product. This work deals with determining the quality of wine using intelligence-based learning techniques. In order to estimate the quality of wine, several experiments are performed on wine datasets. The main purpose of our work is to study and discover an efficient machine learning (ML) model that could determine the quality of wine given some Physico-chemical features. This study establishes that selecting important features to evaluate rather than all of them can lead to improved forecasts. According to the results, this approach may provide people who are not wine experts a greater opportunity to choose a fine wine.</span></p></div></div></div>

Correlation Between Stock Returns of Wine Corporations and Weather Conditions

Among determinants of wine spot prices, the weather is one of the most influential factors. Previous studies have confirmed the spot price of fine wine is correlated with some weather variables, such as the air temperature. Also, much research illustrates some weather conditions are related to the stock market. In this paper, we focus on the correlation between some weather variables as main determinants of wine prices and the stock returns of wine companies which are listed on NYSE. We have several conclusions: (1) return of equity of wine companies has a negative correlation with the level of precipitation; (2) results are more significant when controlling years; (3) the level of precipitation has greater negative impact on returns during planting season of grapes; (4) the odds of having positive returns in planting season is lower than non-planting season.

Reputational effects on third-party agents: A study of the market for fine and rare wines

We examine the effectiveness of a quality assurance mechanism that relies on a third-party's reputation. We focus on the market for fine and rare wines where auction houses intermediating between sellers and buyers have also claimed expertise to assess product authenticity. An auction house's reputation can sustain product quality in this market only if consumers absorb relevant information and reduce demand through houses who fail at screening out counterfeits. We test the existence of such reputational effects by studying the market responses to a major disclosure from 2012 of three auction houses having auctioned thousands of bottles of fake wine. We find that these houses did suffer reputational losses. These losses are demonstrated over the following year by a decrease in equilibrium sales prices of all wines, and a decrease in sales quantities of older wines, relative to other houses.

Wine Minerality and Funkiness: Blending the Two Tales of the Same Story

In wines, minerality is a complex concept with increasing popularity in scientific research and the wine press. The flavour conceptual space of mineral wines comprises sulphur-reduced aromas, such as flint, wet stone or chalk associated with freshness and lingering mouth perceptions. Professionals do not consider the perception of sulphur-reduced flavours as an off-flavour. Indeed, this sort of reduction is a cue for the recognition of minerality under a likely top-down mental process. However, untrained consumers perceive these aromas as unpleasant. This different qualitative assessment hampers the communication between professionals and amateurs. This review aimed to describe the perceptions of minerality by experts and novices to promote their mutual understanding. Funkiness is proposed as a descriptor of mineral wines when tasted by unexperienced consumers. The chemical basis of minerality and winemaking options were explored to understand their implications on sensory perception. Mineral flavours have two main features. The first comprises ephemeral aromas that may be described as funky, given their association with sulphur-reduced molecules. The second is linked to the fresh and vivacious lingering mouthfeel perceptions that remain after the reductive aromas vanish. Consumers recognise this dual perception by demonstrating positive emotional responses of surprise during tasting. Then, the perception of minerality is a question of cognition and not of particularly developed sensory skills. Appropriate tasting approaches encompassing emotional responses and emergent properties (e.g., harmony, depth, persistence, complexity) appear essential to understand the nature of wine minerality and to determine when it may be regarded as a surrogate for fine wine quality.

Persistence in the passion investment market

Research on the passion investment market is still limited, especially on the issue of persistence. This paper is the first to investigate it using both R/S analysis and fractional integration in the case of 3 fine wine price indices, 10 diamond price indices, 15 art price indices, and 1 stamp price index at the daily, monthly and quarterly frequency. The results can be summarised as follows: wine prices are found to be highly persistent, whilst stamp prices appear to be only weakly persistent, though they can still be characterised as a long-memory process; as for diamond prices, they can be persistent (Diamonds & Gems), anti-persistent (Diamonds Carat indices) or even random (Polished Prices Diamond Index). The dynamic R/S analysis also shows that persistence is time-varying and tends to fluctuate around the average. These findings can be explained by the different degree of liquidity of the assets examined and have implications for both academics investigating market efficiency and practitioners interested in forecasting prices.

Judging reliability at wine and water competitions

AbstractStudies suggest the inter-rater reliability of judges at wine competitions is higher than what would be expected by random chance, but lower than what is observed when experts in other fields make judgments specific to their expertise. To further contextualize the (un-) reliability of wine judging while also extending the study of fine water, we examine the inter-rater reliability of judges at an annual international competition for bottled waters. We find that the inter-rater reliability of water judging is generally better than chance and, at best, about the same as the inter-rater reliability of wine judging at some wine competitions. These results suggest that perceptible differences between fine waters exist but are less pronounced than those between fine wines and, also, that aesthetic standards with respect to fine waters exist but are currently less established than those for fine wines.