Demand For Wine Research Articles

Impact of the Seattle Sweetened Beverage Tax on substitution to alcoholic beverages.

IntroductionTaxes are increasingly used as a policy tool aimed at reducing consumption of sugar-sweetened beverages (SSBs), given their association with adverse health outcomes including type 2 diabetes, obesity and cardiovascular disease. However, a potential unintended consequence of such a policy could be that the tax induces substitution to alcoholic beverages. The purpose of this study is to examine the impact of the $0.0175 per ounce Seattle, Washington, Sweetened Beverage Tax (SBT) on volume sold of alcoholic beverages.MethodsA difference-in-differences estimation approach was used drawing on universal product code-level food store scanner data on beer (N = 1059) and wine (N = 2655) products one-year pre-tax (February-November, 2017) and one and two-years post-tax (February-November, 2018 and 2019) with Portland, Oregon, as the comparison site.ResultsAt two-years post-tax implementation, volume sold of beer in Seattle relative to Portland increased by 7% (ratio of incidence rate ratios [RIRR] = 1.07, 95% CI:1.00,1.15), whereas volume sold of wine decreased by 3% (RIRR = 0.97, 95% CI:0.95,1.00). Overall alcohol (both beer and wine) volume sold increased in Seattle compared to Portland by 4% (RIRR = 1.04, 95% CI:1.01,1.07) at one-year post-tax and by 5% (RIRR = 1.05, 95% CI:1.00,1.10) at two-years post-tax. The implied SSB cross-price elasticities of demand for beer and wine, respectively, were calculated to be 0.35 and -0.15.ConclusionsThere was evidence of substitution to beer following the implementation of the Seattle SSB tax. Continued monitoring of potential unintended outcomes related to the implementation of SSB taxes is needed in future tax evaluations.

A time series projection model of online seasonal demand for American wine and potential disruption in the supply channels due to COVID-19

PurposeThis study statistically examines the shifting distribution channels in the American wine industry based on the growth trajectory of sales, seasonality and disruption due to consumers switching to online platforms. The purpose of this paper is to design a model that will have general applicability beyond the wine industry.Design/methodology/approachThe research uses regression-based additive decomposition of time series data to predict the trajectory of the market share for the digital distribution channel. The study develops a statistical prediction model using time series data between 2007 and 2020, inclusive, sourced from US Annual Wine Reports and Bureau of Alcohol, Tobacco and Firearms databases.FindingsThe results show an increasing trajectory of wine sales through the online distribution channel with predictable seasonality. The disruptive effects of consumer switching behavior point to a steady increase in sales due both to increasing demand and accelerating switching. Nevertheless, the model shows that bricks and mortar purchases will remain strong and continue to account for the bulk of wine sales. COVID-19 has caused a step function increase in online sales but this should moderate after the crisis subsides and can be tested further.Originality/valueThis study is original in developing a model for an industry where bricks and mortar sales are growing and are expected to remain strong while there is still identifiable switching to online sales. The wine industry presents a classic case of accelerating switching behavior where there is still a strong franchise for in-store purchases. The model should have general applicability to distribution channels beyond the wine industry where steady growth, marked seasonality and disruptive consumer switching are in evidence.

QUALITY PARAMETERS OF WINE: A REVIEW

—Indian wine industry growing progressively in the market. The demand for wine gradually increasing by the consumer. There is a rising trend in the demand for organic products that should not be ignored. Some parameters that determine quality in wine.The review paper aims to investigate the relationship between wine parameters and grape parameters and the impact of different process involvement that defines the quality of the wine.

Big Data analytics for Advanced Viticulture

Big data analytics involve systematic approach to find hidden patterns to help the organization grow from large volume and variety of data. In recent years big data analytics is widely used in the agricultural domain to improve yield. Viticulture (the cultivation of grapes) is one of the most lucrative farming in India. It is a subdivision of horticulture and is the study of wine growing. The demand for Indian Wine is increasing at about 27% each year since the 21st century and thus more and more ways are being developed to improve the quality and quantity of the wine products. In this paper, we focus on a specific agricultural practice as viticulture. Weather forecasting and disease detection are the two main research areas in precision viticulture. Leaf disease detection as a part of plant pathology is the key research area in this paper. It can be applied on vineyards of India where farmers are bereft of the latest technologies. Proposed system architecture comprises four modules: Data collection, data preprocessing, classification and visualization. Database module involve grape leaf dataset, consists of healthy images combined with disease leaves such as Black measles, Black rot, and Leaf blight. Models have been implemented on Apache Hadoop using map reduce programming framework. It apply feature extraction to extract various features of the live images and classification algorithm with reduced computational complexity. Gray Level Co-occurrence Matrix (GLCM) followed by K-Nearest Neighborhood (KNN) algorithm. System also recommends the necessary steps and remedies that the viticulturists can take to assure that the grapes can be salvaged at the right time and in the right manner based on classification results. Overall system will help Indian viticulturists to improve the harvesting process. Accuracy of the model is 72% and it can be increased as a future work by including deep learning with time series grape leaf images.

Sustainable competitive advantages for a nascent wine country: an example from southern Sweden

PurposeThe purpose of this study is to discuss the opportunities for and challenges faced in the development of a wine sector in a nascent wine country, as well as the necessary requirements for the creation of sustainable competitive advantages (SCA), using Sweden as an example.Design/methodology/approachContent analysis of previous research based on secondary data; a SWOT analysis of the wine sector in the nascent wine country, Sweden, is provided in connection with a conceptual framework for SCAs.FindingsIn a nascent wine country such as Sweden, factors such as climate or technical issues regarding wine production are important factors in respect of SCA, but in themselves, do not present insurmountable obstacles to their creation. In reality, structural challenges such as the alcohol monopoly in the retail market, various other legal regulations and restrictions, the lack of marketing and promotion capabilities, limited viticulture knowledge and limited experience of cooperation with the local enterprise are all far more problematic in that they lead to relatively limited demand for Swedish wine. In this context, a marketing management approach becomes a key factor in changing attitudes and approaches. Clearly, it is important to provide potential markets and consumers with relevant marketing information about the nascent wine country and its products.Originality/valuePrevious research generally focused on the SCA in the established wine countries; the focus of this study is on the SCA in a nascent wine country, a country without any tradition of commercial wine production. This study contributes to the discussion of a new conceptual framework for understanding SCA in the context of nascent wine countries. Furthermore, it suggests that the remaining state alcohol retail monopoly in Sweden provides not only challenges but also opportunities for the development of the wine sector. These findings are valid not only for Sweden but also for other nascent wine countries.

High-end luxury wine demand and income inequality

PurposeThe purpose of this study is to explore the relationship between income inequality and the demand for high-end luxury wine. The consumption of luxury goods has experienced dramatic growth since 2000 but inequality has been neglected by scholars working on luxury consumption. The exploratory research focuses on wine demand between 2000 and 2019 and analyzes the impact of income inequality among other factors, including gross domestic product (GDP) per capita and GDP growth. The authors want to discern whether highly unequal countries import more expensive wine when compared to countries with lower inequality.Design/methodology/approachThe authors prepared different data sets based on the year and the trade value of each country to compare the differences and commonalities. The regression models incorporate particular foreign trade statistics (average unit price of wine) as an objective variable and the Gini coefficients to measure the relation between the demand for high-end luxury wines and inequality as an explanatory variable. The models also incorporate other control variables such as economic and institutional conditions.FindingsThe analysis demonstrates a positive relationship between the unit price of imported wine and the level of income inequality of the importers. This research suggests that conspicuous consumption, as a means of social distinction, is a major driver of the luxury wine market. Other significant factors include GDP per capita and geographic proximity. However, countries with a high power distance and bad governance do not purchase more luxury wines than others. Hence, rather than the social acceptation of wealth and corruption, the consumption of luxury wines is driven by the levels of economic development and inequality.Originality/valueThis paper is exploratory research that discusses an underexplored issue: the impact of income inequality on the consumption of luxury goods such as high-end luxury wines. It contributes to the literature on wine consumption, luxury business and income and wealth inequalities. These fields are rarely approached together and the research emphasizes the potential offered by such a perspective.

A “Sideways” Supply Response in California Winegrapes

AbstractThis paper explores growers’ supply response to the 2005 “Sideways effect” demand shock (Cuellar, Karnowsky, and Acosta, 2009) triggered by the 2004 release of the movie Sideways. We use a modified difference-in-difference approach to evaluate the supply response in California and regional supply response differences within California. We use U.S. Department of Agriculture data for the period 1999–2012 and find evidence of a supply response in the post-release period that is consistent with the “Sideways effect” on wine demand. The positive supply response for Pinot Noir is stronger than the negative response for Merlot and concentrated in lower value Central Valley vineyards. (JEL Classifications: D25, Q12)

Motivation factors for organic wines. An analysis from the perspective of German producers and retailers

This study investigates the motives for producers that inform decisions to convert or not convert to organic wine production as well as the motives for retailers to offer or not offer organic wine and promotion of organic wine from producers’ and retailers’ perspectives. In total, 100 semi-structured in-depth interviews with 25 different types of retailers, 50 organic wineries and 25 non-organic wineries were conducted and analysed using content analysis and grounded theory. Additionally, the wine offers of 25 stores were analysed to develop an understanding of the distribution and promotion of organic wines. Producers choose to switch or not to switch to organic farming for primarily altruistic reasons. Because organic wine producers do not specifically focus on the organic nature of their wines in their communications, this attribute is typically disregarded by retailers and consumers during their wine-buying decisions, which undermines the growing demand for organic wine. There are significant differences between wine-growing regions in Germany and their vine cultivation conditions due to weather, the steepness of slopes and the attitudes towards converting conventional wine production to organic wine production. Missing knowledge and a low demand for organic wines are barriers for retailers to focus on organic wine. To our knowledge, this is the first study to investigate organic wines from numerous producers in every wine-growing region in Germany and various retailers in Germany. The focus on communication shows a lack in the knowledge transfer along the value chain of organic wine. Therefore, this study fills a research gap and provides valuable practical insight into the organic market for the wine industry and the scientific community.

The Effects of the COVID-19 Pandemic on the Mass Market Retailing of Wine in Italy.

The purpose of this study was to provide a detailed framework of wine purchases in supermarkets during the COVID-19 pandemic. The unexpected diffusion of the virus and the restrictions imposed in Italy to prevent its spread have significantly affected the food purchasing habits of consumers. By analyzing the scanner data of the wine sales in the Italian mass market retail channel, this study was intended to show whether and how the dynamics triggered by the pandemic have modified the overall value and type of wine purchases, focusing on prices, formats, and promotional sales. In particular, this study explores sales in two separate periods, namely March–April (the “lockdown”, with general compulsory closing and severe restrictions) and June–July 2020 (the “post-lockdown”, in which some limitations were no longer effective). The analysis of wine sales during lockdown and post-lockdown and the study of the variations compared to the sales of the previous years showed some significant changes in purchase behavior. The results could provide managers, researchers, and policy makers with extensive insights into the purchasing patterns of consumers during this unprecedented time and reveal trends that may characterize the structure of the future wine demand.

Aircraft Dispute, Wine, and the US–EU Trade War: Implications for US Consumers and Wine Suppliers

AbstractThis paper estimates changes in demand for imported wines by source country and resulting welfare effects due to Section 301 tariffs imposed on certain European wines in October 2019. A two-stage expenditure allocation scheme is used to estimate the import demand for red, white, and other wines in the first stage, and source-differentiated red wine and white wine demand in the second stage. From derived price elasticities measuring first and second stage interactions, welfare measures are simulated capturing effects of the new tariffs on both taxed and non-taxed exporters as well as the US importers of red and white wine.

Karpik in the Bottle: Can Judgment Devices Explain the Demand for Fine Wine?

Processes of valuation and evaluation are especially complex and uncertain in markets for unique products. Consider the purchase of a bottle of fine wine. Each wine was produced in a certain region, on a particular soil, by a famous wine producer, employing methods handed down for centuries. How can consumers compare unique products in order to make a choice? How is a market for singular products possible? According to Lucien Karpik’s economics of singularities, such markets necessarily rely on social actors and artifacts providing knowledge on how to compare unique products, called judgment devices. To systematically assess the explanatory contribution of Karpik’s approach, this paper empirically tests fundamental propositions of the economics of singularities in a quantitative framework, examining the case of the demand for fine wine. The analysis provides ample support for Karpik’s theory. First, wine demand is substantially correlated with the use of judgment devices. Second, the effects of judgment devices on product demand cannot be explained by information deficits, in line with the theoretical arguments. However, the analysis also reveals deviations from the theoretical expectations. Certain judgment devices prove more important for the demand for higher priced wines than predicted, whereas others play a more minor role. Furthermore, the use of judgment devices is substantially linked to social distinction, something Karpik’s theory overlooks.

A Study on Determinants of French Wine Demand for French Wine Consumers

Purpose - This study attempts to estimate influencing factors through the establishment of a demand model for wine selection attributes centering on the French region of Bordeaux, which has high growth potential in the future. This analysis, can be used to select a marketing strategy by presenting the direction of development of the French wine market through the analysis of factors that determine the demand for wine in Bordeaux, France. Design/Methodology/Approach - This study was conducted for two months using survey data collected from the Bordeaux region, targeting French with experience drinking wine mainly in the Bordeaux region of France. To examine the influence on the French wine selection attributes and usage patterns, influencing factors were estimated through factor analysis and the establishment of a Truncated Poisson (TP) model. Findings - As a result of estimation by applying the wine TP model in Bordeaux, France, it was found that variables related to socioeconomic characteristics had a positive effect on occupation. The wine selection attribute factor was found to have a positive effect on grape variety, quality grade, and inner characteristics. In addition, it was found that this had a positive effect on the consumption of red wine and the consumption of white wine in one occurance. Research Implications - Considering the limitations of the lack of empirical approaches to the marketing strategy of the wine market in Bordeaux, France, through the estimated results of this analysis, an attempt was made to enter the French wine market with a substantial wine consumption promotion and sales strategy in the French wine market. This can help to provide a clues for suggesting marketing plans for the Korean wine industry.

From Flasks to Fine Glasses: Recent Trends in Wine Economics

This short literature review on wine economics introduces the Special Issue on wine of the Italian Economic Journal. Its goal is to provide non wine experts with an overall picture of recent trends of the wine sector and of major developments of the economic literature devoted to wine markets. As the wine market deeply changed through the last decades, the first section quickly outlines these changes. The second section revise literature on wine demand while the third section is on supply and the fourth is focused on policies.

Transitioning towards Organic Farming: Perspectives for the Future of the Italian Organic Wine Sector

In recent years, after the publication of Regulation (EU) 2018/848 on organic production and the labelling of organic products, all stakeholders have been considering threats and opportunities in the development of the organic food and beverage sector. The aim of the study outlined in this paper was to analyse the development prospects of the Italian organic wine sector in light of the Common Agricultural Policy (CAP) environmental and climate objectives. Specifically, the study focussed on applying a System Dynamics Approach (SDA) and a Network Analysis in order to explain how the most relevant social–economic determinants of the national organic wine sector are in all likelihood influencing the hoped-for shift from conventional to organic production. Such conversion appeared to be worth exploring because, despite the increasing global demand for organic wine, the economic effects on the entire system are still somewhat unclear from a dynamic perspective. The results of the study clearly demonstrated that public policies and regulatory actions at the national and European level will continue to be very influential for the future of the national organic wine system. Different development pathways, such as groups of operators and the adoption of the new national certification system for the sustainability of the entire wine supply chain, should be undertaken by Italian “small wine operators” in order to gain international markets.

Tariff Elimination and the Competitiveness of Wine-Exporting Countries in Japan

AbstractBilateral trade agreements between Japan and major wine-exporting countries have resulted in tariff eliminations in Japan. This raises questions about how tariffs affect the competitiveness of wine-exporting countries. The generalized dynamic Rotterdam model was used in estimating Japanese wine demand by source. Estimates were then used to project the impact of tariffs on imports of Australian, Chilean, French, German, Italian, Spanish, and U.S. wine. Tariff reductions primarily benefit affected countries, with limited adverse effects on competing countries. The elimination of tariffs on U.S. wine should offset any losses from competing trade agreements.

Analysis and Forecasts of the Demand for Imported Wine in China

The aim of this study is to investigate the long-term determinants of China’s imported wine demand and to forecast wine imports from 2019 to 2023 using econometric methods. Auto-regressive distributed lag models are developed based on neoclassical economic demand theory to investigate the long-term determinants of China’s demand for imported bottled, bulk, and sparkling wine from the top five countries of origin. The empirical results demonstrate that income is the most important determinant of China’s imported wine demand, and that price only plays a significant role in a few markets. Substitute and complement effects are identified between wines from different countries of origin and between imported wines and other liquids. China’s imported wine demand is expected to maintain its rapid growth over the forecast period. Bottled wine will continue to dominate China’s imported wine market. France will have the largest market share in the bottled wine market, Spain will be the largest provider of bulk wine, and Italy will hold the same position for sparkling wine. This is the first study to use a single equation with the general to specific method rather than a system of equations to estimate and forecast China’s demand for imported bottled, bulk, and sparkling wines from different countries of origin. The more specific model setting for each country of origin improves forecasting accuracy.

German Consumers’ Perceptions of Organic Wine—A Qualitative Approach

This study aims to examine what German wine consumers know and think about organic wine. It also investigates the effects that knowledge and attitudes have on wine purchasing decisions. Data for this survey were collected using a qualitative approach, with 12 focus group discussions at three different locations in Germany, observations of wine choices and an acceptance test to assess consumers’ knowledge of and reactions to organic wine. Most wine consumers are unaware if a wine is organic when they purchase it. A general skepticism and lack of knowledge about organic wines undermine any active demand for these products. Information and comparisons between the production of organic and conventional wines can improve awareness and consideration of the organic variety and increase consumers’ willingness to buy organic wine. To increase the active demand for organic wine, its attributes need to be communicated to consumers. This can be achieved by improving the visibility of organic certification, conducting information campaigns to inform consumers about wine and organic wine production and collaborating with organic wine associations to advance the public image of organic wines.

Frankish Viticulture, Wine Presses, and wine production in the Levant: New Evidence from Castellum Regis (Miʿilyā)

ABSTRACT As the Christian population increased in the Frankish Kingdom following 1100, there was also a much-increased demand for wine. This led to a revolution in agriculture and industry related to wine production. The high number of texts mentioning vineyards is indicative of these activities. To date only 26 wine-presses identified as belonging to the Frankish period have been discovered, but they provide considerable information about the building technology, and the nature of wine production. The new discovery in Miʿilyā provides critical information about this industry; it points to a kind of monopoly on wine production during the Frankish period, but it also provided great deal of information about the production technology. The fermentation in the local Levantine technology took place under the sun, with low proportion of CO2, in a non-controlled environment, while the Franks brought with them a different technology, in which the fermentation took place inside buildings, in a quite controlled environment with high levels of CO2. In addition, it seems likely that in Miʿilyā’s factory, the fermentation place and storage were in an underground large room. This style, which is suitable to rainy regions, seems to have been introduced to the Levant during the Frankish period.

Unraveling the genetic origin of \u2018Glera\u2019, \u2018Ribolla Gialla\u2019 and other autochthonous grapevine varieties from Friuli Venezia Giulia (northeastern Italy)

‘Glera’ and ‘Ribolla Gialla’ are the most economically relevant local grapevine cultivars of Friuli Venezia Giulia region (north-eastern Italy). ‘Glera’ is used to produce the world-renowned Prosecco wine. ‘Ribolla Gialla’ cultivation is constantly increasing due to the strong demand for sparkling wine and is the most important variety in Brda (Slovenia). Knowledge of local varieties history in terms of migration and pedigree relationships has scientific and marketing appeal. Following prospections, genotyping and ampelographic characterization of minor germplasm in Friuli Venezia Giulia, a further research was developed to understand the parentage relationships among the grapevine varieties grown in this region. An integrated strategy was followed combining the analysis of nuclear and chloroplast microsatellites with the Vitis 18k SNP chip. Two main recurrent parents were found, which can be regarded as “founders”: ‘Vulpea’, an Austrian variety parent-offspring related with at least ten Friuli Venezia Giulia cultivars, among them ‘Glera’, and ‘Refosco Nostrano’, first degree related with other six Friuli Venezia Giulia varieties. ‘Ribolla Gialla’ was shown to be another member of the impressively long list of offspring derived from the prolific ‘Heunisch Weiss’. Combining molecular markers and historical references was a high-performance strategy for retracing and adjusting the history of cultivars.

An Ancient Winery at Jezreel, Israel

Abstract The discovery, excavation, function, typology, and probable date of an ancient winery excavated by the present Jezreel Expedition in 2013 are the focus of this article. Its method of construction and its function are discussed, and a comparison is made with other simple treading installations. The demand for wine is discussed with reference to the military nature of Jezreel during the period of Assyrian hegemony, and a probable date for the winery's initial use is proposed. The Jezreel winery continued in use until at least the first century CE, when new grape-pressing installations appear in the Byzantine-period village of Jezreel.