Although potentially useful for financially hedging systemic weather-related risks, weather contracts/derivatives (also referred to as parametric insurance) have not seen wide adoption in agriculture outside of applications in developing countries, frequently supported by governments and non-governmental organizations (NGOs). A significant impediment is the lack of financial firms willing to stand ready to sell weather derivatives to individual agricultural producers in the over-the-counter market who, due to the localized nature of weather, face idiosyncratic weather-related risks. In particular, the administrative and reinsurance costs of supplying relatively small contracts with specific terms to many different producers are often prohibitive. The current study considers the potential use of weather derivatives in hedging the aggregate yield/revenues of viticulture producers represented by an industry association located in the province of Ontario, Canada. We examine the sensitivity of aggregate industry yields to several relevant weather-related risks employing copula function analysis. We then consider the potential of a weather derivative in hedging the financial risk associated with cold winter temperatures, which pose the greatest risk to aggregate vinifera yields. The issue of attributing costs and payouts to individual association members remains unresolved, and several alternatives are suggested.

By analyzing more than 1,400 expert tasting notes, we assess the so-called gender profile of Bordeaux wines. We identify 329 gender-related wine descriptors, with a good balance between masculine and feminine descriptors. Some wines and vintages are described as more feminine than others, but no clear trend over time emerges. Our regression analysis further reveals that more feminine wines receive similar ratings and sell at similar prices as their more masculine counterparts, but they are perceived as having a much more limited aging potential.

This paper examines wine output and slave labor productivity in the Dutch and British Cape Colony, leveraging annual tax censuses. We document a substantial increase in wine production, but, despite substantial institutional changes over more than a century, we find surprisingly stable median wine yields. Exploiting the farm-level nature of our data, we observe increasing heterogeneity in wine yields, suggesting that some farmers were able to realize productivity increases. We show that efficient slave labor utilization was a critical driver of productivity enhancement, largely unaffected by external factors.

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

Hard cider is a sector of a maturing craft beverage industry that continues to experience growth in the United States. Cider is also experiencing challenges, however, such as competition from other alcohol markets, changing consumer preferences, the supply chain, and inflationary pressures. National policy changes may help promote more optimal outcomes for this sector, but public support is important to policy formation. This study uses survey data from a best-worst scaling experiment of consumers in four leading cider-producing states (Michigan, Washington, Wisconsin, and Vermont) to understand preferences toward ten broad cider policy initiatives. The results of multinomial logistic modeling reveal that consumers prefer policies mandating ingredients, nutrition facts, and allergen labeling across all ciders. The least preferred policy initiatives include allowing producers to use vintage on labeling and funding regional cider development. These results have important implications for stakeholders across the industry, including the benefits of labeling disclosures in marketing and the need to improve public awareness of barriers to cider industry development.

Using newly released public data on beer prices in the state of California, we construct a large dataset (approximately 2 million observations) that includes beer prices and packaging configurations. We merge this dataset with brewery attributes and county demographics to explore pricing differentials across California, the U.S.’s largest brewing state. We provide evidence of potential pricing-to-market conducted by macro breweries across the three-tier distribution system where craft breweries do not. In addition, we describe package attributes that exhibit price differentials across brewery types. We make the cleaned data available to the public and provide avenues for future research that may be addressed with this new data.

We propose to establish wine rankings using scores that depend on the differences between favorable and unfavorable opinions about each wine, according to the Borda rule. Unlike alternative approaches and specifications, this method is well-defined even if the panelists’ quality relations are not required to exhibit demanding properties such as transitivity or acyclicity. As an illustration, we apply the method to rank wines assessed by different experts and compare the resulting ranking with that obtained according to Condorcet's method of majority voting.

Consumer choice of differentiated products, such as wine, depends on the composition of the choice set consumers are choosing from. However, choice sets are often situationally defined through wine-tasting lists or displayed wines in a particular tasting and sales environment. In this paper, we use an experiment to explicitly modify the saliency of wine options available outside the tasting room choice set and the amount of sensory information available about the wines before wine tasting. We explicitly test whether consumer regret and fear of missing out on alternative options or consumer search costs are more likely to drive behavior around large choice sets. We find that increasing the saliency of outside options decreases one's propensity to taste the wines available for tasting and purchase immediately, while changing search costs through sensory descriptions does not affect tasting behavior. This provides support for the anticipated regret and fear of missing out motivations for behavior around large wine-tasting lists.

The COVID-19 pandemic itself constitutes an environment for people to experience the potential loss of control and freedom due to social distancing measures and other government orders. Variety-seeking has been treated as a mechanism to regain a sense of self-control. Using Machine Learning model and household-level data with a focus on the wine market in the United States, this study showcases the changing variety-seeking behavior over the pandemic year of 2020, in which people’s perception of the status of restriction measures influences the degree of their use of variety-seeking behavior as a coping strategy. It is the shopping pattern and store environments that drive the behavioral responses in wine purchases to freedom-limited circumstances. Coupon use is associated with a lower variety-seeking tendency at the beginning of the stay-at-home order, but the variety level resumes when more time has passed in the restriction periods. Variety-seeking tendency increases with shopping frequency at the beginning of the social distancing measure but decreases to a level lower than all the non-restriction periods.

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

The impact of product ratings is significant in the experience goods market, whose intangible products are difficult to evaluate before consumption. Product ratings can reduce information asymmetries because they represent a credible signal of quality and thus positively affect product sales. In this study, we shed light on how professional critics behave by focusing on the influence of product characteristics and former reviews on rating behavior and market prices as additional quality signals in wine markets. Using 13,911 observations from professional wine tastings, we analyze 8,444 worldwide-produced wines and their ratings over 20 years. We find clear evidence to suggest that prices and product ratings are significantly related. Finally, the results suggest that review consistency evolves and determines current ratings.

This study examines the impact of repealing Sunday blue laws on alcohol sales and retail competition, focusing on Connecticut’s 2012 policy change allowing Sunday beer sales in grocery stores. Using nationwide data from 2004 to 2021, we find a short-term increase in beer sales post-policy change, but no significant long-term economic effects on grocery and liquor stores. Our analysis also shows similar treatment effects for chain and standalone liquor retailers, suggesting limited lasting implications for the liquor retail industry’s performance and conduct after Sunday sale restrictions were lifted.

We explore the impact of the 2013 Common Agricultural Policy (CAP) reform on spatial price co-movements between the main European Union (EU) wine producer markets (i.e., Spain, France, and Italy). We consider monthly prices from January 2005 to January 2020 and R-Vine copula models, splitting the time period considered in December 2012 to track the changes in (1) the degree of integration, (2) the central markets, and (3) the potential asymmetries after the 2013 CAP reform. The results indicate an increasing overall price dependence from one sub-period to another, with Spain succeeding Italy as the central EU market. We also show asymmetry between Italy and France in the upper tail before 2013 and between Spain and France in the lower tail after 2013.

Is it possible to exploit cognitive biases so that a non-professional taster prefers one wine to several other absolutely identical wines? To address this question, three complementary experiments were carried out. Each time, five wines were tasted blind in a tasting laboratory by 24 to 34 tasters. Converging evidence from the experiments shows that participants were not capable of identifying that some of the wines they were tasting were absolutely identical. Moreover, the results show that by providing information about the wines’ ratings, prices, or reputation, tasters’ expectations can be modified, and, as a result, their evaluations of the wines can be altered. Specifically, we show that it is possible to modify the ranking between different wines and to get tasters to prefer a wine over other absolutely identical wines. Finally, a surprising finding was that experienced tasters express stronger opinions and adapt their evaluations more strongly after being given manipulative information on the wines they taste.

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

China has been one of the most important sources of growth in global wine demand this century, accounting for 7% of the world's wine consumption and imports by 2017, or four times its 2005 shares. But China's per capita wine consumption peaked in 2012, has fallen every year since 2017, and in 2022 was one-third of its peak, and its imports have more than halved since 2017. Certainly, the COVID-19 disruption and associated slowdown in China's income growth would account for some of that. However, the fall in China's alcohol consumption began three years earlier, and between 2019 and 2022, the fall was considerably larger for wine (47%) than for spirits (17%) and beer (3%). Thus, wine's share of alcohol consumption in China fell by two-fifths over those three years. The article speculates on the reasons behind the dramatic downturn in this globally important market and finishes by imagining future trends and drawing implications for wine-exporting countries.

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

In 1790, the Revolutionary government expropriated most property owned by the Church and its entities, and sold it by auction. This effectively ended the centuries-old participation of the Church in wine production in France. Focusing on Burgundy, this article sketches the contours of the sale of vineyards and other wine-related property owned by the Church. It shows that auctions fetched prices well above the assessed value of the properties that were sold and speculates on the reasons.