Is the quality of a 91-point wine significantly different from that of an 89-point wine? Which wines are underpriced relative to their evaluation of quality? This paper addresses these questions by constructing a novel wine rating system based on scores assigned by a panel of wine experts to a set of wines. Wines are classified in ranked disjoint quality equivalence classes using measures of statistically significant and commercially relevant score differences. The rating system is applied to the “Judgment of Paris” wine competition, to data of Bordeaux en-primeur expert scores and prices, and to expert scores and price categories of a large database of Italian wines. The proposed wine rating system provides an informative assessment of wine quality for producers and consumers and a flexible rating methodology for commercial applications.

Cannabis regulatory reform has opened areas for product innovation and entrepreneurship. One dimension that has so far been understudied is the potential for cannabidiol (CBD) and tetrahydrocannabinol (THC) beverages. This study uses double-bounded contingent valuation techniques and parametric and nonparametric estimation procedures to assess consumer demand and willingness to pay (WTP) for various cannabis-infused beverages. By targeting a nationally representative sample of U.S. adults, the study finds that roughly half of consumers are willing to try cannabis-infused beverages. Among these respondents, cannabis-infused juices and sweetened iced tea elicit the highest mean WTP, though the WTP for other beverage options varies across demographics and consumer preferences. On average, the mean WTP for THC-infused beverages is 12.5% higher per 12 oz can than its CBD-infused counterpart, and younger consumers are willing to pay more for each of these products. These results have important implications for entrepreneurial decision-making, product development, and marketing strategies.

This paper examines the economic impact of wine counterfeiting, with a focus on the Sassicaia scandal, publicized in 2020, regarding counterfeit 2015 vintage bottles of the iconic Super Tuscan wine. Wine fraud, documented since ancient Rome, has evolved alongside the industry, with key developments such as the Appellation d'Origine Contrôlée system aiming to curb it. The paper briefly reviews three other significant modern cases of wine counterfeiting: the Hardy Rodenstock “Jefferson bottles” affair, the Brunello di Montalcino scandal, and Rudy Kurniawan’s counterfeit operation. It then shifts to a detailed analysis of the case of Sassicaia. We combine informal analysis using data plots and a formal difference-in-differences analysis to assess the market impact of the 2015 Sassicaia scandal. We find that, surprisingly, the scandal led to an increase in the price of authentic 2015 Sassicaia, perhaps driven by perceived rarity and media attention.

Much research shows that the ratings that critics, judges, and consumers assign to wines are heteroscedastic. A rating observed is one draw from a latent distribution that is wine- and judge-specific. Estimating the shape of a rating’s distribution by minimizing a sum of cross entropies has been proposed and tested. This article proposes a method of improving the accuracy of that estimate by using information about the context of a wine competition or cross-section ratings data. Tests using the distributions implied by 90 blind triplicate ratings show that the sum of squared errors for the solution using context or cross-section information is 50% more accurate than not using such information and over 99% more accurate than ignoring the uncertainty about a rating.

This paper investigates the impact of corporate expansion in the alcohol retail industry on small-scale retailers. Our empirical approach exploits the timing of corporate entries across U.S. states that do not have a state monopoly to examine entry effects based on proximity to incumbent retailers. The analysis, drawing on a comprehensive dataset of U.S. alcohol retailers from 2000 to 2020, reveals that corporate entries within a 1-mile radius positively impact the employment and revenue of nearby small-scale retailers, with these effects intensifying over time and being more pronounced in metropolitan markets. Despite these localized impacts, the overall market structure and firm behavior remain largely unaffected.

This article documents the sudden creation of a significant entrepôt for French wine, particularly Bordeaux claret, in Boulogne-Sur-Mer starting in 1720. Scottish Jacobites who practiced a rebellious version of “fair trade” dominated this commerce, and their network had direct links to 18th-century economic thinkers such as Richard Cantillon, Charles de Montesquieu, and David Hume. The research uses social network analysis to analyze and visualize the concurrent networks, which by the 1750s included the French physiocrats. The research shows how politically inspired actions and strategies affected not only the wine entrepôt’s formation but also the circulation of ideas regarding “fair,” “free,” and balanced trade among Franco-British economic theorists. It also documents the formation of a dedicated claret commodity chain as well as the advent of wine product, packaging, and marketing specialization in the 18th century. These Jacobites formed wine trading firms that lasted long after the relevance of their political objectives had waned.

Hedonic models that seek to explain the observable variation in wine and beer prices have so far included alcohol by volume (ABV) only as a control variable without paying much attention to the magnitude of the coefficient and without questioning the implicit assumption that the impact of ABV on bottle prices is indeed linear. Using data from the “Austrian Spirits Trophy 2023,” we find the relationship between ABV and bottle prices to be nonlinear, with statistically significant effects observed for linear, squared, and cubic terms of alcohol content. Moreover, we find expert evaluations of spirits to demonstrate a nonlinear relationship with ABV too.

Understanding consumer choices and their drivers of willingness to pay (WTP) for a bottle of wine has been a research challenge in wine economics, particularly in niche markets such as sparkling wine. This study investigates the determinants of WTP for sparkling wine based on data from Portuguese consumers. The results provided by two alternative methodologies are compared: a traditional econometric model, based on the estimation of an ordered probit model; and a modelling approach based on data-driven and using machine learning algorithms. Both approaches present similar results, highlighting the relevance of some determinants including income, Champagne brand, not being a protected designation of origin and being a red wine consumer as main predictors of WTP for sparkling wine in Portugal.

In this article, we examine how weather variables affect markets for U.S. high-end wines, both luxury wines and wines from the same region that are still high-end but not in the very limited highest category. Specifically, we compare so-called “cult wines” with “non-cult wines” from the same subregions that are known for their high-quality wines. We investigate associations between weather conditions and prices, price gaps (the difference between the secondary market price and release price), the number of cases produced, and wine scores assigned for both cult and non-cult wines. We further examine whether associations with weather differ across wine regions. Implementing a fixed-effects methodology, cult and non-cult wines from three U.S. regions were studied: both Napa and Sonoma in California, and Walla Walla on the border of Washington State and Oregon. Overall, the analysis suggests that weather is associated with various characteristics of wine markets, including prices, price gaps for cult wines, wine scores, and cases produced. The nature of the associations depends on the type of wine (cult or non-cult, red or white) and timing of weather conditions throughout the year and growing region.

The adoption of fungus-resistant grapevines may be a key strategy for substantially reducing fungicide use in pesticide-intensive viticulture. In a representative survey conducted among 436 grapevine growers in Switzerland, we elicited growers’ expected share of land devoted to fungus-resistant varieties in ten years. More specifically, using regression analyses, we explore the main predictors behind the stated adoption intentions. We find that one-third of new plantings in the next decade will be fungus-resistant varieties. As a result, the expected share of land devoted to fungus-resistant varieties in ten years is 27.4% (compared to 10.2% in 2022), thus increasing by 169%. Farmer- and farm characteristics explain most of the adoption dynamics, especially growers’ beneficial health perceptions about fungus-resistant varieties, which correlate positively with their expected land share devoted to these varieties. Moreover, non-organic grapevine growers are particularly likely to increase their land devoted to these varieties. These findings have important implications for agricultural policy and industry in Europe and elsewhere, facilitating the expected plantation increase using a policy mix tailored to farmer- and farm-level characteristics.

This paper investigates the market position of hard cider within the broader alcoholic beverage market. The first experiment identifies two distinct consumer segments—around 40% prioritize flavor attributes, while 53% prefer production information. The second experiment utilizes a basket- and expenditure-based choice experiment and a multiple discrete choice extreme value model to assess hard cider's standing among commonly consumed alcoholic beverages. Results reveal that hard cider is perceived as a complement to red and white wine but is independent from beer. The study suggests marketing hard cider in conjunction with white wine to capitalize on observed complementarity. Emphasizing the importance of addressing both consumer segments—those valuing flavor notes and those prioritizing production information—the research offers valuable insights for optimizing hard cider market strategies.