Wine Economics

Abstract

Fine wine has a few characteristics that differentiate it from other agricultural commodities and beverages, rendering it an interesting topic for economists. Fine wine can regularly fetch bottle prices that exceed several thousand dollars. It can be stored a long time and can increase in value with age. Fine-wine quality and prices are extraordinarily sensitive to fluctuations in the weather the year in which the grapes were grown. Wine is an experience good, that is, its quality cannot be ascertained before consumption. As a result, consumers often rely on "expert opinion" regarding quality and maturation prospects. This article describes the emergence and the unparalleled rise of wine economics from the 1980s to the present and sheds light on its three main topics: finance, climate change, and the role of expert opinion. (JEL Classification: Q1, G11, Q54, L15)

Alternative Investments: Valuation of Wine as a Means for Portfolio Diversification

“…Goulet and Morlat (2011) state that in viticulture, four main factors determine the quality of wine: environmental conditions of production, varietal selection, vine manage ment, and winemaking practices. Wine differs from tradi tional investments and other alternatives by dependence on climatic conditions while other alternative investments incur no impact related to climate (Storchmann 2012). However, Erdobs and Ormos (2013) argue, that weather conditions, which determine the quality of the vintage, play no role in setting the prices of new wines, but the quantity produced does, which is not related to the quality.…”

Wine – complement or dominant component of the in vestment portfolio with minimum risk

“…Przedmiotem badań ekonomii wina są kwestie związane z uprawą, przetwarzaniem i obrotem na rynku wina. Dlatego obszary zainteresowań tej dyscypliny są powiązane nie tylko z ekonomią rolnictwa, ale również z finansami, handlem i uwarunkowaniami klimatycznymi oraz rolą ekspertów (Storchmann 2012). Rozwój ekonomii wina wyznaczają prace scharakteryzowane w tabeli 2, które opisują różnorodne aspekty związane z inwestowaniem na tym rynku.…”

“…Storchmann (2012) Inwestycja w wino znajduje uznanie zarówno wśród inwestorów, jak i środowiska akademickiego. Trzy główne nurty ekonomii wina są powiązane z finansami, klimatem i oceną ekspertów.…”

Regulation and Contract Choice in the Distribution of Wine

“…Most economic research has focused on supply relations between wineries and wine grape growers (Fernández-Olmos, Rosell-Martínez, and Espitia-Escuer, 2009;Franken, 2014;Franken and Bacon, 2014;Goodhue et al, 2003;Zylbersztajn and Miele, 2005) or on consumerlevel supply and demand characteristics (for a broad survey, see Storchmann, 2012). There is little research on the structure of the value chain between the winery and the retailers from whom the wine is ultimately purchased.…”