Wine Economics: Recent Comments

Comment on The Most Profitable Wine in the World

eweininger — Tue, 22 Jul 2008 10:12:14 GMT

Have you seen Podolny's paper (written with a co-author whose name I forget) on the orientation to profit maximization in the California wine industry? It documents fairly well that the profit motive is differentially distributed across producers, with those clustering at the high end of the quality and price spectra more willing to accept alternative rewards.

Comment on They Always Buy the Ten Cent Wine

Lloyd — Tue, 15 Jul 2008 11:03:49 GMT

There are cheap wines that taste like their price, and expensive wines that similarly in taste mirror their price. There are also cheap wines that are excellent, and the price escalates as recognition grows and sales volume increases over time, and expensive wines that are falsely overpriced. Sales volume of overpriced expensive wines also will fall over time.

Comment on They Always Buy the Ten Cent Wine

Steve Stumpf — Sun, 06 Jul 2008 07:39:12 GMT

Nice article. Pricing wine is a good entry point for shedding what is sold to the consumer as important. I like wine and I write about wine; limited to wines I drink and things I read about wines. I tout wines under $20. Generally, you will not find them in California. When it comes to marketing, the Gallos and Mondavis are a good place to start. The Gallos should be paired with the Mondavis as a contrast in how 2 different approaches to wine empire building can work; ruthless marketing selling cheap wines (the Gallos used lots of apple juice) versus selling a concept of high living with higher priced wines. The Wine Spectator derives from the Mondavi approach. The 100 point scale is as phony as many of the 100 point wines they tout. Rent Mondo Vino, read the Gallo and Mondavi books. I review all three on my blog. And buy wines under $20 from your local premium wine retailer. Those will be the boxes on the floor at the front or back of the store. www.thebestofwines.com

Comment on They Always Buy the Ten Cent Wine

tc — Sat, 05 Jul 2008 22:13:34 GMT

I'm an oddball ... I like both red *and* wine!

Comment on They Always Buy the Ten Cent Wine

Selina — Sat, 05 Jul 2008 18:57:23 GMT

Great article. This is all very true!

By the way, there is a typo in the 8th paragraph in this article. In the last sentence, there are two "ands." Feel free to delete this last portion of my comment.,

Comment on They Always Buy the Ten Cent Wine

Zooph — Sat, 05 Jul 2008 11:35:39 GMT

"favoring red versus wine" is a neat trick. Good article nonetheless.

Comment on The Future of Wine?

Anonymous — Thu, 03 Jul 2008 04:13:03 GMT

Interesting article about the future of wine, but as you may have doubts about many of the predictions, you seem pretty sure about the disappearance of corks. They are neither inefficient nor do they have a high rate of contamination, otherwise I don't believe they would have lasted for centuries. Also, while the new products have been increased because, let's face it, they are new, the cork industry has been investing a lot in improving the general performance of the cork stoppers and decreasing the contamination rates (which, I don't believe to be that high).

Besides, as sustainability becomes more and more important, corks are the product that offer higher benefits to the environment. Just compare them, the data is out there! To start with, it's a natural, renewable and recycling product. Also, by preserving the cork oak forests, we are speaking about preserving wild life, with the additional benefits of carbon sink. Especially now with the climate change problem (that you also refer), cork will become essential.

Keep a track of the developments of the industry before you make assessments.

Comment on Wine Economics Feature in "The Economic Journal"

Karl Storchmann — Wed, 02 Jul 2008 09:42:18 GMT

Wesley, 100% right. And sometimes you have to change your arguments.

Comment on Wine Economics Feature in "The Economic Journal"

Wesley Paul — Wed, 02 Jul 2008 08:20:00 GMT

Having studies economics in college I don't feel like this is taking the fun out of anything. In fact, I happen to find a fair amount of enjoyment in looking at subjects from a different perspective. If those who aren't economists could wrap their heads around concepts such as those in the article they might find a different way of supporting their own arguments.

Comment on The Welfare Gains of Wine Market Globalization

GVV — Fri, 27 Jun 2008 22:56:23 GMT

What about prices of other imperfect substitute like whisky,brandy etc?