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Wine Quality and Varietal, Regional and Winery Reputations: Hedonic Prices for Australia and New Zealand

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Author Info
G¸nter Schamel
Kym Anderson

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Abstract

We estimate hedonic price functions for premium wine from Australia and New Zealand, differentiating implicit prices for sensory quality ratings, wine varieties and regional as well as winery brand reputations over the vintages 1992-2000. The results show regional reputations have become increasingly differentiated through time (although less so for New Zealand). In particular, cool-climate regions are becoming increasingly preferred over other regions in Australia. In each country, price premia associated with both James Halliday's and Winestate magazine's sensory quality ratings, and with Halliday's winery ratings and classic wine designations, are highly significant. Copyright 2003. The Economic Society of Australia.

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Publisher Info
Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 79 (2003)
Issue (Month): 246 (09)
Pages: 357-369
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Handle: RePEc:bla:ecorec:v:79:y:2003:i:246:p:357-369

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  1. Storchmann, Karl, 2008. "The impact of the wine industry on hotels and restaurants in Walla Walla," Working Papers 37358, American Association of Wine Economists. [Downloadable!]
  2. Kleynhans, T.E. & Opperman, J.M., 2005. "Determination of priorities of buyers regarding value contributing characteristics of farm land in the Stellenbosch District, South Africa," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), December. [Downloadable!]
  3. Santos, J. Freitas & Ribeiro, J. Cadima, 2005. "Product Attribute Saliency and Region of Origin: Some Empirical Evidence from Portugal," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24667, European Association of Agricultural Economists. [Downloadable!]
  4. Goldstein, Robin & Almenberg, Johan & Dreber, Anna & Emerson, John W. & Herschkowitsch, Alexis & Katz, Jacob, 2008. "Do More Expensive Wines Taste Better? Evidence from a Large Sample of Blind Tastings," Working Paper Series in Economics and Finance 700, Stockholm School of Economics, revised 24 Apr 2008. [Downloadable!]
    Other versions:
  5. Anderson, Kym & Norman, David & Wittwer, Glyn, 2002. "Globalization of the Worlds Wine Markets," CEPR Discussion Papers 3169, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Schamel, Guenter, 2003. "International Wine Trade: Analyzing The Value Of Reputation And Quality Signals," 2003 Annual meeting, July 27-30, Montreal, Canada 22157, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  7. Donnet, Laura & Weatherspoon, Dave & Hoehn, John P., 2007. "Price Determinants in Top Quality E-Auctioned Specialty Coffees," Staff Papers 9310, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
  8. Danielle E. Rabkin & Timothy K.M. Beatty, 2007. "Does VQA Certification Matter? A Hedonic Analysis," Canadian Public Policy, University of Toronto Press, vol. 33(3), pages 299-314, September. [Downloadable!] (restricted)
  9. Grote, U., 2009. "Environmental Labeling, Protected Geographical Indications and the Interests of Developing Countries," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 10(1). [Downloadable!]
  10. Teuber, Ramona, 2007. "Geographical Indications of Origin as a Tool of Product Differentiation: The Case of Coffee," 105th Seminar, March 8-10, 2007, Bologna, Italy 7866, European Association of Agricultural Economists. [Downloadable!]
  11. Teuber, R., 2008. "Geographical Indications and the Value of Reputation - Empirical Evidence for Cafe de Marcala," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43835, European Association of Agricultural Economists. [Downloadable!]
  12. Costanigro, Marco & McCluskey, Jill & Mittelhammer, Ron, 2006. "Identifying submarket in the wine industry: a multivariate approach to hedonic regression," 2006 Annual meeting, July 23-26, Long Beach, CA 21370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  13. Anderson, Kym & Wood, Danielle, 2005. "What Determines the Future Value of an Icon Wine? New Evidence from Australia," CEPR Discussion Papers 5044, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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