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The Importance of Geographic Wine Appellations: Hedonic Pricing of Burgundy Wines in the British Columbia Wine Market

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  • Richard Carew
  • Wojciech J. Florkowski

Abstract

"To examine the buying habits of British Columbia (BC) wine consumers and their appreciation of French wine attributes, we estimate a hedonic price function for Burgundy wines which comprise an array of different appellations, vintages, and alcohol levels. BC ranks among the top three wine-consuming provinces in Canada and residents' wine preferences are likely linked to an emerging sophistication in tastes. This study uses weekly retail sales data and attributes of Burgundy wines reported by the BC Liquor Distribution Branch. The results confirm the collective reputation effects of the Burgundy wine region and show that the implicit values differ between white and red Burgundy wines with village designation and vintage having a relatively larger effect on white wine prices than in the case of red wines. Burgundy white wines, such as Aloxe-Corton, Chassagne-Montrachet Premier Cru, Meursault Premier Cru, and Chablis Grand Cru, were associated with larger price premia." Copyright (c) 2010 Canadian Agricultural Economics Society.

Suggested Citation

  • Richard Carew & Wojciech J. Florkowski, 2010. "The Importance of Geographic Wine Appellations: Hedonic Pricing of Burgundy Wines in the British Columbia Wine Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 93-108, March.
  • Handle: RePEc:bla:canjag:v:58:y:2010:i:1:p:93-108
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    References listed on IDEAS

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    Cited by:

    1. Palma, David & Dios Ortuzar, Juan de & Casaubon, Gerard & Rizzi, Luis I. & Agosin, Eduardo, 2013. "Measuring consumer preferences using hybrid discrete choice models," Working Papers 164855, American Association of Wine Economists.
    2. García Arancibia, Rodrigo & Rossini, Gustavo & Depetris Guiguet, Edith, 2015. "Wine Label Descriptors and Shelf Price Paid by Argentine Consumers," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 16(2), June.

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