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The US Wine Industry

In: The Palgrave Handbook of Wine Industry Economics

Author

Listed:
  • James T. Lapsley

    (University of California, Davis
    University of California Agricultural Issues Center)

  • Julian M. Alston

    (University of California, Davis
    University of California, Davis
    Giannini Foundation of Agricultural Economics)

  • Olena Sambucci

    (University of California, Davis)

Abstract

Among countries, the United States is the world’s fourth largest producer of wine and the largest consumer and importer. The industry is located primarily on the US west coast, and California alone accounts for four-fifths of production. It is a diverse industry in terms of the varieties grown, farm size, yield, fruit attributes and price, and ultimately value of the wine produced, attributes that have a strong relationship with the geographic location of production. The current complex taxation structure and peculiar “three-tier” wine marketing and distribution system owe much to the legacy of Prohibition. Effectively, each state is a separate entity, and they can differ significantly in their regulations and taxes applicable to wine marketing and distribution, performed by an increasingly concentrated industry. These features may be daunting to some suppliers. Nonetheless, growth in population and per capita demand continue to drive changes in production, markets, and imports in this vibrant sector of the US economy.

Suggested Citation

  • James T. Lapsley & Julian M. Alston & Olena Sambucci, 2019. "The US Wine Industry," Springer Books, in: Adeline Alonso Ugaglia & Jean-Marie Cardebat & Alessandro Corsi (ed.), The Palgrave Handbook of Wine Industry Economics, chapter 5, pages 105-129, Springer.
  • Handle: RePEc:spr:sprchp:978-3-319-98633-3_5
    DOI: 10.1007/978-3-319-98633-3_5
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