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Drifting Towards Bordeaux? The Evolving Varietal Emphasis of U.S. Wine Regions

Author

Listed:
  • Julian M. Alston

    (Robert Mondavi Institute Center for Wine Economics, University of California Davis, United States)

  • Kym Anderson

    (Wine Economics Research Centre, School of Economics, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia)

  • Olena Sambucci

    (Department of Agricultural and Resource Economics, University of California Davis, United States)

Abstract

In an ever-more-competitive global market, vignerons compete for the attention of consumers by trying to differentiate their product while also responding to technological advances, climate changes and evolving demand patterns. In doing so, they highlight their regional and varietal distinctiveness. This paper examines the extent to which the winegrape varietal mix varies within and among states of the United States and relative to the rest of the world, and how that picture has been evolving. It reports varietal intensity indexes for different regions, indexes of similarity of varietal mix between regions and over time, and price-based quality indexes across regions and varieties within and among the three west-coast States. It also seeks econometrically to account for the shifting varietal patterns in the U.S. vineyard and in winegrape production using measures of regional varietal comparative advantage, which reflect changes in both demand and supply and producer responses to them.

Suggested Citation

  • Julian M. Alston & Kym Anderson & Olena Sambucci, 2015. "Drifting Towards Bordeaux? The Evolving Varietal Emphasis of U.S. Wine Regions," Wine Economics Research Centre Working Papers 2015-03, University of Adelaide, Wine Economics Research Centre.
    • Handle: RePEc:adl:winewp:2015-03
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    References listed on IDEAS

    as
    1. Ashenfelter, Orley & Storchmann, Karl, 2014. "Wine and Climate Change," Working Papers 164854, American Association of Wine Economists.
    2. Fuller, Kate B. & Alston, Julian M. & Sambucci, Olena, 2014. "The Value of Powdery Mildew Resistance in Grapes: Evidence from California," Working Papers 162528, Robert Mondavi Institute Center for Wine Economics.
    3. Kym Anderson & Glyn Wittwer, 2019. "Modeling Global Wine Markets to 2018: Exchange Rates, Taste Changes, and China’s Import Growth," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 3, pages 51-90, World Scientific Publishing Co. Pte. Ltd..
    4. Kym Anderson, 2019. "Changing Varietal Distinctiveness of the World’s Wine Regions: Evidence from a New Global Database," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 22, pages 529-558, World Scientific Publishing Co. Pte. Ltd..
    5. Davide Gaeta & Paola Corsinovi, 2014. "Economics, Governance, and Politics in the Wine Market," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-39532-0.
    6. Alston, Julian M. & Fuller, Kate B. & Kaplan, Jonathan D. & Tumber, Kabir P., 2013. "Economic Consequences of Pierce’s Disease and Related Policy in the California Winegrape Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 38(2), pages 1-29, August.
    7. Kym Anderson, 2019. "Evolving Varietal and Quality Distinctiveness of Australia’s Wine Regions," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 24, pages 599-628, World Scientific Publishing Co. Pte. Ltd..
    8. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
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    Cited by:

    1. Sambucci, Olena & Alston, Julian M., 2017. "Estimating the Value of California Wine Grapes," Journal of Wine Economics, Cambridge University Press, vol. 12(2), pages 149-160, May.
    2. Bruno V. Miranda & Brent Ross & Jason Franken & Miguel Gómez, 2022. "Plural forms and differentiation strategies in the agri‐food sector: Evidence from the U.S. wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 486-504, July.
    3. Kym Anderson & Signe Nelgen, 2021. "Internationalization, Premiumization and Diversity of the World's Winegrape Varieties," Wine Economics Research Centre Working Papers 2021-03, University of Adelaide, Wine Economics Research Centre.
    4. Julian M. Alston & Davide Gaeta, 2021. "Reflections on the Political Economy of European Wine Appellations," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 219-258, July.

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    More about this item

    Keywords

    terroir; varietal intensity index; varietal similarity index; regional quality index;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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