Original Research Article
Does belonging to an appellation make a difference? New evidence from Ontario Viticultural Areas
Published 2021-07-14
Keywords
- appellation,
- AVA,
- price
How to Cite
Gokcekus, O. (2021). Does belonging to an appellation make a difference? New evidence from Ontario Viticultural Areas. Wine Economics and Policy, 10(2), 41–44. https://doi.org/10.36253/wep-10391
Abstract
Assuming that wine markets are efficient, ultimately a bottle of wine’s cost and therefore its price should reflect its vintage, grape variety as well as how it is vinified. Yet, being an experiential good, a wine’s price is also closely related to its place of origin. If the designated viticultural area of wine is coming from is not considered, even in a relatively new wine country, wine makers may end up over-estimating the premium attached to vintage, variety as well as how it is vinified. Regression results indicate that, for Ontario wines, the over-estimations vary between 1% points and 18% points.
References
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Gokcekus, O. and Finnegan, C. “Price Effects of Establishing a New Sub-AVA within Oregon’s Willamette Valley AVA.” Journal of Wine Economics 12, no. 4 (2017): 345-353.
Landon, S., and Smith, C. E. “The use of quality and reputation indicators by consumers: The case of Bordeaux wines.” Journal of Consumer Policy 20, no. 3 (1997): 289–323.
Lecocq, S., and Visser, M. “What determines wine prices? Objective vs. sensory characteristics.” Journal of Wine Economics 1, no. 1 (2006): 42-56.
Phillips, Rod. The Wines of Canada. Oxford: Infinite Ideas Ltd, 2017.
VQA Ontario Wine Appellation Authority (2019). 2019 Annual Report.
Matthews, M. A. Terroir and Other Myths of Winegrowing. Oakland: University of California Press, 2016.
Patterson, T. and Buechsenstein, J. Wine and Place: A Terroir Reader. Oakland: University of California Press, 2018.
Carew, R. and Florkowski, W. J. Regulatory and institutional developments in the Ontario wine and grape industry. International Journal of Wine Research 4 (2012): 33-44.