2023: Just Accepted
Original Research Article

The grapes in the wine: assessing the value

anna carbone
Universita' della Tuscia
Luca Cacchiarelli
DEIM, Università della Tuscia

Published 2023-11-06


  • wine,
  • Italy,
  • grape variety,
  • Hedonic price model,
  • price premiums

How to Cite

carbone, anna, Quici, L., & Cacchiarelli, L. (2023). The grapes in the wine: assessing the value. Wine Economics and Policy. Retrieved from https://oaj.fupress.net/index.php/wep/article/view/14593


The goal of this work is to assess the impact of grape varieties on wine prices in international markets. This influence is evaluated by estimating a hedonic price model based on a sample of 2315 Italian still wines reviewed in Robert Parker's Wine Advocate.

The work expands results offered in literature so far as it considers quite a large number of international, national and autochthonous varieties used for producing both red and white wines. Moreover, we propose an original perspective by exploring the different impacts of ageing on wine prices according to the different grape varieties utilized.

Results show that, besides the well-known Italian geographical divide, many grape varieties significantly associate with different price levels. Overall, this impact is larger in the case of red wines than for the white ones. Furthermore, for the formers there are few well known varieties associated with positive price premiums, while for white wines, less widespread autochthonous varieties gain higher prices. Last, we found that successful ageing process involve both native varieties of northern and southern Italy as well as international ones.


  1.  [4] F.Adinolfi, , M.De Rosa, and F.Trabalzi, 2011. Dedicated and generic marketing strategies. British Food Journal, Vol. 113 No. 3, pp. 419-435. https://doi.org/10.1108/00070701111116473
  2.  [2] R.Ashton, 2014. Wine as an Experience Good: Price Versus Enjoyment in Blind Tastings of Expensive and Inexpensive Wines. Journal of Wine Economics, 9(2), 171-182. https://doi.org/10.1017/jwe.2014.7
  3.  [27] V.Boatto, E.Defrancesco, and Trestini, S., 2011. The price premium for wine quality signals: does retailers ́ Information Provision Matter?. British Food Journal, 113(5): 669-67, https://doi.org/10.1108/00070701111131764
  4.  [9] C.Bopp, R.Jara-Rojas, A.Engler, and M.Araya-Alman, 2022. How are vineyards management strategies and climate-related conditions affecting economic performance? A case study of Chilean wine grape growers. Wine Economics and Policy, 11(2), 61-73, https://doi.org/10.36253/wep-12739
  5.  [32] M.Buchinsky, 1998. Recent advances in quantile regression model: a practical guideline for empirical research. The Journal of Human Resources, 33, pp. 88-126, https://doi.org/10.2307/146316
  6.  [31] L.Cacchiarelli, A.Carbone, T.Laureti, and A.Sorrentino, 2018. The hedonic contents of Italian super premium extra-virgin olive oils. Bio-based and Applied Economics, 7(3), 217-232. https://doi.org/10.13128/bae-7676
  7.  [26] L.Cacchiarelli, A.Carbone, T.Laureti, and A.Sorrentino, 2016. The value of the certifications of origin: a comparison between the Italian olive oil and wine markets. British Food Journal Vol. 118 No. 4, pp. 824-839. https://doi.org/10.1108/BFJ-05-2015-0180
  8.  [15] L.Cacchiarelli, A.Carbone, M.Esti, T.Laureti, and A.Sorrentino, 2015. Assessing Italian wine quality and prices: de gustibus non disputandum est. British Food Journal Vol. 118 No. 5, pp.1006-1024. https://doi.org/10.1108/BFJ-03-2015-0108
  9.  [14] L.Cacchiarelli, A.Carbone, T.Laureti, and A.Sorrentino, 2014. The value of quality clues in the wine market: evidences from Lazio, Italy. Journal of Wine Research, Vol. 25 No. 4, pp. 281-297. https://doi.org/10.1080/09571264.2014.959659
  10.  [16] F.Caracciolo, L.Cembalo, M.D’Amico and G. Di Vita, 2012. I consumi domestici di vino in Italia: un modello a regressione quantile sulla domanda di vino siciliano. Istituzioni e politiche, 102.
  11.  [23] R.Carew, W. J.Florkowski, T.Meng, 2017. Segmenting wine markets with diverse price functions: Evidence from California red and white wines sold in British Columbia. Wine Economics and Policy, Vol.6, Issue 1, pp.48-59. https://doi.org/10.1016/j.wep.2017.05.002
  12.  [13] D.Carlucci, and A.Seccia, 2010. “Vini varietali e vitigni autoctoni: evidenze empiriche del mercato italiano”, Rivista di Economia Agraria 65 (1), 43–62.
  13.  [7] G. Schamel, and K.Anderson, 2001. Wine Quality and Regional Reputation: Hedonic Prices for Australia and New Zealand. Australian Agricultural and Resource Economics Society (AARES) > 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia.
  14.  [29] E.Chiodo, 2008 “Cosa cambia con DOP e IGP al posto di DOC e IGT?”, Agriregionieuropa (15). Retrieved from http://www.agriregionieuropa.univpm.it/dettart.php?id_articolo=391 on Feb. 15th, 2023
  15.  [30] F. A.Cowell, and E.Flachaire, 2015. Statistical Methods for Distributional Analysis. In Atkinson, A.B. and Bourguignon, F. (eds), Handbook of Income Distribution (Vol. 2), North-Holland, Amsterdam: 359-465. https://doi.org/10.1016/B978-0-444-59428-0.00007-2
  16.  [3] M.Delmastro, 2007. Un’analisi sulle determinanti della qualità dei vini. L’industria, Rivista di economia e politica industriale, 1/2007, pp. 61-84, https://www.rivisteweb.it/doi/10.1430/24255
  17.  [5] E.Dimara, and D.Skuras, 2003. Consumer evaluations of product certification, geographic association and traceability in Greece. European Journal of Marketing, Vol. 37 No. 5/6, pp. 690-705. https://doi.org/10.1108/03090560310465099
  18.  [28] Goldfeld, S.M. and Quandt, R.E., (1965), Some Tests for Homoscedasticity. Journal of the American Statistical Association 60(310): 539-547. https://doi.org/10.1080/01621459.1965.10480811
  19.  [37] J. S. M.Guillermo, B.Brummer, J. L.Troncoso, 2008. Determinants of Argentinean Wine Prices in the U.S. Market. AAWE Working Paper No 15. Downloaded at https://wine-economics.org/working_paper/aawe-working-paper-no-15/ on Feb. 15th, 2023
  20.  [25] K. J. Lancaster, 1966. “A new approach to consumer theory”, Journal of Political Economy, LXXIV, 132–157. https://doi.org/10.1086/259131
  21.  [36] A.Lechermere, 2006. IGT and DOC divide Italian wine world. Decanter, Retrieved from http://www.decanter.com/news/wine-news/486854/igt-and-doc-divide-italian-wine-world
  22.  [22] S. Lecocq, and M. Visser, 2006.“What Determines Wine Prices: Objective vs Sensory Characteristics”, Journal of Wine Economics 1 (1), 42–56. https://doi.org/10.1017/S1931436100000080
  23.  [10] L.Lockshin, and A. M.Corsi, 2012. “Consumer behaviour for wine 2.0: A review since 2003 and future directions”, Wine Economics and Policy, 1(1), 2-23. https://doi.org/10.1016/j.wep.2012.11.003
  24.  [18] O. W.Maietta, 2004. “The hedonic price of fair trade coffee for the Italian consumer”, Centro di Portici (NA, Italy) WP 2/2004. downloaded at http:// www.centroportici.unina.it on Feb. 15th, 2023
  25.  [34] E.Oczkowski, 1994. A Hedonic Price Function for Australian Premium Table Wine, Australian Journal of Agricultural Economics 38 (1), 93–110. https://doi.org/10.1111/j.1467-8489.1994.tb00721.x
  26.  [21] E.Oczkowski, 2001. Hedonic Wine Price Functions and Measurement Error. The Economic Record 77 (239), 374–382. https://doi.org/10.1111/1475-4932.00030
  27.  [33] J. Ortuzar-Gana, and O.Alfranca-Burriel, 2010. Current and regular prices hedonic models for the wine industry. Spanish Journal of Agricultural Research, 8(4): 873-88. https://doi.org/10.5424/sjar/2010084-1381
  28.  [12] P.Pavese, and R.Zanola, 2008. Autochthon vs. blended wines: Do objective and sensory characteristics matter?. POLIS-Università Piemonte Orientale, Working Papers WP 18 downloaded at https://ideas.repec.org/p/uca/ucapdv/107.html on Feb. 15th, 2023
  29.  [11] G. I. Penagos-Londoño, F.Ruiz-Moreno, R.Sellers-Rubio, S.Del Barrio-García, and A. B. Casado-Díaz, 2022. Consistency of expert product reviews: an application to wine guides. Wine Economics and Policy, 11(2), 51–60. https://doi.org/10.36253/wep-12400
  30.  [24] S.Rosen,1974. Hedonic prices and implicit markets: product differentiation in pure Competition. The Journal of Political Economy, 82(1): 34–55. https://doi.org/10.1086/260169
  31.  [6] G. Schamel, 2003. A hedonic pricing model for German wine. German Journal of Agricultural Economic 52, (670-2016-45733), 247-254
  32.  [7] G.Schamel, and K. Anderson, 2003. Wine quality and varietal, regional, and winery reputations: Hedonic prices for Australia and New Zealand. Economic Record, 79(246), 357–369. https://doi.org/10.1111/1475-4932.00109
  33.  [35] G.Schamel, 2006. Geography versus brands in a global wine market. Agribusiness 22(3): 363–374. https://doi.org/10.1002/agr.20091
  34.  [17] G.Schamel, and A.Ros, 2021. Indicators of Individual Wine Reputation for Friuli Venezia Giulia”, Italian Economic Journal, 7, 323–339 https://doi.org/10.1007/s40797-020-00138-9
  35.  [19] R.Schröck, 2014. Valuing country of origin and organic claim: A hedonic analysis of cheese purchases of German households. British Food Journal, Vol. 116 No. 7, pp. 1070-1091. https://doi.org/10.1108/BFJ-12-2012-0308
  36.  [8] A.Seccia, D.Carlucci, F.G.Santeramo, T.Sarnari, and G. Nardone, 2017. On the effects of search attributes on price variability: An empirical investigation on quality wines. 40th World Congress of Vine and Wine, BioConferences 9, 03014, https://doi.org/10.1051/bioconf/20170903014
  37.  [20] F. V.Waugh 1928. Quality Factors Influencing Vegetable Prices. Journal of Farm Economics, 10 (2): 185-196. https://doi.org/10.2307/1230278
  38.  [1] A.Williams, G.Atwal, 2013. The Hedonistic Consumption of Luxury and Iconic Wines. In: Wiedmann, KP., Hennigs, N. (eds) Luxury Marketing. Gabler Verlag, Wiesbaden. https://doi.org/10.1007/978-3-8349-4399-6_21
  39.  [38] Winespectator, report on 2014 Italian vintage. https://www.winespectator.com/articles/2014-vintage-report-italy-wine-harvest-50932 , downloaded on Feb. 15th, 2023