Hostname: page-component-7c8c6479df-7qhmt Total loading time: 0 Render date: 2024-03-28T13:36:28.809Z Has data issue: false hasContentIssue false

Is Globalization Good for Wine Drinkers in the United States?*

Published online by Cambridge University Press:  08 June 2012

Omer Gokcekus
Affiliation:
John C. Whitehead School of Diplomacy and International Relations, Seton Hall University, S. Orange, NJ 07079,USA; Tel.: 973–313–6272, fax: 973–275–2519, email: gokcekom@shu.edu.
Andrew Fargnoli
Affiliation:
John C. Whitehead School of Diplomacy and International Relations, Seton Hall University, S. Orange, NJ 07079, USA.

Abstract

To determine whether globalization is good for wine drinkers in the U.S., we examine the Wine Spectator's annual Top 100 lists, published since 1988. During this period, the average real price for these wines decreases from $43 to $26. Quality is consistent at around 93 points. Variety increases from six to twelve countries; the share of countries dominating the early lists declines from 95% to 75% over time. Our regression analysis indicates that when a New-New World wine replaces an Old World one, the average real price of the Top 100 list falls by 2.5%. (JEL Classification: F120, F140, C200)

My only regret in life is that I did not drink more champagne.” (John Maynard Keynes) (Harod, 1951, p. 15)

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2007

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams Beverage Group (2006). Adams Wine Handbook 2006. Norwalk, CT: Adams Beverage Group.Google Scholar
Anderson, K. (2001). The globalization (and regionalization) of wine. Center for International Economic Studies, Discussion Paper No. 0143, November 2001.CrossRefGoogle Scholar
Anderson, K. (ed.) (2004). The World's Wine Markets: Globalization at Work. Cheltenham, UK: Edward Elgar.CrossRefGoogle Scholar
Cholette, S., Castaldi, R.M., Fredrick, A. (2005). The globalization of the wine industry: implications for old and New World producers. The Fourth International Business and Economy Conference, Honolulu, Hawaii, January 6–9, 2005.Google Scholar
Folwell, R.J. and Volanti, M. (2003). The changing market structure of the USA wine industry. Journal of Wine Research, 14(1), 2530.CrossRefGoogle Scholar
Harrod, R.F. (1951). The Life of John Maynard Keynes. London: MacMillan.Google Scholar
Horowitz, I. and Lockshin, L. (2002). What price quality? An investigation into the prediction of wine-quality ratings. Journal of Wine Research, 13(1), 722.CrossRefGoogle Scholar
Rachman, G. (1999). Christmas survey. The Economist, 353, No. 8150, December 18, 91105.Google Scholar
Schamel, G. (2000). Individual and collective reputation indicators of wine quality. Center for International Economic Studies, Discussion Paper No. 0009, March 2000.Google Scholar
Shanken, M. and Matthews, T. (2005). Our top 100. Wine Spectator Dec. 31, 2005 – Jan. 15, 2006, 15.Google Scholar
Sleuwaegen, L. and Dehandschutter, W. (1986). The critical choice between the concentration ratio and the H-index in assessing industry performance. The Journal of Industrial Economics, 35 (2), 193208.CrossRefGoogle Scholar
Spahni, P. (2006). O-N-E World. Economic Research & Consultancy Services for Wine, Available at http://www.span-e.com. Accessed Feb 18, 2006.Google Scholar