Hostname: page-component-8448b6f56d-c47g7 Total loading time: 0 Render date: 2024-04-23T23:35:35.661Z Has data issue: false hasContentIssue false

Splendide Mendax: False Label Claims About High and Rising Alcohol Content of Wine*

Published online by Cambridge University Press:  02 December 2015

Julian M. Alston*
Affiliation:
Department of Agricultural and Resource Economics, University of California, Davis, One Shields Avenue, Davis, CA 95616.
Kate B. Fuller
Affiliation:
Montana State University, Department of Agricultural Economics and Economics, P.O. Box 172920, 309B Linfield Hall, Bozeman, MT 59717. Email: kate.fuller@montana.edu.
James T. Lapsley
Affiliation:
Agricultural Issues Center, University of California, One Shields Avenue, Davis, CA 95616. Email: jtlapsley@ucdavis.edu.
George Soleas
Affiliation:
Liquor Control Board of Ontario, 1 Yonge Street, 14th Floor, Suite 1401, Toronto, Ontario M5E 1E5. Email: george.soleas@lcbo.com.
Kabir P. Tumber
Affiliation:
ERA Economics, LLC, 1111 Kennedy Drive, Davis CA 95616. Email: kabir.tumber@gmail.com.
*
Email: julian@primal.ucdavis.edu (corresponding author).

Abstract

Are wine alcohol labels accurate? If not, why? We explore the high and rising alcohol content of wine and examine incentives for false labeling, including the roles of climate, evolving consumer preferences, and expert ratings. We draw on international time-series data from a large number of countries that experienced different patterns of climate change and influences of policy and demand shifts. We find systematic patterns that suggest that rising wine alcohol content may be a nuisance by-product of producer responses to perceived market preferences for wines having more-intense flavours, possibly in conjunction with evolving climate. (JEL Classifications: D22, L15, L66, Q18, Q54).

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2015 

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.)

Footnotes

*

Splendide mendax: Nobly untruthful; untrue for a good object. We are grateful for data provided by the Liquor Control Board of Ontario. The work for this project was partly supported by the University of California Agricultural Issues Center, the Department of Agricultural and Resource Economics at the University of California, Davis, and the Giannini Foundation of Agricultural Economics. We received helpful comments from various colleagues and conference participants, including Kym Anderson, Abhaya Dandekar, John Freebairn, Greg Jones, Alan Olmstead, Kevin Novan, Aaron Smith, Karl Storchmann, Daniel Sumner, Andrew Walker, and an anonymous referee.

References

Alston, J.M., Fuller, K.B., Lapsley, J.T., and Soleas, G. (2011). Too much of a good thing? Causes and consequences of increases in sugar content of California wine grapes. Journal of Wine Economics, 6 (2), 135159.Google Scholar
Ashenfelter, O., Ashmore, D., and Lalonde, R. (1995). Bordeaux wine vintage quality and the weather. Chance 8(1), 713.CrossRefGoogle Scholar
Ashenfelter, O., and Byron, R.P. (1995). Predicting the quality of an unborn Grange. The Economic Record, 71(212), 4053.Google Scholar
Ashenfelter, O. (2008). Predicting the prices and quality of Bordeaux wines. The Economic Journal, 118(529), F174F184.Google Scholar
Ashenfelter, O., and Storchmann, K. (2010). Using a hedonic model of solar radiation to assess the economic effect of climate change: the case of Mosel valley vineyards. The Review of Economics and Statistics, 92(2), 333349.Google Scholar
Ashenfelter, O., and Storchmann, K. (2016). Climate change and wine: A review of the economic implications. Journal of Wine Economics, 11(1), forthcoming.Google Scholar
Bonné, J. (2011). As wines gain weight, Chronicle to print alcohol levels. SF Gate April 24, 2011, http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/22/FD311J4I7H.DTL&ao=5 (Accessed 27 April, 2011).Google Scholar
Cheskin, L., and Ward, L.B. (1948). Indirect approach to market reactions. Harvard Business Review, 26(5), 572580.Google Scholar
Combris, P., Lecocq, S., and Visser, M. (1997). Estimation of a hedonic price equation for Bordeaux wine: Does quality matter? The Economic Journal, 107(441), 390402.Google Scholar
Combris, P., Lecocq, S., and Visser, M. (2000). Estimation of a hedonic price equation for Burgundy wine. Applied Economics, 32(8), 961967.Google Scholar
Costanigro, M., McCluskey, J.J., Mittelhammer, R.C. (2007). Segmenting the wine market based on price: Hedonic regression when different prices mean different products. Journal of Agricultural Economics, 58(3), 454466.Google Scholar
Darlington, D. (2015). Accounting for taste. Wine and Spirits, May, 2015, http://www.wineandspiritsmagazine.com/S=0/news/entry/accounting-for-taste (Accessed 4 June, 2015).Google Scholar
Dimara, E., and Skuras, D. (2005). Consumer demand for informative labeling of quality food and drink products: a European Union case study. Journal of Consumer Marketing, 22(2), 90100.Google Scholar
Golan, E., Kuchler, F., Mitchell, L., Greene, C., and Jessup, A. (2001). Economics of food labeling. Journal of Consumer Policy, 24(2), 117184.CrossRefGoogle Scholar
Goode, J. (2009). Wine flaws: High alcohol. Sommelier Journal, January. http://www.sommelierjournal.com/articles/article.aspx?year=2009&month=1&articlenum=67 (Accessed 15 April, 2015).Google Scholar
Gustafson, C. (2011). Experimental economics and hedonic pricing: An application to wine attributes.” Unpublished doctoral dissertation. Department of Agricultural and Resource Economics, University of California, Davis.Google Scholar
Hine, T. (1995). The Total Package: The Secret History and Hidden Meanings of Boxes, Bottles, Cans, and Other Persuasive Containers. New York: Little Brown and Co.Google Scholar
Jones, G.V. (2005). Climate change in the Western United States grape growing regions. Acta Horticulturae (ISHS) , 689, 4160.Google Scholar
Jones, G.V. (2006). Climate and terroir: Impacts of climate variability and change on wine. In: Macqueen, R.W. and Meinert, L.D. (eds.), Fine Wine and Terroir — The Geoscience Perspective. Geoscience Canada Reprint Series Number 9, Geological Association of Canada, St. John's, Newfoundland.Google Scholar
Jones, G.V. (2007). Climate change: Observations, projections, and general implications for viticulture and wine production. Practical Winery and Vineyard, July/August 2007, 44–64.Google Scholar
Jones, G.V. and Goodrich, G.B. (2008). Influences of climate variability on wine regions in the western USA and on wine quality in the Napa Valley. Climate Research, 35(3), 241254.Google Scholar
Jones, G.V., White, M.A., Cooper, O.R. and Storchmann, K. (2005). Climate change and global wine quality. Climatic Change, 73(3), 319343.Google Scholar
Marlborough Wine Research Centre (1990–2008). Blenheim Weather Station Historical Data. Blenheim, New Zealand, 1990–2008. http://www.wineresearch.org.nz/weatherdata/blenheim.htm. (Accessed May 5, 2015).Google Scholar
Masson, J., Aurier, P., and d'Hauteville, F. (2008). Effects of non-sensory cues on perceived quality: The case of low alcohol wine. International Journal of Wine Business Research, 20(3), 215229.Google Scholar
National Oceanic and Atmospheric Administration (NOAA), National Climatic Data Center (1992–2008). Global Summary of the Day. http://www7.ncdc.noaa.gov/CDO/cdoselect.cmd?datasetabbv=GSOD&countryabbv=&georegionabbv=. (Accessed May 5, 2015).Google Scholar
Nemani, R.R., White, M.A., Cayan, D.R., Jones, G.V., Running, S.W., and Coughlan, J.C. (2001). Asymmetric climatic warming improves California vintages. Climate Research, 19(1), 2534.CrossRefGoogle Scholar
Oczkowski, E. (1994). A hedonic price function for Australian premium table wine. Australian Journal of Agricultural Economics, 38(1), 93110.Google Scholar
Oczkowski, E. (2001). Hedonic wine price functions and measurement error. Economic Record, 77(239), 374382.CrossRefGoogle Scholar
Rose, A. (2012). Wine alcohol levels have risen on average 2 per cent. The Independent, June 9, 2012, http://www.independent.co.uk/life-style/food-and-drink/features/anthony-rose-wine-alcohol-levels-have-risen-on-average-2-per-cent-7820918.html (Accessed May 5, 2015).Google Scholar
Schmitt, P. (2014). Alcohol removal on the up in the US. The Drinks Business, December 16, 2014, http://www.thedrinksbusiness.com/2014/12/14-of-calif-chard-undergoes-alc-removal/ (Accessed May 5, 2015).Google Scholar
Tate, A. B. (2001). Global warming's impact on wine. Journal of Wine Research, 12(1), 95109.Google Scholar
Teague, L. (2010). Wines that pack a little extra kick. The Wall Street Journal, April 23, 2010, http://www.wsj.com/articles/SB10001424052702303828304575180273604214884 (Accessed May 5, 2015).Google Scholar
Thrane, C. (2004). In defence of the price hedonic model in wine research. Journal of Wine Research, 15(2), 123134.CrossRefGoogle Scholar
Van Gent, I. (2010). South Africa weather stations. Climate and Water Agricultural Research Council-AgroMet Institute for Soil, Pretoria, South Africa. Personal communication (dataset), October 12, 2010.Google Scholar
Van Leeuwen, C., and Darriet, P. (2016). Impact of climate change on viticulture and wine quality. Journal of Wine Economics, 11(1), forthcoming.Google Scholar
Webb, L.B., Whetton, P.H., and Barlow, E.W.R. (2005). Impact on Australian viticulture from greenhouse induced temperature change. In: Zerger, A., and Argent, R.M. (eds), Proceedings of the MODSIM 2005 International Congress on Modelling and Simulation. Modelling and Simulation Society of Australia and New Zealand, December 2005.Google Scholar
White, M.A., Diffenbaugh, N.S., Jones, G.V., Pal, J.S., and Giorgi, F. (2006). Extreme heat reduces and shifts United States premium wine production in the 21st century. Proceedings of the National Academy of Sciences, 103(30), 1121711222.Google Scholar
Woolfolk, M. E., Castellan, W., and Brooks, C.I. (1983). Pepsi versus Coke: Labels, not tastes, prevail. Psychological Reports, 52(1), 185186.Google Scholar