Using longitudinal data on teams and quality competition results, this study examines the impact of team and task familiarity on brewing excellence in the Japanese sake industry from 1956 to 2018. Sake production involves teamwork at every stage, but while some teams work together long term, others experience high turnover. The study highlights two factors: team familiarity, the collective experience of working together, and task familiarity, the individual experience of the task. High familiarity can strengthen team bonds and improve teamwork, but it can also limit the inflow of new knowledge and thus hinder innovation. This study uses data from national quality competitions and brewer lists, and considers the Great East Japan Earthquake of 2011 as an external shock to address endogeneity and estimate the causal relationship between familiarity and competition outcomes. The empirical results show that increases in both team and task familiarity are negatively associated with quality superiority.

This paper examines the economic impact of wine counterfeiting, with a focus on the Sassicaia scandal, publicized in 2020, regarding counterfeit 2015 vintage bottles of the iconic Super Tuscan wine. Wine fraud, documented since ancient Rome, has evolved alongside the industry, with key developments such as the Appellation d'Origine Contrôlée system aiming to curb it. The paper briefly reviews three other significant modern cases of wine counterfeiting: the Hardy Rodenstock “Jefferson bottles” affair, the Brunello di Montalcino scandal, and Rudy Kurniawan’s counterfeit operation. It then shifts to a detailed analysis of the case of Sassicaia. We combine informal analysis using data plots and a formal difference-in-differences analysis to assess the market impact of the 2015 Sassicaia scandal. We find that, surprisingly, the scandal led to an increase in the price of authentic 2015 Sassicaia, perhaps driven by perceived rarity and media attention.

In this article, we examine how weather variables affect markets for U.S. high-end wines, both luxury wines and wines from the same region that are still high-end but not in the very limited highest category. Specifically, we compare so-called “cult wines” with “non-cult wines” from the same subregions that are known for their high-quality wines. We investigate associations between weather conditions and prices, price gaps (the difference between the secondary market price and release price), the number of cases produced, and wine scores assigned for both cult and non-cult wines. We further examine whether associations with weather differ across wine regions. Implementing a fixed-effects methodology, cult and non-cult wines from three U.S. regions were studied: both Napa and Sonoma in California, and Walla Walla on the border of Washington State and Oregon. Overall, the analysis suggests that weather is associated with various characteristics of wine markets, including prices, price gaps for cult wines, wine scores, and cases produced. The nature of the associations depends on the type of wine (cult or non-cult, red or white) and timing of weather conditions throughout the year and growing region.

This paper investigates the market position of hard cider within the broader alcoholic beverage market. The first experiment identifies two distinct consumer segments—around 40% prioritize flavor attributes, while 53% prefer production information. The second experiment utilizes a basket- and expenditure-based choice experiment and a multiple discrete choice extreme value model to assess hard cider's standing among commonly consumed alcoholic beverages. Results reveal that hard cider is perceived as a complement to red and white wine but is independent from beer. The study suggests marketing hard cider in conjunction with white wine to capitalize on observed complementarity. Emphasizing the importance of addressing both consumer segments—those valuing flavor notes and those prioritizing production information—the research offers valuable insights for optimizing hard cider market strategies.

We shed light on assessing product quality in blind tastings and their potential (gender) biases. We study how phonetic traits of grape varieties suggest product attributes in the context of professional reviews. This study aims to close this research gap and analyze how product variety and phonetic name traits affect expert ratings. We obtained data on 18,609 wines and their ratings from Wine Enthusiast Magazine between 1997 and 2016, yielding a sample of 31,058 observations. We suppose that the gender of the taster needs to be considered to understand what affects tastings and ratings, as women and men might be attracted differently to masculine or feminine names. This study shows that masculine names receive higher evaluations than feminine ones. This phonetic gender gap is driven by lower ratings for white wines by female reviewers and lower ratings for red wines by male reviewers. In addition, white wines are rated lower overall by both men and women.

The development and expansion of wineries in Appalachian states in the United States over the past 20 years has received attention, while the study of non-wine product consumption in wineries has been very limited. Wineries increasingly include these non-wine products as complementary products in their marketing portfolio. This study analyzes the determinants of wine and non-wine spending among winery visitors in selected Northern Appalachian states, including Pennsylvania, Ohio, Kentucky, and Tennessee. We develop a market segmentation model and a random utility theory with an interval regression model. Results from 1,609 participants show that wine knowledge has a positive effect on local wine spending, and spending on non-wine products should not be underestimated for its overall contribution to the winery business. Our results suggest that wineries have the potential to boost store sales associated with non-wine products. Diversifying the product lines in wineries to include more non-wine products would be a useful marketing strategy.

This paper investigates the growth and clustering of craft breweries in New Jersey. We compiled a historical dataset from 1995 to 2020 that allows us to measure the degree of geographic clustering among craft breweries in New Jersey. The number of craft breweries in New Jersey grew 491% from 2012 to 2020 (from 22 to 130 craft breweries). An impetus for this growth was that New Jersey enacted legislation in 2012 that made opening and operating a craft brewery in the state more economically viable. Our analysis finds that craft breweries in New Jersey are clustering in specific parts of the state and that this is likely due to co-location benefits such as building a culture of craft beer that drives innovation, knowledge sharing, customer sharing, and a thicker labor market. While distinct craft beer clusters have formed in New Jersey, we find there is still significant opportunity for growth. Our analysis confirms this using data on planned craft brewery openings to measure changes in the size and density of clusters and where, in New Jersey, new clusters are likely to form.

Hard cider is a sector of a maturing craft beverage industry that continues to experience growth in the United States. Cider is also experiencing challenges, however, such as competition from other alcohol markets, changing consumer preferences, the supply chain, and inflationary pressures. National policy changes may help promote more optimal outcomes for this sector, but public support is important to policy formation. This study uses survey data from a best-worst scaling experiment of consumers in four leading cider-producing states (Michigan, Washington, Wisconsin, and Vermont) to understand preferences toward ten broad cider policy initiatives. The results of multinomial logistic modeling reveal that consumers prefer policies mandating ingredients, nutrition facts, and allergen labeling across all ciders. The least preferred policy initiatives include allowing producers to use vintage on labeling and funding regional cider development. These results have important implications for stakeholders across the industry, including the benefits of labeling disclosures in marketing and the need to improve public awareness of barriers to cider industry development.

Although potentially useful for financially hedging systemic weather-related risks, weather contracts/derivatives (also referred to as parametric insurance) have not seen wide adoption in agriculture outside of applications in developing countries, frequently supported by governments and non-governmental organizations (NGOs). A significant impediment is the lack of financial firms willing to stand ready to sell weather derivatives to individual agricultural producers in the over-the-counter market who, due to the localized nature of weather, face idiosyncratic weather-related risks. In particular, the administrative and reinsurance costs of supplying relatively small contracts with specific terms to many different producers are often prohibitive. The current study considers the potential use of weather derivatives in hedging the aggregate yield/revenues of viticulture producers represented by an industry association located in the province of Ontario, Canada. We examine the sensitivity of aggregate industry yields to several relevant weather-related risks employing copula function analysis. We then consider the potential of a weather derivative in hedging the financial risk associated with cold winter temperatures, which pose the greatest risk to aggregate vinifera yields. The issue of attributing costs and payouts to individual association members remains unresolved, and several alternatives are suggested.

The impact of product ratings is significant in the experience goods market, whose intangible products are difficult to evaluate before consumption. Product ratings can reduce information asymmetries because they represent a credible signal of quality and thus positively affect product sales. In this study, we shed light on how professional critics behave by focusing on the influence of product characteristics and former reviews on rating behavior and market prices as additional quality signals in wine markets. Using 13,911 observations from professional wine tastings, we analyze 8,444 worldwide-produced wines and their ratings over 20 years. We find clear evidence to suggest that prices and product ratings are significantly related. Finally, the results suggest that review consistency evolves and determines current ratings.

This paper uses data from the 2021 Swiss edition of the Gault&Millau food guide to analyze the probability with which restaurant owners decide to share their wine list with the public. This is an important question relating to the amount of information circulating in markets characterized by information asymmetry in the context of experience and credence goods. We find that restaurant owners are more willing to share wine lists with others if competition is limited or their wine list does not contain idiosyncratic information that competitors may use strategically. Interviews indicate the challenge for restaurants to balance the risk of sharing information with competitors and the opportunity to attract wine lovers by revealing an appealing wine list. We also show that this decision depends on cultural considerations.

We propose to establish wine rankings using scores that depend on the differences between favorable and unfavorable opinions about each wine, according to the Borda rule. Unlike alternative approaches and specifications, this method is well-defined even if the panelists’ quality relations are not required to exhibit demanding properties such as transitivity or acyclicity. As an illustration, we apply the method to rank wines assessed by different experts and compare the resulting ranking with that obtained according to Condorcet's method of majority voting.

As the market for fine-wine investing matures, basic questions of portfolio strategy remain unexplored. I evaluate how adding fine wine from the superstar châteaux of Bordeaux's Right Bank might complement the traditional focus on the five first-growths of Bordeaux's Left Bank. Fundamentals for the Right Bank's superstars are attractive: they produce roughly an order of magnitude less, face different production conditions, and receive equally impressive critical reviews. However, they receive far less attention than their Left Bank counterparts. To examine returns over the long run, I hand-collected 10,885 prices for eight wines from an archive of 391 Sherry-Lehmann catalogs, a New York City retailer, which began at the end of Prohibition. Using these historical price records, I compare the real returns from investing in the five Premier Cru to a portfolio that adds three superstar châteaux from the Right Bank: Ausone, Cheval Blanc, and Petrus. I find the geometric-average annual return was 6.78% in real terms from 1938 to 2017 for the joint portfolio, less than 0.01% different, but with better risk-reward as measured by the Sharpe ratio. Additionally, I find the life cycle of aging is substantially different across the two Banks, which could provide further diversification benefits for the strategic investor.

Studies suggest the inter-rater reliability of judges at wine competitions is higher than what would be expected by random chance, but lower than what is observed when experts in other fields make judgments specific to their expertise. To further contextualize the (un-) reliability of wine judging while also extending the study of fine water, we examine the inter-rater reliability of judges at an annual international competition for bottled waters. We find that the inter-rater reliability of water judging is generally better than chance and, at best, about the same as the inter-rater reliability of wine judging at some wine competitions. These results suggest that perceptible differences between fine waters exist but are less pronounced than those between fine wines and, also, that aesthetic standards with respect to fine waters exist but are currently less established than those for fine wines.

This paper investigates the relative importance of various attributes, including varietal, brands, and geographic origin, in explaining retail wine prices for the United States market. We use a metric based on the Shapely value, from cooperative game theory, in the context of an empirical hedonic price equation estimated using a large sample of retail wine sales for home consumption over the period 2007–2019. We find that brands alone explain more than 70% of the variation in wine prices, but geographic origin and varietals retain additional explanatory power. Furthermore, information about the geographic origin appears to be a considerably more important attribute than varietals.

The outcome of the famous 1976 Judgment of Paris, a blind wine tasting of ten wines by nine French judges, brought American wines to the forefront of the wine business. A Californian wine, the 1973 Stag's Leap Wine Cellars S.L.V. Cabernet Sauvignon, was declared the winner, surpassing four highly prized French wines (Château Mouton-Rothschild 1970, Château Montrose 1970, Château Haut-Brion 1970, and Château Léoville Las Cases 1971). We collect ratings from experts for (almost) all vintages of the same ten wines over the years 1968–2021 and find that the Stag's Leap Cabernet Sauvignon is far from being first. We conclude that either the 1973 vintage was overrated by the experts who tasted it in 1976, or 1973 was merely an outlier in this winery.

We use data from Wine Spectator on 266,301 bottles from 12 countries sold in the United States to investigate the link between the score awarded by the guide and the price charged. The link between quality and price is positive, in line with the literature. In a deeper inspection, however, hedonic regressions show that the price premium attached to higher quality is significant only for “superstar” wines with more than 90 points (on a 50–100 scale), while prices of wines between 50 and 90 points are not statistically different from each other. Furthermore, an analysis performed through normal heteroskedastic and quantile regression models shows that the dispersion of quality-adjusted prices is described by an asymmetric U-shaped function of the score; that is, products with the lowest and highest quality have the highest residual standard deviation. Pursuing excellence is a risky strategy; the average price is significantly higher only for wines that achieve top scores, and the price premium becomes more volatile.

This article uses meta-regression analysis to examine variation in willingness to pay (WTP) for farm-raised seafood and aquaculture products. We measure the WTP premiums that consumers have for common product attributes and examine how WTP varies systematically across study design elements, populations of interest, and sample characteristics. Based on metadata from 45 studies, the meta-regression analysis indicates that WTP estimates differ significantly with the availability of attributes such as domestic and environmental certification, but also with sample income and gender representation.

This article investigates the short- and long-term costs of an extreme weather event on retail food prices and consumer expenditures. We utilize the 2011 severe peanut drought as a quasi-natural experiment and find that retail peanut butter prices increased 21.3% as a result of the drought-driven shock in farm peanut production and prices. Moreover, we identify long-term costs due to positive asymmetric price transmission as retail peanut butter prices returned to pre-shock levels much more slowly and remained on average 6.2% higher for 4 years after farm peanut prices returned to pre-shock levels. For consumers, the drought increased peanut butter costs, and the persistence of higher prices in peanut butter led to long-term consumer costs. Peanut butter expenditure on average increased by 4.8% post-shock, with lower-income households increasing expenditures even more. A simple calculation estimates that higher peanut butter prices inflicted a cost of $1.08 billion during the shock, and sticky post-shock peanut butter prices imposed a cost of $628 million to U.S. consumers.

We investigate incumbent brands’ response to entry and increased competition in a large retail setting. We extend the nonprice competition and manufacturer stocking literatures by examining if incumbent brands increase quality, specifically increasing the number of varieties (product-line length), in response to entry of a new local brand in the ice cream market. We use the entry of a new, local, super-premium ice cream brand in a large supermarket chain as a quasi-natural experiment and empirically examine if incumbent ice cream brands increased the product-line length in stores carrying the new brand. Using Poisson difference-in-differences estimators, we find that incumbent brands increased the number of varieties offered by 0.9 (3 percent) after the new brand's entry, with most of the responses coming from super-premium ice cream, which increased the number of varieties offered by 2.9 (12 percent) product choices. These findings contribute new insights into quality changes, manufacturer stocking decisions, and nonprice competition associated with entry of a local brand into the food retail sector.