Wine production in Québec over the last twenty years has grown rapidly with an increased interest for diversified products in terms of quality and price. The growth of supply is related not only to the number of producers but also to the increased varieties of wines proposed. This paper proposes an economic analysis of wine production in Québec by analyzing the concentration level of producers. The level of competition has increased significantly between 2008 and 2105 due to an increasing number of small wine producers. An index of relative firm position in the market based on relative prices is calculated and we demonstrate that a high price strategy is significantly related to the size of the vineyard rather than the age of the domain or the number of wines produced.
This article was written by Karl Storchmann