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AAWE Working Paper No. 184 – Business

AAWE Working Paper No. 184 – Business

Table wines do not shine like Malbec does in Argentina’s wine industry; nonetheless they represent two thirds of the wine produced in this country. A key economic indicator of this product is the price of the “vino de traslado” (bulk wine). A grape-grower has two options with his grape: he can sell it or he can elaborate wine (the “bulk wine”) and sell it later to a large winery. Thus, the price of the “bulk.wine” is a reference of the income of grape-growers and small wineries.

In the last five years, this price has been very low, and consequently governments of wine provinces are under social pressure to implement policies to raise it by restricting wine supply and/or by buying wine. Why is this price so low? From a sectorial perspective, there is overproduction, with the consequent increase in wine stocks. This hypothesis is strengthened by the declining domestic consumption of this wine in Argentina for several decades, as well as in other major wine producing countries.

However, there is another view, a crisis one. Over a period of more than three decades, this reference price reaches the minimum levels in each recession in Argentina. After a while, in every economic recovery, this price has increased very strongly. Macroeconomic impacts seem strong.
This study will show in numbers both impacts (of overproduction and recession) on the price of “bulk wine” in the Argentine case. Given the relevance of this price for the grape-grower, the study.will analyze the evolution of the producer share in the final price of wine (paid by consumers). In these years of low prices, producers have complained of lower share and there is a question whether this phenomenon is a trend observed over time.

AAWE Working Paper No. 183 – Economics

AAWE Working Paper No. 183 – Economics

This study examines the effects of increasing provision of hygiene quality information on consumer assessment of restaurant quality. In July 2010 New York City introduced mandatory hygiene grade cards to be displayed in restaurants. I show that both an A grade and better inspection scores are correlated with higher ratings in food, decor, service and price, with the former having a larger impact. These results suggest that consumers give much credence to the information provided byhygiene grade cards but the underlying scores might not reflect the true hygiene quality of restaurants.

AAWE Working Paper No. 182 – Business

AAWE Working Paper No. 182 – Business

The aim of the study is to analyze the capital structure of the Hungarian and the French wine industries and to examine the funding models. First, the database and the applied methods will be described followed by the descriptive statistical analysis of the industry. The analysis indicates the capital structure policy applied in the industry and, at the same time, evaluates its performance in terms of profitability and efficiency. The analysis examines the differences between the funding policies applied in the two countries, especially those variables that are the basis for the separation of the two branches. This was carried out by means of discriminant analysis, which indicates the financing characteristics. The main conclusion of the study is that the behavior of the factors explaining the development of the capital structure is significantly different in the examined countries.

AAWE Working Paper No. 181 – Economics

AAWE Working Paper No. 181 – Economics

The wine industry faces significant risks climate change, such that the security of future production is under threat. To address this risk, in this paper, a framework is proposed to examine responses to climate change in the wine industry. Building upon the literature and relying on expert input, the framework takes into consideration mitigative and adaptive actions across market-based, regulatory/standards-based, and operational-based levels. To explore the framework, a case study is developed for Treasury Wine Estates (TWE), one of the world’s largest wine producers. The case study reveals verification of the framework, with TWE relying on several technologies and unique processes to engage in many mitigative and adaptive actions across the proposed levels. The findings suggest several opportunities for future study.

JWE Co-Editor Kym Anderson awarded by Queen Elizabeth

JWE Co-Editor Kym Anderson awarded by Queen Elizabeth

On June 8, Kym Anderson received the highest honors at the Queen’s Birthday awards: COMPANION (AC) IN THE GENERAL DIVISION OF THE ORDER OF AUSTRALIA Professor KYM ANDERSON, Echunga SA 5245 For eminent service to higher education as a leading academic and researcher, particularly in the field of agricultural economics, to the study of international trade…

A speed show through the 7th conference in Stellenbosch 2013

This is a speed show through the 7th annual American Association of Wine Economists which took place in South Africa.

The Wine Edition

The Wine Edition

On this week’s episode of Slate Money, Felix Salmon of Fusion, Cathy O’Neil of mathbabe.org, Slate’s Moneybox columnist Jordan Weissmann, and wine economics expert Karl Storchmann drink some rosé.

AAWE Working Paper No. 180 – Economics

AAWE Working Paper No. 180 – Economics

In this paper we provide a simple and transparent non parametric methodology to express the scores of each wine expert (15) on the same rating scale. We discuss the advantage of this methodology over a linear transformation. The non paramatric method ensures the comparability of scores among experts and allows for a relevant average calculation of available wine scores. This approach may be usefuel to wine professionals who seek to reduce uncertainties leading to improved market efficiency. Uniform scores for many Bordeaux en primeur wines can be freely accessed at globalwinescore.com.

AAWE Working Paper No. 179 – Economics

AAWE Working Paper No. 179 – Economics

This paper investigates the motives behind the entrepreneurial activity in the Italian beer industry between the late 1980s and mid-1990s. The paper argues that the evolutionary dynamics of the new producers (microbreweries and brewpubs) must be connected to the dynamics of consumption, which have gradually changed consumer preferences and lifestyles since the 1980s. On the one hand, increasing revenues, growing interest in food knowledge, and the rise of new cultural and social meanings attached to food consumption generated a new demand for variety. On the other hand, international integration increased the knowledge of beer typologies and styles. These changes enabled new small firms to enter the market and produce differentiated specialised products. This paper suggests that more research is required on the role of demand to interpret the dynamics of industries. The argument and discussion are based on original in-depth interviews with the pioneering entrepreneurs in Italy’s craft beer segment.

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