The Importance of Australian Corporate Brand and
Grape Varietal Wines: Hedonic Pricing in the British
Columbia Wine Market
Richard Carew and Wojciech J. Florkowski
Journal of Wine Economics, Vol. 3, No. 2, 194-204
Abstract
A hedonic analysis is applied to a unique data set of Australian wines imported by the British Columbia Liquor Distribution Branch. The data included the important corporate red wine brands produced in Australia. Hedonic price functions are estimated for red Australian wines to show how price premia associated with the attributes of wine brands including the grape variety and alcohol content differ by corporate brands. Results show the positive effects on price of highly reputable brands, positive effect of grape variety Shiraz, and premia for alcohol content. (JEL Classification: D49, L15, L66, Q11)