The Willingness to Pay for Cider Products: Results of a Survey on Habits and Consumption Behavior

Purpose : The objective of the paper is to investigate the impact of habits and consumption behavior on the willingness to pay (WTP) for cider by surveying young consumers. Method : The analysis is based on a questionnaire distributed to a group of 433 French business students from December 2017 to January 2018. Specifically, the questionnaire is designed to test whether young consumers would pay a premium price or not for quality ciders with respect to a traditional sweet cider with similar characteristics. We are modelling the premium that consumers are willing to pay for an organic cider, a farmer cider and rosé cider. To accommodate the feature of a significant proportion of zero or negative premiums in dependent variables, the Heckman two-stage estimation procedure is performed. Results : Results show that the young generation consider cider as a cheap, festive and non-organic beverage and is willing to pay a premium for quality ciders like specifically rosé and farmer ciders. Conclusion : The results from this research have useful implications not only for the cider market but also in the understanding of the characteristics of competitive beverages that young consumers may prefer and value

Real Options and Reduction of Basic Risk of Index‐Based Climate Agricultural Insurance

This article is a discussion of the concept of index-based agricultural insurance and the possible role of real options to reduce the basic risk. Indeed, to address the consequences of variability of weather within climate, experiments based on indexed agricultural insurance have been implemented in recent years. However, this locally defined insurance scheme has a weak point called the basic risk, i.e., the difference between the reality of climatic shocks and the payment of compensation. Real options allow this gap to be filled by offering alternatives to farmers. This article is the first to discuss the use of real options in the basic risk management of index-based climate agricultural insurance. The implications for farmers in developing countries, insurers, and local and institutional organizations and communities are important: better management of operating conditions, optimized financial management, and consideration of real climatic conditions

Do vintage scores by regions matters? The case of French wine regions

This article examines causal relationships among vintages scores in major French wine regions using cointegration procedures, Granger non-causality test, and the Error Correction Model. Vintage data are available from the French Guide Hachette over the period 1954–2015 and from a specialized wine website Idealwine.com for the period 1919–2015. Our approach provides new results on the causality links between different wine regions. The causal relationships among the vintage scores allow to assess the influential and influenced regions. The results are potentially important for various actors such as investors, merchants or consumers to better understand the quality effect in the different regional vintage scores

Hedonic approach to the determinants of the price of cider

In this article, we apply the hedonic approach to the determinants of the price of cider in Quebec province. We examine the impact of production characteristics, the indications provided on the bottle and the taste and visual characteristics. The degree of alcohol, cryofermentation, production area, newest varieties of apples, presence of a cork, perception of sweet sugar, dark and golden aspect have a significant positive impact. The choice of high-quality products is reflected in the premium associated to the price. The analysis has important industrial implications for producers and distributors

Grape varieties: is specialisation beautiful in the wine sector?

The objective of the paper is to investigate whether the grape varieties most used in national production affect the export performance. We examine this relationship over the period 1995-2016. The analysis is based on a sample of 38 wine exporting countries. We use the data envelopment analysis (DEA) to compute the efficiency of wine exports if the market structure of grape varieties is an input decision unit. Our results show that only a few countries are efficient. The three largest exporters, France, Italy and Spain, are efficient and adopt a strategy of diversification with a relatively small share of their most planted varieties in the national production. Some New World countries (Argentina, Portugal, South Africa and the USA) and the Old World (Germany) adopt the same strategy. Australia and Chile are also efficient but adopt a strategy based on a small number of grape varieties as well as a large share of the national production made with a few grape varieties. The implications for the wine industry are then discussed