A Hedonic Price Analysis for the New Zealand Wine Industry: Preliminary Results

Abstract

This paper presents preliminary results from a hedonic price analysis of premium wines in New Zealand over the vintages 1994 – 2003. Implicit prices are presented for a sensory quality rating, as well as wine variety and regional reputation. Results show that the price premium associated with Michael Cooper's five-star quality rating is highly significant and increasing in magnitude over the study period. Trends in regional and varietal preferences are also explored.Hedonic pricing, New Zealand wine, quality, Agribusiness, Agricultural and Food Policy, Environmental Economics and Policy, Food Consumption/Nutrition/Food Safety, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,