18 The findings are consistent. Florida has the highest excise taxes, and observed prices there are almost always highest. Colorado's high prices may be a result of its location combined with a smaller market size. At each level of distribution and in virtually every market, Imports had a smaller price disadvantage on the 750ml size than on the 1.5L size. The "dollar differences" (one price less the other) between average imported and domestic prices grew at each level of distribution, reflecting the expected effects of value added by wholesalers and retallers. When we took out the inexpensive domestic and expensive Imports, prices changed as expected (narrowing the difference), but the overall results were unchanged. Finally, the observed price differences are so large that massive, systematic errors would have to permeate the entire data collection and calculation process before the study's general conclusion could be called into question. We think this unlikely. Conclusion The leading imported wines sell for higher average prices than do the leading domestics. The price disadvantage of imported wines is probably smaller for the 750ml size than for the 1.5L size, but the differences can be found in diverse markets in the U.S., at each level of distribution, and for more than one year. We conclude that domestic wine has a competitive pricing edge. Steve L. Barsby Steve L. Barsby & Associates, Inc. Falls Church, Virginia Wine Brands Used In Price Comparisons Sebastiani (cont.) Mountain wines Burgundy Chablis Vin Rose Rhine Taylor California Cellars Generics Rhine Rose Burgundy Chablis Varietals (group 1) Cabernet Sauvignon Chardonnay Sauvignon Blanc Johannisberg Riesling Varietals (group 2) French Colombard Chenin Blanc Riesling Zinfandel California Cellars Light Light Rose Light Rhine Light Chablis Lake Country Red White Gold Pink Soft Red Soft White Soft Pink Great Western Dinner Wines (Generic) Burgundy Rose Chablis Varietal Pink Catawba White Niagara Wine Group Mogen David Concord Blackberry Rose M.D. Red 21 |