Sell Wine? Charge More. Get a Good Bottle Design. Brand It.

Elliott Morss writes:  The evidence from blind tastings of wines people like and their ability to tell differences between wines is growing rapidly.

Goldstein et al, based on data from 6,000 blind tastings, found: “Individuals who are unaware of the price do not derive more enjoyment from more expensive wine. …we find that the correlation between price and overall rating is small and negative, suggesting that individuals on average enjoy more expensive wines slightly less….”

More recently, Ashton has taken another look at Goldstein findings and provides data that reinforces them.   Lecocq and Visser analyzed data from three data sets totaling 1,387 observations on French Bordeaux’s and Burgundies. They report similar findings:  “When non-experts blind-taste cheap and expensive wines they typically tend to prefer the cheaper ones.”

The evidence suggests most people cannot tell one wine from another when only using sensory organs. So what really adds to wine’s value? Like doctors’ recommendations, there appear to be significant wine “placebo effects” from brand, label, price, country of origin, high ratings, and the recommendations of wine store staff.

If most wine is consumed with food and food changes the taste profile of wines, why are most tastings done “in isolation”? Sipping wines loaded with tannin (like Barolos) is not fun.  Such wines taste much better with food.

In tastings of the Lenox Wine Club, we tried to get tasters to consume wine with food before scoring the wines.  It did not work.  The tasters viewed the tastings as “work” and wanted to complete them before food and socializing at dinner.

  1. When eyes, tongue, and nose are used to taste wines, price makes no difference: people like inexpensive wines just as much as expensive wines.
  2. Limited evidence suggests further that when tasters are blindfolded (using only tongue and nose), 25% of tasters cannot tell the difference between red and white wines.
  3. Like women’s perfume, pocket books and sun glasses, wines are a “fashion good.”[7] That is, external signals, such as price (higher better), brand name, shape and color of bottle, ratings, wine salesmen, and country of origin all add value. Rough calculations suggest that of the roughly $250 billion of wine sales annually, $100 billion is attributable external “fashion” signals. People are starting to realize they can find good wines for $10, but as long as people are ignorant, vain, and insecure, there will be a “fashion premium” for wine.

 What's A Good Wine?

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