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The impact of wine franchise laws on consumer choice and pricing: A comparison between Georgia and Florida

Liz Thach (Management and Wine Business, Sonoma State University, Rohnert Park, California, USA)
Steve Cuellar (Economics, Sonoma State University, Rohnert Park, California, USA)
Janeen Olsen (Marketing & Wine Business, Sonoma State University, Rohnert Park, California, USA)
Tom Atkin (Marketing & Wine Business, Sonoma State University, Rohnert Park, California, USA)

International Journal of Wine Business Research

ISSN: 1751-1062

Article publication date: 31 May 2013

569

Abstract

Purpose

The purpose of this paper is to compare and contrast wine sales in neighboring franchise law and non‐franchise law states in order to determine impact on wine price, consumer choice, consumer satisfaction, and stakeholder perception.

Design/methodology/approach

The study used qualitative interviews with 14 wineries, distributors, and retailers, statistical analysis of Nielsen Scantrack data, and an online survey of 401 wine consumers in Georgia and Florida, USA.

Findings

Results show statistical proof that Florida offers more wine selection and lower wine prices on matching brands than Georgia. Qualitative interviews indicate wineries, distributors, and retailers perceive differences in wine choice, price, and overall operating costs in these two states. However, there was no statistical difference between a sample of 401 consumers from Georgia and Florida when asked about their satisfaction level with wine choice and pricing within their state.

Research limitations/implications

For practical purposes, the research was limited to only two US states. It would be useful to duplicate this study in other states.

Practical implications

Practical implications include the need for new wineries desiring to enter franchise law states to carefully research regulations and distributors before making a commitment, as well as the social issue of less wine choice and higher prices for consumers in Georgia versus Florida.

Originality/value

This is the first empirical study in the USA to focus on the impact of wine franchise laws on consumer choice and wine price. It yields useful information that contributes to the body of knowledge for wine and policy research.

Keywords

Citation

Thach, L., Cuellar, S., Olsen, J. and Atkin, T. (2013), "The impact of wine franchise laws on consumer choice and pricing: A comparison between Georgia and Florida", International Journal of Wine Business Research, Vol. 25 No. 2, pp. 138-158. https://doi.org/10.1108/IJWBR-10-2012-0029

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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