The Demand for Wine in Australia Using a Systems Approach: Industry Implications

Title
The Demand for Wine in Australia Using a Systems Approach: Industry Implications
Publication Date
2002
Author(s)
Chang, Christie
Griffith, Garry
( author )
OrcID: https://orcid.org/0000-0002-5276-6222
Email: ggriffit@une.edu.au
UNE Id une-id:ggriffit
Bettington, Nicholas
Type of document
Journal Article
Language
en
Entity Type
Publication
Publisher
University of Melbourne
Place of publication
Australia
UNE publication id
une:3700
Abstract
The objective of this study is to explain the factors determining the demand for wine in Australia, based on a systems approach where wine demand is modelled as part of the broader demand for alcoholic drinks (beer, wine and spirits). Time series data on retail price indexes and apparent per capita consumption of alcoholic beverages for Australia for the period 1975/76 to 1998/99 are used for econometric estimation of an Almost Ideal Demand System. The results show that the demand for beer and wine is price inelastic and that both beer and wine are luxury goods. The study also found that current beer and wine consumption strongly follows past consumption patterns. Drink driving campaigns have not had a significant effect on alcoholic consumption, but there seems to have been a structural change in consumer preferences that has a significant impact on the volume of wine consumption. Finally, there seems to have been an overall upward trend in wine consumption and a downward trend for beer consumption. The study re-confirms the importance of developing a model that considers the impacts of both economic and non-economic variables on wine consumption. Implications for wine industry marketing strategies are suggested.
Link
Citation
Australasian Agribusiness Review, 10(Paper 9), p. 1-12
ISSN
1833-5675
1442-6951
1320-0348
Start page
1
End page
12

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