Creating Wine: The Emergence of a World Industry, 1840-1914 [NOOK Book]

Overview

Today's wine industry is characterized by regional differences not only in the wines themselves but also in the business models by which these wines are produced, marketed, and distributed. In Old World countries such as France, Spain, and Italy, small family vineyards and cooperative wineries abound. In New World regions like the United States and Australia, the industry is dominated by a handful of very large producers. This is the first book to trace the economic and historical forces that gave rise to very ...

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Creating Wine: The Emergence of a World Industry, 1840-1914

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Overview

Today's wine industry is characterized by regional differences not only in the wines themselves but also in the business models by which these wines are produced, marketed, and distributed. In Old World countries such as France, Spain, and Italy, small family vineyards and cooperative wineries abound. In New World regions like the United States and Australia, the industry is dominated by a handful of very large producers. This is the first book to trace the economic and historical forces that gave rise to very distinctive regional approaches to creating wine.

James Simpson shows how the wine industry was transformed in the decades leading up to the First World War. Population growth, rising wages, and the railways all contributed to soaring European consumption even as many vineyards were decimated by the vine disease phylloxera. At the same time, new technologies led to a major shift in production away from Europe's traditional winemaking regions. Small family producers in Europe developed institutions such as regional appellations and cooperatives to protect their commercial interests as large integrated companies built new markets in America and elsewhere. Simpson examines how Old and New World producers employed diverging strategies to adapt to the changing global wine industry.

Creating Wine includes chapters on Europe's cheap commodity wine industry; the markets for sherry, port, claret, and champagne; and the new wine industries in California, Australia, and Argentina.

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Editorial Reviews

Wall Street Journal
[T]his book . . . has a decidedly, and fittingly, scholarly tone. . . . There are some fascinating historical facts, including the widespread nature of fraud in the wine business.
— Lettie Teague
Marginal Revolution
Anyone interested in the economic history of wine and drink should read this book.
— Tyler Cowen
Books4Spain.com
[T]here can be no doubt that wine buffs whose interest in what they drink stretches rather further than the supermarket price and the colour of the stuff in the bottle (why read the label?) will find this book fascinating.
EH.Net Reviews
In writing Creating Wine, James Simpson has done a great service to those who are interested in how a traditional industry inherited the modern, highly regulated, market structure we observe in places like France today. The book is important and carefully written. Anyone interested in wine or the interaction between markets and modern democratic states should buy it.
Choice
Given Simpson's excellent job in describing the evolution of the industry, this book should find a large audience.
Wall Street Journal - Lettie Teague
[T]his book . . . has a decidedly, and fittingly, scholarly tone. . . . There are some fascinating historical facts, including the widespread nature of fraud in the wine business.
Marginal Revolution - Tyler Cowen
Anyone interested in the economic history of wine and drink should read this book.
From the Publisher

Winner of the 2012 OIV Award in History, International Organisation of Vine and Wine

"[T]his book . . . has a decidedly, and fittingly, scholarly tone. . . . There are some fascinating historical facts, including the widespread nature of fraud in the wine business."--Lettie Teague, Wall Street Journal

"Anyone interested in the economic history of wine and drink should read this book."--Tyler Cowen, Marginal Revolution

"[T]here can be no doubt that wine buffs whose interest in what they drink stretches rather further than the supermarket price and the colour of the stuff in the bottle (why read the label?) will find this book fascinating."--Books4Spain.com

"In writing Creating Wine, James Simpson has done a great service to those who are interested in how a traditional industry inherited the modern, highly regulated, market structure we observe in places like France today. The book is important and carefully written. Anyone interested in wine or the interaction between markets and modern democratic states should buy it."--EH.Net Reviews

"Given Simpson's excellent job in describing the evolution of the industry, this book should find a large audience."--Choice

"This is a wonderful book for vine professionals, for wine professionals and for students of economic history alike, including for casual students."--Jacques Delacroix, Enterprise & Society

"[This] is the first book to trace the economic and historical forces that gave rise to very distinctive regional approaches to creating wine."--World Book Industry

"Creating Wine was a delight to read. Simpson has chosen to study a pivotal time in wine production, dictated not only by changing market structure but also various supply shocks and societal factors. While many of us may have some idea of the broad issues that existed in the market for wine around this time, Simpson has provided a thoroughly researched, comprehensive piece of work that will satisfy anyone from novice to expert."--Tim Davis, Australian Journal of Agricultural and Resource

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Product Details

  • ISBN-13: 9781400838882
  • Publisher: Princeton University Press
  • Publication date: 9/26/2011
  • Series: Princeton Economic History of the Western World
  • Sold by: Barnes & Noble
  • Format: eBook
  • Edition description: Course Book
  • Pages: 360
  • File size: 6 MB

Meet the Author

James Simpson is professor of economic history and institutions at the Carlos III University of Madrid. He is the author of "Spanish Agriculture: The Long Siesta, 1765-1965".
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Table of Contents

List of Illustrations xi
List of Tables xiii
Acknowledgments xv
Maps xvii
Introduction xxxi
Weights, Measures, and Currencies xxxix
Acronyms and Abbreviations xli

Part I: Technological and Organizational Change in Europe,1840-1914 1 Chapter 1: European Wine on the Eve of the Railways 3
What Is Wine? 3
Family Producers 7
The Production of Grapes prior to Phylloxera 11
Traditional Wine-Making Technologies 17
Markets, Institutions, and Wine Consumption 21
The Development of Fine Export Wines 24

Chapter 2: Phylloxera and the Development of Scientific Viti-Viniculture 30
The Growth in Wine Consumption in Producer Countries 31
Phylloxera and the Destruction of Europe’s Vines 34
Phylloxera and the International Response in Spain and Italy 41
Wine Making, Economies of Scale and the Spread of Viticulture to Hot Climates 48
La Viticulture Industrielle and Vertical Integration: Wine Production in the Midi 53

Chapter 3: Surviving Success in the Midi: Growers, Merchants, and the State 58
Phylloxera and Wine Adulteration 59
Politics, Phylloxera, and the Vineyard during France’s Third Republic 63
The Midi: From Shortage to Overproduction 65
From Informal to Formal Cooperation: La Cave Cooperative Vinicole 71

Part II: The Causes of Export Failure 77
Chapter 4: Selling to Reluctant Drinkers: The British Market and the International Wine Trade 81
The Political Economy of the Wine Trade in Britain prior to 1860 83
Gladstone and the Rise and Decline in Consumption in the Late Nineteenth Century 87
The Retail Market and Product Adulteration 92
Who Controls the Chain? Experiments at "Buyer-Led" Commodity Chains 98

Part III: Institutional Innovation: Regional Appellations 107
Chapter 5: Bordeaux 111
Claret, Trade, and the Organization of Production 112
The 1855 Classification and the Branding of Claret 115
Supply Volatility, Vine Disease, and the Decline in Reputation of Fine Claret 120
Response to Overproduction: A Regional Appellation 126

Chapter 6: Champagne 132
The Myth of Dom Perignon and the Development of Champagne 134
Economies of Scale, Brands, and Marketing 138 The Response to Phylloxera 141
Organization of a Regional Appellation 145
Chapter 7: Port 154
Port and the British Market 155
Product Development and the Demands of a Mass Market 159
Rent Seeking, Fraud, and Regional Appellations 164

Chapter 8: From Sherry to Spanish White 171
The Organization of Wine Production in Jerez 172
Sherry and the British Market 178
Product Innovation and Cost Control 183
Wine Quality and the Demand for a Regional Appellation 187

Part IV: The Great Divergence: The Growth of Industrial Wine Production in the New World 191
Chapter 9: Big Business and American Wine: The California Wine Association 195
Creating Vineyards and Wineries in a Labor-Scarce Economy 197
Production Instability and the Creation of the California Wine Association 204
The California Wine Association and the Market for California’s Wines 209

Chapter 10: Australia: The Tyranny of Distance and Domestic Beer Drinkers 220
Learning Grape Growing and Wine Making 221
Organization of Wine Production 225
In Search of Markets 230
Chapter 11: Argentina: New World Producers and Old World Consumers 240
Establishing the Industry 242
Redefining the Industry 248
The Limits to Growth and the Return to Crisis 256

Conclusion 263
Old World Producers and Consumers 263
New World Producers and Consumers 267
The Wine Industry in the Twentieth Century 270

Appendix 1: Vineyards and Wineries 273
A.1. Area of Vines and Output per Winery in France, 1924 and 1934 274
A.2 Number of Growers and Area of Vines by County, California, 1891 276
A.3. Winery Size in the Midi and Algeria, 1903 278

Appendix 2: Wine Prices 279
A.4. Farm and Paris Wine Prices, July 1910 279
A.5. Price List, Berry Brothers, London, 1909 281

Glossary 291
Bibliography 293
Index 313

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