It has been said that ‘wine economics are little different than another industry’s economics. Wine is an agricultural by-product, an agricultural good, and must be treated as such...[but] it has large differences that separate it from most other agricultural products’. According to Eyler and Correia, the factors making it different to other goods are as follows. (1) The market price of wine is usually found by subjective rather than scientific means; (2) The first yield for a wine grape crop occurs from three to five years after planting, so investment return is delayed (unless the so called ‘Australian method’ is used boasting a crop after eighteen months); (3) As an alcohol, wine is sold under commercial laws distinct from most agricultural products; (4) Determinants of the worth of wine involve a complex train of decision-making in the vineyard, including choice of plant stock, trellising style and the means of transport of grapes to winery. Following on from these factors are the processes of decision-making in the winery which both create and reflect a brand positioning within the marketplace.
The Business of Wine: The Inaugural Wine Business Research Symposium. 'The Business of Wine': The Inaugural Wine Business Research Symposium: Conference Proceedings (Newcastle, N.S.W. 7-8 December, 2009) p. 4-13