The conundrum plaguing organic viticulture is rooted in consumer confusion. So while it’s better-quality wine according to the Wine Spectator, people don’t perceive it that way.” But we find that if there’s a label on it, it drives prices below conventional wine. Stranger still, “these wines are higher quality than conventional wines. The market impact? “Only one-third of the wineries that are certified put the label on the bottle, which is strange, because certification is a costly process,” Delmas says. The results of that study echoed those from the first: Consumers associate eco-labels on wine with low quality.
Delmas continued studying the wine industry’s paradox at UCLA, where she ran an experiment with 830 participants from across the nation. But stamping on an eco-label reduced the price by 7 percent below conventional wines and 20 percent below certified, non-labeled wines. Using a database that included 72 percent of California-produced wines, the authors found that overall, wines produced from vineyards that use organic processes are valued at 13 percent higher than their competitors.
That’s because “organic” wines come with a stigma: that they suck.ĭelmas and researcher Laura Grant published a study on “The Wine Industry Puzzle” in Business & Society in 2010. Delmas has found that when an eco-label-advertising “made from organic grapes,” “certified by California Certified Organic Farmers,” “USDA Organic” or “Demeter-certified”-is applied to these spirits, prices plummet. Magali Delmas, a professor at UCLA's Institute for Environment and Sustainability, has been studying the effects of eco-labels on California wines since 1999.
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