- Cult wines
Cult wines are those for which dedicated groups of committed enthusiasts will pay large sums of money. Such
wine s include, for example, Screaming Eagle fromCalifornia ,Penfolds Grange from Australia, and Galardi Terra di Lavoro from Italy, among many others.Cult wines are often seen as trophy wines to be collected or as investments to be held rather than consumed. Because price is often seen as an indicator of quality, high prices often increase the desirability of such wines. This is true even for less expensive wines. For example, one vintner explained that "on several occasions we have had difficulty selling wines at $75, but as soon as we raise the price to $125 they sell out and get put on allocation" (Cape crusaders).
In
economic theory , such behavior with increased demand on increased price, i.e. an invertedprice elasticity of demand compared to most goods, is characteristic of aVeblen good . One of the reasons a good can become a Veblen good is thesnob effect .California cult wines
California cult wines refers to any of the
California wine s "typically but not exclusively Napa Valley Cabernets" for which collectors, investors and highly enthusiastic consumers will pay very high prices. The producers of such wines include Araujo, Bryant Family, Caymus,Colgin Cellars , Dalla Valle Maya, Diamond Creek,Dominus Estate , Dunn Howell Mountain, Grace Family, Harlan, Husic, Kistler,Jericho Canyon Vineyards , Marcassin, Screaming Eagle, Shafer Hillside Select, Sine Qua Non and Vineyard 29.These wines are generally very expensive and are limited production. Many of these wines are in the 300-600 case range per year and can command several times their "release price" upon release.
ee also
*
Conspicuous consumption
*Luxury good
*Cult following References
*Robinson, Jancis (Ed.) "The Oxford Companion to Wine". Oxford, England: Oxford University Press, second edition, 1999.
*Cape crusaders. "Decanter", June, 2006, pages 90 & 92.
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