Bordeaux: A Most Heavily Institutionalized Wine-Producing Region Analysis
2. Bordeaux: A Most Heavily Institutionalized Wine-Producing Region
This chapter will mainly focus on how the high degree of institutionalization of Bordeaux’s vineyard provides certain quality signals that are visible for any operator on the wine market. First, we will define fine wines. The concepts of appellations of controlled origin and classifications will then be explained, as well as how they may be seen as quality signals.
2.1. Defining Fine Wines
Before discussing the wine market any further, one has to define the main object of this study, Bordeaux’s top Wines. In this paper, they will also be referred to as fine wines, high-end wines or “Grand Crus”, following the current French expression. Throughout this study, the word wine will …show more content…
This classification only lists wines from the region surrounding the village of Saint-Emilion. It has not the same significance and is not as prestigious as the classification of 1855. As the latter did not take any wines from Saint-Emilion into account, the classification of Saint-Emilion serves as a substitute (Lepré et al., 2010, p. 248). The classification of Saint-Emilion is somewhat different from the classification of 1855. First it is much younger. The first version dates from 1954. Unlike other classifications, it does not take only the prices into account. It also considers the quality of the wine, its reputation, and the soil of the winery. The structure is also different although it is hierarchical as well. Instead of listing the wines from the first to the fifth growth, this ranking only displays three categories. The categories bear the name “First great growth A”, “First great growth B” and “great growth”. It is in theory subject to revision every ten years (Chauvin, 2010, pp. 21-22). The last revision dates from 2012 and has lead to several legal contestations (Mercer, …show more content…
If the classification of Pomerol is hierarchical, the others are not (Lepré et al., 2010, pp. 248-249). This thesis will nevertheless focus on the classifications of Saint-Emilion and the classification of 1855, which are the most well known and recognized.
When considering the classification of Saint-Emilion, it is quite obvious, that it is a quality signal. Indeed, wines are ranked in a process that involves tastings, which means that quality is a fundamental factor of this classification. The same is however not obvious in the classification of 1855 as it is based on price records. It is only by arguing that prices can only be maintain if they are justified by continuous quality, that this classification becomes a quality signal. In this way, belonging to the first growths of this classification becomes a very visible quality signal.
2.4. Institutionalization and Quality
This chapter will mainly focus on how the high degree of institutionalization of Bordeaux’s vineyard provides certain quality signals that are visible for any operator on the wine market. First, we will define fine wines. The concepts of appellations of controlled origin and classifications will then be explained, as well as how they may be seen as quality signals.
2.1. Defining Fine Wines
Before discussing the wine market any further, one has to define the main object of this study, Bordeaux’s top Wines. In this paper, they will also be referred to as fine wines, high-end wines or “Grand Crus”, following the current French expression. Throughout this study, the word wine will …show more content…
This classification only lists wines from the region surrounding the village of Saint-Emilion. It has not the same significance and is not as prestigious as the classification of 1855. As the latter did not take any wines from Saint-Emilion into account, the classification of Saint-Emilion serves as a substitute (Lepré et al., 2010, p. 248). The classification of Saint-Emilion is somewhat different from the classification of 1855. First it is much younger. The first version dates from 1954. Unlike other classifications, it does not take only the prices into account. It also considers the quality of the wine, its reputation, and the soil of the winery. The structure is also different although it is hierarchical as well. Instead of listing the wines from the first to the fifth growth, this ranking only displays three categories. The categories bear the name “First great growth A”, “First great growth B” and “great growth”. It is in theory subject to revision every ten years (Chauvin, 2010, pp. 21-22). The last revision dates from 2012 and has lead to several legal contestations (Mercer, …show more content…
If the classification of Pomerol is hierarchical, the others are not (Lepré et al., 2010, pp. 248-249). This thesis will nevertheless focus on the classifications of Saint-Emilion and the classification of 1855, which are the most well known and recognized.
When considering the classification of Saint-Emilion, it is quite obvious, that it is a quality signal. Indeed, wines are ranked in a process that involves tastings, which means that quality is a fundamental factor of this classification. The same is however not obvious in the classification of 1855 as it is based on price records. It is only by arguing that prices can only be maintain if they are justified by continuous quality, that this classification becomes a quality signal. In this way, belonging to the first growths of this classification becomes a very visible quality signal.
2.4. Institutionalization and Quality