American Wine Economics by Thornton James

Author:Thornton, James
Language: eng
Format: epub
ISBN: 9780520276499
Publisher: University of California Press

Government Regulation

Wine firm choices are also constrained by the system of federal, state, and local laws and regulations that apply to the production and sale of wine. Compared to other countries, wine laws in the United States place relatively few restrictions on grape growing and wine production, but significantly more restrictions on wine distribution.

In European nations such as France, Germany, and Italy, wine laws and regulations often impose substantial restrictions on grape growers’ choices in the form of permissible grape varieties, maximum grape yield, and viticultural practices, such as allowable pruning techniques and trellis systems. Wine producers typically face legal restrictions on their choice of grape varieties, alcohol level, acid, sugar, fining agents, maturation time, and in some regions the earliest date at which a wine can be sold. Most European wine regulations apply to quality wines, as opposed to ordinary table wines, and compel wine firms to make choices that are consistent with traditional winegrowing methods and techniques. Grape growers and wine producers in the United States have much more freedom when making these sorts of choices. Regulatory constraints on growers are typically in the form of land-use regulations and laws governing water quality, waste management, and endangered species. While some states have laws that prohibit adding sugar or acid to wine, and federal regulations specify maximum permissible sulfite levels, relatively few regulations govern the production of wine, and those that exist are typically nonbinding. As discussed in chapter 8, the most substantial legal constraints on wine firms’ choices are state laws and regulations governing the distribution and sale of wine.

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