The Impact of Wine Franchise Law on Consumers

Author: Liz Thach, MW, Ph.D.; Steven Cuellar, Ph.D.; Janeen Olsen, Ph.D.; and Tom Atkin, Ph.D.

Publication: International Journal of Wine Business Research

Publication Date: 2013

Abstract:
The purpose of this paper is to compare and contrast wine sales in neighboring franchise law and non‐franchise law states in order to determine impact on wine price, consumer choice, consumer satisfaction, and stakeholder perception.

The study used qualitative interviews with 14 wineries, distributors, and retailers, statistical analysis of Nielsen Scantrack data, and an online survey of 401 wine consumers in Georgia and Florida, USA.

Results show statistical proof that Florida offers more wine selection and lower wine prices on matching brands than Georgia. Qualitative interviews indicate wineries, distributors, and retailers perceive differences in wine choice, price, and overall operating costs in these two states. However, there was no statistical difference between a sample of 401 consumers from Georgia and Florida when asked about their satisfaction level with wine choice and pricing within their state.

Practical implications include the need for new wineries desiring to enter franchise law states to carefully research regulations and distributors before making a commitment, as well as the social issue of less wine choice and higher prices for consumers in Georgia versus Florida.