Rioja Alavesa Wines Fetch 16% Premium Despite Similar Quality, New Research Finds

Researchers from the Agricultural & Applied Economics Association (AAEA) will present new findings on wine markets at the ASSA 2026 Annual Meeting in Philadelphia. The session, titled "Asymmetric Information and Organizational Forms in Wine Markets," is scheduled for January 4, 2026, at the Marriott Philadelphia Downtown. Three AAEA members will discuss their recent studies on how information gaps and organizational structures affect the wine industry.

Gianni De Nicolò of Johns Hopkins University will address the role of wine competitions as certifiers of quality. His research highlights that current rating systems introduce uncertainty for both consumers and producers. This uncertainty stems from two main sources: variation in how judges score wines within a competition, and inconsistent standards across different competitions. De Nicolò proposes a standardized rating system that normalizes judges’ scores and groups wines into statistically significant quality classes. Using data from an actual wine competition, he demonstrates that this approach reduces score variance and leads to more stable award outcomes. The study also models how differences in rating protocols across competitions can reduce the value of medals for consumers and producers alike. According to De Nicolò, standardizing ratings would improve trust in awards, lower consumer search costs, and help producers make more efficient decisions about which competitions to enter.

Angelo Zago from the University of Verona will present an analysis of wine cooperatives’ financial performance. His work introduces a model that treats cooperatives as vertically integrated firms, combining grape production by members with winemaking managed by the cooperative itself. Zago’s empirical research uses data from Italian and Spanish wine cooperatives to test this model. He finds that cooperatives led by professional administrators tend to focus on maximizing profits in the winemaking stage, while those controlled by member-growers prioritize returns on assets for individual grape producers. Survey data further reveal how profitability is distributed between grape production and winemaking within these organizations.

Omer Gokcekus of Seton Hall University will discuss the ongoing debate over Rioja Alavesa’s push for a separate Denominación de Origen Calificada (DOC). His study uses content analysis and regression modeling based on ratings from Wine Spectator and Tim Atkin to examine whether economic or political factors are driving this movement. Gokcekus finds that Rioja Alavesa wines command a price premium of 16.1 percent compared to other Rioja wines, supporting the argument for market differentiation based on economic incentives. However, he notes that quality ratings do not significantly differ between Rioja Alavesa and other Rioja wines, suggesting that branding and consumer perception play a larger role than intrinsic quality. The research also shows that Rioja Alavesa wineries are generally smaller and less dependent on aging-based classifications, which may put them at a disadvantage under current regulations. These findings point to economic reasons for seeking a separate DOC but also acknowledge the political challenges involved.

The AAEA was founded in 1910 and is recognized as a leading association for agricultural and applied economists worldwide. Its members work in academia, government, industry, and non-profit organizations, focusing on research related to agriculture, food systems, health, environment, and international development. The association publishes several journals and online resources aimed at advancing knowledge in these fields.

The session at ASSA 2026 offers an opportunity for media and industry professionals to learn about new research shaping the future of wine markets.