Thursday, July 22, 2004

Wine = Food

France might classify wine as a food, so that it can be advertised on tv and stuff, without small print.

5 Comments:

Blogger Eric said...

So let me get this stragiht... if wine is classified as food, then the wine industry can spend more money on ads in France. The wine industry hopes this will cause more French people to drink more wine, so that the wine makers will get more money. And the government thinks that allowing this will improve the French economy?

I liked the quote about wanting to save their wine industry by creating something modeled after the US department of homeland security.

7/23/2004 12:11:00 AM  
Blogger Vincent said...

Encouraging increased consumption of wine will help the French economy, or at least French vintners, who are unarguably a portion of the economy. Increased consumption of alcohol does not necessarily have to correlate with higher DUI rates, provided that there's an effective campaign (possibly including stricter enforcement) against drunk driving.

In the US, I would guess that wine advertising primarily helps the larger wineries, which are usually purveyors of plonk. But perhaps stricter French appellations (combined with a larger percentage of oenophiles in the French populace) will ensure that higher-quality vintners are rewarded with increased sales.

7/23/2004 12:29:00 AM  
Blogger finou said...

you mean wine isn't food? :)-

7/23/2004 10:15:00 AM  
Blogger Eric said...

Maybe, but if the increased advertising is within France, then even if the campaign is sucessful it can only hope to increase French consumption. So the French would just be redistributing their own money.

I suppose it's possible that increased French demand would drive up prices for foreigners as well, and thereby could increase the ammount of money the French get from foreigners (I'd consider that a second order effect). But I thought good French wine wasn't considered a commodity, and was already priced mostly by what people would pay. But maybe that market is just a small fraction of the French wine revenues.

8/03/2004 02:06:00 AM  
Blogger Vincent said...

Well, wealth isn't zero-sum. Increasing French consumption of French wine still grows the economy. France wins if total consumption increases, and it also wins if total consumption stays constant but the domestic share of the market increases.

8/06/2004 12:02:00 AM  

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