Hedonic approach to the determinants of the price of cider

ABSTRACT

In this article, we apply the hedonic approach to the determinants of the price of cider in Quebec province. We examine the impact of production characteristics, the indications provided on the bottle and the taste and visual characteristics. The degree of alcohol, cryofermentation, production area, newest varieties of apples, presence of a cork, perception of sweet sugar, dark and golden aspect have a significant positive impact. The choice of high-quality products is reflected in the premium associated to the price. The analysis has important industrial implications for producers and distributors.

KEYWORDS:

• Hedonic models
• price determinants
• cider economics
• Quebec ciders

JEL CLASSIFICATION:

• Q11
• C80

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ For example, in wine, classical questions about the origins of the hedonic method and its applications can be found in Nerlove (1995) and Oczkowski and Doucouliagos (2015).

² Include cryoconcentration (concentration of sugars in apple juice after pressing) and cryoextraction (concentration of sugars in the apple before pressing).