Does VQA Certification Matter? A Hedonic Analysis

The Vintners Quality Alliance (VQA) program was established in British Columbia in 1990 in response to international pressure that opened the BC wine market to increased foreign competition. The VQA program aimed at improving the quality of British Columbia-produced wines by outlining standards and regulations for wine produced 100 percent from BC grown grapes. Wine sales in British Columbia are rapidly increasing, w i t h domestically produced Canadian wines having the largest market share. This research examines consumers' valuation of VQA certification through a hedonic price analysis. Results show that consumers are willing to pay a premium for VQA red and white wines. However, the benefits of VQA certification are asymmetric: certification is less important for high-priced wines than for low-priced wines.