Use of scanner data to analyze the table wine demand in the Italian major retailing trade

While the utilization of scanner data for food demand analyses has become increasingly popular in the United States, few food demand studies, and in particular none on table wine, have been conducted using scanner data in Italy. This paper presents a first attempt to estimate a demand system for selected brands of red tetra-packaged, plastic packaged, and bag-in-box table wine using scanner data providing new and useful insights into the marketing of Italian wine. Price and expenditure elasticities of Italian red table wine demand drawn from a linear almost ideal demand system are provided. Results suggest a partially loyal market of table wine, showing a tendency to substitution across brands and a degree of competition among the leading brands. [EconLit citations: Q110, Q130]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 391-403, 2006.