Why does wine brand popularity not follow a power law distribution? (gamedevblog.com)
Short blog article posing that exact question. The article is otherwise devoid of facts or hypothesis, but I'm very much interested in hearing HN's thoughts, since it's a very interesting question.
7 comments
[ 2.8 ms ] story [ 23.9 ms ] threadhttp://cscs.umich.edu/~crshalizi/weblog/491.html
The better answer emerges if you think about the example a little more closely. The big power law brands driven by customer appreciation are in media -- people love Lady Gaga (say), so she sells gazillions. Nobody loves yellowtail or sutter home. Many people love Screaming Eagle or Chateau Lafite. However, wine is an agricultural product; you cannot produce more bottles of a great wine than you can grow in some very particular fields in a year. The way scary hit-driven industries work is that you sell things way above marginal cost to everyone who wants them; in wine, since there's actually scarcity, very few people who love a brand can get as much as they want of it, so the prices at the top are insane (recent vintage screaming eagle is indicated at $2-3k per bottle), but the brands are smaller.
I'd guess the way to think of it is like the music industry before recording devices or electricity -- sure there are stars, but because supplies are limited nobody can by a megastar.
But good for you, since it was crap and my only goal in that comment was to point that out quickly and politely.
Here are rankings of the top wine producers by case in 2008
http://www.winebusiness.com/wbm/?go=getArticle&dataId=54...
E&J gallo - 68 million constellation - 59M The wine group 44M