Quality, prices and production efficiency: an exploratory study of Italian wines with appellation of origin

Wine is a complex and highly differentiated product of a very wide and heterogeneous compartment, where quality plays an important role in determining demand. Wine production in Italy is unique in the world and important for all of its regions and its vineyards are placed in extremely different environments, from coastal plains to considerable altitudes and slopes. The Italian level of quality can be considered very high, since approximately 69% of wine production is characterized by Appellation of Origin (AO). The main purpose of this study is to evaluate the potential efficiency in production of Italian wines with Appellation of Origin, in terms of quality, prices and vine yields. Results of this study highlight the economic value generated annually by each declared hectare of vineyard, showing the "Top five wines", allowing reflections that underline the strategic role of some factors, useful to create a high value production process.