(Justmeans.com / CSR News) -

March 10, 2010 – A new UCLA-led study has found that California wineries using eco-labels on their organic wines are seeing a decrease in price, instead of the higher revenue of other green products like organic foods and high-efficiency appliances. 

UCLA researchers gathered information from 13,426 certified “organic” wines from 1,495 California vintners, with a seven-year range of vintages. USDA organic wines are not only grown from organic grapes, but also lack sulfites as a preservative. The process calculated the number of wineries who put the eco-labels on their bottles and those who choose to keep the extensive – and expensive- certification process to themselves. 

Although organic wines rate higher on Wine Spectator’s scale and are of significantly higher quality than conventional wines, “organic” labels drive down the price of the wine by 7-percent.  Two-thirds of wineries are keeping mum about the use of organic grapes, and commanding a 13-percent higher price than traditional wines of the same varietal.

Environmental economist Magali Delmas, the study’s main author, says that the quiet producers of organic wines must suspect that consumers aren’t appreciative of the product. "Consumers buy organically grown food because they think it is going to improve their health.  That motivation doesn't go a long way with wine. If consumers want to drink something healthy, they'll reach for wheat grass, not an alcoholic beverage."

Another theory is that consumers still retain negative associations with organic wine from the 70’s, believing it to be “hippie wine” that turns to vinegar because of its unstable shelf life without sulfites. However, it is important for regulators and vintners to communicate the quality and sustainability of organic wines instead of remaining tight-lipped about their environmental practices.

Co-author Laura Grant says it’s a marketing conundrum for environmentally friendly vintners, yet a buyer’s opportunity for oenophiles: "Wine made with organic grapes-especially if it has an eco-label-is a really good deal. For the price of conventional wine, you get a significantly better quality wine."