Archive for the ‘Regulation’ Category

The fascists and their buffalo mozzarella

Tuesday, January 26th, 2010

The Times of London reports that Italian Minister of Agriculture Luca Zaia has dissolved the mozzarella di bufala campana consortium after a series of inspections revealed that “25 per cent of the cheese sold as buffalo mozzarella was fake because it contained 30 per cent cow milk.” Mozzarella di bufala, with its wonderfully funky water-buffalo-milk notes, is one of the main ingredients in some versions of margherita DOP pizza (although it’s not, as Alan Richman has wrongly stated, a required ingredient). It’s also frequently served raw as an appetizer, either on its own or with ham.

Benito_MussoliniThe Italian Ministry of Agriculture has a recent history of operating at the curious intersection of neofascism and culinary purism. Zaia’s “zero-tolerance policy” on food fraud became famous with his 2008 bust-up of cheating Brunello di Monalcino producers, which was hailed as a victory for consumers. But in a less-reported crackdown the following year, Zaia, a member of the extreme-right-wing Lega Nord—the political party that has advocated the seccession of Northern Italy—also instituted, with Berlusconi’s backing, a policy banning new “ethnic” restaurants from opening in certain northern Italian cities, including Lucca and Milan. It was a move that the left-wing newspaper La Stampa called “culinary ethnic cleansing.” Reporting on the policy, the Times of London quoted Lucca city spokesman Massimo Di Grazia as saying that “French restaurants would be allowed”; he was “unsure, though, about Sicilian cuisine. It is influenced by Arab cooking.” Continued the Times: “Asked if he had ever eaten a kebab, Mr Zaia said: ‘No—and I defy anyone to prove the contrary. I prefer the dishes of my native Veneto. I even refuse to eat pineapple.’” This, from the country’s Minister of Agriculture.

Sometime in 2001 or 2002, I recall meeting, and discussing pure-ingredient fervence with, Giorgio Alemanno, who was Italy’s Minister of Agriculture at the time (this was two Ministers ago). The man talked about wine with great passion. And like Zaia, he was also an absolute right-wing zealot. (more…)

In Sweden, all wine stores are organized by price

Wednesday, June 17th, 2009

Sweden has one of the world’s most controlled alcohol regimes, with steep taxation, a state-controlled retail monopoly, and a 20-year-old minimum age to buy alcohol at a store (and they really card, too). The only store at which a consumer can buy wine, beer, or liquor in Sweden is Systembolaget, the state-controlled retail monopoly.

Is this a good thing or a bad thing? My intuition (and that of the economists I’ve been speaking with here in Stockholm) is the latter—first and foremost, as in Quebec, it’s a major headache for wine producers, whose distribution chances hang on the (often arbitrary) whims of just one decisionmaker. Opening hours of stores are criminally short. Pricing is screwy, in part because per-unit (rather than per-krona) taxation results in cheap wine being overpriced and expensive wine underpriced. As ever, monopolies throw everybody’s incentives out of whack.

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But here’s one definite consumer-oriented boon that results: in an of-the-people move, Systembolaget wine stores—that is, all wine stores in Sweden—are organized first by color, second by price. There’s the 69-kronor-(US$8.71)-and-under red wine section; there’s the 70-kronor-(US$8.84)-to-99-kronor (US$12.50) red wine section; and then there’s the 100-kronor (US$12.63)-and-up red wine section.

Although I’ve seen US wine stores with special $10-and-under sections and such, I’ve never seen an entire store organized this way. Intuitively, at least, it seems to be more aligned with consumers’ game plans as organization by region, grape, and so forth.

Why don’t non-monopoly stores organize this way?

My guess would be that profit-minded stores, for understandable reasons, don’t want to lose the chance to upsell—they want people to walk away with a wine more expensive than the one they came looking for.

What the F.A.A. and Robert Parker’s Wine Advocate have in common

Saturday, June 6th, 2009

Ethics scandals are politico porn. They’re also fertile ground for undeserved scapegoating. But there’s one category in which, across the board, there’s not nearly enough public stoning going on: the world of information intermediaries. On the government side, that means regulatory agencies; in the private sector, it’s the critics, the expert witnesses in capitalism’s de facto justice system.

Information intermediaries, we’re to understand, are society’s check against puffery. They make careers of trustworthiness and accountability. In society’s service, they apply rigor to the claims of corporations and analyze their standards. For this hard work, they’re rewarded by the marketplace and by the United States—sometimes handsomely, sometimes not.

Two bits of recent news bring about two otherwise disparate intermediaries, both preeminent in their niches—Robert Parker’s Wine Advocate, the publication whose critical appraisals are one of the central determinants of a wine’s success or failure on the marketplace, and the Federal Aviation Administration, the agency whose critical appraisals are the primary safety check against America’s airlines—systematically abusing that authority.

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Jay Miller: Disfrutando?

Parker’s is one of the few wine publications that don’t accept advertising, for which he deserves praise. And it’s certainly acceptable to take free samples of wine from producers—that’s often the only way to taste new releases before they’ve gone to market. But the recent transgressions of Jay Miller, Robert Parker’s right-hand man, are spectacular indeed. In another classic case of the traditional print media jumping on the bandwagon of a topic that had been exposed quite a bit earlier by an incisive blogger—in this case, Tyler Colman, who goes by “Dr. Vino”—Miller’s series of all-expenses-paid vacation/junkets, financed by wine producers, have finally been reported by the mainstream media in a recent Wall Street Journal article.

Some of rumors about Miller’s behavior in Argentina go quite a bit further in scandalousness (more…)