(WB) - As the U.S. wine industry basks in the glow of premiumization once again, the issue of luxury wine pricing is gaining more attention. However, a review of the luxury wine marketing literature generates more confusion than light on the issue, and makes it difficult to answer the question: what price is luxury wine? This article examines the definition of luxury, analyzes current pricing structures and proposes a new luxury wine price continuum.

Defining Luxury

According to luxury researcher Klaus Heine, luxury can be defined as “anything that is desirable and more than necessary and ordinary.” In general a luxury product has six key attributes: high price, high quality, scarcity, is aesthetically pleasing, is symbolic, and provides a sense of privilege to the buyer. Recently the concept of sustainability has also been added to the luxury mix.