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Book chapter2013Peer reviewed

The Demand for (Non)alcoholic Beverages in France and the Impact of Advertising

Hoffmann, Ruben; Surry, Yves Rene


This chapter analyses the ways in which advertising expenditures influence the demand for alcoholic and non-alcoholic beverages in France. Using annual data for the period 1977 to 2004, a conditional dynamic demand system is estimated econometrically for spirits, champagne and sparkling wines, still wine, beer and non-alcoholic beverages. Advertising expenditure is modelled as affecting per capita demand for alcoholic and non-alcoholic beverages through a translation parameter. Special attention is given to the impact of the Evin Law implemented in 1991 in France which restricted the use of advertising for alcoholic beverages. The results show that the law has affected consumer demand for alcoholic beverages and support is found for the existence of subsistence levels which in the model is captured by translation variables.

Published in

Title: Wine Economics - Quantitative Studies and Empirical Applications
ISBN: 978-1-137-28951-3
Publisher: Palgrave Macmillan