Terroir and Tradition: Navigating Polycentric Governance in Pinot Noir’s Global Identity
Clinton L. Neill
Abby Shalekbriski
The reputational prestige Pinot Noirs have achieved is reliant on the polycentric nature of the Pinot Noir industry. Pinot Noir institutions, both formal and informal, exercise decision-making or governance power in overlapping areas (predominately geographically, genetically, and culturally). Despite no centralized standards or governance, Pinot Noir grapes continue to fetch some of the highest prices and be considered a premier wine. Tracing the history of Pinot Noir, one uncovers a patchwork of informal rules and norms, international laws, and regional institutions. The evolution of the institutions in and around Pinot Noir is reflected in its identity - namely through variations on heritage, branding, and terroir.
By exploring Pinot Noir in a polycentric framework, it becomes readily apparent that this grape faces a reputation commons problem. Reputation commons can exist at multiple levels. For example, wine reputation can be constructed around terroir, which could be broad like a wine appellation or at a more local winegrowers association. Alternatively, reputation can be thought of as a common pool resource. Misuse of Pinot Noir's heritage or branding can dilute or harm the identity. Yet, depending on the localised governance structure, it may be difficult to exclude a producer from leveraging the established identity.
We examine Pinot Noir's identity in an institutional analysis framework, highlighting the multilateral cooperative relationships among different interest groups. Each group augments Pinot Noir's collective identity through different uses of heritage, branding, and terroir. We seek to understand Pinot Noir identity through the lens of a polycentric common pool resource and provide insights to grape growers, wine makers, stakeholders, Pinotphiles, and others on the challenges of maintaining a consistent identity. While the polycentric nature can lead to flexibility in response to regional markets and global challenges, the fragmentation and inconsistent rules across institutions could also lead to an erosion of identity.
Clinton L. Neill is an assistant professor at Cornell University in the Dyson School of Applied Economics and Management. While his research spans a number of areas, his main interests are in food economics and policy. Dr. Neill's recent research within the alcoholic beverage industry has focused on the consumer perspectives of whiskey and hard apple cider through qualitative and quantitative methods. His goal is to better incorporate consumer beliefs into economic thinking about specialty crops and value-added food products in order to enhance producer decision-making.
Abby Shalekbriski is a PhD candidate at Oklahoma State University within the Department of Agricultural Economics. Her research centers on production economics, however, she has a particular interest in how formal and informal rules and institutions influence cooperative action within agriculture. She is especially interested in integrating institutional design into agricultural decision-making to create flexible and inclusive processes for producers and policymakers. Abby's previous work has explored the institutions surrounding feral hog control and eradication. By combining insights from institutional economics with practical applications, her research aims to enhance collaboration and innovation in agricultural policy and management.