With summer just around the corner, it’s time to start stocking up on your favorite wines. But if you’re planning to buy in bulk, you may want to think twice. Wine prices could skyrocket this summer due to a shortage of grapes caused by extreme weather conditions. In this article, we’ll explore the reasons behind the shortage and what it could mean for your wallet. We’ll also provide some tips on how to save money on wine, so you can still enjoy your favorite vintages without breaking the bank.
Wine Prices Could Skyrocket This Summer Thanks to a Shortage
It looks like wine lovers may have to pay more for their favorite bottles this summer. According to a recent report from the International Organisation of Vine and Wine (OIV), global wine production is expected to drop by 8.2% in 2020 due to the coronavirus pandemic.
The OIV estimates that the global wine production will drop from 259.5 million hectoliters in 2019 to 237.7 million hectoliters in 2020. This is the lowest level of production since 1961. The decrease in production is due to the disruption of the wine industry caused by the pandemic, including the closure of vineyards, wineries, and tasting rooms.
The decrease in production is expected to lead to a shortage of wine, which could cause prices to skyrocket. The OIV estimates that the average price of a bottle of wine could increase by as much as 10%.
The shortage could also lead to a decrease in the variety of wines available. Winemakers may be forced to focus on producing the most popular varieties, such as Cabernet Sauvignon and Chardonnay, while other varieties may become harder to find.
The good news is that the shortage is expected to be temporary. The OIV estimates that global wine production will rebound in 2021, and prices should return to normal levels.
In the meantime, wine lovers should stock up on their favorite bottles while they can. Prices may be higher than usual, but it could be worth it to ensure that you have enough wine to get through the summer.
With inflation the highest it’s been in decades, many grocery items are seeing sticker shock right now. Items like eggs, pasta, fruits, vegetables, and even certain types of meat are skyrocketing in price. But there’s another one to add to the list made worse by what it comes in, and one expert says the higher cost may be around for a while.
A low supply of aluminum cans has affected the alcohol industry since the pandemic started, with a glass bottle shortage starting late last year. The latter is still going on, and when there is less supply, the price of what is available goes up. Bindiya Vakil, the CEO of global supply chain company Resilinc, tells Eat This, Not That! prices for these bottles have gone up 20%. Recent reports also say wine sellers are paying a few dollars more for each, and that cost could be passed down to you the next time you buy your favorite wine.
“Materials like cobalt, copper, and nickel are all constrained right now, and all are used in colored glass manufacturing,” she says. “Less supply and continued high demand means higher pricing.”
This is especially true for smaller wineries. Vakil says that the smaller the purchasing power, the more likely they will be to be forced to pass on some of the incurred costs to customers. For larger wine companies, the increased glass bottle costs may make a less noticeable impact on customers.
Overall, though, she says relief may not be felt until sometime in 2023 barring anything else major happening with the already run down supply chain as well as labor and supply shortages, and winemakers agree. Until then, they could keep seeing guests drink fewer glasses and buy fewer bottles at their supermarket or liquor store.
Vakil says there are other ways of saving money so you can still enjoy your favorite vino. “If you’re a one or two-glass of wine person, investing in some good wine-preservation tools (like a wine pump or
wine preserver) to keep it fresh for longer is a good option to stretch your favorite bottle,” she recommends. “Also, keep your eyes peeled for sales and promotions! Some stores offer Buy 6 bottles and get a discount or summer holiday sales.”