Global wine shortage replaces glut
A report out this week on the world's wine supply probably isn't drawing “cheers” from lovers of the fabulously popular fruity booze.
Global demand exceeded supply by 300 million cases in 2012, and the future could be bleaker, a Morgan Stanley Research report contends. The study blames the shortfall on increased demand — everyone will drink to that, apparently — bad weather and fewer vineyards.
“Data suggests there may be insufficient supply to meet demand in coming years, as current vintages are released,” the report says.
World production peaked in 2004, when the surplus reached 600 million cases. But the latest numbers represent the greatest shortfall in four decades.
Americans drink about 12 percent of the world's wine, and per capita consumption is booming. China, the world's fifth-largest importer, has quadrupled its consumption in the past five years.
Production capacity is down 10 percent in Europe from 2005, with big producer nations such as France, Italy and Spain hardest-hit. Add to that a poor wine weather year in 2012, and you get a wine shortage.
Not all wineys are whining. The shortage is good news for some areas still awash in the stuff. The lack of production elsewhere is opening the door for wineries in Washington state to enter thirsty markets such as China. Woodinville's Chateau Ste. Michelle is the biggest winery in Washington and is hard pressed to meet the demand, king5.com in Seattle reports.
“We're making it as fast as we can grow the grapes,” CEO Ted Baseler told the website. “Right now, we have about 50,000 acres in the state. I can foresee that we could have as much as 150,000 or more.”
Doug Caskey, executive director of the Colorado Wine Industry Develment Board, told KUSA-TV in Denver that the shortage is most likely to affect cheaper wines.
And not every expert is buying the dire wine predictions.
“I can't say we've felt any shortage,” wine buyer Mulan Chan-Randel told the San Francisco Chronicle. Chan Randel buys Rhone varietals and wines from southern France for K&L Wine Merchants in San Francisco.
“We may not be having as many closeout specials as we had during the recession, but I don't see anyone ratcheting up the prices, either,” Chan-Randel said. “We definitely felt an increase in consumption, especially with Millennials. But we've been able to keep up.”
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Officials: 1 dead, 3 wounded in Northern Arizona University shooting
- Officials: Broken rail caused February W.V. train derailment
- Dozens of terror plots disrupted in America, FBI claims
- Civil servants’ pay, benefits exceed private-sector counterparts, Cato study finds
- McCarthy drops out as GOP speaker candidate in shocker
- Longtime Mars lakes tantalize NASA scientists
- Oregon college town sets gun rights protest for Obama visit
- Ex-CEO of Chicago Public Schools to plead guilty to $23 million kickback scheme
- Hillary Clinton’s hiring of ex-State employee raises questions on Capitol Hill
- SeaWorld’s expansion of orca tanks criticized
- Foes of California mandatory vaccine law fail in repeal bid