According to CNN there is a global wine shortage. With worldwide
demand on the rise, both new and old wine producing regions are failing to keep
up. Aaron Smith wrote today for CNN
that bad weather in France and Argentina led global wine production to fall by
more than 5% last year. Production in Europe, known as “old world” fell 10% in
2012, and researchers say new world wine production in countries like the “U.S.,
Argentina, Chile, Australia, New Zealand and South Africa has already peaked”. Meanwhile,
in the last year, “worldwide consumption rose by 1%”. The French lead in wine
consumption, followed by Americans and then the Chinese who currently
experiencing a rise in the standard of living as their economy booms.
Apparently, we’re drinking more than our fair share of the world’s wine,
consuming 12% while only producing 8%. National consumption also rose 2% last
year. Furthermore, although the U.S. winemaking industry is growing, “most new
producers are boutique operators rather than large-scale producers” so they’re
not driving any real growth in supply.
Despite this data, visit any
liquor or grocery store or wine boutique and you’ll hardly find empty shelves.
For now, it appears, at least on a national level that the wine industry is
booming. But what will this mean for the wine industry in the future? My guess
is that this will lead to higher prices for foreign wines and a focus on buying
local and domestic – which is already trending in the food industry. Also, with
the Chinese starting to make their own wine, maybe their production will rise
to meet some of their national demand.
Start stocking your wine cellars, friends!
To read the full article, visit http://money.cnn.com/2013/10/29/news/economy/wine-shortage/

