Wine Production Takes A Global Hit

Global Wine Production is down, Consumption is UP.

Global Wine Production is down in 2018 with a 15% loss in Europe.
Damage done to vines in El Bierzo, Spain because of hail.

Global wine production took a serious hit in 2017. I just wrapped my commentary on The Weather Channel. Our topic was about the historical drop in wine production. Literally down 8.6% globally as reported by the OIV (International Organisation of Vine & Wine). This is the lowest of the low in 60 years.  Europe overall is down 15%.  Surprisingly this did not drastically affect the California wine production. The wildfires in Northern California had little effect on wine production and Napa Valley is back to normal. US production is down just 1%.

Looking at global wine production overall, Italy is the leading producer of wine in the world. France a strong second, followed by Spain.  The bulk wine producers (who also supply some of the French budget wine) were particularly hard hit. Overall Spain’s production is down 20%, France 19% and Italy down 17%.  I was in El Bierzo, Spain, Bardolino, Italy and Provence, France last year and witnessed personally some of the impacts which were heartbreaking. This due in part to bad weather conditions, including late winter frost, and hail storms.

Australia maintained their foothold and South America has recovered from the devastating 2016 El Nino impact.  South Africa held their own in spite of their long drought conditions.

What does this mean to you? There will be some price increases. Particularly hard hit will be the budget wines, $10/bottle and below. Regardless of where you are, we are all likely to feel some personal impact due to the decrease in global wine production.  For the budget wines, the impact will be felt sooner versus later. On wine that age, say, like a Bordeaux, it may be a few years before we experience the full extent of the impact in the pocketbook.  It’s going to truly be an interesting vintage.

Source: OIV.com

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Wine Production Takes A Global Hit

2 Responses

  1. It was fantastic to see you on The Weather Channel, Kelly. Great commentary! It will definitely be interesting to see how reduction in yields impacts pricing in different price levels.

    1. Thanks so much Ryan. It was far too early for me. Probably more reasonable time for you. It’s definitely going to be interesting in Europe. Thankfully California production was only down 1%. Amazing especially because of the fires.

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