Clutch that bottle of your favorite cheap Syrah close, wine lovers — wine prices are about go up because of a shortage of California grapes. The demand for booze is increasing at the same time, says a wine industry report, which will result in higher prices for local offerings.
CNBC.com cites Silicon Valley Bank, which provides the wine industry with commercial banking services. They predict the fine wine business will see a sales growth of 7-11% during the grape shortage.
“I think the consumer for the past five years has been used to getting really fine quality wines at a good price,” said Rob McMillan, founder of the bank’s wine division. “But as the balance evens out, you can’t expect the producer to sell at a loss, which is really what they were doing.”
During the recession, wineries had to somehow sell off their high-end wines, and so they offered them at a discount to consumers to move that excess supply. But now, that extra supply is gone, and everyone’s jumping on the wine bandwagon. The recession is slowing but the demand for wine grows, as studies tell us it’s good for our health or we find new TV shows to gab about over a bottle or three of white wine.
It comes down to a pretty basic decision — buy cheap wine, go for higher quality or opt for an imported selection. And try as you might, you won’t find life’s answers in the bottom of the bottle, I guarantee that.