CALIFORNIA — Wine could make less of a dent in your wallet this year.
Industry experts at a recent winemakers’ conference believe the price of some California wines could drop due to an oversupply of grapes following two years of bountiful harvest.
An estimated 100,000 tons of grapes were “left behind,” according to Allied Grape Growers, with the possibility of being far more.
“The relatively large 2018 crop pushed the industry over the edge, with most processors finally reaching the breaking point of inventory comfort,” the AGG’s January newsletter said. “Because overall wine shipments have not been growing in recent years, we simply cannot expect to ‘grow’ ourselves out of imbalance. The immediate mandate is simple – we have to ‘shrink ourselves’ back into balance.”
Demand for wine is also dropping. According to the newsletter, data published in the Gomberg Fredrikson Report found the number of California wine exports have consistently dropped since 2014.
Due to the current trends of supply-and-demand, experts say wine distributors could be forced to offer deep discounts.