You are currently viewing the International Edition. You can also switch to the Hong Kong Edition.
Wednesday 1 July 2015

Price of US wine to rise

18th April, 2012 by Lucy Shaw

The price of US wine is set to rise this year due to a looming domestic grape shortage, according to commercial banker to the wine industry Silicon Valley Bank.

Californian wine will be the first to rise, followed by wine from Oregon and Washington State, SVB predicts in its latest annual wine report report.

The bank expects vintners to raise prices as the supply of grapes declines into a state of domestic shortage that will last for some time.

“We hope you stocked up on a few cases because reality is knocking at your cellar door.

“Inventories are starting to run to the short end of the scale and bottle prices will start to increase in 2012, while vineyard plantings will increase to deal with the grape shortage,” the report said.

Sales are expected to grow 7-11% in 2012; a slight drop from 2011, the report said.

SVB foresees declining wine quality for the price paid, pushing consumers to decide if they are willing to drink lesser quality domestic wines, or pay higher prices, or find foreign substitutes.

Imports are set to take a larger share of total domestic sales, according to Rob McMillan, founder of Silicon Valley Bank’s wine division.

“The biggest obstacles to growth and profitability for wine businesses over the next few years will be finding supply at the right price and quality,” he said.

The looming grape shortage SVB refers to is more of an issue in California than Washington and Oregon.

Oregon reported a record harvest in 2011, with 41,500 tons of grapes picked, 23,726 of which were Pinot Noir, which accounts for 57% of plantings in the state.

The company has also forecast that prices for European wines, especially those from Spain and Portugal will go down.

One Response to “Price of US wine to rise”

  1. Rob McMillan, SVB Wine Division says:

    You can find the complete report at: http://t.co/LofaTtu1

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

If that's interesting, how about these?

Top 10 estates for en primeur returns

db rounds up the 10 best Bordeaux estates for en primeur returns on more...

Top 10 banned alcoholic drinks

The drinks trade has seen its fair share of drinks banned from public more...

World's most extravagant wineries

With Château Margaux preparing to unveil its new winery and cellar, designed more...

Social Media Editor

Competitive

Fascinating facts worth knowing about beer

Think you know everything about beer? This collection of beer-related facts more...

Top wines of Bordeaux 2014

The 10 best wines of the Bordeaux 2014 vintage as voted for by Liv-ex’s more...

Top 10 ways to reuse a wine bottle

If you are anything like the db team, it won't take long to amass a collection more...

Business Development Executive

London, United Kingdom

£25-£30K + benefits, depending on experience

Top 10 US craft breweries

The Brewers Association has released its annual list of the biggest US craft more...

The London Wine Fair in pictures

From red trews and foie gras macaroons to 2CVs, wine on tap and temporary more...

Top 10 ‘medicinal’ drinks

From a herbal elixir created by Carthusian monks to bitters invented to cure more...

Head of On-Trade Sales

London, United Kingdom

Top 10 worst estates for en primeur returns

Using Liv-ex's data, db rounds up the worst 10 châteaux for en primeur more...

Top 12 Australian fine wines

Australian fine wines have made the headlines of late. But what are the names more...

Top 10 modern wine drinker stereotypes

From Rioja lovers to Champagne quaffers, the drinks business has more...

Supplier Relationship Manager

London, United Kingdom

10 richest people in the UK drinks trade

As The Sunday Times Rich List 2015 reveals the wealthiest individuals in more...

Suntory's exquisite 3D-printed ice cubes

As far as advertising campaigns go, this collection of miniature ice cube more...

Top 10 Negroni spots in London

As the Campari Red Night District takes over London's Shoreditch, we round up more...

E-commerce, Sales & Marketing Executive

London, United Kingdom

Competitive salary and bonus package based on experience and qualification.

Oregon producer takes international view

One of Oregon’s youngest wine estates has partnered with Jackson Family Wines more...

Top 10 new products

This month's top releases include a Champagne tankard designed by Pol Roger, more...

Top 10 wine brands 2015

In a year that saw major shifts in the global wine market, the drinks business more...

Wine Buyer

London, United Kingdom

Based on experience

How to become a 'wine expert' in four hours

A doctor of psychology has devised 10 simple steps which he claims can set you more...

Top 10 architectural wonders of the wine world

You don't have to look far to find stunning examples of architectural prowess more...