Global wine production hits 37-year low

31st October, 2012 by Lucy Shaw

Global wine production has slumped to a 37-year low this year after difficult growing conditions, particularly in Spain, France and Italy, have led to severely reduced harvests.

Production may fall to around 248.2 million hectoliters this year from 264.2 million in 2011, according to the International Organisation of Vine and Wine (OIV).

If it were to dip so low, global wine stocks would be at their lowest levels since 1975, Federico Castellucci, the OIV’s director general said during press conference in Paris this week.

Vineyards in France, Spain, Italy and Portugal have been plagued by both hail and drought, while Argentina has also suffered weather damage to its vineyards.

The production slump will deplete stocks, resulting in a “tight” market for wine. “We’re dipping into the reserves for supply,” Castellucci said.

“There’s a lack of product in bulk. Merchants are starting to turn to the small countries for bulk wine, which shows there’s real tension,” he added.

According to Castellucci, world wine consumption in 2012 is estimated at 235.7-249.4 million hectoliters.

He declined to provide an estimate of global wine stocks, citing a lack of data, though market data suggests bulk wine availability is falling and prices are climbing.

Bulk wine “Flexitank”

“If we don’t have availability in the market, there’s a strong chance some products will increase in price,” OIV statistician Victor Magalhaes said.

Bulk wine prices in Italy, Spain and France, the world’s biggest suppliers, are rising due to the poor 2012 harvest

The cost of a litre of 2012 Italian Pinot Grigio rose to €1.30-1.45 from €1.20-1.30 last month.

“For some AOC stocks, there is already a shortage of exports. The shortage of Burgundy is a fact,” said Magalhaes.

The OIV forecasts France’s 2012 wine production to slide by 19%, to 40.5 million hectoliters, while Argentina’s stocks are set to fall by 24% to 11.8m hectoliters.

Based on the estimates, Italy would overtake France as the world’s biggest wine producer in 2012.

Earlier this week, Paul Meihuizen, buying director of PLB, said price hikes for leading wine countries represented in the UK were at a 20-year high.

Meanwhile, a significant increase in the cost of spirit, due to a shortage of grapes for distillation, is causing problems for Port producers in the Douro.

Leave a Reply

Your email address will not be published.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

Subscribe to our newsletters

Job vacancies

National Account Manager – On-Trade

Berkmann Wine Cellars
London, UK

Sales Manager – Midlands and South West

Pol Roger Portfolio
Midlands and South West

UK Brand Ambassador - That Boutique-y Gin Company

That Boutique-y Gin Company
Tunbridge Wells, Kent, UK

Senior National Account Manager – Grocery (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Senior National Account Manager – Wholesale RTM (Craft Spirits)

Maverick Drinks
Tunbridge Wells, Kent, UK

Digital Marketing Manager

Master of Malt
Tunbridge Wells, Kent, UK

Experienced On Trade Sales Person

Borough Wine Imports
London, GB

3 x Business Development Executive

The Lakes Distillery Company Limited
Newcastle head office and nationwide, UK

Editor

Master of Malt Ltd
Tunbridge Wells(Kent)

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Brand Manager

Hallgarten Druitt
Luton, UK

Experienced On-Trade Salespeople Required

Portal Wines and Spirits
London, UK

The Global Merlot Masters 2017

Deadline : 17th April 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 14th April 2017

The Global Sparkling Masters 2017

Deadline : 12th May 2017

Click to view more

Global Chardonnay Masters 2016

Now in its fourth year, the competition will identify the best Chardonnay from all around the world in every price range.

Rioja Masters 2016

Now in its fifth year, the competition will recognise and reward the finest Riojas on the world stage.

Fortified Masters 2016

Now in its third year, The Fortified Masters will reward the best fortified wines on offer.

The Global Malbec Masters 2016

the drinks business is proud to announce the inaugural Global Malbec Masters 2016.

Click to view more