Wine prices to rise after poor 2012 harvest

The cost of entry-level wine in the UK is set to rise after poor grape harvests in Spain and Italy.

Dry vines in Emilia-Romagna this summer

Drought and dry weather has led to heat damage to vines in key European growing regions, with Spain’s grape harvest this year expected to be 40% down on 2011.

Italy’s harvest meanwhile, is estimated to be 8% lower than last year, with some forecasters predicting it to be the country’s second smallest harvest since 1950.

Producers in New World countries such as Australia and New Zealand have already upped their wine prices due to poor 2012 harvests, and Spanish and Italian winemakers are expected to follow suit.

The average retail price of a bottle of Spanish wine in a UK supermarket has risen by 4% to £4.55 in the past year, while Italian wine has gone up 3% to £4.37.

Experts believe that prices of Spanish and Italian wine, which account for around 25% of total UK wine sales, could rise by a further 10% due to this year’s reduced crop.

Michele Bernetti of Umani Ronchi

The drop in production in both countries is set to put pressure on the price of supermarket own-label wines, such as Tesco’s Ogio brand, which is sourced from Italy.

To get around the problem, supermarket wine buyers are sourcing more wine from New World countries like South Africa, rather than European winemaking stalwarts Spain, France and Italy.

After “one of the driest summers of the last 30 years,” Michele Bernetti (right), winemaker at Marche producer Umani Ronchi, told Reuters that he anticipated his crop to be down by 10% this year due to a “very challenging” harvest.

Though Spain and Italy’s poor harvests may not necessarily translate into prices rises in the UK.

“European grape prices are up, that doesn’t mean that wine prices for consumers are up.

“Wineries tend to keep their prices fairly stable; not too much down in bad years, not too much up in good years,” Karl Storchmann, editor of the American Association of Wine Economists journal, told the Daily Telegraph.

Leave a Reply

Your email address will not be published.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

Subscribe to our newsletters

Sales Administrator

Les Caves de Pyrène
Guildford, UK

General Manager

3Cs Cider
UK

Brand Manager

Hallgarten Druitt
Luton, UK

Brand Manager

Kilchoman Distillery Co Ltd
Edinburgh, UK

Wine Bar Supervisor

Henny's
London, UK

Partner Manager - On-trade - North West

Maverick Drinks
Manchester, UK

Partner Manager - On-trade - Scotland and NE

Maverick Drinks
Edinburgh, UK

Head of Marketing

Berkmann Wine Cellars
London, UK

Business Development Manager

Harviestoun Brewery Limited
Scotland - Central Belt

Cask Buyer

Atom Brands
Tonbridge, UK

Pays d'Oc Tasting

London,United Kingdom
28th Jun 2018

CHILE: From The Very Top To The Downright Hot

Manchester,United Kingdom
2nd Jul 2018

CHILE: From The Very Top To The Downright Hot

Edinburgh,United Kingdom
3rd Jul 2018
Click to view more

Champagne Masters 2018

Deadline : 22nd June 2018

The Global Malbec Masters 2018

Deadline : 1st July 2018

Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more