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Your email address will not be published.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 *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Fine Wine Logistics Coordinator

IG Wines
London, GB

Brand Ambassador East Coast USA - Ableforth’s

Maverick Drinks
New York - field-based, USA

Brand Ambassador West Coast USA - Ableforth’s

Maverick Drinks
San Francisco / Los Angeles - field-based, USA

Global Travel Retail Manager

Maverick Drinks
London, UK

Portfolio Ambassador - Europe

Maverick Drinks
North West Europe - field-based, UK

Senior Partner Manager - Grocery

Maverick Drinks
London/Field Based, UK

Sales Executive

Woolf Sung Ltd
London

Trade Marketing Manager - Maverick Drinks

Maverick Drinks
London / Kent

Business Development Executive Central London

William Grant & Sons UK
London

PR & Communications Officer - Atom Group

ATOM Supplies Limited
London, UK

Crus Bourgeois du Médoc 2015 Official Selection Tasting

London,United Kingdom
21st Sep 2017

The City Wine Show

London,United Kingdom
22nd Sep 2017

Almaviva 2015 Vintage and Vertical Tasting

London,United Kingdom
28th Sep 2017
Click to view more

Global Chardonnay Masters 2017

Deadline : 29th September 2017

The Global Riesling Masters 2017

Deadline : 29th September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

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

Click to view more