Ship shape: Bulk wine battles back

22nd January, 2019 by Lauren Eads

Onwards and upwards

As we approached the end of 2018, another harvest behind us, the outlook for the bulk wine industry was infinitely brighter. Moving from a period marked by supply shortages and rising prices, which put the power in the hands of growers, a plentiful 2018 vintage looks set to reverse this trend, putting buyers back in control.

“What was unique about this cycle is that many countries contributed to the supply deficit,” notes Denys Hornabrook, managing director of digital bulk wine trading platform Vinex, referring to the 2017 harvest in both hemispheres, and the subsequent supply and price pressures that continued to affect the first half of 2018. “When there is a supply deficit it’s generally from only one or two countries. There are always substitutes. When you have three or five, that is unusual.”

Since the start of 2018, bulk wine prices had been rising. According to Vinex’s Global Price Index, which combines the major producing countries trading each variety to determine an average weight price, since the index began in January 2013 bulk wine prices have increased by nearly 30%, but hit a record peak in February 2018, reflective of….

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