CNBC is reporting that wine inventories are experiencing an extended shortage which means people will either have to spend more for a quality bottle or go back to drinking Boone's Farm. Yuck. That's not fun for anybody.
It's interesting because demand for wine is actually increasing, with an expected growth rate of 7 to 11 percent this year, but the root of the expected shortage problem actually started during the recession. What happened, according to Rob McMillan of Silicon Valley Bank's wine division:
To correct an oversupply of high-end wine during the recession, wineries had to move the excess supply through the distribution channel so later vintages could sell at a normal price, McMillan said. But inventories have since pared the excess supply, and several varietals are now experiencing shortages.
Combine that with the slightly small harvest this year and shortages are coming. Supposedly high end Cabernets and Zinfandels are "clearly short" while the closest to being normal are Merlot and Syrah. Everything else in between is presumably on the shorter side, which means less wine all around.
There is another option aside from paying more or going back to crappy, bitter grape juice: imports. Wines from Argentina, Australia, France, Portugal and Spain should help fill the gap left by domestic wines. It all tastes the same when you're drunk. [CNBC, Image Credit: ol_vic/Shutterstock]