Poor harvests and shipping issues drive up wine prices
Wine prices are up more than 10% from last summer as poor harvests and global shipping problems choke off supply even as global demand increases.
The sauvignon blanc harvest in New Zealand is down by around 30%, according to brokers Ciatti, sending buyers rushing to other markets such as Chile to find other suppliers.
“Pinot Noir and Pinot Gris are expected to be shorter in availability again” in New Zealand, the report says, while the pandemic has also affected production: “Obtaining additional labor has proved difficult due to Covid-19 restrictions. “
Forest fires in California are also threatening crops, especially with the risk of smoke spoiling the grapes.
In the fine wine market, Matthew O’Connell of Bordeaux Index, said prices rose about 10% on the year, with wealthy investors investing their money in bottles as an asset class.
“This year the market for fine wines is very strong – there is a very strong demand especially from Asia and the United States,” he said, adding that the market was up “by almost 10% “this year.
“The key underlying factor is high net worth growth. During the pandemic, this category of people became materially richer rather than poorer.
“The world is opening up again and collectible buyers have more money to spend than ever before. Already before the pandemic, supply and demand were a bit limited. “