Wine Spectator: Inflation Comes To The Wine IndustryDecember 6, 2021
Wine has been largely absent from the raging debate over inflation in recent months. While the wholesale price of beef is up by 20% and gas costs are at their highest level in seven years, a bottle of wine has been one of the few products consumers could count on to stay stable. Not for long, say key industry executives. The perfect storm of inflation (up 6.2% in the United States in the past year, the highest rate in decades), supply chain bottlenecks, a small global grape harvest and a surge in demand will mean consumers should brace themselves for spikes in wine prices.
Imported wines are battling the most challenging issues. “Price increases are going to be commonplace on imported wine in 2022 because the cost of containers and general freight are up in excess of 100%,” said Marc Taub, president and CEO of Palm Bay International and Taub Family Selections, which represents dozens of brands including Cavit and Castello di Fonterutoli.
Disastrously small harvests in regions such as Burgundy, the Loire, and Provence will compound price pressure. Taub says his winery clients are “attempting to be as modest as possible,” but he warns consumers to expect prices to start edging up early in 2022. “Fierce competition in the wine industry will keep the increases moderate, but prices across all wine categories will absolutely go up,” he said. Wine Spectator has the full story.—Kristen BielerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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