Buh Bye to Fine Wine Deals Due to California Grape Shortage
on 19/04/12 at 9:28 amWine
As demand increases and inventories experience an extended shortage, consumers will have to choose between paying more, trading down or buying foreign imports, according to a wine industry report released on Tuesday.
Silicon Valley Bank, which provides the wine industry with commercial banking services, predicts the fine wine business will see sales growth of 7 to 11 percent this year amid a looming grape shortage.
“I think the consumer for the past five years has been used to getting really fine quality wines at a good price,” said Rob McMillan, founder of the bank’s wine division. “But as the balance evens out, you can’t expect the producer to sell at a loss, which is really what they were doing.”