In the news: Global Wine Shortage

Egad!

Have you read the news about a global wine shortage? Wine consumption has continued to
grow while production has wained.


Morgan Stanley Research

Morgan Stanley Research

A good explanation of the issue is available in Roberto A. Ferdman's article.

In it he writes:

"Reversing the current trend will require more than a single, strong harvest. The US and China alone are projected to consume over 400 million cases of wine a piece by 2016. Who will supply them? They themselves are nowhere near that level of production. And Europe, which has easily been suffering the steepest decline in wine production (roughly 25% since 2004) will have to reverse its recent bout of poor harvests well into the century to continue supplying the world—Europe, after all, still makes roughly 60% of the world’s wine. Nowhere else is wine production growing fast enough to suffice. The “new world” market, which includes the US, Australia, Argentina, Chile, South Africa and New Zealand, still accounts for less than 30% of global wine exports, and even less of global wine production."