At the end of 2017, we had the displeasure of writing about the wine shortage 2018 would see. However, fast-forward a few years later and we are now seeing the exact opposite situation. Hallelujah!

The Allied Grape Growers, "a grower-owned winegrape marketing association" representing around 500 Californian grape growers, have reported that wine grape growers have too many grapes. Their January newsletter points out the cause of this issue being a demand problem, rather than a supply problem.

This is not to say that they have produced too many grapes, rather there has been a downturn in the consumption of wine. Earlier this year, news outlets reported on the decrease in wine consumption in 2019. According to USA Today, "For the first time in 25 years, wine consumption has declined, falling in 2019 by nearly 1% in volume..." 1% may seem like a small figure, however, it is having an effect on grape growers.

The AGG newsletter states, "The trend started in 2015, but nobody was talking about it with any particular concern until 2018." People may have been spending more on wine, but the overall quantity of wine purchased was trending down. Add this to a large 2018 crop and the growers are left with more grapes than they know what to do with.

In 2019, many grapes were left on the vine with no wine to be made from them. The wine industry is now looking to the future to develop a strategy. As part of a solution, wine prices will see a decrease across all wine types and price points.

The AGG also points to new marketing strategies to target the younger consumers and the possibility of a decrease in the overall wine grape farm acreage.

Sources: ABC 7, AGG, USA Today

Enter your number to get our free mobile app