The Price of Wine

Will the Price of Wine Rise along with Other Commodities?

The media have braced us all for rising prices across the board. We're already suffering from enormous increases in energy costs and since all commodities depend upon energy, everything seems to be skyrocketing. How will this affect the price of wine?

Well, on the bright side, the price of Two-Buck Chuck remains still at two bucks. And inexpensive imports seem to be holding the line for the time being. We've not yet seen the full effect of rising costs in domestic wine, but they are almost certain to impact the cost of wine in the years ahead.

Other factors, too, will affect the price of wine in the coming years. In addition to rising costs of production and transportation, basic market factors will drive up the prices. Wine Business Monthly reports a projected shortage of Cabernet Sauvignon, Merlot, and Chardonnay grapes in the years ahead. Not a single year shortage, which would impact the price of those wines, but an indefinite shortage due to the fact that newly planted vineyards are not going to keep up with the demand.

We can know almost with certainty just what the anticipated shortfall will be over the next three years, since it takes three years for a new vineyard to come into production. The numbers suggest the greatest undersupply in recent history.

If you are a lover of fine Cabernet Sauvignon or Merlot, now is the time to buy those wines and lay them down (in a cool place!) to enjoy when the price of those wines rises as it inexorably will.