Don't freak out over that report about a wine shortage
Fri, 01 Nov 2013 02:00:42 GMT —
At this point you may have heard rumblings of a world-wide shortage of wine. The first indication of trouble started with a recent report by Morgan Stanley which said worldwide wine demand exceeded supply by nearly 300 million cases in 2012. The study blamed the greatest shortfall in 40 years on bad weather and fewer vineyards, and it added there may not be enough wine in future years.
"Morgan Stanley's report is just wrong," said Rob McMillian, executive vice president of Silicon Valley Bank and founder of its wine division. "In 2010 and 2011, we also thought we were trending toward a shortage in the United States, but 2012 was a record production year. This year is almost as big. Everything we're seeing is leading us to believe that there won't be enough tank space for all the production here," he said.
Global wine production peaked in 2004 and continues to drop. In 2012, production declined to its lowest level in more than 40 years. Global consumption declined in 2010 but continued growing in 2011 and 2012.
No matter the world-wide implications, winemakers in the Finger Lakes see this as an opportunity. "I think there's a huge market, very, very good opportunity for Finger Lakes and I'm happy to be one of it. I'm not only trying to sell my wines but all the wines from Finger Lakes," Daniel Lai, Castel Grisch Winery president said.