Wine demand increases whilst world supply decreases

Just as global wine consumption has started to rise after years of decline there is a dip in production. As we've been reporting here, bad weather has made for poor worldwide grape yields this year. Only Greece and Portugal have forecasted an increase in their production levels. Which inevitably means wine drinkers can expect price increases in early 2013.

But a price hike can be expected from many of the affordable bottles such as Italian Pinot Grigio, New Zealand Sauvignon Blanc and Australian Chardonnay. The hardest hit wine-producers are in Argentina, where production for this year is down 22 per cent, and in Italy and France, which are the world's largest producers. Majestic have forecast that 'The price of a (£5) bottle of Pinot Grigio could go up by between 50p and £1 come February/March.'

Duty on wine is also likely to increase again next year. Chancellor George Osborne has so far stood by the 'duty alcohol escalator' announced in 2008 by the previous Government.