Bulk Wine shortage predicted
A small 2016 harvest could result in an impending global shortage of bulk wine. Denys Hornabrook, who founded Vinex, this year predicted that the shortfall will result in prices being driven up. In 2015 global bulk wine exports reached a record 36.3 million hectolitres, a 3% increase on 2014, but dropped in value by 13.7% to US$3.1billion. The volume growth was driven by Spain (+10%), still the world's biggest bulk wine producer, and Chile (+15%). Over the course of the year bulk wine prices have been steadily increasing. Chile, Argentina and South Africa have all suffered their worst vintages in many years. Shortfalls from one country are often made up with those from another, so, for instance, own-label taking Pinot Grigio from Romania instead of Italy and large volumes of Shiraz/Syrah coming out of the South of France which was historically the domain of Australia. Looks like competition will be fierce amongst those bulk buyers as they all try and secure their volumes globally at effective rates.