I'm by no means a wine snob. Trader Joe's $5 Cabernet does it for me. But even if your taste is slightly more elevated, that doesn't mean you've gotta spend like wild for a decent bottle. Especially now that wine prices appear to be on the decline.
According to the annual State of the Wine Industry report, which is published by Silicon Valley Bank, prices are expected to reach the lowest we've seen in over five years. Wine makers are reportedly facing two problems that are causing the drop, oversupply and reduced demand. "This is the worst combination of market conditions for growers since at least 2001 and perhaps of all time," author Rob McMillan said in the report.
Allied Grape Growers President Jeff Bitter told CNN that the oversupply was caused by a planting boom back in 2016, after there was an overestimation for demand. More efficient harvesting methods have also contributed.
But apparently, millennials are also to blame. Consumer demand is down across the board, especially among the millennial generation, which is reportedly sticking to "craft beer and spirits over wine," McMillan added. "There are solutions, but hoping millennials will adopt boomer values as they age -- and, as a result, move away from spirits and gravitate to wine -- just isn’t a sensible business strategy."
Things sound bleak for the industry, but at least we're getting our vino on the cheap with "unprecedented wine values in 2020."
h/t Vine Pair