You better buy your holiday bubbles now

If you plan to host a party this holiday season or have something to celebrate, you should buy your favorite champagne now.

Champagne officials are predicting a worldwide shortage of French bubbles toward the end of the year. Part of the reason is that demand for champagne, particularly in the United Kingdom, has bounced back with gusto. Tariffs placed on champagne by former President Trump depressed sales in the United States, which meant more of the product being sold in the UK. But U.S. sales picked up in the spring as consumers were re-emerging from the pandemic. Now, the U.S. in back to stocking up at a time when producers were reducing production in anticipation of a long-term slow down. Yields in 2020 were intentionally lowered by the Committee Champagne.

The shortage will benefit prosecco producers and even sparkling wine producers from the West Coast which face no product shortage.

I suspect that consumers are tired of the pandemic, no matter what its risk, and will find reasons to celebrate this Christmas season. Those with the ability to pay higher prices will indulge in prestigious champagne no matter what the cost. — if they can find it.

Josh dips into hot prosecco market

Call me a neanderthal or, better, a romantic. But I always liked that real zinfandel comes only from California and that Rias Baixas is the only wine-growing region that can make albarino. Prosecco? Veneto, Italy, right? Who else grows glera grapes anyway?

So, when I saw that Josh Cellars added prosecco to its impressive array of value-priced wines, I was taken aback. How could they? Well, first, the grapes are coming from Veneto. Winemaker and owner Joseph Carr is simply riding the coattails of a successful sparkling wine. But can’t we all just leave prosecco to the Italians and albarino to the Spaniards?

Egads, is nothing sacred any more?

In fact, nothing is. Cupcake and other producers are making prosecco. And, there are producers who are putting their labels on wines made abroad. Gallo has been distributing wines made in Europe for decades, but you won’t find Gallo on the label. That seems to be a smarter marketing tactic. I would imagine many consumers wouldn’t drink a prosecco made by an American producer because, well, it’s not a part of the romantic Italian culture.

What do I know?

Bad weather likely to spur price increases

A combination of extremely hot and cold weather is expected to spur a dramatic price increase for 2017 European wines. The three countries most affected are Italy, France and Spain -- producers of some of the least expensive wines.

Frost damage has lead to a 40 percent reduction in Bordeaux -- the worst hit coming in merlot-dependent St. Emilion. Rioja in Spain and prosecco in Italy were also hard hit. Experts say prices will rise as much as 30 percent for the least expensive wines. 

Reported the Guardian, “We’ll start to see those [2017] wines coming to the market now and I think for higher volume, lower price wine you will see cost increases,” says Dan Jago, chief executive of high end wine merchant Berry Bros & Rudd.

“Prices for things like pinot grigio or generic Spanish reds will rise by between 10% and 30% and it’s [a question of] how much of that retailers will pass on,” says Jago, who previously headed up the Tesco wine business. “Prosecco was very hard hit by frost, so there will be less of it and the price will go up.”

These weather patterns show the impact of climate change and are likely to continue, in my opinion. Regions once thought to have perfect climate are experiencing more challenging conditions.  Unfortunately, the prices of everyday wine for the masses are most impacted.

Producers of expensive wines, such as those in Bordeaux, may suck up some of the costs just to move their wines -- but price increases will not be avoided.