Tom's blog

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.