The State of the Wine Industry report from Silicon Valley Bank says low prices are due in large part to an oversupply of grapes in California and Washington, coupled with low demand.
The report says Wine priced below $11 is in jeopardy of joining the below $9 segment and declining in both volume and value.
“Grape and bulk prices will fall to lower levels than we’ve seen in the past five years,” wrote the author of the report, Rob McMillian, the founder of the bank’s wine division. “It will be well beyond 2020 before we see grape prices stabilize.”
NOTE:Today is National Drink Wine Day!