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Millennial’s and Over Supply Causing Wine Prices to Drop

Posted in Wine Industry News

According to experts we could see the “best wine retail values in 20 years” for a few good reasons.  First, the “Baby Boomers” who have long supported the wine industry are dwindling in numbers.  The next generation of alcohol consumers “Millennial’s” haven’t yet developed a taste for wine and prefer liquor and ready-to-drink cocktails.  Second, there is a surplus of grapes in California and other North American vineyards.  Bountiful crops and new harvesting techniques have culminated in huge harvest seasons since 2016.  This coupled with an overestimation of the difficult to predict future market has culminated into an “over supply situation.”  Without the demand and a huge supply, it can only mean one thing, lower prices!

One article published by CNN stated, “It will take at least 2-3 years for grape pricing to stabilize.”  We should see some of the best value for wine this year (2020), “consumption in the US has dropped for the first time in 25 years.”

Further discounts

We may or may not see these unprecedented price drops in wine kits or juices that come from all around the globe.  Juices from grapes are a whole different market.  The wine market needs to be predicted five years into the future.  Since, on average, it takes that long before that product reaches store shelves.  Juices are basically direct from the fields to the consumer in a few weeks or months.  The consumer then waits for the product to become wine.

So, although the current oversupply and lack demand issue doesn’t affect wine kits the same, it is bound to have some bearing on future cost.  That on top of the continuing savings of up to 60% compared to similar quality store-bought wine, makes wine kits very appealing.

A Note to Millennials

The Wine Cellar, Kitchener is not just a place to learn about wine and wine making.  It is also a fun experience.  We would love to be the one to open your eyes to the world of wine.  With prices the way they are, there has never been a better time to try different wines and see what past generations have enjoyed.  Wine making is a process that has been refined over centuries.  With globalization, it has only become more exciting, with fresh juices coming to us from vineyards thousands of miles away, and from every corner of our planet.  We have more than a hundred different wines to choose from at the Wine Cellar, Kitchener, ON.

Visit the Wine Cellar today and start your journey to great wine!