Wine expert warns global wine shortage will hike up bottle prices

omg 24/01/2018

A wine industry leader warns the global wine shortage could edge up prices of the cheaper brands in New Zealand.

Global wine production is expected to fall to its lowest in more than 50 years, according to the International Organisation of Vine and Wine - and could leave the world short 3 billion bottles.

Adding to a decrease in production, demand for wine is now at an all-time high.

Here, it will affect wines selling under $10 a bottle.

"A lot of it is in wines that are at the lower end of the scale," Villa Maria executive director Fabian Yukich told The AM Show on Wednesday.

"Obviously Villa Maria and a lot of the New Zealand wineries are at the quality end of the wine scale so will it have an immediate impact? Probably not. But it will edge things up a little bit."

The shortage is being blamed on extreme weather in the world's top three producers - Italy, France and Spain.

The total world output is projected to fall 8 percent, meaning the 2017 vintage could be the smallest wine vintage since 1961.

"All these countries all at once¦ usually you get one country that gets hammered. We've been hammered ourselves in New Zealand before.

"But this is all over."

But Mr Yukich says because the wine produced here is of higher quality, our exports are likely to be unaffected.

A few good years of production has also left New Zealand with excess supply.

"I mean we are lucky here because New Zealand wine does really well in the world so in other parts of the world it's so appreciated."

He says the extreme weather won't have affected the taste of the wine.