That bottle of two buck chuck might be getting a higher price tag.
Global wine production dropped significantly in 2017, hitting the lowest level of production since 1957.
According to data from the International Organization of Vine and Wine, the 2017 harvest produced 25 billion liters of wine, down from 26.7 billion in 2016 and 27.6 billion in 2015.
Italy, still the world’s largest producer of wine, saw a 21% drop in production 2017. Other European producers, including France and Spain, were also hit by environmental factors such as hailstorms and frosts in 2017 that negatively impacted their harvests.
Meanwhile in California, wildfires destroyed some of the harvest, and in South Africa, sustained drought harmed the vineyards.
With a global reduction in supply, prices are going up. The wholesale price of basic wine in Italy has gone up 74% over the previous year, 45% in Spain, and more than 10% in France, according to European Commission figures reported by CNNMoney.
But the biggest price jump will likely be seen amongst those cheap bottles, as the producers of these wines already have the lowest margins. So if that two buck chuck hits the $3 mark, you’ll know why.
