Raise your glass for cheap wine!
Thanks, in part, to a surplus of California grapes, the price of vino is expected to plummet to its lowest level in five years.
"The main cause of oversupply today is the culmination of a few years of slowing wine shipment growth, with an ample 2018 wine grape crop as an exclamation point," Rob McMillan, EVP and founder of Silicon Valley Bank’s Wine Division told CNN.
"Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise.”
The price drop is being further aided because there’s been a big decrease in wine consumption in America. Tell that to the Real Housewives!
"The industry should rightly be concerned," McMillan added. "We aren't engaging with the millennial consumer, and boomers who have driven wine sales for the last 30 years won't live forever."
To try and stabilize the industry, California growers will need to cut back on production, but that will take time and could lead to the reduced costs to last for up to three more years.
"This oversupply, coupled with eroding consumer demand, can only lead to discounting of finished wine, bulk wine and grapes,” McMillan continued. “US wine consumers will discover unprecedented retail value in 2020 and should buy up."
Looks like frugal wine drinkers will have more options to choose from than Trader Joe’s 2 Buck Chuck.