The price of wine is dropping to lowest levels in 5 years
The price of wine is expected to drop to its lowest levels in five years in part because a surplus of California grapes.
that drinkers can expect to get a better value for their bottles this year. The cheaper prices may even last up to three years.
Jeff Bitter, president of Allied Grape Growers, told CNN that it's possible for surplus grapes to make it to the secondary market. That's where they're used for brandy or as grape concentrate.
But that market doesn't usually provide solid returns for growers.
"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," Bitter said.
"Until 2015, wine shipments had grown, almost predictively, for two decades. The slowdown in growth has caught the industry by surprise."
"Since it takes up to five years to bring wine to market from the initial planning stages of planting a vineyard, it makes hitting future demand very complicated. In this case, we overshot demand."