Champagne shortage ahead of New Year's Eve as supply chain issues hit wine industry
Wine Spectator senior editor warns it could be ‘tough’ to find some labels this year
Wine Spectator senior editor Alison Napjus warned on Wednesday, two days before New Year’s Eve, that "it could be tough to find some of your favorite labels this year" as supply chain disruptions have been impacting the industry.
Napjus noted on "Mornings with Maria" that the issues hit the wine industry in a "perfect storm" ahead of the holiday when champagne is in strong demand.
Several companies have noted higher logistics-related costs and disruptions to their normal operations. Vineyards are no exception as the backlog at ports and the truck driver shortage have left them short of products.
The issues have also impacted consumers in the form of empty shelves and higher prices.
Wine Enthusiast Magazine reported earlier this month that the U.S. is currently in the early stages of a champagne shortage that is expected to last several years.
Earlier this month, Michael Bilello, senior vice president of communications and marketing of Wine & Spirits Wholesalers of America, said increased costs could soon be passed to consumers.
"As the cost of business and challenges of doing business impact the wine and spirits industry, consumers are going to see that on the shelves or their bars and restaurants," Bilello said.
SUPPLY CHAIN BOTTLENECKS SOUR WINE INDUSTRY AMID BOTTLE SHORTAGE
He noted that in a recent survey conducted by SipSource, 43% of suppliers and distributors said they expect to see an increase in the price of wine.
Napjus stressed on Wednesday that shipping delays and the truck driver shortage has been a challenge for the wine industry.
"It’s not even just that basic transportation issue. We’re also looking at things like shortages of the cage that goes on top of your bottle, labels, boxes to put wine in," she said.
"So you put that all together with the huge increase in demand we’ve seen for champagne this year [and] for other sparkling wines and of course, the holiday season, and it could be tough to find some of your favorite labels this year."
Dr. Kaan Kurtural, a viticulture specialist with the University of California Davis, told FOX Business in October that a shortage of bottles due to supply chain disruptions was an issue for the wine industry.
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Kurtural pointed out that the industry is currently facing even more issues, including seeds being "difficult to come by" and the price of fertilizer shooting "through the roof."
Demand for wine has increased during the coronavirus pandemic, as Americans sheltered in place to avoid potential infection.
Market research and analysis firm Nielsen reported that wine has led as one of the strongest alcoholic categories last year.
As the demand for wine increased, the industry has been dealing with a severe drought and now supply chain issues on top of that. The issues have been contributing to a decrease in wine production.
FOX Business’ Jiovanni Lieggi contributed to this report.