Wine prices in U.S. fall to lowest level in five years due to surplus California grapes and reduce the demand for drink among Americans, according to CNN.
According to the forecast Rob mcmillian saying, the founder of Silicon Valley Bank’s Wine Division, consumers can count on “the best retail price of wine in 20 years”, and its decline will start in 2020.
Planting of new vineyards in Northern California in 2016, and new methods of harvesting has led to increased range of grapes on the market, according to the channel.
To return the market to equilibrium, the California manufacturers will have to cut production vineyards. It is noted that in order to stabilize prices for grape will take at least 2-3 years.
According to industry group IWSR, wine consumption in the U.S. declined for the first time in 25 years, and more and more Americans are turning to liquor-vodka drinks and ready to drink cocktails.
“Boomers, who stimulated the sale of wine over the past 30 years, will not live forever,” says mcmillian saying. According to him, the increase in the cost of wine can lead to the fact that Millennials will be “more consistent purchasers of wine.” US 441 thousand liters of wine flowed in the river