Now we can’t even afford to drown our sorrows this winter! Wine price rises 10 percent after wildfires and drought scorched vineyards across Europe
- Wine Price Rise Predicted by Direct Wines and Laithwaites Boss David Gates
- It’s because the price of wine and spirits has already risen by 6 percent last year
- The price of olive oil is also expected to rise by as much as 25 percent this year
By Laurence Dollimore For Mailonline
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The price of wine could soar by 10 percent this year as scorching temperatures and heat waves continue to ravage Europe’s vineyards.
David Gates, CEO of Direct Wines and parent company Laithwaites, says a bottle of red or white from favorites France, Italy and Spain will only get more expensive if the heat and drought last much longer.
It’s because prices for both wines and spirits have already risen by more than six percent in the past year, according to government figures, as the cost of living crisis and inflation continue to wreak havoc on Britons’ pockets.
But Gates fears a further 4% increase by the end of the year is now on the horizon.
It’s because olive oil prices are also skyrocketing due to the heat’s impact on harvests.
The cost of the essential cookware, often referred to as ‘liquid gold’ by the countries that export it – mainly Spain and Italy – could rise by as much as 25 euros before the end of the year.
Mr Gates told the Telegraph: ‘Hot weather and little rain usually lead to lower yields, leading to higher prices.Read:In rare sit-down, Nobel Prize–winning economist Peter Diamond sees ‘significant power shift from employers to workers’ underway
Jesus Soto checks his vineyard after it was partially scorched in July this year by a forest fire near Cebreros in the province of Avila, Spain
Fire-damaged Grenache grape vines on scorched earth at an Ad Vinum vineyard burned in the July wildfires near Vallabrix, France. Photographed on August 11.
“In addition, the cost of all dry goods, such as bottles and cartons, has risen significantly due to supply chain problems and energy costs.”
A further price hike for wines would be another blow to industry in Britain, as impending alcohol tax reforms will raise the average price of a bottle by 65 cents.
The government plan, which starts in February, will tax drinks based on their alcohol content, meaning red and white wines, which are usually over 11 percent, could be among the hardest hit.
Mr Gates warned that wine merchants “were bombarded from all sides with inflationary pressures; personnel salaries, energy, delivery costs, raw materials and recycling costs’.
It’s because winegrowers across Europe are forced to harvest earlier this year due to the higher temperatures.
It means they produce much less than usual, and many in Spain predict a 25 percent drop in yield.
Francisco Martinez Arroyo, agriculture minister for Spain’s largest wine region, Castilla-La Mancha, said the smaller harvest was good news for sellers because “the wine can be sold better and at a good price.”