Wine Country Hit With Supply and Demand Problem - NBC Bay Area

Wine Country Hit With Supply and Demand Problem

Something we learned in high school accounting is proving true at Bay Area wineries



    The story is all about supply and demand. Jodi Hernandez reports. (Published Monday, May 7, 2012)

    There is a new dilemma in wine country tonight. Wine consumption's on the rise, but wine grapes are running in short supply.

    As the economy rebounds, more and more people are toasting to better times with a glass of their favorite vintage.

    Wine sales rose 6-percent last year and are growing at an even faster pace this year.

    But after years of sluggish sales and an oversupply of grapes, suddenly wine country's facing another problem - not enough wine grapes to meet the demand.

    "You're going to see greater demand and you're going to see shorter supply. So you're probably going to see prices start to rise even at the premium level," said Ben Sharp of Capture Wines.

    Wine producers looking to plant more vines are having a hard time finding new plant material to put in the ground.

    It seems there's a bottleneck at nurseries too.

    Industry experts say we could see higher wine prices and smaller selections for years to come.