Poor weather was not kind to the 2012 grape harvest, but global production of wine in 2013 has noted the highest prices seen in seven years. Wine production in Portugal increased by 6.7 Mhl, France saw an increase of 7%, Italy’s production passed that of 2012 by 2% and Spain recorded its highest level of wine production ever with 40 Mhl. Record productions of wine were also recorded in Chile and New Zealand, and the US is continuing to develop its winemaking industry. These were the stats presented by Frederico Castellucci, who is the Organization of Vine and Wine’s Director General.
Europe Remains in the Lead
Even with a significant increase in wine production throughout the world, Europe continues to supply some 60% of the wine in the world. While wine is being produced in other areas of the globe, those wineries are not able to grow fast enough to make a significant contribution. Even though Australia, Argentina, the US, South Africa, New Zealand and Chile, known as the New World market, accounts for about 30% of total wine exports, their percentages of wine production are even less.
Good Time to Invest in Fine Wines
The New World’s wine consumption is still growing faster than its ability to produce good quality vintage. The stats published so far don’t even take into account the markets that may be emerging in the near future, such as in India. However, when it comes to investment, don’t rely on the wines that are produced outside of Europe. For a reliable addition to a financial portfolio, nothing compares to the fine vintage that comes from the established Bordeaux estates. With the global consumption levels increasing, there is little doubt that fine wine purchased and put aside for investment will continue to render handsome profits in the years to come.