Grape Surplus and Lower Wine Prices

California wine is predicted to be the best wine retail value in 20 years because there's a surplus of California grapes. Prices may lower on domestic wines due to a surplus on California grapes.Paul Bonarrigo, President of the Texas Wine and Grape Growers Association and owner of Messina Hof Winery, says don't go celebrating yet! "The surplus in grapes this year most of the time won't affect you until a year or two. It's not something that will be immediately felt in the market - more than likely." He says this will have the adverse effect for Texas wineries that use Texas grapes.

"We are 100% Texas - we only source fruit from the state of Texas. For us, technically for us, it has an adverse effect because our prices will stay the same."

Bonarrigo makes the point that supermarket wines sell with such a low margin, that the savings - when they come - will probably run from 50 cents to a dollar a bottle.

"With the way that the wine world works withing the grocery store setting, because those products are such small margin price already - those products won't show a huge price change on the shelf."

Bonarrigo adds that wines from Texas wineries that use only Texas grown grapes will not see a price change. It will take a year or two to see the price reduction from the current surplus.

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