30 October 2013, Aaron Smith, CNN Money -- "Wine supply can't keep up with growing demand: Morgan Stanley.
There's just not enough wine in the world, says Morgan Stanley, and the problem is only going to get worse.
The industry is experiencing an "undersupply of nearly 300 million cases" a year, according to a report from Morgan Stanley Research.
Australia-based analysts Tom Kierath and Crystal Wang say the shortage comes despite the fact that there are one million wine producers globally, making 2.8 billion cases each year. About half of that comes from Europe.
But that's not enough to keep up with worldwide demand.
Global production fell by more than 5% last year - to its lowest level since the 1960s - primarily due to bad weather in France and Argentina.
Production in Europe alone dropped 10% in 2012, the report said. That same year, worldwide consumption rose by 1%.
... Morgan Stanley said that output from newer producers like the U.S., Argentina, Chile, Australia, New Zealand and South Africa has already peaked. ..."