Skip to main content
Part of complete coverage on

Say it ain't so...Is there a global wine drought?

updated 10:18 AM EST, Tue December 3, 2013
Click on the bottle icons for more information for each country. Source: Morgan Stanley, OIV, Britannica
  • World is facing a significant wine shortage, according to Morgan Stanley report
  • Industry experts release global production report countering Morgan Stanley findings
  • Old world wines continue to stabilize after poor harvests in recent years, say experts

Going Global showcases entrepreneurs taking their businesses around the world, tackling issues like business strategy, marketing and international logistics.

(CNN) -- Global wine production is booming with vineyards springing up everywhere from China to the United States, Chile and New Zealand.

But when a recent report authored by Morgan Stanley Research predicted a looming global wine shortage, vinophiles took to social media to express their dismay over the bleak news.

The report stated that the international demand for wine outweighed production by 300 million cases in 2012 -- dropping to its lowest point in over 40 years.

Wine popularity, prices on the rise
Move over, Napa! New Jersey wine booming
Winery introduces Japanese wine

With worldwide consumption jumping by 1% last year, the researchers concluded demand could overtake supply in the coming years pushing the price of wine up.

As the viticulture chaos ensued, France's International Organization of Vine and Wine (OIV) released their very own forecast report that countered Morgan Stanley's analysis.

Read: 10 best places to start a business

While Morgan Stanley's figures weren't incorrect, per se, their forecast did not take into account 2013's production levels which actually show a return to 2006 production levels, a healthy state of production for the industry. What's more -- Spain, Italy, France and Chile produced record wine levels in 2013.

"It's how you interpret those figures. For all intents and purposes, for those of us in the West who are consumers, no -- there is not going to be a wine shortage," says Felicity Carter, editor-in-chief of Meininger's Wine Business International magazine.

"The question is whether there is going to be a wine shortage for consumers in markets that are extremely price sensitive -- like parts of Eastern Europe -- because the cheaper wine that they drink will be diverted to bulk up wine that goes into big consumption markets."

Carter echoes the OIV report pointing to the significant increase in production in EU countries like Croatia, Greece, Hungary and Romania and if vineyards from these areas could find stronger distribution avenues within the international market, there will be plentiful bottles to go around.

Read: Wooing luxury shoppers in the digital age

"The question is whether there is going to be a wine shortage for consumers in markets that are extremely price sensitive.
Felicity Carter, editor-in-chief of Meininger's Wine Business International

With poor wine harvests in recent years thanks to erratic weather from climate change, Carter acknowledges this could impact wine production levels. While consumers are not going to see a drastic price difference when purchasing wine from supermarkets, she says it all depends on the region of wine.

"The Burgundy harvest and the Bordeaux harvest this year have been abysmal ... If you wanted wine from the 2013 Burgundy or some parts of France, you're going to have a big problem. You will probably pay a lot more for those wines," she explains.

"The question is can you substitute other types of wine for those? Now, the answer is yes."

She adds: "Morgan Stanley, by the way, were not wrong in what they said. They did use very good figures and they do know what they are talking about but the world of wine is just so complex."

Part of complete coverage on
updated 9:18 AM EDT, Fri October 3, 2014
Ambitious companies that ignore the imminent rise of Virtual Assistants as the gateway to the Internet run the same risks as those that dismissed the disruptive innovations of Google in 1998.
updated 9:13 AM EDT, Thu September 25, 2014
Navigating the jungle of start-ups and investors can seem seem daunting for freshly-minted entrepreneurs, but a reliable guide can make beating a path to success more achievable.
updated 10:19 AM EDT, Fri September 12, 2014
Hope smells like eucalyptus and lemongrass for the farmers of Ikirezi. The Rwandan co-operative is a producer of essential oils, with ambitious plans to reconstruct communities still scarred by genocide.
updated 5:11 AM EDT, Thu September 11, 2014
One entrepreneur learned the value of a positive, authentic culture. Without realizing it, he learned how to build one from scratch.
updated 11:31 AM EDT, Fri October 18, 2013
Tourist guidebooks are displayed at the stand of China
The decline of print and rise in peer-reviewed websites are giving publishers a headache. How do you find an edge in the crowded marketplace?
updated 8:52 AM EDT, Fri October 4, 2013
The World Bank's most recent report that ranks economies for ease of startups. Find out which country is the easiest to launch your business empire.
CNN Going Global
See the full coverage of CNN's Going Global, a show highlighting entrepreneurs taking their businesses around the world.