06/10/08 Wine Consumption p. 2

Welcome to Vine to Wine this is your host Linda Moran. Yesterday we discussed the increase in wine production and consumption in the United States. Today we will continue our series examining the world's "taste" for wine. Okay so yesterday we learned that by 2010 the US will consume more wine than any other country in the world. It is likely that we have already surpassed Italy and are well on our way to overcoming the French. Let's take a look at why we believe this trend is happening - Grape harvests determine annual wine supply and prices: In much of the past decade oversupplies of grapes deflated prices, increasing competition between wine producers, which was made even more intense by new American entrants to the market. In 2007, however, world wine production fell drastically due to especially weak harvests in Europe and Australia. Unpredictable temperatures and climate conditions have created this production decline, which has led to lower wine supplies and higher prices for consumers. New smaller wineries make a larger variety of wines available to consumers: new independent wineries are opening almost every day. These small, artisan wineries provide the increasing variety of wines that consumers demand. Reports on health benefits of wine raise demand: A variety of studies have found significant health benefits from moderate consumption of red wine. Over the past few years, wine producers and industry organizations have been lobbying for government research and sponsoring private studies in this area. But beware as a discretionary consumer product, wine is at risk of suffering decreases in demand during period of weakness in the US economy. Remember to send your questions to Linda at vine to wine dot net and thank you for joining me on today's Vine to Wine.