Wine, champagne prices pop ahead of NYE as inflation continues to bubble
The average price of champagne reportedly rose from $50.09 to $55.58 from 2021 to 2022
How rising wine and champagne prices could pop your New Year’s Eve party
Wine Spectator senior editor Alison Napjus provides professional analysis of inflation’s impact on wine and champagne prices nationwide on ‘Mornings with Maria.’
Inflation has no doubt placed economic pressure on the wine and champagne industry, so much so that it may be impacting your New Year's Eve celebration.
Wine Spectator senior editor Alison Napjus issued a warning for party-goers just days before New Year's Eve, urging consumers to stock up now with prices as they are.
DESPITE INFLATION, CONSUMERS ARE STILL SPLURGING ON LUXURY SPIRITS
"Basically, we're seeing just this kind of perfect storm of a lot of things, increasing costs for wineries. But the good thing is, the report from the larger wine industry is that, for now, they're going to try and hold prices in order to keep their consumers."
"However, you may want to stock up now at these prices," Alison Napjus explained on "Mornings with Maria," Wednesday.
Inflation has had a diverse impact on a wide spread of industries, but now the pressure is hitting the wine and champagne sector. A new report indicates that inflation has had a heavy impact on champagne and wine prices. (iStock / iStock)
Unlike other industries, demand is not a problem for the wine and champagne market. Consumers have continued to seek "affordable luxuri[es]" such as wine and champagne, despite obligatory budget tightening, as sales are still expected to reach a new record this year.
"Yes, we've seen a slight contraction of the wine market, but there could be a lot of factors… It was a real roller coaster going from 2019 consumption up in 2020, 2021, and here we are in 2022," Napjus told fill-in host Cheryl Casone.
Perhaps the largest contributing factor to rising costs remains to be supply chain problems.
Supply chain issues hit the wine industry, including champagne as NYE approaches
Wine Spectator senior editor Alison Napjus weighs in, explaining the issues the industry has been dealing with amid supply chain disruptions.
Earlier this year, 109 container ships waited off the California coast to unload cargo in Los Angeles and Long Beach, the nation's two largest ports. Due to an overwhelmed supply chain, several winemakers' bottles were stuck on those ships, prohibiting them from producing wine throughout the year.
"At that time, there were also not only raw materials, but also just seeing wine getting stuck there. So the supply chain was really impacted as well," Napjus said.
Napjus explained that while the circumstances at the ports have "largely improved," a new supply chain problem has started to place pressure on the industry.
Many winemakers' commonly used supplies - like labels, capsules, and clear glass bottles - are largely sourced from Ukraine, a country that has been battling an ongoing war against Russia since February of this year, resulting in severe global supply chain problems.
Wine sellers struggling to survive the pandemic are now also getting slammed by Uncle Sam’s fight with the European Union over aircraft subsidies. (iStock) (iStock)
"The situation in the ports has largely improved," the Wine Spectator senior editor encouraged, but noted that, at this point, "they're still having inflation hitting everywhere."
According to statistics included in Napjus's Wednesday segment on "Mornings with Maria," from 2021 to 2022, the average price of champagne rose by a whopping 10.96%, and wine by 2.7%.
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With New Year's Eve only three days, consumers financially prepare to tack on yet another heightened expense heading into 2023.