Wine may get more expensive — here’s why
A bottle of red wine knocked over on floor – stock photo (iStock/Getty Images)
Testing on staging11
(NEXSTAR) — As Americans deal with rising costs on ordinary food items, one alcoholic treat may also come at a higher price soon.
Global efforts to move away from Russian oil and energy amid the country’s invasion of Ukraine have led to surging fuel prices — and wine bottles are now more expensive to make.
“The cost of glass bottles in the U.S. has risen by as much as 20%, according to some brand owners, although most operators have seen much more modest price increases,” said Stephen Rannekleiv, global strategist in the beverages division of financial services company Rabobank, according to MarketWatch.
The U.S. Energy Information Administration explains the glass manufacturing industry is among the most energy-intensive, with the majority of fuel coming from natural gas. New York Mercantile Exchange data found the war in Ukraine has affected European wineries more than American companies, likely due to proximity and reliance on Russian supplies, Marketwatch reports.
Wineries in Europe saw a more than 500% increase in natural gas costs since last year. Meanwhile, American natural gas prices rose from around $2.56 in March 2021 to $4.69 in March 2022.
Rannekleiv wrote in Rabobank’s Q2 wine outlook that that some glass suppliers could implement additional price increases as the year goes on, too.
If all else fails, there’s always boxed wine, which in addition to its affordability is also more eco-friendly. It’s estimated the average box of wine contains about the same amount as one bottle of vino.
Wine Spectator sommelier Dr. Vinny explains: “The wines can be as good as their bottled contemporaries… As an added bonus, boxed wines are usually made from recycled materials, and weighing less than glass, they can have a lighter impact on the environment.”