Events are driving us to drink.
Do you need a list? Probably not. So I’ll say a few words and leave it at that: Iran, federal deficit, home prices, mortgage rates, inflation, Part-of-the-Problem Republicans and Democrats, a corrupt president and…
Did I mention the weather?
But cheer up. Lift a glass. It’s a great time to be a wino!
Seriously.
There is a worldwide surplus of grapes. Or to be fully alliterative, a global grape glut. You can see for yourself by clicking for the story on any of these links:
The explanation is universal. Wine grapes are being overproduced, worldwide. At the same time, younger people are drinking less wine. Some are drinking no alcohol at all. (Can you spell THC?)
The resulting grape surplus is providing smaller price increases. While the year-over-year July CPI increase measured 3.4 percent, the increase for all alcoholic beverages was only 2.1 percent.
Even the hard stuff is in surplus.
The result, for consumers, is some peculiar opportunities as wine producers look for ways to avoid allowing their grapes to rot. Here’s how that works.
Suppose a vineyard produces superior — but not wildly rare – wine and wants to avoid discounting its brand. What can be done? Answer: The crop can be divided into two lots. One lot is bottled with the recognized label at the regular price point. Another lot is bottled under another label. Its origin is disguised. It is sold at a significantly lower price point.
Buy the other label and you’ll enjoy a good wine at a great price. No one will be impressed by the label on the bottle. Or the significant expense that label represents. But you’ll be enjoying a very nice wine, even if it isn’t identical to the original wine.
My personal window on this is the ever-increasing number of Kirkland branded wines at Costco and the growing number of videos and websites that offer selection advice. If you want to learn more, I suggest you sample some of those sites. Alternatively, buy a few bottles at Costco and test for yourself.
I confess that I’m not a wine connoisseur. Neither is my wife. We are both amazed at the elaborate descriptions of scents that adorn wine descriptions. We’re more about pulling the cork and raising our glass with friends.
Enjoy the day and the many fruits of your labors.
Related columns:
Scott Burns, “The Plight of the Affluent,” 10/20/2005: https://scottburns.com/the-plight-of-the-affluent/
Scott Burns, “A Giving Lesson From Charlie Mahoney,” 12/21/2014: https://scottburns.com/a-giving-lesson-from-charlie-mahoney/
Sources and References:
Costco Kirkland Wines on YouTube: https://www.youtube.com/results?search_query=Costco+Kirkland+Wines
Jelisa Castrodale, “Why France Is Spending $216 million to Destroy 80 Million Gallons of Wine,” 8/28/2023: https://www.foodandwine.com/france-destroying-surplus-wine-7866851
CBS News on Facebook: “California grape growers drowning in unsold product as wine demand falls,” https://www.youtube.com/watch?v=askv0WK2Oec
Rodrigo Gutierrez, “Chile’s wine industry targets younger drinkers as consumption slumps,” 4/28/2026: https://www.reuters.com/world/americas/chiles-wine-industry-targets-younger-drinkers-consumption-slumps-2026-04-28/
Lucy Murry, Nicolas Perpitch, “Australian wine exports slump amid global decline in alcohol consumption,” 7/30/2026: https://www.abc.net.au/news/2026-07-30/australian-wine-exports-slump-to-lowest-level-in-22-years-/106975894
Matteo Cecchetto, “The Italian Wine Problem,” 8/19/2026: https://www.abc.net.au/news/2026-07-30/australian-wine-exports-slump-to-lowest-level-in-22-years-/106975894
Sarah Zimmerman, “Diageo supplier to idle 2 Kentucky whiskey distilleries,” 4/8/2026: https://www.fooddive.com/news/diageo-mgp-idles-whiskey-distilleries-kentucky/816967/
Bureau of Labor Statistics, July CPI report: https://www.bls.gov/news.release/cpi.t01.htm
This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.
Photo: Scott Burns, 6/10/2024: Raising a glass while walking the Camino de Santiago with my brother Doug.
(c) Scott Burns, 2026