Wine can get more expensive – here’s why
(NEXSTAR) – As Americans grapple with rising costs for regular groceries, an alcoholic treat could soon cost more.
Global efforts to move away from Russian oil and energy amid the country’s invasion of Ukraine have led to skyrocketing fuel prices – and bottles of wine are now more expensive to make.
“The cost of glass bottles in the United States has increased by 20%, according to some brand owners, although most operators have seen much more modest price increases,” said Stephen Rannekleiv, global strategist for the division. drinks from the financial services company. Rabobank, according to MarketWatch.
The US Energy Information Administration explains that the glass manufacturing industry is one of the most energy-intensive, with the majority of fuel coming from natural gas. Data from the New York Mercantile Exchange revealed that the war in Ukraine has affected European wineries more than American companies, likely due to proximity and dependence on Russian supplies, reports Marketwatch.
Wineries in Europe have seen a more than 500% increase in natural gas costs since last year. Meanwhile, U.S. natural gas prices have fallen from around $2.56 in March 2021 to $4.69 in March 2022.
Rannekleiv wrote in Rabobank’s second-quarter wine outlook that some glass suppliers may also implement additional price increases during the year.
If all else fails, there’s always boxed wine, which aside from being affordable, is also more environmentally friendly. It is estimated that an average box of wine contains about the same amount as a bottle of vino.
Wine Spectator sommelier Dr. Vinny explains, “Wines can taste just 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. ”