It’s real: Champagne shortage ahead of New Year’s Eve due to supply chain issues

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New Year’s Eve revelers hoping to put 2021 to bed may be facing another challenge in addition to COVID restrictions.

It seems the supply chain issues the nation has been experiencing thanks to President Joe Biden’s dismal leadership have also affected the wine industry, meaning party-goers will be having a hard time finding some of their favorite bubbly champagnes to ring in 2022.

Alison Napjus, senior editor of Wine Spectator, warned of a “perfect storm” ahead as demand spikes for champagne with New Year’s Eve parties set across the nation.

“It’s not even just that basic transportation issue. We’re also looking at things like shortages of the cage that goes on top of your bottle, labels, boxes to put wine in,” Napjus told Fox Business’s “Mornings with Maria.”

“So you put that all together with the huge increase in demand we’ve seen for champagne this year [and] for other sparkling wines and of course, the holiday season, and it could be tough to find some of your favorite labels this year,” Napjus added.

(Video: Fox Business)

But this shortage in champagne supplies, brought about by backlogged U.S. ports, a lack of drivers and increased demand due to the holidays, is not a temporary problem and could only be in the early stages as Wine Enthusiast Magazine reported that it could last for “several years.”

The trade organization for the Champagne region of France reportedly capped production limits after the demand for champagne dropped 18% by volume in 2020, according to the outlet.

“The initial decisions made by importers to slow—or even more drastically, to stop—importing wines is really a larger issue than the supply chain,” said Thatcher Baker-Briggs, owner of Thatcher’s Wine Consulting. “Vintages during and after Covid will be where the actual shortage of Champagne will take place. We have not quite yet felt these impacts.”

Gabe Barkley, CEO of MHW, Ltd., a wine and spirits importer, told the outlet that they “anticipate that reduced production in recent vintages will affect the market for years, with 2023 through 2025 being the most impacted by volume.”

And, according to Michael Bilello, senior vice president of communications and marketing of Wine & Spirits Wholesalers of America, consumers will be on the receiving end of the increase in prices.

“As the cost of business and challenges of doing business impact the wine and spirits industry, consumers are going to see that on the shelves or their bars and restaurants,” Bilello said, according to Fox Business.

Dr. Kaan Kurtural, a viticulture specialist with the University of California Davis, noted that a “shortage of bottles” was also at play in the current issue, telling “Cavuto: Coast to Coast” in October that the cost of fertilizer had shot “through the roof ” and seeds were “difficult to come by.”

“It’s millions of dollars of investment these folks have made over many generations, so hopefully it’ll be resolved soon,” Kurtural said.


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