Skip to main content
Part of complete coverage on

Say it ain't so...Is there a global wine drought?

December 3, 2013 -- Updated 1518 GMT (2318 HKT)
Click on the bottle icons for more information for each country. Source: Morgan Stanley, OIV, Britannica
  • World is facing a significant wine shortage, according to Morgan Stanley report
  • Industry experts release global production report countering Morgan Stanley findings
  • Old world wines continue to stabilize after poor harvests in recent years, say experts

Going Global showcases entrepreneurs taking their businesses around the world, tackling issues like business strategy, marketing and international logistics.

(CNN) -- Global wine production is booming with vineyards springing up everywhere from China to the United States, Chile and New Zealand.

But when a recent report authored by Morgan Stanley Research predicted a looming global wine shortage, vinophiles took to social media to express their dismay over the bleak news.

The report stated that the international demand for wine outweighed production by 300 million cases in 2012 -- dropping to its lowest point in over 40 years.

Wine popularity, prices on the rise
Move over, Napa! New Jersey wine booming
Winery introduces Japanese wine

With worldwide consumption jumping by 1% last year, the researchers concluded demand could overtake supply in the coming years pushing the price of wine up.

As the viticulture chaos ensued, France's International Organization of Vine and Wine (OIV) released their very own forecast report that countered Morgan Stanley's analysis.

Read: 10 best places to start a business

While Morgan Stanley's figures weren't incorrect, per se, their forecast did not take into account 2013's production levels which actually show a return to 2006 production levels, a healthy state of production for the industry. What's more -- Spain, Italy, France and Chile produced record wine levels in 2013.

"It's how you interpret those figures. For all intents and purposes, for those of us in the West who are consumers, no -- there is not going to be a wine shortage," says Felicity Carter, editor-in-chief of Meininger's Wine Business International magazine.

"The question is whether there is going to be a wine shortage for consumers in markets that are extremely price sensitive -- like parts of Eastern Europe -- because the cheaper wine that they drink will be diverted to bulk up wine that goes into big consumption markets."

Carter echoes the OIV report pointing to the significant increase in production in EU countries like Croatia, Greece, Hungary and Romania and if vineyards from these areas could find stronger distribution avenues within the international market, there will be plentiful bottles to go around.

Read: Wooing luxury shoppers in the digital age

"The question is whether there is going to be a wine shortage for consumers in markets that are extremely price sensitive.
Felicity Carter, editor-in-chief of Meininger's Wine Business International

With poor wine harvests in recent years thanks to erratic weather from climate change, Carter acknowledges this could impact wine production levels. While consumers are not going to see a drastic price difference when purchasing wine from supermarkets, she says it all depends on the region of wine.

"The Burgundy harvest and the Bordeaux harvest this year have been abysmal ... If you wanted wine from the 2013 Burgundy or some parts of France, you're going to have a big problem. You will probably pay a lot more for those wines," she explains.

"The question is can you substitute other types of wine for those? Now, the answer is yes."

She adds: "Morgan Stanley, by the way, were not wrong in what they said. They did use very good figures and they do know what they are talking about but the world of wine is just so complex."

Part of complete coverage on
December 10, 2013 -- Updated 1653 GMT (0053 HKT)
At a time when many have lost faith in the global financial system, Bitcoin is being hailed as the future of e-commerce.
December 3, 2013 -- Updated 1518 GMT (2318 HKT)
wine glasses
Global wine production is booming with vineyards springing up everywhere from China to the United States, Chile and New Zealand.
December 3, 2013 -- Updated 1601 GMT (0001 HKT)
When David Beckham was spotted in the Macau crowd at Manny Pacquio vs. Brandon Rio fight many assumed he was there just as a boxing fan.
December 2, 2013 -- Updated 1445 GMT (2245 HKT)
The mobile landscape is vastly different from just a few years ago. Today everything is connected.
The world is undergoing a mobility transformation. Since Apple launched the first iPhone in 2007, more than 100 billion apps have been downloaded from app stores by consumers worldwide.
November 25, 2013 -- Updated 1148 GMT (1948 HKT)
In the age of personalization, a Finnish company is bringing 3D technology to the world of bespoke men's footwear.
November 18, 2013 -- Updated 1329 GMT (2129 HKT)
Louis Vuitton unveiled their
With online-shopping on the rise, enticing customers in-store is increasingly difficult, spurring retailers to dream up new ways to woo shoppers.
November 6, 2013 -- Updated 1359 GMT (2159 HKT)
French fries are shown in a McDonald's restaurant on First Avenue September 3, 2002 in New York City.
A new chapter in the fast-food wars was created with Heinz hiring Bernardo Hees, former Burger King CEO, to lead its company.
October 18, 2013 -- Updated 1531 GMT (2331 HKT)
Tourist guidebooks are displayed at the stand of China
The decline of print and rise in peer-reviewed websites are giving publishers a big headache. So how do you find an edge in the crowded marketplace?
October 14, 2013 -- Updated 1043 GMT (1843 HKT)
When the love child of the doughnut and the croissant was created in New York, fans queued for hours to sample the tasty hybrid snack.
November 22, 2013 -- Updated 1739 GMT (0139 HKT)
Savvy companies like Red Bull are turning to multi-pronged social media recruitment campaigns to unearth hidden talent.
October 4, 2013 -- Updated 1252 GMT (2052 HKT)
The World Bank's most recent report that ranks economies for ease of startups. Find out which country is the easiest to launch your business empire.
October 4, 2013 -- Updated 1255 GMT (2055 HKT)
What happens when you take a few startups and add academics, business execs, a Nobel Peace Laureate and put them on a ship?
October 4, 2013 -- Updated 1254 GMT (2054 HKT)
Entrepreneurship is an important key to the world's economies, writes author Beverly Schwartz.
CNN Going Global
See the full coverage of CNN's Going Global, a show highlighting entrepreneurs taking their businesses around the world.