It is not only wine prices likely to be affected by a poor grape harvest as experts warn the cost of balsamic vinegar will also rise in 2013.
The price of balsamic vinegar is expected to rise sharply because of last year’s poor grape harvest.
This will not only affect wine lovers but also those who enjoy the traditional
Italian vinegar, according to a report.
Bad weather last year in key wine regions, such as in France and Italy, caused
global wine production to fall to its lowest level since 1975. Suppliers are
now warning that low stocks are likely to result in higher prices for all
wine-related products, including balsamic vinegar, made from Trebbiano grape
juice and used for salad dressings dips, marinades and sauces.
One source told The Grocer magazine that grape prices for some vinegars had
increased by more than 40pc and producers of balsamic vinegar were facing
cost increases of more than 25pc.
In November, specialist retailer Majestic Wines, which has an average selling
price of £7.46, warned that shoppers could face sharp increases in the cost
of a bottle of wine. Steve Lewis, chief executive, said he expected a rise
of between 50p and £1 a bottle in early 2013.
Europe's wet summer was not the only blow to global production in 2012. Grape-growing regions in Argentina have also seen adverse weather, meaning an estimated 22pc fall in crops for 2012.
The International Organisation of Vine & Wine (OIV) estimated last year that global production would fall by 6pc to 248.2m hectolitres – the lowest level since at least 1975.
UK tax increases are also expected in 2013 with the "duty alcohol escalator", which was set up towards the end of the previous Labour government, due to increase duty on wine by 2pc above the rate of consumer prices index inflation, currently running at 2.7pc.
Grapes have not been the only crop to suffer from bad weather. China's inflation rose sharply in December, it was announced last week, after a cold winter lead to a 15pc rise in vegetable prices.
UK households, which are already coping with stagnating wages and austerity measures, including child benefit cuts that kicked in last week, also face the prospect of rises in staple foods.
Earlier this month, the managing director of Waitrose warned that Britain's recent food price rises were "just the tip of the iceberg," and consumers should brace themselves for "massive" increases in some commodities this year.
Aside from disrupted supply due to unpredictable weather, global demand for food and other resources is growing at breakneck pace because of population growth and increasing wealth in the most populous countries such as India and China.
Research by Andrew .
Europe's wet summer was not the only blow to global production in 2012. Grape-growing regions in Argentina have also seen adverse weather, meaning an estimated 22pc fall in crops for 2012.
The International Organisation of Vine & Wine (OIV) estimated last year that global production would fall by 6pc to 248.2m hectolitres – the lowest level since at least 1975.
UK tax increases are also expected in 2013 with the "duty alcohol escalator", which was set up towards the end of the previous Labour government, due to increase duty on wine by 2pc above the rate of consumer prices index inflation, currently running at 2.7pc.
Grapes have not been the only crop to suffer from bad weather. China's inflation rose sharply in December, it was announced last week, after a cold winter lead to a 15pc rise in vegetable prices.
UK households, which are already coping with stagnating wages and austerity measures, including child benefit cuts that kicked in last week, also face the prospect of rises in staple foods.
Earlier this month, the managing director of Waitrose warned that Britain's recent food price rises were "just the tip of the iceberg," and consumers should brace themselves for "massive" increases in some commodities this year.
Aside from disrupted supply due to unpredictable weather, global demand for food and other resources is growing at breakneck pace because of population growth and increasing wealth in the most populous countries such as India and China.
Research by Andrew .
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