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Morgan Stanley predicts global wine shortage

Published:  30 October, 2013

The wine industry is currently under-supplied by "nearly 300 million cases", despite there being one million producers globally making 2.8 billion cases a year, according to a report issued by Morgan Stanley Research.

Global production dropped 5% last year, to the lowest levels since the 1960s and brought global supply and demand into equilibrium for the first time in recent history, according to the research that was reported by CNNMoney.

With production in Europe dropping by 10% due to bad weather and consumption globally rising by 1% in 2012, wine stocks have decreased considerably.

The rise in global demand for wine has partially been attributed to the rise in popularity for wine drinking in China, which continues to enjoy an economic boom and a rise in the standard of living.

With a the worst vintage in over 40 years in some areas, 2013 has been  challenging across Europe, particularly in France, one of the major suppliers of global wine production.

Early frost conditions have also hit the vintage in Chile which is expected to adversely affect white varietals in particular.

As a result it does not look like global wine supplies will be increasing in the near future, according to Morgan Stanley's findings.