fb

Will this model mean you’ll drink less?

It’s one of the classic economic models. Changes in supply and demand can impact on prices but should you be interested in this model if you like to drink a glass of wine?

Morgan Stanley, the American financial services firm has released a report on global wine supply and demand. Assuming that you haven’t had too much wine to drink already today then it does make some interesting reading.

First of all, global wine consumption has generally been rising since 1996 and the current consumption is approximately 3 billion cases per year.

This consumption (demand) of 3 billion cases of wine compares to the current production (supply) of 2.8 billion cases of wine. Unless you’re now on your second bottle of wine of the day you’ll be able to work out that demand exceeds supply by 200 million cases.

The report by Morgan Stanley predicts that in the short term “inventories will likely be reduced as current consumption continues to be predominantly supplied by previous vintages”.

In other words, the shortfall between annual demand and supply will be satisfied by wines that were produced in earlier years.

Once this stockpile has been used though it will simply be a case of demand exceeding supply and we all know what happens when demand exceeds supply. Yes, prices will increase.

If you’re a wine drinker then you’re likely to be facing a more expensive drinks bill in the future.

Share this entry

Recent articles

View All Articles
The right (or left) turn for Big Data…
May 31, 2023
Title
The right (or left) turn for Big Data…
Excerpt

In the ever-evolving world of logistics and delivery services, companies are constantly seeking innovative ways to optimise their […]

Drinking in the highs and lows…
May 18, 2023
Title
Drinking in the highs and lows…
Excerpt

In the world of business, effective advertising can really help or hinder a brand. A recent case highlighting […]

Expensive planes but low cost…
May 11, 2023
Title
Expensive planes but low cost…
Excerpt

Ryanair is one of the largest and most popular low-cost airlines in the world and it’s got ambitious […]

PwC to invest $1 Billion in AI…
Apr 27, 2023
Title
PwC to invest $1 Billion in AI…
Excerpt

PwC, one of the Big Four accounting firms, has announced its plan to invest $1 billion in artificial […]

Who else knows?
Apr 17, 2023
Title
Who else knows?
Excerpt

If done properly, data analytics can provide valuable information to a company. There can however be some unplanned […]

On your marks…
Apr 13, 2023
Title
On your marks…
Excerpt

Back in 1949, a German individual by the name of Adolf (Adi) Dassler started a business. He combined […]

What’s ACCA all about?
Mar 31, 2023
Title
What’s ACCA all about?
Excerpt

Ever wondered what ACCA is and what are the benefits of obtaining the qualification? If so, then read […]

It’s not a Lamborghini it’s a Volkswagen…
Mar 22, 2023
Title
It’s not a Lamborghini it’s a Volkswagen…
Excerpt

When it comes to cars, things used to be simple. Most brands were known for a certain type […]