Wine prices set to drop lowest they have been in 5 years due to grape surplus

SANTA MARIA, Calif.-

A big price reduction is coming to one of the Central Coast's biggest exports.
Wine bottle costs are dropping the lowest they have been in years.

Wine drinkers will be pleased to know that due to a surplus off California grapes, prices are dropping fast. The surplus is a result of good weather and a drop in the demand.

“As someone who loves to drink wine I'm excited because that helps my budget,” said General Manager of the Orcutt Wine Stone Inn Lauren Wise.

Local Orcutt boutique hotel The Wine Stone Inn is ready to pass on the saving to wine drinkers.

“I think it's great because I can share different varieties of wine that a guest might normally try because it's out of their price range,” said Wise .

Some experts say wine drinkers can expect the best retail value in 20 years!

“What you are seeing is a lot of bulk wine on the market at a very good price because of the basics of supply and demand,” said CEO of Riverbench Vineyard & Winery Laura Booras.

The large harvest of grapes are a result of good weather, a decrease in demands and more efficient harvesting techniques.

“Two large harvests in a row is kind of rare, I can't remember this happening in recent years,” said Booras.

Many winemakers are putting their surplus grapes on secondary markets; bulk selling them or making brandy.

“The end result of all this means a pretty good saving for the consumer,” said Booras.

Experts say California producers will need to cut down on the acres of vine productions.
And that it will take about 2 to 3 years for the grapes to stabilize.

Winegrowers said it takes 5 years to bring wine to the market once the vine is planted.
That long turn around time makes it hard to predict what demand will be so far in advance.