Farmers in the three countries, which together produce over half the world’s wines, have been hit by extreme weather, including heavy hail and longer-lasting frost in the spring in Spain.
Meanhwile, unusually warm weather has meant that many grapes ripened early and are smaller than usual.
“We still foresee a dramatic decline in wine availability going into 2018,” said Stephen Rannekleiv, a global beverages strategist at Rabobank. “We expect the decline [in consumption] to be felt most tangibly in the lower-priced tiers.”
The European Commission says that this year’s regional harvest is expected to be the worst since 1982.
Europe is set to produce 14.5 billion liters of wine this year, a drop of 14% from 2016.
“It has not been uncommon for one of these three producers to have an off year, but rarely have we seen such poor harvests for all three simultaneously,” Rannekleiv said.
Vineyards that were spared in the spring were later damaged in devastating summer droughts. The problem is most severe on the Italian island of Sicily, where production was a third lower than last year.
Consumers are already feeling the effects, with the price of some wine varieties increasing this year by up to 10%.
“The rise in Italian and Spanish bulk wine prices is particularly noticeable and it started as early as May, when the first threats to production materialized,” Rannekleivn said.
- Marbella has never lost its charm – in fact it’s only getting better, writes Laurence Dollimore - 26 May, 2019 @ 10:00
- IN PICS: New Gibraltar property development to rival London’s Mayfair - 24 May, 2019 @ 09:52
- Agnese Klavina’s family to take case to Supreme Court after ‘shock verdict’ sees Marbella based Brits accused of kidnap ‘walk free’ on lesser charge - 23 May, 2019 @ 13:38
- REVEALED: Majority of Andalucia’s El Corte Ingles stores in the red while Marbella and Malaga the ONLY Costa del Sol outlets to return a profit - 23 May, 2019 @ 11:07
- BUSTED: €600 million empire which trafficked drugs into the UK and laundered money into Spain’s property market - 22 May, 2019 @ 18:38
- British most obsessed with doggy-style while Spain loves ‘cuckolding’, as new study reveals world’s sexual preferences - 22 May, 2019 @ 17:36
- WARNING: Multi-day heatwaves and life threatening temperatures coming to Spain this summer - 22 May, 2019 @ 16:25
- WE’VE GOT THE POWER: Dozens of expats fill up the ballot lists for vital local elections in Spain’s Andalucia - 22 May, 2019 @ 13:12
- HAY FEVER EPIDEMIC: Expert reveals why your allergies seem much worse in Spain this year - 22 May, 2019 @ 12:47
- Liverpool FC brings extreme security measures to Marbella football training ground ahead of Champions League final - 22 May, 2019 @ 10:35