The annual survey is conducted in conjunction with the 7th Annual Wine Industry Financial Symposium, October 20 and 21 in Napa. Respondents believe that the current wine market upswing will last 3.1 years on average, down from the 3.3 years in last year's survey and 3.8 years reported two years ago. Wine sellers and growers were the most optimistic, and lenders were the least optimistic. The dramatic growth in premium wine sales over the past three years was widely viewed as a direct result of the strong economy and the perceived health benefits of wine.
Red wine is still hot.
Over the next three years, the largest percentage increases in demand are projected to be in Cabernet Sauvignon, followed by Merlot, Zinfandel and Pinot Noir. Cabernet Sauvignon grapes are in short supply. Pinot Noir and Zinfandel grapes are also expected to be in short supply for the next three years, while Merlot supply is expected to be in balance with demand as early as next year. White wine grapes are expected to become more available. Chardonnay and White Zinfandel drinkers are expected to see lower prices by the year 2000, while Sauvignon Blanc grapes are forecast to be in short supply.