French Bulk-Wine Prices Rise, Lift Whites to Three-Year High

(Bloomberg) - French bulk-wine prices rose last week, rebounding from a drop and driving white wines to the highest level in more than three years after two below-average harvests reduced supply.

Bulk white wine without a geographic indication gained to 81.05 euros ($111.80) for 100 liters (26.4 gallons) from 77.82 euros a week earlier, data released by crop office FranceAgriMer showed. That’s the highest since February 2010, spokeswoman Virginie Nicolet said by telephone today. Prices were at 67.66 euros at the start of August.

France produced 42.3 million hectoliters (1.12 billion gallons) of wine this year, up 2.4 percent from 2012 and 6.8 percent below the five-year average, the Agriculture Ministry estimates. Rot caused “major” harvest losses of white-wine grapes in Burgundy and Beaujolais, while rain in Charentes resulted in rot on the white ugni blanc grape that’s usually not susceptible to gray mold, the ministry reported last month.

“There’s not that much wine, so prices are rising,” Philippe Janvier, in charge of wine statistics at the crop office, said by phone today. “The seasonal correction at the start of the season has been limited.”

Clearing Cellars

French bulk-wine prices typically fall toward the end of the season and the start of the next one as vintners seek to clear out cellars before the new vintage, Janvier said. Reduced inventories following the small 2012 harvest means the volume on offer was reduced, he said.