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Spanish Bulk Stock in Short Supply and Possible Future Effects

February 13, 2012 - 16:44

Previously we mentioned that sizeable cooperative cellars were starting to see dramatic stock decreases; this is now a reality with the threat of shortages looming for cooperative
cellars while negociants carry ample supply. In some regions such as Utiel-Requena (Valencia) stocks are rapidly decreasing. In Mentrida (Toledo), according to some estimates, only 3M liters of wine remain available for sale. In Ciudad Real, one of the biggest producing regions, the large first-hand, single lots of Merlot, Cabernet and even generic red are almost all committed to negociants. Generic Rosé stocks are also very low and finding single lots over 200,000L is becoming a challenge. As a result, industry insiders expect lower availability in the coming years of Reserva & Grand Reserva (wines which are barrel-aged for 2-3 years) in bulk as a fair amount of these wines will be sold in the “Tinto Joven” or “young red wines” category. This requires less barrel-ageing, allowing for the wine to be commercialized quickly therefore easing supply shortages.

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