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Why The World Has A Huge Wine Glut And Why It's Only Going To Get Worse - Forbes   

Geneva, SWITZERLAND: Picture taken 11 May 2007 shows a Christie's employee displaying a rare bottle ... [+] of 1945 vintage Romanee-Conti wine of France during a preview in Geneva. Christie's announced 15 May 2007 that the bottle have been sold 35.000 euros (USD 48.000) among several hundred lots of grand crus during a Christie's sale to support the charitable foundation "Children Action". Only 600 bottles of this legendary Burgundy wine were produced. AFP PHOTO / FABRICE COFFRINI (Photo credit should read FABRICE COFFRINI/AFP via Getty Images)

As certain well heeled connoisseurs struggle to come up with $28,000 to buy a single bottle of the latest vintage (2020) of Romanée-Conti from Burgundy, or a 2020 Screaming Eagle from Napa Valley for $3,700 each, the rest of us wine lovers are now in a position where there is more wine and more choice of wines at better prices than ever before in the past fifty years.

The principal reason is that there is an astoundingly large wine glut in the world, and several reasons why there is one. Australian wineries alone are sitting on more than 256 million cases of wine—more than two years of inventory—without a market. In June the EU gave France about $172 million to destroy nearly 80 million gallons of wine, with more funds to come this month. What will happen to all that wine? It will be distilled into pure alcohol to be used in perfume and cleaning supplies.

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