UC Davis Survey Finds Wine Industry Bullish Despite Challenges

DAVIS (CBS / AP) — A new wine industry report indicates that wine grapes will be in short supply over the next few years, but it won’t mean higher prices.

According to two surveys released by the University of California, Davis’ School of Management, wine industry professionals show concern for grape shortages because of recent cooler weather.

But surveyed executives say discount pricing will remain in the foreseeable future because consumers and retailers have grown accustomed to lower prices prompted by the poor economy.

Despite the challenges, the report said 71 percent of respondents believe the economic health of the wine industry would show improvement in the coming year.

The school’s dean, Robert Smiley, said that reflects a level of confidence that hasn’t been seen since 2007.

Smiley presented the findings Tuesday at a Napa wine industry symposium.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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