The rising prices of glass, corks, labels, glues, pallets, cardboard boxes, pesticides, fertilisers, electricity, fuel, and shipping have all been identified as factors in wine prices skyrocketing in recent months.
In a report by ECO producers admit that in the coming weeks wine will have to become more expensive on supermarket shelves or in restaurants.
For Aveleda, which is the largest producer of Vinho Verde under the Casal Garcia brand, it is the price of glass that has been the most important factor, with glass bottles now costing 50 percent more than a year ago.
“We made a modest increase [in price to customers], in the region of 3%, but this is clearly not enough. More increases are inevitable midway through or towards the end of the year. We're still going to decide the best time. But it is impracticable to maintain the current prices”, said the co-CEO of Aveleda. Inflation “is inevitable and will have an impact on consumption, [since] it is natural for some consumers to switch to cheaper wines or other products”, such as beer.