California Wine Glut Puts Premium Bottles on Bargain Shelves

California wineries have a problem, but wine lovers have a reason to celebrate: too much premium wine and not enough customers.

According to a Bloomberg report, a growing surplus is pushing high-quality California wines onto retail shelves at dramatically reduced prices, sometimes under private labels that conceal their prestigious origins.

Wines that ordinarily command $150 a bottle can appear under exclusive labels for less than $30, Bloomberg reported. At Grocery Outlet, some Napa Valley Cabernet Sauvignons normally priced at $45 to $85 have been offered for as little as $9.99.

Costco has also lowered the price of its Kirkland Signature Stags Leap Cabernet Sauvignon from $22.99 to $19.99.

The bargains reflect a widening gap between wine production and consumption. Americans are drinking less wine, while wineries continue working through inventories accumulated during stronger sales years.

Steve Beckner, a wine buyer for Grocery Outlet, said bulk wine offers that once involved a few thousand cases now sometimes reach 200,000 cases.

The situation is particularly attractive for retailers selling private-label wines. Producers can quietly unload excess inventory without publicly discounting their established brands.

Kroger reports that 20 wines in its portfolio recently earned scores of 90 points or higher from respected reviewers.

Industry experts expect the surplus to continue for another 12 to 24 months as vineyards reduce production and wineries clear inventories.

For consumers, the message is simple: expensive California wine may suddenly be available at everyday prices.

The only mystery is whose vineyard produced it.