World wine production hits 50-year low

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Experts say the world's wine production hit a 50-year low this year, according to a new report by the International Organization of Vine and Wine (OIV).

OIV pointed to unfavorable climate conditions in Western Europe, causing a historic low in Italy, France, and Spain -- the world's largest wine producers. Italy's output dropped by about 23 percent, OIV said. The United States recorded a higher level of production compared to this time last year, although the recent fires in California's wine country could certainly impact those numbers going forward, although it's too soon to tell the full extent.

This, of course, is prompting the big question: will this drop in production cause wine prices to rise? Stephen Rannekleiv -- a global strategist for beverages -- says it's a wait and see situation.

"Wine makers are gonna kind of wait and see before they make any actions and it's also very important to keep in mind that brand owners will be very reluctant to pass on pricing increases for one-off vintage. They don't want to reposition their brand and lose that market space because once you lose that market, once you taking pricing out, you will lose volumes and that can be very hard to recover."

A lower supply could mean higher prices, but Food & Wine says you don't have to break the bank to get a nice wine. Here are Food & Wine's three favorite bottles for under $20.

Beringer Founders' Estate California Cabernet Sauvignon, $9

Chateau Ste. Michelle Columbia Valley Merlot, $15

Foxglove Central Coast Chardonnay, $17

Prices may vary if you shop around.

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