Wine News Jan 09 - March 09
Sydney Time
Copyright © Ric Einstein 2009
Friday 27 March
Constellation Brands: Bottoms Up
Constellation Brands, the world’s largest wine producer, lowered its fiscal year 2009 earnings outlook and forecast it will slash 400 jobs due to the global economic slowdown and a decline in its European and Australian businesses.
Below-cost offer for SA grapes
Grape growers in the South Australian Riverland say they are being offered below-cost prices for their crops by buyers from other regions and interstate. Chris Byrne, from the Riverland Wine Grape Growers Association, says many crops not under contract were expected to be dumped or left on the vine.
WINE grape growers are preparing to dump up to 65,000 tonnes of uncontracted fruit in response to abysmal prices.
Foster’s urged to sell "non-core" Murray Valley vineyards to Government
Foster’s should sell its two large company-owned vineyards in the Murray Valley to the Federal Government to help reduce Australia's winegrape oversupply and return much-needed water back to the Murray-Darling system, Murray Valley Winegrowers (MVW) has suggested.
Bordeaux offering discounts on 'slow-selling' 2007 vintage
Bordeaux chateaux are coming up with radical schemes for kick-starting next week's en primeur campaign – including giving hefty discounts on the 2007 vintage. Negociants, merchants and the chateaux themselves still have cellars full of the highly-priced and slow-selling 2006 and 2007 vintages – and they have no idea how 2008 is going to sell.
Alcopop levy will stay until May
DRINKERS will continue to be charged the higher alcopops tax until May 13 - even though Parliament axed the levy last week. The Australian Tax Office (ATO) said yesterday "the Excise Tariff Proposal remains in effect even though the Bill failed . . . the Tax Office will continue to collect the revenue at the higher rate until midnight on 13 May".
Wednesday 15 March
Constellation sees lower grape supply
Constellation Brands Inc (STZ.N) expects its 2009 Australian grape harvest to fall about 10 percent to 1.6 million tonnes, an estimate its chief executive said could help the industry. Robert Sands, speaking at the Reuters Food and Agriculture Summit in Chicago, also said his company's strategy of focusing on higher-end brands remained the right one, even though lower-priced brands were selling well in the recession.
Spirits industry doesn't want alcopop tax refund
The future of the $300 million in tax revenue collected under the alcopops tax hike is in doubt, with the Distilled Spirits Industry Council says it is not interested in getting the money back. The Government's alcopops bill was ultimately rejected by the Senate last night after Family First Senator Steve Fielding refused to support the legislation.
Twitter wins wine deals
Twitter is helping sell Australian wine to the British. Austrade, wine website
Nakedwines.com and the South Australia Government put up $100,000 to buy
Australian wines to be sold in Britain.
Foster's joins wine area road protest
FOSTER'S Group has declared its support for a legal challenge against a road
project threatening the Coonawarra wine region. A group of Coonawarra residents
and businesses this week filed a legal challenge with the South Australian
Supreme Court in order to halt construction of a bypass proposed to be built
around the Coonawarra town of Penola.
Now may be the time
for some alternative ideas
Stanford said some varieties are tried and fail in terms of suitability or don’t get consumer traction, some bump along in a niche capacity, some rise and fall on fashion trends and some are embraced and accepted into mainstream (and are no longer called “alternative”). “Investment in these alternative varieties provides the innovative edge that will allow adaptation to changing physical and market conditions," he said. "It will maintain interest in Australian wine and keep it ahead of the competition."
South Australian water allocations will remain unchanged at 18% for irrigators, following record low inflows into the Murray-Darling Basin. Minister for the River Murray Karlene Maywald said inflow conditions had significantly deteriorated since the end of last year, leading to yesterday's disappointing announcement.
Wednesday 18 March
Bordeaux wine sales flat as crisis hurts demand
Bordeaux winemakers saw their sales stagnate last year as the global economic slowdown caused a drop in demand late in the year, but drinkers paid more for the wine they did buy. Figures released Thursday by the Bordeaux winemakers association showed sales of Saint-Emilion, Medoc and other Bordeaux wines last year were 750 million bottles, flat on a year earlier.
Price-floor plan to counter cheap booze
A KEY government adviser in Kevin Rudd's war against binge drinking is examining setting a minimum price for alcohol to end the era of cheap booze. Rob Moodie, chair of the Government's National Preventative Health Taskforce, said this week that "incredibly cheap alcohol" had contributed to a culture of excess in which intoxication was considered normal. As part of its review of preventive health strategies, "an issue the taskforce will be looking at is a minimum floor price", Mr Moodie said.
New director for Wine Australia
The Australian Wine and Brandy Corporation (Wine Australia) is pleased to announce the appointment of Lisa McGovern to the new role of regional director – UK/Ireland/Europe, to be based at Australia House in London and effective from the 6 April 2009. The appointment follows an extensive search in both Australia and internationally, and confirms the organisation’s commitment to maintaining a strong and coordinated presence in its key export markets.
Peter Lehmann Wines posts $4.9m half-year profit
Peter Lehmann Wines has recorded a half-year profit of $4.9 million, down 12pc on the same period last year. The company says revenue decreased by 21pc to $27.6m as sales slowed in both export and domestic bottled wine markets.
Thursday 12 March
AUSTRALIA's wine grape growers are in for several lean years of oversupply and poor prices, according to the nation's top commodities forecaster. The Australian Bureau of Agricultural and Resource Economics says the world economic slump and more competitive markets have slashed demand for wine, with the lower Australian dollar having little impact.
Screwcaps take 15% of global market
Screwcaps now boast a 15% share of the world's closure market, according to a leading screwcap manufacturer. Italian closure company Guala claims global screwcap sales have increased by 25% in the past year to 2.5 billion closures. Anne Seznec of Guala said recent growth had come from Europe, which is regarded as a tough market for alternative closures.
Govt 'ignoring' alcopop substitution evidence
A major manufacturer of alcopops says the Federal Government has gone out of its way to vilify the spirits industry and discredit its evidence. Independent Distillers Australia has told a parliamentary inquiry examining the tax increase on pre-mixed drinks that independent research shows the tax is not reducing binge drinking.
French rose producers pink-faced over EU wine plans
Winegrowers in France's picturesque Provence region are pink-faced with fury over EU plans to let producers make rose wine by mixing red and white, saying this risks destroying a local tradition. Growers across France produce a third of the world's rose but on the Mediterranean coast in particular a glass of dry wine on a hot summer's afternoon, with a dish of olives or grilled fish, is as much a part of local culture as the game of boules.
NATIONAL sales growth of more than 25 per cent by value and volume has provided the catalyst for the Schild family's plan to invest $4 million in a new winery at Lyndoch. Schild Estate Wines general manager John Retsas said the Barossa Valley producer hoped to have the new winery up and running in time for the next vintage.
Cheaper Aussie wine moves into foreign markets
THE global financial crisis may have diminished global demand for Australia's more expensive wines, but foreign drinkers appear to be drowning their sorrows in cheaper Aussie plonk. Australia exported 709 million litres of wine over the 12 months to the end of February, down 5 per cent, while export value plunged 16 per cent to $2.43 billion.
Tuesday 3rd March
Fosters to sell 35pc of Coonawarra vines
Given the current market, we expect sales could take some time - accordingly, employees will have time to consider their future employment options within Foster’s or possibly with the new vineyard owners. Mr McNab said it could take years to sell some assets in the region, but the listing process had begun.
Australian protectionist bill dropped
A South Australian MP has dropped his plan to introduce a private member's bill urging Australians to drink Australian wine, following widespread condemnation. 'I think it's high time that some of us stood up and said, "hang on, we're not prepared to sit quiet while our industry's going through some pretty tough times where families are really hurting",' said Barossa-based MP Ivan Venning last week on ABC News.
Wine export values to US down 23pc
The 2008-2009 growing season has presented more challenges for the Australian wine industry than would normally be expected in a generation, according to Rabobank senior analyst Adam Morris. Today's report from the Australian Wine and Brandy Corporation has forecast the 2009 grape harvest to be 13pc below the 2008 total. (See separate story).
Grape growers let fruit rot on the vine
Winegrape growers in north-west Victoria say they're being forced to let grapes rot on the vine this harvest. Chardonnay is the biggest variety being let go, and growers say that by the time you've paid to harvest the crop, you'd literally lose money on it.
Wednesday 25 February
Constellation puts Goundrey on the market
Constellation Wines is selling Goundrey Wines in Western Australia's Great Southern region for almost AUS$9m. The sale compares with the AUS$62.5m Canada's Vincor paid for the winery, four vineyards and the brand in 2002.
French government new advice: 'Don't drink wine'
The French wine industry is – once again – up in arms at the government's latest
pronouncement: to stop drinking wine altogether. The Ministry of Health has
published guidelines which advise, 'The consumption of alcohol, and especially
wine, is discouraged.'
Yarra Valley: 5% vineyards destroyed
About 5% of the Yarra Valley's vineyards were destroyed or damaged by the recent Victoria bushfires, but good quality wines will still be made in 2009, according to the Australian Wine and Brandy Corporation (AWBC).
Friday 20 February
Smoke threatens state's premium wines
BUSHFIRE smoke has tainted the fruit of entire vineyards in the Upper Goulburn Valley and is posing a threat to
Local wines take hit from NZ imports
The chief executive of the Wine Federation of Australia says a consumer shift towards New Zealand sauvignon blanc is contributing to a drop in local wine sales. Australian Bureau of Statistics figures show sales of imported wine have increased by 50 per cent.
Bordeaux: wine boom may be over
The boom of blue chip Bordeaux wines may be over, according to senior industry commentators. The economic downturn, inflated pricing and lack of interest in recent vintages could also herald a significant shift in the power-politics of the region. One industry commentator even suggested that the boom in top Bordeaux wines was finished.
Tuesday 17 February
Foster's flags wine business restructure
Foster's Group has decided not to sell off its troubled wine business, but the multibeverage strategy that united it with its beer-selling operation has been confined to history. The company has also undertaken its second writedown in less than a year, taking a hit of between $330 million and $415 million on its balance sheet including the cost of the restructure. This follows a $700 million writedown on the value of its wine assets last year following the departure of chief executive Trevor O'Hoy.
Monday 16 February
Foster's set to shake up wine division
AFTER eight months effectively acting as an executive director, Foster's chairman David Crawford will this week deliver the results of his wine review. It will be seen as a welcome rationalisation -- but well short of a revolution. The fact is that not only would it be difficult to offload the $5.7 billion wine division over the next 12 months, but the business will need the support of beer's cash flow more than ever.
Heat and fires decimate Australian vintage
Australia's grape crop is expected to be at least 15% less than the 2008 vintage following a two-week heatwave across most of the country. After initial estimates put the harvest at between 1.7m and 1.8m tonnes - on par with the 2008 harvest - industry experts now believe the crop could be much smaller. (Plus links to other stories.)
Australian bushfires: eyewitness reports from Punt Road, Oakridge, Wedgetail
One wine producer has described watching 'explosion after explosion as the tractors blew up', as bushfires continue to rage in the Yarra Valley. Unprecedented 48 degree temperatures and blast-furnace winds on Saturday sparked wild fires that have left more than 130 people dead across the state of Victoria, with some of the worst fatalities occurring in to the north and east of the Yarra Valley.
Wine exports continuing to fall
Higher alcohol taxes in the UK, unfavourable exchange rates and the global financial crisis have all led to wine exports declining. A new report shows that from February 2008 to January 2009, exports declined to 701 million litres, or 9 per cent.
Australia: our Albariño is the real thing
Australian winemakers insist their Albariño is the real thing despite tests casting doubt on the authenticity of the grape. Last year French ampelographer Jean-Michel Boursiquot suspected that an Albariño vine in the Barossa Valley was in fact White Traminer, or Savagnin, a grape most closely associated with the Jura region of France.
Monday 9 February
Wine region feels blast of raging inferno
THE Yarra Valley wine region was all police roadblocks and smouldering land yesterday. Locals told of a fierce, unpredictable fire that raced down hills and up gullies destroying homes, schools, farm sheds and vineyards.
Vineyards 'fall apart' in South Australia
Growers in South Australia have been forced to harvest early as the current heatwave hits the vineyards. Reports estimate that temperatures of 46C and above could see some areas lose up to 70% of their crop. McLaren Vale and Langhorne Creek have been worst hit with the Barossa Valley and Coonawarra also affected.
Amorim cuts nearly 200 jobs as economic downturn hits the cork industry
Most of the 193 jobs to be lost are linked to the company's manufacture of products for the automotive and construction industries. However 75 redundancies will be made from Amorim's forestry and stoppers business – with 53 directly connected to cork stopper production. All are from its Portuguese workforce
For sale: Latour, Margaux and Mouton hidden from Nazis
UK auctioneer Bonhams is selling 1920s bottles of Latour, Margaux, Mouton Rothschild and Ausone that were hidden in a bricked-up cellar in Guernsey during the Second World War. The contents of the cellar from wine and spirits merchant Bucktrout & Co (founded in 1830) also includes Chateaux Haut-Brion and Cheval-Blanc from the 1940s and assorted bottles of port from the turn of the 19th century.
Tuesday 3 February
Woolworths buys online wine business
Woolworths Ltd says it has bought upmarket online business Langton's Fine Wines Auctions Pty Ltd in a move to shore up its already extensive liquor business. The supermarket giant did not disclose the purchase price.
Australian Wine Makers Ask Public To Help Name Special Wine
Sarah and Sparky Marquis of Mollydooker wines will donate 100% of the profits from the sale of 1,000 cases of a specially selected Mollydooker red wine. They are now calling upon consumers around the globe to get involved by having them help name the wine. Winemaking power couple Sarah and Sparky Marquis of Mollydooker Wines, are on a mission to do more than just make great wine. With the help of wine lovers across the globe and donating the proceeds of a new wine project, Mollydooker is lending a hand to support and educate the children of war-torn Cambodia.
Heatwave forces early grape harvest
The heatwave in South Australia has forced wine grape growers at McLaren Vale, south of Adelaide, to start their harvest early. Some growers have indicated that up to 70 per cent of their crop could be ruined by the extreme heat. Chairman of the McLaren Vale Grape Wine and Tourism Association, Dudley Brown, says such an early harvest is unprecedented.
Australian Wine Grape Output May Drop on Heat Wave
Australia’s wine grape harvest may fall after a heat wave hit southern states, likely helping to ease an oversupply in the world’s fourth-largest exporter. The nation may gather less than 1.7 million tons of fruit in the 2009 harvest currently underway, compared with 1.8 million tons last year, Mark McKenzie, executive director of Wine Grape Growers Australia, said in a phone interview from Adelaide.
New Zealand’s Annual Wine Exports Rise 19% on Harvest, Demand
New Zealand’s annual wine exports rose 19 percent to a record, boosted by a bigger grape harvest and rising demand, according to the industry’s national organization. The value of wine sold overseas rose to NZ$904 million ($460 million) in the year ended Dec. 31, New Zealand Winegrowers Chief Executive Officer Philip Gregan said in a statement e-mailed to Bloomberg News.
Monday 2 February
Wine Critics: Friends or greedy manipulators?
Since wine is such a complicated concept for most, and consumers have a difficult time deciding what they like (as strange as that may sound), wine publications have gotten fat and rich off the insecurities of many. Now, many elitists will tell you that all wine critics are bad for the industry. While many consumers only feel fulfilled once they find as many top 100 Wine Spectator wines as possible. I’m here to consider both sides, and tell you who you can believe and trust, and what you should do with most wine publications.
First UV-treated wine to be available this year
The wine, produced by L'Ormarins wine estate in Franschhoek, is treated by a UV (Ultra Violet) light machine that, according to the owners, kills unwanted microbes and yeasts. This, says cellar master Neil Patterson, reduces the need to add sulphites during the winemaking process.
Friday 30 January
Wine judges are rather unsteady, study finds
Only 10% in a four-year study of California State Fair judging were able to consistently give the same rating, or something close, to the same wine sampled multiple times in a large blind tasting. Judges at the California State Fair wine competition scored poorly at giving the same wine an identical rating when they tasted it multiple times in a blind tasting.
Beaujolais 'Sugar Ring' prosecutor calls for fines
The prosecutor in the Beaujolais sugar case has called for fines of up to €5000. The case – which is adjourned till 17 March - involves 53 Beaujolais wine producers accused of illegally adding sugar to their wines. Four supermarkets are accused of supplying 600 tonnes of sugar illegally.
U.S. Poised to Become World's Largest Wine-Consuming Market by 2012
Within three years, the US will become the world's biggest consumer of still wine, according to the VINEXPO study conducted by leading London-based drinks research organization International Wine & Spirit Record (IWSR). The study also revealed American consumption is expected to grow over the next five years despite the economic downturn, reaching 330 million cases or 3.96 billion bottles. Mr. Xavier de Eizaguirre, Chairman of VINEXPO and Mr. Robert Beynat, Chief Executive of VINEXPO presented these results and others at a press conference held earlier today at the Four Seasons Hotel in New York City.
Store refuses wine for woman, 68
A 68-year-old Essex woman has told how she was prevented from purchasing a bottle of wine because she could not prove her age. Jennifer Rogers, from Harlow, went to her local One Stop convenience store with a 70-year-old friend. But a staff member refused the sale because she needed photographic identification to prove her age.
Boy, 15, charged over 'wine murder'
A 20-year-old man and a 15-year-old boy have been charged with the murder of a
father-of-five who was allegedly attacked when he refused to hand over a bottle
of wine. Michael Eccles, 43, died in hospital on Monday after the incident which
occurred just yards from his home in Lichfield, Staffordshire, on Sunday as he
made his way home from shops in the Dimbles area of the city.
Wednesday 28 January
Foster's faces $700m write-down
FOSTER'S Group could be forced to write down the value of its wine assets by a further $700million when it releases the findings of a strategic review in coming weeks. Last August, Foster's wrote down the value of its intangible wine assets by $471 million and reallocated $575 million of goodwill from the $3.2 billion acquisition of wine group Southcorp in 2005 to its beer division.
10 liquor distributors agree to settle Sam's Wines and Spirits cases
US Federal regulators have reached settlements totaling $803,000 with 10 Illinois alcohol distributors accused of improperly giving Sam's Wines and Spirits money—or other things of value—to nab prime shelf space.
NZ Wine glut good news for drinkers
Rampant price discounting in the wine industry means 2009 will be party time for wine drinkers while winemakers will be left with the hangover. Massive grape harvests on both sides of the Tasman last year, the prospect of equally big harvests this year, and a softening of international demand due to the weakening world economy mean winemakers are having to slash prices to clear stock.
Remy Cointreau Sees 15% Drop in Profit
Remy Cointreau said the global economic slowdown, the resulting destocking by wholesalers and costs to reorganise its distribution network would send full-year recurring operating profit down 15 percent.
400 UK off licence stores at risk
Up to 400 branches of Threshers, Wine Rack and The Local off licence chains could face closure as its owner re-evaluates its portfolio. First Quench Retail, which runs all three brands, is reportedly in talks with the landlords of their unprofitable branches.
Wednesday 21 January
It's wine, but not as we know it
It's goodbye to Sherry and Tokay and hello Apera and Topaque. They are the new names chosen for Australian fortified wine following the signing of the Australia-European Community Agreement on Trade in Wine late last year. Under the agreement Australian wineries must stop using the terms Port, Sherry and Tokay in return for a number of concessions by the European Community.
New phylloxera outbreak in Yarra
According to Victoria's Department of Primary Industries, 'a detection of the grapevine pest phylloxera has been made in an existing control area in the Yarra Valley, north east of Melbourne'. The so-called Maroondah Phylloxera Infested Zone (PIZ) was declared after phylloxera was detected in the region in December 2006.
TWO days into the new year and Winemakers' Federation chief executive Stephen Strachan was playing the party pooper. This year's vintage, he said, would need to be down - way down - on the '08 harvest of 1.83 million tonnes. Ten per cent would be advisable, 20 per cent preferable. And therein lies a problem for wine drinkers. The industry continues to produce large quantities of wine for a shrinking market. It can no longer compete with super-efficient Chile and Argentina at the bottom end, and desperately needs to get better returns by moving prices up.
FACTBOX: Australia's wine industry set back by financial crisis
Australia's wine exports have suffered an 18 percent decline by value in 2008, delivering the first setback for 15 years as the global financial crisis hit. Here are some facts about Australia's wine export industry. Value: A$2.46 billion ($1.6 billion) in 2008, down 18 percent on 2007. Per liter value was A$3.53 (-7.6pct)
Friday 16 January
Australians buying less locally produced wine
There is more bleak news for the Australian wine industry, with official figures showing a drop in sales of local wine. Australians bought about 35 million litres of local wine in November, which is 2.2 per cent less than the year before. It follows figures showing the value of wine exports plunged by almost one-fifth, or 18 per cent, to about $2.5 billion in 2008 - their biggest fall on record.
Wine exports a cause for sour grapes
AUSTRALIA'S annual wine exports have declined for the first time in 13 years as the global financial crisis and volatile exchange rates have crimped demand in the key markets of Britain and the US. Figures from the Australian Wine & Brandy Corporation show that wine exports in 2008 fell 11 per cent by volume to 698 million litres, the first backward step since 1995.
Constellation spirit sale prompts Foster's speculation
Constellation Brands is selling two-thirds of its spirits business, fuelling speculation that it is planning more acquisitions to consolidate its position as the world's biggest wine producer. Although the US company said it will use the proceeds from the US$334m sale to reduce debt, some analysts suggest Constellation might bid for Foster's wine business, currently under strategic review.
Margaret River vines attacked by caterpillars
Up to a third of Margaret River vineyards have been attacked by 'apple looper' caterpillars. The caterpillars - previously unknown in grapevines in the region – have caused yield losses by feeding on small berries, preventing them developing.
Australian Wine Export Approval Report -- December 2008
Australian wine exporters endured a challenging year in 2008. In the first half of the year, the strong Australian dollar placed enormous pressure on Australia's price competiveness in major export markets. A low 2007 winegrape harvest and the expectations early in the year of another low harvest in 2008 placed uncertainty on supply.
Friday 9 January
Asian demand grows for Australian wine
While the value of exports to Europe and North America declined -- sinking 17 percent and 25 percent respectively -- Asian exports grew eight percent, with the value of shipments almost double that of Europe. China led the charge, with a 32 percent increase in value of imports to 74 million US dollars (52.5 million US), making it Australia's number one growth market and the fifth largest market by value overall.
Constellation Brands Falls on Lower Profit Forecast
Third-quarter net income fell 30 percent because of higher taxes, the maker of Clos du Bois and Robert Mondavi said today in a statement. Earnings excluding some costs for the year through February will be $1.68 to $1.72 a share, less than the $1.68 to $1.76 it had forecast. Excluding one-time items, per-share earnings of 60 cents beat analysts’ estimates by 1 cent. The third quarter is generally Constellation’s largest and most profitable three months as retailers increase inventories for the Christmas and New Year’s holiday season.
Cocaine replaces mulled wine at Austrian ski resorts as drug use rises
Austrian police have been swamped with the wrong kind of snow at ski resorts this winter, with lines of cocaine replacing mulled wine at chalet parties. This Christmas has been whiter than usual. Police say that cocaine and Ecstasy consumption at the bars of après-ski establishments has risen steeply at premium winter resorts, with recorded drug offences rising 60 per cent in some areas popular with British tourists.
Bordeaux first growth property Chateau Latour is reported to be for sale, and French mogul Bernard Magrez may be among its suitors. According to the Sunday Times, the renowned Pauillac estate, owned since 1993 by French business tycoon François H. Pinault, is being quietly shopped by French investment bank Lazard.
Madonna spends £5,000 on wine laced with silver for Christmas
The singer, 50, ordered 25 bottles of the 24k Silver wine from a vineyard in Valencia, Spain. The drink is made with a liquor which has specks of the precious metal suspended in it and is said to be popular in celebrity circles.
French government dismisses St-Emilion reclassification proposal
The French government council has thrown out a move to reinstate eight declassified St-Emilion chateaux. The dismissal, yet another in the rollercoaster saga of the St-Emilion classification, followed the attempt by senators Gerard Cesar and Philippe Dominati to reinstate the chateaux to their 2006 status – either Premier or Grand Cru Classes. The return to the 1996 classification effectively demoted them to Grand Crus.
