Some more musings on glut in Australian wine.

Mat wrote on Tue, 03 May 2005 13:24:39 +1000:

M> This despite an already pronounced grape glut. This was M> compounded by the fact some of the previous vintages are M> still sitting around.

M> The message for producers apparently is to hold on, things M> will get better for producers etc. However there is M> apparently a fair few properties being put up for sale M> around the place.

M> One wonders when the industry will reach critical mass, and M> demand will parallel if not exceed production and prices M> will go back up.

Possibly there is a glut in Australia but it is not being reflected in the prices of the small (3 liter) wine boxes around here. It might have been a promotional price about a year ago but Hardy's was selling for about $14, now the County liquor store wants $21. I am not too sure that the keeping qualities of box wines are worth that price since I can buy everyday Australian wines for $5 to $6 in a standard bottle.

James Silverton.

Fosters

Mat, Sooner or later this seems to happen with a lot of industries, especially ones where big-ticket merchandise is concerned. The smart mega-producers will allow their newly-acquired wineries to continue making wines with their own unique character. But as you suspect, some of the less-profitable vintners will probably get the ax after being bought out, the better to reduce the number of competitors.

Dan-O (and sorry if I got on your nerves with my boycott-ending postscript, Mat)

Wow, James, that County liquor store might be overcharging for the Hardys. Here in PA, the 3-liter boxes retail for only US$15.99 . And sometimes the state store system puts them on sale for even less.

Dan-O

It is the unfortunate nature of big business and micro-management that little operators often are not left alone. Particuarly when they are not making an awful lot of money for the shareholders.

Whereas previously ppl were happy to make a living, large companies want little producers to start making stuff for US buyers to pay $100+ for. Which doesn't often happen. And which sends them down the tubes.

So you end up with a narrower and narrower band of producers. And little guys get frozen out. Especually as they can't mass produce for the Dan Murphy's of the world. ;)

As for the PS, don't worry about it. I'm sure I pissed a lot of ppl off with my whinge. France was just a convinient scape goat / distraction for a lot of things if you ask me. At least you were civil about it. Some people get quite wound up about it. The whole US angst towards France will just drift away eventually anyway.

I find it ironic the issue many independent liquor retailers are foreseeing as their inevitable demise, is the mooted 'exclusivity' agreements the major players will enter with the major liquor chains. i.e Dan Murphy's get Southcorp, Liquorland get Blass etc. I am excited by this concept, because how I interpret this scenario (if it eventuautes), is that the 'real' wine enthusiast will seek out independents who proudly stock a range of hand picked small vineyard wines, as opposed to the chain stores, which imho they will avoid, as the mass consumers head to those shops to buy their mass produced bland and boring brands.

hooroo.....