Australia wine glut shows signs of recovery
- Friday 13 August 2010
Announcing a 22% rise in export sales for Australian Vintage in the year to 30 June, company CEO Neil McGuigan said industry stocks were 'slowly moving into balance' and bulk shipments had been reduced.
'Our international sales relationships continued to strengthen and, notwithstanding the very depressed conditions in the UK, we expect to further expand our sales volumes in this market and in the US,' he added.
'For the first time in a long time we are seeing signs that the wine industry is moving toward balance in supply and demand,' added Australian Vintage chairman Ian Ferrier.
But he warned: 'The market will continue to be volatile as we believe there is still excess stock from previous vintages that is yet to wash through the market.'
Just over 1.5m tonnes of grapes were harvested in Australia in 2010, 12% down on 2009, with an estimated 8-12,000ha of vines taken out of commission in the last year.
Australian Vintage, whose brands include McGuigan, Nepenthe and Tempus Two, nearly doubled its net profit to A$8.1m in the year to 30 June.