Wine in Australia is being massively discounted as a result of the wine glut.
The Australian Broadcasting Corporation has reported that bottles of cleanskin (showing neither winemaker or winery) Chardonnay and Merlot are being sold for as little as AUS$2 in supermarkets. These wines usually sell for three times that amount.
Stephen Strachan, chief executive of the Wine Makers Federation of Australia, told ABC, ‘I don’t think anyone in the industry would have expected that we get to that point.’
He added that pricing at that level would force other brands to follow suit. There is a temptation for those brands to match the price point, ‘because they obviously want to be able to sell their wine,’ he said.
He also said he ws sure it was a short-term phenomenon.
Written by decanter.com staff