Hardships ahead in the Wine Industry

Not good timing when our two greatest export markets have bottomed out, driven by the global financial crisis and our dollar, which is booming against the US dollar and the pound. Sadly the labour costs involved in wine production in Australia are much higher than our wine competitors in countries such as Chile and South Africa, which will worsen the outlook in terms of exports.

This may not all be bad as it may just give the Australian wine industry the impetus to get on and show what can be produced at the medium to premium end of the wine industry. After all there has been a lot of criticism in the past about the majority of our export endeavours falling into the bottom tier of the international market (history in the UK clearly shows this).

From a domestic perspective there has been further pressure imposed in the way of liquor licence fees. They have risen as of the 1st January 2010 by anywhere from 250 to 500 per cent, causing significant financial stress to those who can least afford it (boutique wineries, small independent retailers and distributors, and small cafes / restaurants and bars).

Wine sales have also declined in our domestic market as the flavour for international wines has grown and New Zealand Sauvignon Blanc floods the shores. Don’t get me wrong regarding NZ Sauvignon Blanc, as we represent one of the finest examples in our portfolio (Domaine Georges Michel from Marlborough). The reason for concern comes from the containers of juice arriving and the unknown labels appearing in the chains (that are actually known because they are labels that have been designed specifically and exclusively for the chains).

What is my point? My point is that when you go to purchase wine to take home, or select a bottle of wine from a list in a restaurant, pause and reflect before you commit. Better still seek advice from someone there to assist you, and source one of the many great boutique wines that has come from a family vineyard. The wine will surely have a story attached to it which will make consumption all the more pleasurable.

Without doubt Dan Murphy’s and the other chains will survive what will one day be acknowledged as the longest down period we've had in the wine industry. However the future is not as certain for many boutique wineries and small businesses on-selling wine. It is therefore up to us the consumers to do out bit to contribute towards their survival.

If you want to know where you can go to purchase wine and receive knowledgeable and excellent service have a look at our stockists lists, you will be spoilt for choice. If for some reason your local independent retailer is not on the list, let me know and I will visit them. On that note if you have a favourite café, restaurant or bar that promotes boutique wines and you don’t see them on our list let me know. I love discovering new venues so recommendations and referrals are much appreciated!