While Australian wines have typically been a great value, it appears that we might have to give them a closer look these days as suppliers and producers are dropping their prices to try and raise some money.
CONSUMERS are the big winners from panic moves by Wine producers accused of selling their wine too cheaply to retailers. Leading retailer Dan Murphy’s managing director Tony Leon said suppliers were panicking. He did not believe discounting was the solution. Mr Leon said he was concerned major wine companies were making very little money or return on capital. Wine industry problems have stemmed from overproduction of grapes and wine and fierce competition in the retail sector. Mr Leon said only such serious long-time wine producers such as Henschke, Wendouree, Leeuwin Estate and Cullen Wines were doing well because they were tough customers and resisting pressure to drop prices. “My business is to get the best price for my customers, but I wish everybody was tough like those companies, because they’re doing well,” he said.
Food, Wine, Australian, Aussie
