Wall Street & Markets

Australia’s wine glut

By Justin Fox | November 11, 2009 | +

The Wine Economist reports that Australia’s overproduction of wine has reached a crisis point:

Australia has an accumulated surplus of 100 million cases of wine that will double in the next two years if current trends continue, according to the report. The annual surplus is huge – equal to all UK export sales and there is no clear prospect of finding additional demand, either domestic or foreign, to fill this gap. …

In fact, wine exports have fallen by 8 million cases or more than 20 percent in the last two years, according to the statement, with the largest declines in the high value wines that Aussie winemakers hoped would be their future.

Inexpensive and bulk wine sales have grown, but at prices that are unsustainably low.

We have too big a financial industry. They have too much wine. Maybe we can arrange a trade?

Related Topics: australia, wine, Wall Street & Markets

  • Latest on Business

    Don Emmert / Getty Images
    Apple February 10, 2012

    Apple Now Worth More Than Microsoft, Google Combined

    How high can Apple soar? The tech juggernaut is closing in on $500 per share, a dramatic psychological threshold that underscores the company’s stunning performance over the last decade. How massive has Apple become? It’s now worth more by market capitalization than Google and Microsoft combined. The company’s latest stock price surge is being fueled by rumors that a new version of the iPad — the iPad 3 — will appear next month.

    From our Partners

    Chipotle Is AppleSlate

    Photo-Illustration by Alexander Ho for TIME; Getty Images
    Technology & Media February 10, 2012

    After Motorola Deal Approval, Can Google Hardware Be Far Behind?

    Now that federal regulators appear poised to approve Google’s $12.5 billion purchase of Motorola Mobility, speculation is mounting about what the Internet giant will do with its newly acquired assets. And what assets they are. Once the deal is formally approved — an announcement could come next week, according to multiple reports — Google will be in possession of some 17,000 patents related to mobile phone technology. And it will be well-situated to enter the hardware business, which could mean that consumers will soon see Google-branded phones and home entertainment devices.

  • whatsmyteam

    The two things may actually be related. In the boom years *36.7% of high paid Australian business execs, bankers, and others on huge bonuses or large salaries bought or established a vineyard with their new found wealth.

    In all seriousness, i’m sure lifestyle factors rather than rational investment decisions played some role in the glut of Australian vineyards and wine production.

    (* a totally made up figure)

    marcus.

  • http://twitter.com/justinmicklefox Justin Fox

    When are you gonna start *your* winery, Marcus?
    -
    Actually, it might make sense: You could buy grapes on the cheap and ferment them in some unoccupied downtown Newcastle commercial space.
    -
    For readers wondering what the heck I’m talking about: http://curiouscapitalist.blogs.time.com/2009/08/28/why-are-commercial-real-estate-markets-so-often-gridlocked/

  • whatsmyteam

    I’m not convinced about the winery idea. On the other hand, I can definately see a microbrewery in my future!

  • http://cheatinghusbands.wordpress.com cheatinghusbands

    Take advantage of the wine glut now because news is pouring out that the glut of wine is about to be over.
    http://www.thewineclubdirectory.com

blog comments powered by Disqus