The week that was

August 19th 2011

French producers started to return to their estates this week after their annual August holidays. I was on the news desk at Decanter.com and here’s the highlights of this week’s news.

It was a busier week than anticipated with the harvest beginning unusually early in Bordeaux. Sauternes star Chateau d’Yquem and rose producer Chateau de Sours started to pick the first grapes on Wednesday.

On Friday. Champagne producers in a number of villages were also permitted to start the harvest. The only harvest that has ever been earlier was the sweltering 2003 vintage. Grape growers and Champagne houses came to a compromise to allow 12,500kg to be harvested per hectare this year – more than 20% up on 2010, in response to growing demand

Heading to the southern hemisphere, New Zealand was covered in snow. The white stuff even fell in Auckland for the first time since 1939. Unhappily for one winery, it wasn’t just the weather that was gloomy. Gisborne winery Amor Bendall has gone into liquidation. The company has faltered amid the oversupply situation, the strength of the New Zealand dollar, and tough competition.  The question is, who’s the next victim?

Over the Tasman, Australia is also struggling with its oversupply problems, and change is not happening fast enough, according to its generic body, Wine Australia. Its chief executive has been brutally honest, admiting many players are still in denial that the problem is long-term and requires major change. The new realities reshaping the industry include depressed trading conditions in its two main export markets: the US and the UK; the continued strength of the Australian dollar, higher production costs and tougher competition in all markets. Bulk wine sales and ‘opportunistic brand trading’ have also eroded margins, said Wine Australia’s Andrew Cheesman.

Posted in - Australia & Blog Posts & Bordeaux & Cabernet Sauvignon & Champagne & New Zealand & Sauternes & wine on August 19th 2011 0 Comments

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