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Wine industry shake-out predicted for 2008
2 Jan 2008
Wine growers are facing tough conditions in 2008 as grapes are suddenly in short supply after years of glut. While grapes will fetch higher prices, smaller growers are expected to struggle with liquidity issues due higher input costs. Companies with established brands are expected to find it easier to increase prices to cover the higher costs than smaller companies whose labels are not well known. Robert Hill-Smith, managing director of Yalumba Wines in South Australia, said that there would be a Darwinian outcome in the industry but that he could not predict how deep the losses would be.
The Australian Financial Review, 2/1/2008
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