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Wine industry faces challenges
8 Aug 2008
The strength of the Australian dollar, a rise in UK import taxes, oversupply and the drought have hit wine producers hard. Constellation Wines, formerly BRL Hardy''s, have announced it will sell three production plants and sack 350 workers as it moves to focus on higher margin wines. The Australian managing director said Constellation could have paid too much for Hardy''s and predicted challenging market conditions for wine for the foreseeable future. Constellation (US) bought Hardy''s in 2003 for $1.9 billion. In April the company announced $600 million worth of write-downs.
The Australian Financial Review, 08/08/2008
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