Sunday, July 5, 2009

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Wine prices driven lower than water | Todays News Highlights |
Wine prices driven lower than water

By Bronwen Gora

Sunday Mail (SA)

July 05, 2009 12:01am

A WINE glut has driven prices lower than bottled water as the industry faces an unprecedented meltdown and a fire-sale of unprofitable vineyards.

The price collapse and overplanting has forced Australia's biggest winemaker, Foster's, owner of prestigious labels such as Lindemans and Penfolds, to sell 31 vineyards across the country, including 16 in South Australia and nine in New South Wales.

Major wine retailer Dan Murphy's is currently selling cleanskins for $1.99 a bottle - cheaper than some bottled water - due to the oversupply crisis that has led to some vineyard owners leaving grapes to wither on the vine.

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