Winemakers squash report
By Wine Atlas, Monday 7 November 2005 :: Wine - Australia :: #80 :: rss
THE Hunter Valley wine industry has sniffed, swished and spat out a report that says its wines are the most profitable in Australia.
Local experts say the industry is straining under intense competition from supermarkets and most of its wineries are financially threadbare.
The annual financial benchmarking survey for the wine industry, released by Deloitte last week, found the Hunter region kept the highest proportion of its revenue as gross earnings, at 23 per cent.
South Australia's Mt Lofty region was the least profitable, with just 8 per cent of its revenue as earnings.
Earnings in the Barossa Valley and the Fleurieu Peninsula, both in SA, were 16.5 and 15.9 per cent respectively.
Hunter locals say only a few large wineries are flourishing while their smaller competitors flail.
"A lot of the wineries, particularly boutiques, are really struggling in the Pokolbin area," Hunter-based wine consultant Peter Wright said.
"It's very difficult at present for the wine business. They are struggling because, where they've had a restaurant (customer) base or independent bottleshops, those places have been closed up.
"You've got cellar doors closing down all over the place and you're having aged vines ripped out because they can't sell the grapes for what the (insecticide) sprays cost to put on them."(...)
Continue reading: dailytelegraph.news.com.au
