Europe's wine woes getting worse
Too much of a good thing can be a problem. Just ask Europe's wine producers.
Wines from the "New World" have become such a consumer favorite in the United Kingdom that drastic measures are being taken.
As reported by The Times of London, "The unquenchable desire of Britons for New World wines has forced Brussels to order nearly a billion bottles of French and Italian wine to be turned into fuel and disinfectant. The European Commission will then spend US$3.03 billion digging up vineyards across the continent.
"The drastic measures to drain Europe’s swelling wine lake come as winemakers across the Continent face a seemingly unstoppable invasion of cheaper and more consistent wines from Australia, Chile, the US and South Africa. Wine critics say it is an inevitable result of French wine producers not adapting to demand."
(Read the full story here.)
Meanwhile, this report from New Zealand deals with the Australian wine glut that is forcing prices of Aussie wines down and affecting other markets:
A flood of cheap Australian wine and intense retail competition mean it is a great time to buy wine but not such a good time to be selling it. Some New Zealand winemakers say Australia's glut is dragging prices down in local and export markets.
"We are definitely feeling an impact from the wine glut – not only in New Zealand, but we are seeing quite a profound effect in the UK market," said Erica Crawford, general manager at Kim Crawford Wines. "Prices have just fallen through the bottom ... . We've noticed this in the last two quarters in the UK. It's so cheap from Australia other countries don't get a look in."
(Read that story here.)
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Posted by William M. Dowd at 7:02 AM