Things are pretty wobbly in the local wine industry right now.
Whether it’s grape growers protesting unsustainable fruit prices on the streets of Renmark (where even Shiraz is going for just $150/tonne – 1970s prices), the drop in export value (again), or the half-baked One Sector Plan that promises to encourage more committees instead of action.
Indeed, I’ve never seen so much wine available at discounted wholesale and from producers who I’d never expect to see a discounted wine. There are oodles of producers still trying to sell 2022 white wines as 2024 vintage grapes hit the crusher, with little relief on the horizon.
If ever there was a time to get out there and drink some wine, it’s now.
Of course, it’s not all troubled waters out there in local wine land either…
Look, for example, at the resilient demand for the premium/luxury end of the market (ie above $15AUD, which is hardly luxury, but we’re talking export numbers here, so take off 40% tax), even if there are anecdotal reports of people ‘trading down’. Exports indicate the premium uplift as well, as the Wine Australia graph below shows.
Cross over the ditch into NZ and Kiwi wine exports are also surging along at 23% growth, and when coupled with some lean vintages, prices are actually going up.
Locally, while inexpensive Shiraz & Cabernet blend might be a harder sell than usual right now, top-tier Pinot Noir isn’t, with prices also up 7% in value (I’ve dived into a few new Pinot releases this week, too, so its front of mind).
That won’t help McLaren Vale producers, however, with the region’s Shiraz exports down 28% YOY (according to Wine Australia figures). Vale Cabernet Sauvignon is faring even worse, with exports down a giant 42.2%. That’s tempered by a 2% lift for Grenache (you can view all the export numbers here), but given that Shiraz and Cabernet makes up 74% of grapevine plantings in the region, you can understand why there is some suffering.
I don’t want to pick on McLaren Vale, as that’s just one regional example. But it’s one GI hit notably hard by a drop in exports (although the Barossa isn’t too far behind), with the resultant rise in winery stock putting pressure on business viability.
McLaren Vale winemakers could do with your love (and so could Riverland grapegrowers).
As if that’s not enough, local craft brewers are struggling too. One of my favourite local breweries (Hawkers) went into voluntary administration last week, joining many brewers who’ve gone down recently. Thankfully, Hawkers will likely live on, but the brewing industry problems are spreading, not helped by the explosion in faux craft beer (and spirits) now dominating retail bricks and mortar liquor.
Ultimately. this weekend, you can do your bit – have a schooner of local indie craft beer, and follow it up with a great McLaren Vale Shiraz (like this one just as a starter) and do your country a favour.
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