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WINE INDUSTRY NEWS


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Headlines: week ending January 17, 2004


Fri, 16 Jan 2004

US: When $1,170 is too low a price for a wine
The question I'm asked the most is: Is such-and-such a wine worth what they're charging for it? Since I believe in economic models, and one of the easiest to understand is the relationship between supply and demand, I normally reply that if an expensive wine is selling, then it clearly was priced right.

Wine Notes: Call for defined print
Consumer groups are calling for more nutrition and ingredient information on alcoholic beverage labels. They point to inconsistent regulations between different kinds of alcohol, and the difficulty consumers have comparing them or even knowing what exactly they are drinking.

Cold Stabilization, Tartrate crystals and Wine
Some aspects of the wine community are strictly about appearance. Labels do not affect the flavor of a wine at all, yet they can often be a big part of the purchase decision. Large, sleek wineries might churn out mediocre wines, while small, back yard plots create the nectar of the gods. It is in this vein that the process of cold stabilization was born - a superficial process whose sole purpose is to make a wine "look" better.

Study Finds Red Wine Destroys Bacteria That Cause Lung Infections, Heart Disease
Researchers from the University of Illinois at Chicago report that both red wine and resveratrol may be effective killers of a bacteria known to cause lung infections such as pneumonia and bronchitis and even contribute to heart disease. The study was published in the December 2003 issue of the medical journal Atherosclerosis.

US: $100,000 of wine, champagne lost
Marketview Liquor in Henrietta is assessing the damage after 92 feet of wall shelving collapsed and the store lost about $100,000 worth of inventory, said owner Mike Palmeri.


US: Altered-plant debate heats up
The debut of a series of high-profile newspaper ads this week has jump-started a controversial campaign to make Mendocino County the first in the nation to ban genetically engineered crops.

Lion signs UK wine alliance
Lion Nathan has entered a strategic joint venture with Bibendum Wine, a United Kingdom multi channel distributor. Bibendum will handle the marketing and distribution of Lion's Australian wine portfolio in Great Britain and Ireland.

AUS: Wine production to increase 28%
Australian wine production is expected to increase by 28% in 2003/04, to reach 1.81 million tonnes, as vineyards recover from a drought during the last vintage, according to The Australian Bureau of Agricultural and Resource Economics (ABARE).

AUS: Southcorp tries to allay market fears
Shares in Southcorp continued their fragile recovery from 13-year lows yesterday as the battling wine producer sought to allay market fears over its exposure to the climbing dollar.

U.S.-European tiff over wine terms enters 21st year
While we were all popping the cork on New Year's Eve, a dubious milestone was quietly passing: The United States and Europe wrapped up their 20th year of failed trade talks on wine. Bilateral negotiations began in 1983, under the Reagan administration.

SA: Wine industry presssed to lower costs
The most pressing priority facing the South African wine industry this year was to find ways of making the supply chain more cost-effective, in the view of Distell's corporate affairs director André Steyn.


Thu, 15 Jan 2004

Wine's Health Benefits Mimicked in a Pill
Italian scientists are working on a pill that replicates all the health benefits of drinking a glass of red wine.

30 Second Wine Advisor - Meet Jancis Robinson
The British winescribe Jancis Robinson - Master of Wine and Officer of the Order of the British Empire (OBE) - is one of the world's most prolific wine writers, making the easily verifiable claim that she has written "millions of words about wine" (and probably uttered nearly that many more on radio, television and in public appearances).


US: Wine auction sets $1.3M goal
Classic Wines Auction is celebrating its 20th anniversary with a goal of raising $1.3 million for Metropolitan Family Service, the Christie School and Ronald McDonald House Charities of Oregon and Southwest Washington.

SA: Wine industry prioritises costs
The most pressing priority facing the South African wine industry this year was to find ways of making the supply chain more cost-effective, Distell's Andre Steyn is quoted as saying by wine.


SA: Wacky Wine Laws
The world of wine is a fascinating, albeit a strange, one especially if you read through some of the historical pieces of legislation in which our predecessors sought to sanction.


AUS: South Australian Premier Mike Rann Opens New NuKorc Manufacturing Plant
South Australia's position as the nations premiere wine State was further consolidated today with the opening of a new plant designed and constructed to manufacture NuKorc synthetic wine closures.


Wed, 14 Jan 2004

AUS: Foster's revamp management, Beringer Blass wine arm
Global beverages firm Foster's Group Ltd has revamped senior management of its Beringer Blass Wine Estates (BBWE) business to boost the group's wine operations.

AUS: Foster's US Wines Sales Flat
Australia's Foster's Group Ltd. (FGL.AU) posted flat sales growth from its lower-priced wine brands in the U.S. in the last two months of 2003, the Australian Financial Review reports Wednesday, citing wine unit chief Walt Klenz.

AUS: Southcorp hits 14-year low
The surging Australian dollar is causing major headaches for investors in troubled Southcorp, sending the stock to a 14-year low this week. Shares in the winemaker fell as low as $2.56 yesterday, a level not seen since 1990, and ended trading at $2.58, down 2c on the day.

AUS: Anxious wait for SA grape growers
South Australian wine grape growers are anxiously waiting the release of contract prices for this vintage. The Wine Industry Association says there's an oversupply of up to 70 per cent of some red grape varieties in cool climate regions, and expects prices to drop when they're announced next week.


Who gets wine list? The man
If you were a waiter serving a couple at an upscale restaurant, to whom would you hand the wine list? Most times, the answer is the man. Even when a woman requests the wine list and orders the bottle, a male sitting at the table will be offered the first taste, wine-industry experts say.


SA: Brampton Takes to the skies in Screw Cap
Brampton Sauvignon Blanc 2003 has been included on South African Airways' 2004 wine list for business and first class on board all their flights. The wine was placed first out of 91 Sauvignon Blancs by the selection panel.


Tue, 13 Jan 2004

Wine on the Atkins Diet
Lots of people are starting the Atkins diet as part of a New Year resolution. I lost 20 pounds in 2003 on Atkins, reached my ideal weight and have easily held it since then. My boyfriend lost 65 pounds and is feeling incredible. We are so happy with our new menus and eating that there's no chance of us going back to the sugar/processed food diet we were raised on.

Forget cheap wine, expect variety
It's well known in the world of wine that times are tough in California. The problem is the result of over-production resulting in too many grapes producing too much wine for fewer people buying, because of an economic downturn. The result is a 10- to 15-per-cent oversupply of wine.

True Ducru
Buying wine is not unlike buying stock: It often pays to defy the conventional wisdom and take a contrarian view. This observation was bought home to me at a recent dinner to taste several vintages of Château Ducru-Beaucaillou, one of the great wines of Bordeaux.


AUS: Wine export growth slows
New figures show the difficulties the wine industry is having shifting wine into export markets. The Australian Wine and Brandy Corporation says both the volume and value of wine export growth has dropped.

AUS: WA niche 'safe' as wine exports dive
WA wine producers have shrugged off sharply weaker export figures in the lead-up to Christmas, claiming demand for their product has continued to grow in the face of tightening international markets.

Asians more discerning about wine
DOM Perignon oenologue Benoit Gouez sees a growing interest in wine among Asians. "A few years ago, people were buying names. Today, the focus is on taste. They are beginning to understand the culture behind the particular wine, not just what its brand and reputation say."

US: Leaders changing in wine industry
The recent death of Manteca winemaker Tony Indelicato is another reminder of the generational shift under way in the California wine industry. Many of the founders of the modern American wine industry are dead -- people like Julio Gallo, Andre Tchelistcheff, Maynard Amerine and the original Franzia brothers


SA: 2004 Grape Harvest Same Size as 2003
The 2004 wine grape harvest is estimated at 1 239 095 tons according to the industry's estimate of 28 November 2003. This is almost equal to the 2003 grape harvest. It is expected that the 2004 wine harvest, including juice and concentrate for non-alcoholic purposes, rebate and distilling wine, will amount to 956,2 million litres at an average recovery of 772 litres per ton of grapes.


Mon, 12 Jan 2004

Wine Helps Prevent Strokes!
The New England Journal of Medicine reported in their recent Volume 341, Number 21 that drinking a glass of wine from once a day to once a week can reduce the risk of having a stroke.


The 'vintage of the century' comes to the CIA
In the only public event of its kind in the United States, The Culinary Institute of America will host 70 Bordeaux vintners at its Greystone campus on Jan. 28 for a dinner and tasting of their legendary 2000 and newly-released 2001 vintages.

Bottles speak volumes about wine inside
In the game of winemanship, where a peek at the label is worth a thousand sips, tasters invariably give the bottle itself a once-over before sipping and venturing a guess as to the identity of what's inside.


AUS: ACT wants to be grape pest free
The ACT has joined a program to have the region declared free of an aphid like insect which attacks grape vines. Phylloxera are specific to grape vines. New South Wales and South Australia have been declared free of the insect, allowing the two states to trade in grapes and wine products more freely.

US: Hardy puts kick into US wine giant
Constellation Brands, the world's largest wine group, has forecast it will meet 2004 earnings per share growth targets of more than 15 per cent after including the wine sales of Adelaide-based BRL Hardy.

AUS: Wine exports slump 27 per cent
Australian wine exports slumped 27 per cent in November, the Australian Bureau of Statistics said. In one of the biggest single month falls recorded for the sector, exports dropped to $155.2 million from $213.1 million.

US: Dry spell looms for wine imports
A decade-long surge in U.S. wine imports may come to an end this year because of the dollar's decline and a glut of California wine, crimping sales at vineyards from Australia to the Andes Mountains.

Argentinian wine investment grows
The Argentinian wine industry is expected to grow by 30% this year due to a resurgence of small and medium-sized wineries, and increasing investment in the wine packaging industries.

Sassicaia takes action against fakes
Legendary Tuscan cabernet Sassicaia is to be protected with new security measures as wine fakes still trouble the market. Sassicaia's bottles have been redesigned with the estate name, Tenuta San Guido, now embossed on the glass. This comes after 12 people were arrested over the Christmas period for producing 20,000 forged bottles of the super Tuscan wine.


Sun, 11 Jan 2004

US: Red wine could save your life say scientists
Wine kills potentially fatal bacteria, scientists have discovered. Findings from a team at the University of Illinois, revealed in New Scientist magazine, conclude that red wine acts as an antibiotic in the body.


AUS: Dollar swallows wine export profits
Australia's soaring dollar claimed another scalp yesterday with statistics showing wine exports plunged by 27 per cent in November. Figures from the Australian Bureau of Statistics showed the value of the nation's wine exports dropped by one of the biggest month-to-month margins from October to November last year.

AUS: Britain sours the hopes of wine exporters
The Australian wine export juggernaut is grinding to a halt with sales slowing and the nation's biggest volume market in Britain undergoing a worrying decline. The industry which has been widely lauded for its export success in the past decade, achieved only a modest 6.1 per cent export growth in 2003.

CANADA: Wine flowing despite dollar
One of B.C.'s biggest wineries says it continues to increase exports to the U.S., despite a falling U.S. dollar and a surplus of California wine -- both major hurdles to many wine-exporting countries with an eye on the U.S. market.

US: New focus for wine exporters
Wine exports to the U.S. increased by sixty per cent last year, forcing at least one global wine company to change direction. Many consumers are buying wine for the first time, creating stronger demand at the cheaper end of the market. Over the past three months, Beringer Blass has been cancelling contracts in premium wine regions including South Australia's Coonawarra.


US: Inexpensive Grapes Add Up to Value Wine That Holds Its Own
In creating his hot-selling $2 per bottle wine, Fred Franzia uses grapes that other winemakers won't, but comes up with a wine known as "Two Buck Chuck" that consumers say can hold its own on taste.
   
   

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