Difficult trading conditions have plagued the Wine Production industry over the past five years.
Volatile demand from key export markets, a soaring Australian dollar for much of the period and rising competition from low-cost overseas wine producers have all hurt wine exports, according to IBISWorld’s updated report on the Wine Production in Australia. In the domestic market, producers have been forced to contend with changing consumer preferences and have lost bargaining power to retailers.

On the heels of a study by Macquarie University’s accounting and sustainability expert professor Roger Burritt, Australia’s winemakers are wondering what they can do to conserve water in the midst of predictions about a dry future. According to a story on Australian eco website Sustainability Matters, there’s a difference of opinion about the solutions. “There is clear gap between the wine industry’s perception of the importance of water efficiency and wastewater production issues, and what the actual statistics reveal,” the article said.

The Langhorne Creek Wine Show Luncheon is held on Friday May 1st in the Grand Marquee, overlooking the picturesque gum trees and vineyards at The Winehouse in Langhorne Creek. This ticketed event has established itself as the region’s premier event, attended by winemakers, industry members, wine enthusiasts, invited media and sponsors. Joining previous judges, wine writer Nick Ryan and Iain Riggs of Brokenwood, will be Margot Muir, manager of Edinburgh Cellars and judge for the last 3 years at the Royal Adelaide Wine Show.

A campaign to get Australians involved in the Federal Government’s reforms to the tax system has been launched by the Distilled Spirits Industry Council of Australia (DSICA). The Henry Tax Review called for a more open, understandable and responsive tax system, but the DSICA has said that the current system is anything but, saying, “there are over sixteen different tax rates across two tax systems, depending on the type of drink, the size of the container and how much alcohol is in it.”

A new scheme for authorizations of vine plantations has been published by the European Commission, which allows for a yearly limit in expansion of the EU’s wine areas. The new rules are in agreement with the reforms in the Common Agricultural Policy in 2013, and were also approved by the European Parliament and the member states. The publication confirms that the member states should, at a national level, manage a system of free, non-transferable planting authorizations.

Visitors to Marlborough for the region’s biggest party spent more than $1.3 million and contributed almost $800,000 to the region’s gross domestic product. The first economic impact report for this year’s Marlborough Wine & Food Festival, held in February, was released on Friday and shows the economic impact the event has on the region. More than 7800 people attended the event this year, including 230 organisers, 620 staff and 6970 attendees.

Near parity with the Australian dollar has presented a speed bump for Hawke’s Bay wineries trying to gain traction in the Aussie market. The Kiwi dollar jumped half a cent against the Australian dollar this week, moving above A99c and sparking renewed speculation of parity. The strength of the dollar is putting a strain on exports to Australia for some industries – among them, New Zealand winegrowers. Hawke’s Bay Winegrowers Association chairman Michael Henley said the dollar was a hindrance to breaking further into the Australian market for local wineries.

Peter Gago, Penfolds chief winemaker, Tyson Stelzer, wine journalist, and Grant Dickson, co-owner of fermentAsian restaurant and formerly the wholesale manager for Rockford Wines, have been inducted into the Barons of Barossa. The announcement was made at The Barossa Grand Cellar Dinner at Chateau Tanunda on Thursday night, April 16, and Stephen Henschke, Grand Master of the Barons of Barossa said that three men were well deserving of the recognition.

Treasury Wine Estates stock price hit a 52-week high this week peaking at AUD$5.89 per share before retreating and closing at $5.89. The stock’s one year return is up 57.66%. It is good news for the wine company as it was less than a year ago when it was fending for a possible takeover from capital private equity firm KKR and Rhone Capital. The company made two different bids last year, which TWE rejected.

Early results released from a University of Adelaide-led research project have revealed overseas wine trade and consumers hold very positive feelings about Australians and Australian wine. When trade and consumer focus groups in the United States, United Kingdom, China, Korea, Indonesia, Vietnam and India were asked what they think about Australians and Australian wine they responded with descriptions of ‘authentic’, ‘exciting’, ‘sincere’, ‘strong’ and ‘reliable’.