Taking Advantage of the Wine Glut
Taking Advantage of the Wine Glut
Apr 30, 2010 6
There is a glut of wine all over the world—an oversupply so significant that it's compelled Australian winemakers to plow up their vineyards, forced French producers to turn wines into ethanol and brought wealthy Napa vintners if not to their knees then to their bankers in search of refinance. The reasons are various—new vineyard plantings by ambitious producers, increased productivity at a time of plummeting demand, winemakers who have overleveraged their brands. The bulk wine market—which encompasses everything from wine in the barrel to finished wines in unlabeled bottles, aka "shiners"—may absorb some of this excess but with prices as low as $1 a gallon, it's not going to help winemakers raise very much money, let alone make them rich. Except in the case of Cameron Hughes
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