An End to the Cheap and Cheerful Top Drop

08 Mar 2008| The Australian Financial Review| Caitlin O'Toole and Emma Connors

Wine Lovers must prepare themselves for a premium price squeeze, report Caitlin O'Toole and Emma Connors.

It's bad news for wine lovers; those remarkably good-drinking cleanskins have disappeared and now premium wine prices are set to rise . . . Phil Hude, ownder of Melbourne's Armadale Cellars, says there are just too many players in the industry and the competition means Australians enjoy some of the est value wine in the world. "When you look at the world market, $50 is not a lot of money," Hude says. "we are more than spoiled here in Australia". He predicts consumers will be willing to pay more for iconic brands such as Giaconda, Mount Mary and Grange. "The stellar wineries in this country, like Giaconda, won't need to put their prices down, just like Louis Vuitoon handbags and Rolls Royce won't ever go on sale." And it seems demand is holding up. A recent Grange dinner at Armadale Cellars for 20 people resulted in the sale of $20,000 of shiraz, at between $50 and $250 a bottle. "It's cyclical in nature," Hude says. "We're seeing a definite swing towards reisling. Cabernet is not as popular but will come back. Pinot and Sav Blanc are the darlings of the minute, due to the complexity of Pinot and the simplicity of Sauv Blanc." . . .