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Wine News

Constellation terminates 300 contracts

Australia's biggest buyer of wine grapes, Constellation Wines, has advised 300 growers in the Murray Valley that their contracts will be terminated after the 2012 vintage. Previously Constellation had given three years' notice to more than 200 growers in December 2008.

Growers in the region in South Australia have been facing plummeting wine grape prices, in some cases 50 per cent less for their grapes than in 2008. Constellation had warned growers at a forum in June to expect the company to cut grape-intake by at least one-third to combat the recession.