Wineries go under down under

Last year saw many New World wineries pushing large volumes of value wine to their export markets. Good news for the wine consumer but a headache for the winery's with many now going into receivership.

In addition to the global financial crisis which saw severe margin pressures, the oversupply of 2008 and 2009 Sauvignon Blanc saw wineries reducing prices in order to deplete stock.

This combination saw many companies suffering. This year saw the loss of Awatere Estates, Cape Campbell wines and Otuwhero. Several Hawkes Bay winery have teetered on the brink or in deed fallen over.

Some Australian vintners now believe that they should concentrate on the premium wines and not cater for the £5 quaffers.

And now the news that California's Cosentino Winery in the Napa Valley has ceased trading after failing to secure extra finance to cover its debts. The company lost its licence to buy wine grapes following claims it owes money to growers.