The Australian and UK wine markets remained healthy in the first quarter, with supply in line with demand
The 2008 grape harvest is complete in Australia and predicted to be 1.7 million tons vs. 1.5 million tons last year. The cost of grapes is up significantly due to the drought conditions, which forced growers to buy much more water than usual. Grape volumes are also high. High costs coupled with high volumes lend itself to a unique situation in Australia. As a result, Rob said there will not be an abundance of bulk wine this year.
Wine & Spirits Daily