Bad news for business, good news for drinkers

In Australia the recession, plus over-production, has led to an interesting situation for wine drinkers and producers.

A WINE glut has driven prices lower than bottled water as the industry faces an unprecedented meltdown and a fire-sale of unprofitable vineyards.

. . .

Major wine retailer Dan Murphy's is currently selling cleanskins for $1.99 a bottle - cheaper than some bottled water - due to the oversupply crisis that has led to some vineyard owners leaving grapes to wither on the vine.

"We've seen growers who didn't bother picking their grapes this year," said wine industry critic and judge Stuart Gregor.

"There is a huge oversupply and we have more grapes than we are selling, and prices are being pushed down."

There's more at the link.

I note, however, that no-one's talking about a Government bailout of the vineyards or producers. Instead, they're looking at reducing prices, reducing production, and sorting out the situation for themselves. Now, if only we could get the Obama administration to do the same thing with General Motors and Chrysler, and let the market sort it out . . .

Peter