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Delhi Wine Club

Posted: Monday, December 14 2009. 10:50

Wine cheaper than Water in Woolworth’s

The grape glut in Australia has made wine cheaper than water and even Coke, with the supermarket giant Woolworths' large-format liquor chain Dan Murphy's selling clearskins  at  A$1.99 a bottle, in comparison to bottled water at A$2.25 according to media reports.

The 600mL Coke, equivalent to $3.84 for the size of a wine bottle of 750 mL costs almost twice as much as the clearskins, a term used in Australia for cheap, low-end unbranded wines.

The prices are reportedly record low in more than a decade and are possible due to the ongoing grape glut, a surging dollar and changing tastes. "In my 15 years in the wine industry I can't remember a time when drinkers enjoyed better value for money," Dan Murphy's merchandise head Steve Donohue said according to the report in  He feels you are paying less and getting just as good quality.

According to the rumours the wine was bought in the Riverina district for as little as 45c a liter. At an equivalent of around Rs. 18, this translated into the cost of grapes in the bottle, in Nashik which touched as high as Rs.40 a kg and now range from Rs.25-35 a kg.

Australia's wine industry has been facing a grape glut since 2007. And it is getting worse, with a new winery opening every two days. In the past the excess was exported, but the rising Australian dollar has made it harder to be competitive. Coupled with a rising competition from Chile, Argentina and South Africa, the export fell by 11% last year according to the figures released by Bureau of Statistics.


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