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Beijing Targets Australian Wines

January 14, 2010 in Australia, China by BurgundyStreet

It’s hard to pass up a good sip of wine, and China knows what that means.  Australia’s largest trading partner wants a taste of its wine industry.  They plan on making a ton of investments across the $26 Billion sector, like owning local wineries, equity interests in wine and beverage groups.  All owned by the Chinese government.

Interesting thing about that:  the Chinese government are really acting like capitalists.  Australian wine sales have grown from $1.5M to about $94M last year.  It’s growing at a rate of over 50% per year, and growth is continued to remain like this again this year too.  The Chinese have seen a good investment, and they want in.

Constellation Terminates 300 Contracts

January 5, 2010 in Australia by BurgundyStreet

the-terminator.jpgConstellation Wines Australia, just terminated the contracts of about 300 growers in the Murray Valley in Southern Australia.  This is not news to the growers who were told by CEO Rob Sands back in late 2008 that the 2012 vintage would be their last.

Constellation had warned growers to expect the company to cut grape-intake by at least one-third, in a move to combat the recession.  The rise of Constellation hasn’t been by accident.  This is exactly the types of moves an efficient organisation makes in order to prepare itself for another ascent.  Consumers are just now dipping their toes back into the $20-$50 a bottle price category, and right back to Constellation’s sweet spot.  Regardless, this is devastating news to many in the wine business down under that depend on Constellation cash.

Constellation has major news tomorrow am before the market opens, and we plan on covering that before the New York bell rings.

Jay Miller Will No Longer Review Australian Wines

January 3, 2010 in Australia, United States by BurgundyStreet

the-2d2d20kangaroo-2d2d20hop-2d2d2c-2d2d20australia-2d2dsmall.jpgBig J made a hell of an announcement on the e-Bob forum the other day, while taking a little time to verbally bitch slap one of eRobertParker’s forum members.  The full transcript is below with a quick link to the actual site.

Post:

I’ll tell you what I think is sad. When Jay gets what I am saying and other people don’t.  It can’t be easy for him to look at the poll and its results. But hopefully he takes it to heart.  I think it’s good that Jay appears to recognize he has a problem as a professional wine reviewer and that he is taking steps to remedy that problem. Certainly more on-the-ground exposure and hard work, in Spain and elsewhere, will be helpful to him in repairing his professional reputation. – Steve Eisenhauer

Jay Miller responded:

Steve, the two rules formulated in April will ultimately be what counts. The first is that all expenses incurred on travel to wine regions will be covered by The Wine Advocate and/or myself. The second is that I will associate with importers, winery personnel, etc only in the context of a formal wine tasting. Those rules have been followed explicitly since April 2009.

The quality and integrity of my work has never been in question with the one person whose opinion matters. I have visited and will continue to visit all the regions on which I report. My tastings of Argentina, Chile, Oregon and Washington wines are primarily done in those regions. Australia (which I will no longer be covering) and Spain are large enough that it is impossible to do the bulk of the tastings there. Now, however, I will be making 2 two week trips to Spain annually to cover particular regions in depth starting with Rioja, likely in April. After having tasted over 1000 times with Bob Parker sinice 1985, I think his confidence in my palate is based on direct observation and well-founded. – MrBigJ

SOURCE

Aussie Wines Get Slammed By Dust Storm

September 24, 2009 in Australia by BurgundyStreet

Sydney_682_894666aSept. 23 (Bloomberg) — An orange blanket of dust blown in from Australia’s Outback engulfed Sydney today, shrouding the Opera House with choking powder, snarling traffic and disrupting flights before swirling up Australia’s eastern seaboard.

“It’s like a nuclear winter morning,” tourist Peter Wilson, 53, said at Circular Quay in central Sydney as fog horns echoed across the harbor. “It is so eerie.”

The dust cloud, more than 500 kilometers (310 miles) wide and 1,000 kilometers long, was the largest to hit Sydney since the 1940s and was driven from the drought-stricken interior by gale-force winds, the Bureau of Meteorology said. The city’s skies returned to their usual blue by early afternoon as the storm swept through Brisbane, almost 1,000 kilometers north.

The Sydney Harbour Bridge was hidden by a thick haze as the early morning sun struggled to pierce the shroud of dust. Train commuters, some wearing masks or clutching handkerchiefs to avoid breathing in the particles, stood on platforms snapping photographs of the spectacle on their mobile phones.

The New South Wales state government said air quality in parts of the city was “hazardous” and advised schools to keep pupils indoors. Sports lessons were canceled for the day.

‘Incredible Event’

Strong winds caused by a low pressure system whipped up top-soil and dust parched by years of drought to cause this “pretty incredible event,” said bureau spokesman Rob Webb, adding the cloud was visible from space.

Australia is the driest inhabited continent on earth and the country’s inhabitants are accustomed to extreme weather. Record temperatures and gales earlier this year drove firestorms in the southeastern state of Victoria that left 173 people dead.

The cloying dust left many residents of Australia’s most populous city tight-chested with a metallic aftertaste in their mouths as they made their way to work through the haze.

“I haven’t seen dust storms like this since I was in China a few years ago,” said solicitor Jim Harrowell, 55, as he stood in Sydney’s financial district, where office windows were clogged with dust. “We’re lucky it’s not raining, otherwise there would be little red spots all over us.”

Yachts on the harbor, usually gleaming white, had a dull yellowy sheen. Drivers shuffled slowly over the Sydney Harbour Bridge, their windscreens smeared and filthy.

Flights Diverted

The storm caused “significant disruption” at Sydney Airport, with a total of 18 international flights diverted to Brisbane or Melbourne and six international flights canceled, the airport said in a statement. Flights overseas faced delays of as much as six hours, while domestic arrivals and departures had delays of up to three hours.

Qantas Airways Ltd., Australia’s largest airline, said its Sydney passengers experienced average delays of two hours and that it expected to clear the backlog by the end of the day.

The storm swept through Broken Hill in southwest of New South Wales yesterday afternoon. “It turned to night for a short time,” local police Inspector Grant Lister said by telephone. “What you got in Sydney was nothing.”

In the Hunter Valley wine-growing region north of Sydney, a fine dust settled on the grapes and vines today.

“When I woke up this morning it was something from the movies,” said Andrew Thomas of Thomas Wines. “It was glowing red, just amazing.”

The storm was Australia’s largest since October 2003 when about 16 megatons of dust was swept out to sea off the state’s southern coast, said Ross Mitchell, a scientist at the Commonwealth Scientific and Industrial Research Organization.

Asthma Sufferers

The New South Wales Ambulance Service said it experienced an increase in calls from asthma sufferers and some were taken to hospital.

Oakdale, in the city’s southwest, recorded a level of 1,719 on the Department of Environment’s air quality index. A reading of 200 and above is considered hazardous and people with heart or lung disease, the elderly and children were advised to avoid exercising outdoors.

The state Fire Brigade experienced a 10-fold increase on its usual call rate as the dust tripped automatic fire alarms and smoke detectors, spokesman Graham Kingsland said.

To contact the reporter on this story: Nichola Saminather

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Betts & Scholl Winery Sells For $1.1M

September 22, 2009 in Australia, United States by BurgundyStreet

080603_artwine2Mitch Frank
Posted: September 22, 2009

Betts & Scholl, the boutique winery founded by master sommelier Richard Betts and art collector Dennis Scholl, has been sold to spirits company Castle Brands for $1.1 million, plus 7.14 million shares of the corporation. As part of the deal, Betts and Scholl will join the company, with Betts heading up Castle Brands’ new wine division as vice president.

A few years ago, Betts was best known as wine director of Montagna, the Wine Spectator Grand Award-winning restaurant at the Little Nell in Aspen, Colo. Their project may be the only winery founded on a mushroom-picking excursion. Scholl, a Miami-based investor, was a frequent diner and friend. “We became friends and drank wine together,” Betts told Wine Spectator in 2006. “One afternoon when we were out hunting mushrooms, I was describing how I really wanted to make wine. I wasn’t even pitching him the idea, but he said, ‘I want to do it.’”

They began looking for old-vine Grenache vineyards in Australia and partnered with local winemaker Christian Canute, who made the first wines in 2001 with Betts’ input at his small winery, Rusden. The wines quickly showed promise, with two 2003 Grenaches from Barossa Valley scoring 93 and 90 points. They later added an Australian Riesling, and partnered with winemaker Randy Lewis in California to produce a Syrah and with Michel Chapoutier in the Rhône to produce a Hermitage.

But they found the logistical needs of growth a bit tiring. “Dennis and I have been unable to keep up with the enthusiasm and demand,” said Betts. Scholl points out that while their “virtual winery” worked well when they were small, at 5,000 cases a year and growing they needed help.

Castle is a small spirits company best known for Gosling’s Rum, Jefferson Bourbon and Boru Vodka. The company wanted to add a wine division focusing on small wineries.

Scholl will join the board of directors. As vice president and head of the wine division, Betts will look for new wineries to add to the import and marketing portfolio. He says he is already in talks with a few winery owners but could not disclose names yet. They are hoping to start in France, Italy, California and Washington state. “The idea is to find producers who want to share their special part of the world,” he said.

SOURCE

Aussie Wine Prices Surge At Auction

September 21, 2009 in Australia, United Kingdom by BurgundyStreet

060723-3Prices up to ten times those predicted were paid for early vintages of one of Australia’s greatest labels, St Henri, in a major online auction of Penfolds wines yesterday.

In a sale that grossed more than AUD$1.5m for 2,200 lots, St Henri prices pushed Australia’s greatest label, Penfolds Grange, into the backgroud.

A bottle of the first commercial release of St Henri, the 1957 vintage, sold for AUS$8110 against an estimate of $750-$1000.

An experimental 1955 St Henri, estimated to bring $250-$300, sold for $5750 and a 1959 sold for $3706 against an estimate of $750-$1000.

‘It was an astonishing sale. In 30 years I’ve never seen prices like it’, auctioneer Stewart Langton, of Langton’s, said.

Prices for Grange were well down on the record prices of several years ago. A bottle of the first Grange, the experimental 1951 vintage, sold for $43,700 compared with the record price of $54,000 and a set of 1951-1990 Grange brought $138,000 compared with the record $220,000 set four years ago.

Langton said buyers had been deterred by the high Grange prices of several years ago but were returning to the market as vendors.

Other above-estimate sales included: 1958 Bin 47 dry red – $6095 (estimate $500-$1000), and 1954 Bin 158 Mataro – $4104 (estimate $200-$300).

The results in full

$138,000 1951-1990 PENFOLDS Bin 95 Grange Shiraz (Collection)
$43,700 1951 PENFOLDS Bin 1 Grange “Hermitage” (Bottle)
$23,000 1979-1994 PENFOLDS Bin 95 Grange (Set of 16 magnums)
$18,975 1967-2004 PENFOLDS Bin 95 Grange (Set 38 bottles)
$12,100 1956 PENFOLDS Bin 14 Grange “Hermitage” (Bottle)
$8,110 1957 PENFOLDS St. Henri “ Claret” (Bottle)
$6, 095 1958 PENFOLDS Bin 47 Special Dry Red (Bottle)
$5,750 1955 PENFOLDS St. Henri “Claret” (Bottle)
$4,140 1954 PENFOLDS Bin 158 Mataro (Bottle)
$3,911 1955 PENFOLDS Bin 95 Grange Shiraz (Bottle)
$3,796 1971 PENFOLDS St. Henri Shiraz (Bottle)
$3,722 1962 PENFOLDS Bin 60A Cabernet-Shiraz (Bottle)
$3,706 1959 PENFOLDS St. Henri Shiraz (Bottle)