5 Apr 2011

Slight lift in wine industry confidence - survey

1:40 pm on 5 April 2011

The latest wine industry survey shows a slight improvement in confidence levels though many wineries still expect this year to be financially tough.

Most of the wineries studied say 2010 was more positive than they had anticipated. Nearly half believed trading conditions had actually improved.

The survey was carried out by the chartered accountancy firm, Markhams, whose spokesperson Sam Bassett says more than 40% of wineries believe that trading conditions will improve further over the next 12 months.

But he says only half believe they will be trading profitably as the industry continues to crapple with over-production, heavy discounting and bulk wine sales.

Longer term, Mr Bassett says, there is confidence within the wine industry that the majority will be trading profitably in five to 10 year's time and they are determined to do what they must to ensure long-term business survival.

He says wineries still see an oversupply of grapes as the biggest obstacle to remaining profitable.