Wine. Food. Reviews. Recipes. Lap it up.

Thursday, November 01, 2007

Weather, economics conspire to raise Aussie prices

An Australian grape glut and a favorable exchange rate have worked to the advantage of American wine lovers for the past few years, as a huge number of 90-point Aussie wines have been available for under $20. Factor in the economy of scale, and despite the fact that it has to be shipped halfway around the globe, wine from Down Under has remained an excellent value.

All that may be about to change. Recent harvests have been hampered by weather — droughts in some regions, floods in others — and the Australian dollar is edging closer to parity with the U.S. dollar. Foster's Group Ltd. says for every one-cent increase in the Australian/U.S. exchange rate, the company's pretax profit is reduced by about $4.5 million.

The Australian dollar currently stands at 90.79 cents, a 27-year high, and some currency analysts predict that it will reach 95 cents. Better to buy that Grange vertical sooner rather than later....
M. Zane Grey, 11:46 AM