Treasurer puts cork back on wine-tax proposal

TAXING wine in the same way as beer would earn the government an extra $1.5 billion. At the same time, it would cut sales of cask wine 61 per cent, boost sales of beer, and cut overall alcohol consumption 9 per cent.

The plan, tested in economic modelling by the Allen Consulting Group, will be unveiled at a forum in Parliament House today designed to pressure Treasurer Wayne Swan in the lead-up to the October tax summit.

Allen Consulting has told the Alcohol Education & Rehabilitation Foundation that taxing wine on the basis of price, while beer is taxed per unit of alcohol means men can use cask wine to exceed health guidelines for "a little over a dollar" while women can drink to excess for 50¢.

''The existing wine tax arrangements allow individuals who are seeking to consume alcohol irresponsibly to do so cheaply,'' the Allen report says. ''Incongruently, the regime also applies tax more heavily to individuals looking to purchase quality wines for the purposes of responsible consumption.

''The consequence is that irresponsible drinkers contribute little to the taxation revenue necessary to address alcohol-related harm in the community, whilst responsible drinkers do.'' The change proposed by Allen would double the price of cask wine and lift the price of premium bottles 17 per cent. It would remove the rebates enjoyed by small wineries, which Allen says larger wineries rort, ''turbo charging'' the wine glut.
The Allen proposals are similar to those put forward by the Henry Tax Review. Mr Swan rejected the recommendation, saying his government would not change alcohol tax ''in the middle of a wine glut and where there is an industry restructure under way''. Alcohol Education & Rehabilitation Foundation chief executive Michael Thorn said the report showed Mr Swan's argument to be hollow.

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White Wine Types - What Goes Best With Certain Foods?

Pairing the perfect white wine types with a multicourse meal adds an elegant touch. Or relaxing with a cool glass of wine and a simple snack is an enjoyment for any occasion.

Wine Producing Regions
Many countries produce wine for local consumption and for export. The best known regions with the largest distributions worldwide are in France, California, Italy and Australia. Spain and New Zealand have suitable climates for growing white wine grapes and distribute their wines on a smaller scale. In Greece, wine production has been a way of life since early civilization and continues today.

Other European countries, for instance, Germany and Hungary produce regional varieties and export within Europe and overseas. South American countries, Argentina and Chile, for example, produce vast quantities of high quality wine. In France, the regions of Bordeaux, Burgundy and Alsace are known for their white wine types of Chardonnay, Chenin Blanc, Voignier and Sauvignon. The same varieties are grown in California in the Napa Valley and Sonoma Valleys and the Central Coast regions. Australia also produces these varieties as well as Semillon and Pinto Grig. Champagne is produced only in France, sparkling wine can be found in California, Italy and many other countries.

Germany produces the wine types Rieslings and Gewürztraminer. Hungarian wines include Chardonnays, Reislings and blended table wines. The wine regions of Spain produce excellent grapes suitable for custom blends and moderately priced table wines. The Italians have extensive knowledge of wine making that has evolved through families for generations. In Italy, the regions from Sicily to Tuscany and Tyrol harbor age-old plantings that produce quality Pinot Grigio grapes.

Sweet Varieties
There are many variations of sweetness or tartness even within a particular type. A wine that is made from only one grape (not blended) is designated as a varietal wine. Typically, the sweeter varietals will always include Reislings. Occasionally, Gewürztraminer and Chenin Blanc can be sweet. Blended wines may have a sweet tendency depending on the grapes that are used. Sweet wines can be enjoyed alone or with cheese or fruit.

Dry Varieties
Usually Chardonnay is considered a dry white wine, although, there are many variations depending on the regional climate. Pinot Gris (or Pinot Grigio), Chenin Blanc and some vintages of Voignier tend to appear dry on the palette. Chardonnays are recommended with fish or poultry.

Dessert and Aperitif Wines
Sherry is a favorite aperitif wine that is often found in Spain. Apertif wines can be semi-sweet or dry and are served sparingly. Champagnes or sparkling wines are often served as an aperitif. Dessert wines are by nature sweet and meant to be enjoyed by sipping from a small liquor or aperitif glass. Sauterne is a popular white dessert wine and Muscat also fits this category. Choosing the best white wine types for a particular occasion depends on personal taste. There are abundant varieties to try.

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Most Popular Red Wine Types for Your Rack

Wine is produced all over the world from single varietal grape selections to popular varietal blends to please almost every palate, from the novice to the seasoned wine taster. Red wine happens to be the most popular choice the world over.

Barolo and Barbaresco: Derived from the Nebbiolo grape, Barolo wines are typically deep red with a thick and complex flavor that is sometimes flowery, reminiscent of violets and roses. Other flavors are fruit, licorice or oak. Barolo should be enjoyed at 60F and can age for 5-10 years. Barbaresco is a red wine that is more elegant and aromatic, though still powerful. In a way, Barbaresco is the younger brother of Barolo. Both of these red wines are made in the Piedmont region of Italy and pair well with grilled meats.

Beaujolais Nouveau: A very young, light, fruity wine meant to be served chilled, around 55F, with dominant flavors of strawberry and raspberry along with a grapey appeal that is virtually free of tannins. It is grown from the Gamay grape in the Beaujolais region (part of Burgundy) of France. Beaujolais Nouveau is released annually on the third Thursday of November. In food pairing, it goes well with grilled or roasted meats both light and dark, a variety of pastas, salads and cheeses.

Cabernet Franc: Originally from the Bourdeaux and Loire Valley region, Cabernet Franc enjoys the growing climates of California, Washington State, Australia, Chile, Canada, and South Africa. It is a wonderfully fruity wine, having lower tannin levels and a more distinct flavor reminiscent of berry; mainly blueberry, raspberry and at times plum. Cabernet Franc is more subdued and softer than its cousin Cabernet Sauvignon and is sold as a single varietal. However, it is ideal for blending with its cousin Cabernet Sauvignon and Merlot. Cabernet Franc is best served at 59-64F and pairs well with Mediterranean Greek and Middle Eastern dishes as well as poultry and pasta.

Cabernet Sauvignon: Originally from Bordeaux, Cabernet Sauvignon has a tremendous presence in the California wineries where the grape favors the warmer climate, and enjoys the popularity as the most sought after red wine. Cabernets are medium-bodied to full-bodied and characterized by a high tannin content which provides structure and intrigue to the wine and supporting flavors reminiscent of a rich, ripe berry, tobacco and sometimes green pepper. Cabernet Sauvignon is an ideal wine for aging, with 5-10 years being optimal for peak maturation. The longer maturation process allows the wine's flavors to mellow, and makes the Cabernets ideal for blending with other grapes, primarily Merlot to add appealing fruit tones, without sacrificing character. Cabernet Sauvignon is best served at 59-64F, and pairs wonderfully with red meats, lamb, cheeses of strong flavor and dark chocolates.

Cotes du Rhone: Southeastern France's Rhone Valley produces some of that country's best bargain red wines offering good flavor, generally full-bodied with rich but smooth tanins, with plenty of food pairing options. Grenache, Syrah and Viognier are the primary varietals grown in the region. Red and rosé wines are made from Grenache Noir, Syrah, Cinsault, Carignane, Counoise and Mourvèdre grape varieties. With the exception of Northern wines using a majority of Syrah, product must contain a minimum of 40% Grenache to be blended into the Côtes du Rhône. Best served at 59-64F and pairs well with game and other rich meat dishes.

Malbec: Originating from Bordeaux France, Malbec is generally a grape used for blending. In the sun-drenched climate of Argentina, Malbec has found renewed appreciation and acclaim and has become Argentina's signature grape producing a medium to full-bodied red wine. Malbec wine is reminiscent of ripe fruit flavors of plums and blackberry jam. The tannins are typically a bit tight with an earthy, wood appeal making for a fairly rustic wine that is quickly making a new name for itself with red wine lovers. Malbec is best served at 59-64F and pairs well with tomato-based sauces, Italian fare, red meat, Mexican, Cajun, and Indian dishes.

Merlot: A soft, medium-bodied red wine with juicy fruit flavors reminiscent of plums, cherries, blueberries and blackberries mixed with black pepper tones. Tannin levels are fairly low. Merlot is a prime wine for consumers just getting into red wines. Merlot originated from the Bordeaux region of France and is often blended with other varietals, such as Cabernet Sauvignon and Cabernet Franc. Blending Merlot with these wines mellows and softens the Cabernets. Merlot wines are very versatile with food pairings and are best served at 55- 60F degrees and enjoyed with poultry, red meat, pork, pastas, and salads.

Pinot Noir: Pinot Noir is a lighter flavored and colored red wine with flavors reminiscent of plums, tomatoes, cherries and red berries and, depending on the varietal's growing conditions, an earthy or wood flavor. Pinot Noir is planted in California, Oregon, Germany, Italy, New Zealand, Australia, and other regions around the world. You are likely to pay a little more for Pinot Noir because it is produced in smaller quantities than most of the other popular red wine types. Pinot Noir is a versatile food wine best served at 55-60F, pairing well with spicy seasonings, creamy sauces, beef, ham, lamb, pork, poultry and fish.

Sangiovese: Italy's most commonly planted red grape varietal predominantly producing the popular wines Chianti and Chianti Classico, wines of medium- to full-body with a tannin structure range from medium-soft to firm, and a medium to high acidity content. Flavors associated with Sangiovese wines are reminiscent of cherry, plum, strawberry, cinnamon and vanilla with a finish that can range from elegant to bitter. Best served at 59-64F, Sangiovese varietal wine pairs well with chicken, red meat, fish, lamb, pork, pastas, stews or well-aged cheeses

Shiraz/Syrah: Australia and South Africa call it Shiraz. In France, it is known and grown as Syrah, but it happens to be the same grape varietal that produces a deep-purple color and bold, spicy, red, medium- to full-bodied wines with firm tannins with rich flavors reminiscent of black cherry, blackberry, plum, bell pepper, black pepper, clove, licorice, dark chocolate and smoked meat. Best served at 59-64F, Shiraz/Syrah pairs wonderfully with spicy Mexican, Cajun and barbeque dishes, grilled fare, beef stews, red meats, even pizza and meat lasagna.

Zinfandel: California's #2 most widely planted red wine grape. Originating in Croatia, not southern Italy as previously thought, where it is a kin to the Primitivo grape . DNA "fingerprinting" recently proved that both Zinfandel and Primitivo are clones of the same grape. California is the largest grower of Zinfandel and produces various styles, ranging from a blackberry and black pepper, to light and juicy-fruity, to rich, elegant, oaked red with medium to high tannin levels and higher alcohol content. "Zin" is frequently blended with other grapes. Best served at 59F, Zinfandel pairs well with grilled red or white meat, fish, lamb, gorgonzola cheese and dark chocolate. Lighter Zinfandels can also pair well with rich, creamy pastas, rotisserie chicken, duck, baked Italian dishes like lasagna, cannelloni and Cajun to Asian fare.

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Waltz Vineyards releases its first reserve wine, a Chardonnay

Waltz Vineyards has added an eighth wine to its lineup and its first reserve. Its new Chardonnay spent 10 months in French oak and gives the winery a sophisticated white that foodies will find appealing. It's going for $36/bottle.

The Manheim, Pa., winemaker also just released new vintages of its regular Chardonnay ($25/bottle) and its 2010 Sauvignon Blanc ($28/bottle). Both are delicious whites certainly worth trying if you stop by the winery for a tasting. The tasting notes call out the citrus and melon in the Sauvignon Blanc. What I liked was the dryness and crispness of the varietal that offer as much companionship alone on a summer day as it does on the dinner table. You'll likely also enjoy the fusion, a blend of Semillon, Chardonnay and Sauvignon Blanc. More Sauvignon Blanc is on the way, as the winery planted more vines in 2010 and again this year.
Merlot and Cabernet Sauvignon serve as the base right now for the four reds that it produces. Its Crow Woods Cabernet is available by bottle only, at $34/bottle.

Jeff Zwick, Waltz's vineyard manager, noted that Waltz continues to find its way into more regional restaurants, one good way for a new winery to get the word out. While it's adding a new wine or two a year, it's business plan seems a closer match to a winery such as Maryland's Black Ankle, where it might wind up landing on a dozen or so wines total, many of them dry. Compare that to any number of regional wineries that have gone a different route and lean more heavily on the semisweet, sweet and fruit wines. Many have wine lists that tops two dozen.

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Wine tourism most lucrative sector

Wine tourism was one of the fastest growing and most lucrative sectors of the global tourism market, Tourism Minister Marthinus van Schalkwyk said on Monday. “In South Africa, our wine industry plays an important role in terms of its contribution to specifically regional and rural economic growth and job creation,” he said at a stakeholder workshop at the Spier Estate outside Stellenbosch.

“In 2009 wine tourism contributed an estimated R4.3 billion to our country's tourism revenue, and we believe there is still great potential for growth in this regard.”Van Schalkwyk said increasing its revenue from tourism could help the South African wine industry offset international volatility caused by factors such as foreign currency and demand fluctuations.

Wine and gourmet tourism could also play a role in terms of South Africa's goal of increasing the geographic spread of tourism as it provided additional options for tourists. “Wine tourism is a vital product offering in South Africa's tourism product as it helps improve the country's competitiveness against destinations like Brazil, Australia, Kenya and Thailand,” he said. “We believe stakeholder inclusivity and alignment is fundamental to the adoption and implementation of a winning wine tourism strategy.”

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Assembly ships wine shipping toward governor

The Senate has joined the House of Delegates in passing a proposal that enables wineries to ship bottles directly to Maryland homes. All 45 senators who voted on the shipping bill gave it the green light.(Sen. J.B. Jennings is away at flight training and Sen. Ulysses Currie did not vote.)

Gov. Martin O'Malley has said he would sign the legislation. That's the only major step remaining, though procedural legislative votes remain. The legislation would take effect July 1, in time for late summer wine sipping.

After years of disputes about whether Maryland should join 37 other states and the District of Columbia in allowing wine shipping, the alcohol industry, consumers and lawmakers this year struck a compromise. The House passed the bill nearly unanimously on Saturday.

Wineries can pay a $200 annual fee to ship to Marylanders. Residents can receive up to 18 cases per year. Retailers, including those who feature "wine of the month" clubs, may not ship to Maryland homes. Only about a dozen states allow retailer shipping.

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Strictly no swallowing for wine judges

"Palate fatigue" is an occupational hazard for wine tasters after 40 or 50 glasses but there is no danger of them getting drunk on the job. The wine is not swallowed. To do so would impair judgment and severely restrict how many wines a taster can test.

Iain Riggs, chairman of judges at the Sydney Royal Wine Show, heads a team of 31 judges, including 15 associates (trainees), at the Showground this week. More than 2300 wines from around the country are under scrutiny for the show.

Mr Riggs said judges were restricted to 40-50 wines at a time in a bid to limit palate fatigue but that professional judges could go all day without losing their ability to detect the nuances in each wine. "They'll spend eight, nine hours doing 150 wines, but they will retaste quite a few so they will end up tasting over 200, 250."

Those making the selections wear white lab coats, clutch clipboards, and the choices before them are a row of partially filled glasses to be studied, tasted and scored on colour and clarity, aroma and bouquet, and palate.

Traditionally, judges come from the wine industry, although Mr Riggs said the background of tasters had changed in his 35 years in the business to include sommeliers, restaurateurs, retailers and members of the media, each bringing a different understanding and knowledge to the task.

"Wine makers are essential because they are trained [and] their job is to look at wine in a technical sense but sommeliers and the restaurateurs and wine media bring a stylistic sense to judging," he said.

Tasting is very subjective and it is impossible to set a standard by which the judges can be judged, but Mr Riggs said a good taster would be "on the ball in terms of matching golds and knows [that what] they're talking about contributes to the discussion".

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Huffington Uncorks a New Wine

Back in 2008 at the Personal Democracy Forum in New York City, Arianna Huffington was on a journalism panel entitled, “A New Media System? Or Old Wine in New Bottles?”

Huffington said that the bottles are definitely new, but it’s not entirely new wine. It’s a mixture. “There’s an awful amount of good that we want to keep from the old media: accuracy, fact checking, ferreting out the truth,” she said.

The main problem with old media is fake neutrality, she said. “They’ve given up the pursuit of the truth for the pursuit of fake neutrality, which means that they present every story and every issue as if it has two sides,” said Huffington. She said we’ve wasted years debating global warming this way. The two sides don’t deserve equal weight under the guise of reporters covering both sides of the issue. “The Earth is not flat,” Huffington said. “Evolution is a fact. Sorry Mike Huckabee—there is no other side to this issue.”

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Local duo taps into maple wine, spirits market

Bruce Olson and Steve Buchsbaum thought it would be a lot of work to start distilling their own maple brandy. But they didn't know it would be impossible.By its legal definition, brandy is made from fruit, Buchsbaum said. So, what do you call a spirit distilled from fermented maple syrup?

"It doesn't fit into any category," he said. They call their product Knotted Maple, and they're pretty sure it's one of a kind. Olson and Buchsbaum, who are longtime friends, recently became business partners when they decided to open a winery and distillery, called Tree Spirits, out of a former garage on Fairfield Street in Oakland.

They started selling their maple spirits and sweet sparkling maple wine just before Christmas. Within a couple of months, they'll be bottling applejack and dry sparkling wines for retail sale. Olson, who bought the old garage to use as storage space, has been experimenting with winemaking there for about a decade. He started with traditional wine made from grapes, but over the years got more creative and tried fermenting apple cider and sap from a maple tree in his backyard.

"Being his friend, I had to drink a little of that wine," Buchsbaum said. "I said to Bruce, 'You could sell that stuff.'"

A year ago, they applied for federal permits for a winery and a distillery and hoped to open within a few months. But obtaining a license turned out to be a long and tedious process, they said. Buchsbaum, who handled the paperwork, said he had to include information about their equipment, finances, products and distilling process.

"They want to know what you're going to make and how you're going to make it," Buchsbaum said.

To make room for the fermenting tanks and bottling equipment, Olson put an addition on the garage and, in the fall, they had their licenses in place to start production. Tree Spirits is one of six distilleries in the state, according to the U.S. Department of Treasury's Alcohol and Tobacco Tax and Trade Bureau. There are 26 licensed wineries.

Tree Spirits' maple products are made with syrup from Bacon Farm in Sidney. Cider from The Apple Farm in Fairfield is used in the wine and applejack. Since they started fermenting in the fall, they've been working to perfect their recipes.

"We did a lot of testing," Olson said with smirk.

Buchsbaum first had the idea to distill the fermented cider and syrup to make applejack, a popular spirit in the colonial era, and Knotted Maple, which they believe is brand new. They tried to keep the maple flavor subtle, so it wouldn't get sickeningly sweet after a few sips.

Olson said he's seen maple liqueurs, in which maple syrup is mixed with vodka, but has never come across anything quite like their spirit.

"We wanted to have a product that everybody else wasn't making," Buchsbaum said.

A 375-milliliter bottle of Knotted Maple costs $35.99. The bottles of wine are $18 apiece. Olson and Buchsbaum admit the products aren't cheap, but hope the fact that they're unique and locally made will drive sales.

The plan is to officially launch the products in the spring, when they'll put up a sign in front of the shop and schedule regular tastings. Now, they hold tastings by appointment.

While the business is getting started, the men -- both 56 years old -- plan to keep their day jobs. Olson is a ballroom dance instructor at Blue Wave Studio in Waterville, where he lives. Buchsbaum and his wife, who live in Belgrade, own Let's Talk Language School in Waterville. Both men said they wouldn't mind working full-time for Tree Spirits. "If it takes off, it will take up a lot of time," Olson said. "That's what we hope happens."

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Wine Sales to Benefit (Product) Red AIDS Fight

Red, the effort to fight AIDS in Africa, is teaming up with its first alcoholic beverage partner, which also happens to be its first marketer partner from Australia.Fifteen percent of the proceeds from the sales in North America of two Penfolds wines, Thomas Hyland and Koonunga Hill, will be donated to the Global Fund to Fight AIDS, Tuberculosis and Malaria, the company and the (Red) organization are to announce this week. (Red) donates the money it receives to the Global Fund.

The announcement is to be made at the Palm Springs International Film Festival in Palm Springs, Calif., of which Penfolds is a sponsor. The catalyst for the agreement is Francesca Schuler, chief marketing officer for the Americas at the Napa, Calif., office of Treasury Wine Estates. She formerly worked at Gap Inc., which has been a partner of (Red) for many years.

“I was at Gap a long time, where I saw the success of (Red) and its business model,” Ms. Schuler said in a phone interview on Tuesday, particularly of the organization’s “being a true partner with a brand.”
Penfolds “is looking to aggressively grow in the Americas,” Ms. Schuler said, and the partnership with (Product) Red is part of those plans.

“It doesn’t hurt Penfolds has a red cap,” she added, laughing. There have been eyebrows raised in the past when money is raised for causes by the sale of alcoholic beverages. Examples include complaints about donations tied to the sale of mixed drinks at bars.

“We haven’t had any concerns so far” along those lines, Ms. Schuler said. “People are excited about the partnership.”Susan Smith Ellis, chief executive at (Red) in New York, echoed Ms. Schuler. “Clearly, we all thought about that,” Ms. Ellis said, referring to the potential issues that may be raised by the organization’s ties with alcoholic beverages. “We’re not trying to sell this to anyone under age.”

The partnership with Penfolds could come in handy, she added, because (Red) has been considering a wine auction as a fund-raiser, inspired by an art auction that it held with Sotheby’s. The other marketers with which (Red) is teamed up, in addition to Gap, include American Express, in Britain; Apple; the Converse and Nike units of Nike Inc.; Emporio Armani; Hallmark, in the United States; and Starbucks.

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Beer And Wine

Soon, you could actually see a wine section in grocery stores like Reasors. There are talks about changing Oklahoma law..and some consumers say, it's about time. "It is a big problem for young women in Oklahoma. They can't take their babies in there and that's a big issue i'm sure with some of them" says one lady.

Parkhill liquor and wine store is one of the largest in the city. But the owner says it would be a mistake allowing grocery stores to sell high point beer and wine. It's going make wine and strong beer available to minors . It will drive the price of spirits up, because the basic retailer is going to have to make up that loss.

He says he might have to raise the price on bottles of tequila, vodka or rum. Parkhill says wine makes up 65-percent of his business and sharing the market, would hurt. still, other states are doing it already.
One lady from the grocery store "i'm not a big drinker, so I don't it's big deal. in other cities, like Detroit, you can walk in and there's a whole row of nothing but champagne liquor everything.

And while liquor store owners may be concerned about money, consumers feel like there is liquor, wine and beer to go around. One lady says "the grocery stores are not like going to a good liquor store and buying wine, but it's nice to pick up a bottle of wine and not have to make 3 stops on the way home."

Right now, lawmakers and industry leaders are talking bout "mixing drinks" we'll have to wait and see.
But most agree it is only a matter of time before you see wine in grocery stores like this one.

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Constellation Brands to sell some international wine ops

Constellation Brands Inc, the world's No. 1 winemaker, will sell most of its operations in Australia, Britain and South Africa to focus on its most profitable brands and shore up its balance sheet.

Australia's Champ Private Equity, a private equity fund based in Sydney, will pay A$230 mn (USD 230 mn) for 80% of Constellation's businesses in the three countries.The deal, which sent Constellation shares up 1.7%, is the first in a flurry of expected mergers among wine and spirits makers, which are expected to follow the same path as their largely consolidated brewer peers.

Constellation said on Thursday that it will retain a 20% interest in the businesses, whose brands include Hardys in Australia, Fish Hoek in South Africa and Stowells in the United Kingdom. The company is retaining all its brands in New Zealand, South America and continental Europe.

Chief Executive Rob Sands said that despite a large-scale operation and quality wines, the businesses still faced challenging market conditions and were not consistent with the company's new strategy of improving margins by focusing on its more premium labels such as Robert Mondavi, Ravenswood and Clos du Bois.

"The divestiture of these operations comes as no surprise as management has indicated their focus on the most profitable, prominent core brands," said UBS analyst Kaumil Gajrawala. Constellation also owns Svedka vodka and sells Corona beer through a joint venture with Mexico's Grupo Modelo.

Many wine businesses have been struggling as a glut of grapes flooded the market and depressed prices. Swings in supply and demand have often plagued Australia, where a drought in recent years put a cap on an earlier glut.

Aside from the difficulty of growing grapes and the dependency on weather, the hundreds of brands on the market make it hard for wine makers to increase their profits by raising prices, a strategy often used by beer and spirits makers. A surge in the popularity of cocktails in recent years has also boosted sales of drinks like vodka and whiskey.

Mixing drinks

Rival Brown-Forman Corp said on Wednesday it may sell some of its California wines. Such a move could make Brown-Forman, the producer of Jack Daniel's whiskey, a more attractive target for a company like Diageo or Pernod Ricard.

Meanwhile Foster's Group Ltd, the second-biggest wine maker after Constellation, is separating its lucrative beer operations from its struggling wine business. That action is expected to attract bids for both units.

In the most recent quarter, Constellation reported an operating loss of USD 3 mn in the Australia and Europe wine segment. Higher taxes on alcoholic beverages and consolidation of distributors in Britain have also weighed on results in recent quarters.

The transaction with Champ, which values the entire business at A$290 mn, includes virtually all of Constellation's Australian, UK and South African brands, wineries, facilities and vineyards, as well as its 50% stake in UK wholesaler Matthew Clark.

Constellation expects the deal to close by the end of January and will use the proceeds to pay down debt. It expects the deal to be neutral to earnings for fiscal 2011 and neutral to slightly dilutive for fiscal 2012.

Constellation was advised by Rothschild, which is also advising Brown-Forman. Champ currently has investments in Manassen Foods, Healthcare Australia and Golding Contractors. Constellation shares were up 37 cents at $22.35 on the New York Stock Exchange. They touched a 52-week high of USD 22.42 on December 16.

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Bottle of wine with your snags?

Butcher John Carnibella is not just handy slicing up a side of beef, he's also pretty good at nurturing a grapevine and turning its fruit into a half-decent bottle of plonk. He's raved about his wine - cabernet sauvignon and chardonnay - to customers in his Melbourne butcher shop for years, but has never been able to sell them a bottle except from his cellar door at Loch, in Victoria's southeast.

But under new liquor laws that come into force in Victoria on January 1, Mr Carnibella will be able to sell 1.5 litres of wine, or two bottles, to customers at his shop in Bentleigh to accompany their purchase of topside, silverside or half a dozen sausages.

Along with butchers, bed and breakfast operators, hairdressers and florists will be able to apply for permission to sell wine with their goods and services, but the wine must come from just one designated vineyard. They won't be able to supply a range of wines from multiple vineyards. "It's terrific for us - I can sell my own product in my own butcher shop," Mr Carnibella said.

"It will make life a lot easier. I'll be able to complement the beef with a red, all sorts of things. People come in to buy a roast, and I can offer a nice bottle of wine to go with it."

Mr Carnibella's Lochview Winery produces around 5000 bottles a year.

Boutique winemaker Robyn Schmidt, who with her husband Owen produces 15,000 bottles at their 15-acre Lyre Bird Hill Winery at Koonwarra, southeast of Melbourne, welcomes the initiative.

"We're always looking for extra outlets, particularly in local regional businesses - we always try to network and support each other," she said.

"It sounds like a great opportunity."

A spokesperson for the Director of Liquor Licensing said businesses such as butchers and florists, where the supply of liquor is only a small part of their services, won't have to hold a liquor licence, but they will have to meet certain criteria.

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Wine 'outperforming oil and gold'

According to the Bordeaux Index, a monthly report on the state of the fine wine market, bottles of white and red outperformed gold and oil. Wine prices jumped 5 per cent, year-on-year, bettering rises in the price of oil, which was up three per cent, and gold – up to two per cent. The rise has been attributed to an increased interest in China for fine wines over the past 12 months.

In the past year record auction prices have been set for bottles of wine. Last month £147,020 was paid for a bottle of 1869 Chateau Lafite-Rothschild at a sale in Hong Kong. Performing well has been Lafite and Mouton Rothschild 2008 which saw an increase after it was confirmed that Chinese artwork would feature on labels. Gary Boom, the founder and Managing Director of Bordeaux Index, said: “Once more, the key dynamic has been continued demand from the Asian market.

“Chinese buyers in particular have developed a taste for fine wine – and with alternative investment classes such as gold and shares limping through to the end of the year, it’s hard not to give any forecast other than for growth to continue into the New Year.”

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Italy group fights AIDS with wine: 'wine for life'

Italy's quality wine producers are selling their finest vintages to help fight AIDS in Africa, fermenting the Latin proverb "In Vino Veritas," (In wine there is truth), into "In Vino Caritas" (In wine there is charity).

"It's all about love, taking the love that we receive from nature, in the form of wine, and giving it back to the earth, in the form of helping our needy brothers and sisters in Africa," said Luca Sanjust, owner of the Petrolo winery in Tuscany. Italy group fights AIDS with wine: 'wine for life' Petrolo, a high-quality boutique winery that produces only about 70,000 bottles a year, is just one of the Italian producers sending a life line to Africa through their vines.

The project that links Tuscany's idyllic rolling hills with some of the world's most blighted areas was started seven years ago by Rome's Sant' Egidio Community, which has been nominated several times for the Nobel Peace Prize. As part of the programme, more than 120 of Italy's finest vineyards put a sticker on some of best bottles reading "Wine for Life - this bottle helps fight AIDS in Africa".

Some two million bottles have borne the stickers in the past eight years. Fifty euro cents of the price goes to Sant' Egidio to finance their programme called DREAM -- an acronym for Drug Resource Enhancement Against AIDS and Malnutrition -- to administer antiretroviral treatment.

DREAM centres have opened in Mozambique, Malawi, Tanzania, Kenya, Guinea, Guinea Bissau, Nigeria, Angola, Democratic Republic of Congo and Cameroun. "This is about life, it is not about business," said Sanjust, 51, whose wines for the project include his Galatrona and Torrione labels, contributing tens of thousands of euros to the programme each year.

"Wine to us is sacred. Life is sacred. I think the people who are doing this work in Africa are living saints," Sanjust said at a recent benefit and wine auction for the programme.

PEACE MOVEMENT

Founded by students in Rome in 1968, Sant' Egidio has a long history of work in Africa. In 1992 it negotiated an end to the civil war in Mozambique after other diplomatic attempts failed.

The DREAM project gets about 250,000 euros ($329,700) a year from its Wine for Life initiative. The rest comes from charities, institutions, private donations and corporations.

Their clinics currently treat some 98,000 AIDS patients, including 59,000 for HIV and AIDS. Nearly 12,000 children been born healthy from HIV positive mothers thanks to the programme of antiretroviral drugs.

Sant' Egidio runs 31 centres with 18 laboratories in Africa and has helped with the professional formation of some 3,600 local doctors and clinical workers.

Some 500 professionals from the developed world, many of them doctors, go to Africa on their own time and money to help, a practice that helps keep costs under control.

Another well known Italian winery that takes part in the dream program is Zenato, which produces, among other delights, Amarone Valpolicella DOC, which this year was rated 36 in the Top 100 list in the U.S. wine magazine Wine Spectator.

"Land is a gift of God and the earth. Our ties to the earth and our vines can make us great and bring a smile to children," said Nadia Zenato, vice president of the family-own winery based in the hills west of Verona near Lake Garda.

"We want to do good for the those who are less fortunate than us. That's our family philosophy," said Zenato, 38, who runs the company with her mother and brother. "It's in our blood. It's in our vines," she said.

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The trick to choosing the perfect wine for Thanksgiving

Thanksgiving is the perfect time to showcase wines that people wouldn't normally serve at any other family gathering, says Mark Esterman, wine buyer and category manager for Meijer Inc. "There is a vast array of aromas, flavors, spices and textures associated with the feast," he said. "Think about it, spices in the stuffing, the sweetness of the cranberries, the fat and salt in the gravy, along with the different textures makes your mouth a playground for wine."

And, he adds, there is no right or wrong wine to serve. Those who enjoy a white wine should stick with white wine, same goes for red. But he says pick a wine with a good backbone of acid to cleanse the pallet during dinner.

"You want a wine that is going to marry well with the citrus in the cranberry and the spices in the stuffing," he said. "You want a wine that has a nice flavor of fruit. That's not to be confused with sweetness. It can be a dry wine.

"Find something that is structured and complex enough to stand up to all the food you're going to be eating, but not so strong as to overpower it," he adds. Whether you are a novice or pro at the wine game, Esterman offers a few suggestions for wines that can become part of the feast. For example a wine made from the malbec grape, such as Reza.

"It's from Argentina," he said. "It offers flavors and a medium body that goes great with all the typical Thanksgiving meals," he said. "People are getting into alternative reds. It's basically not a merlot. Everyone knows what they taste like. This is something different. Something they haven't had before. Something that's trendy."

Esterman suggests in the red variety, Blackstone or Pinot Noir. "It's medium bodied with a nice back bone of acid," he says of the Pinot Noir. "There is a ton of fruit to this wine. It smells like deep dark cherries, fresh raspberries and blackberries."For white try Riesling based white blends from Michigan.

Suggestions include Chateau Grand Traverse, Leelanau Cellars, St. Julian and Tabor Hill. "I'm going to have a wine from Good Harbor Winery," he said. "They make a Trillium, made from three different grapes."

With Michigan being the fourth largest producer of wine in the United States, Esterman says look for these homegown varieties when choosing wine for the gathering. For dessert, Esterman suggests Tomasello, a cranberry wine that's very popular this time of year, or perhaps Jackson Triggs.

"They have an ice wine," he said of Jackson Triggs. "It's absolutely decedent. It's harvested in January. The grapes are the size of a plum. It's an ice wine because the grapes are frozen when they are harvested."On the dry side, Esterman suggests Woodbridge brut, made in the methode champagnois method, which works with appetizers or as a meal finisher.

The good news is, you don't have to spend a fortune to serve a fine wine. All wines suggested here are under $20, and most are under $10. "Thanksgiving is a celebratory time of year," he said. "We're thanking God for all the gifts he's bestowed upon us. When guests come over give them something sparkling in their glass to toast before dinner."

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Garage brand wine

When Frank Gregus and Maurice Hamilton decided to start a winery in April 2005, the award-winning amateur winemakers from Vancouver didn't have anything except a dream and a business plan. In rapid order, they needed to find a facility, equipment, grapes and virtually everything else required to make, store, bottle and retail wine. A location was secured in an industrial park in New Westminster, a Vancouver suburb located 25 minutes from the downtown core. The drive to create an urban winery fell into place from there.

Five years later, Pacific Breeze Winery has made a name for itself by winning countless international awards, including top honours as Winery of the Year at the 2010 InterVin International Wine Awards. Cassini Cellars from the British Columbia, Norman Hardie Vineyards and Winery from Ontario, Spy Valley Wines from New Zealand and Tawse Winery from Ontario round out InterVin's top five producers.

The partners knew that they wanted to source grapes from ideal growing locations in California, Washington, Oregon and British Columbia. They also knew they had zero interest in owning a vineyard.

The business plan was partly inspired by a wine tour that Hamilton took to Woodinville, Washington, where he visited numerous wineries, including Betz Family Winery, which was then operating out of a warehouse facility akin to a garage.

"Having a garage winery and not owning any vineyards is not common in Canada, but it's very widespread in the United States," said Gregus, who retired from a sales and marketing position with PepsiCo Inc. to concentrate full-time on the winery.

Gregus and his partner traveled to California and elsewhere to seek out grapes for their venture. They made appointments with growers with the same stipulation. The visitors wanted to taste finished wines produced with their grapes.

"What we did know was winemaking," Gregus said. "We knew we wanted to make wines that made people say wow."What Gregus came to realize is the grapes that delivered the profile he was looking for didn't always come from the most fashionable addresses. For instance, he recalls rejecting fruit from a vineyard located next door to the fabled Opus One vineyard in the Oakville region of the Napa Valley.

Instead, they opted for bolder, more flavourful raw material they encountered in the more humble Lake County district in California's north coast region. "Good wine is good wine," Gregus says matter-of-factly. "You judge it by what's in the glass."

The same could be said of Pacific Breeze Winery's production. The tarmac that surrounds the warehouse facility doesn't inspire the same romantic reaction as seeing undulating vineyards, but the juice in the glass certainly leaves a lasting impression.

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Choices are varied for Thanksgiving wines

Jennifer Simonetti-Bryan, who holds the title Master of Wine, suggests a rich California Chardonnay would be perfect to accompany butternut squash for the traditional American meal but if chestnut stuffing is on the menu she suggests a Norton.

"I would go with a Norton from Linden Vineyards in Virginia. This was a wine served at the White House and it is their policy to serve wines that are produced in America," said Simonetti-Bryan whose "Everyday Guide to Wine" was released recently on DVD.

John Hart, chairman of the Chicago wine auction house Hart Davis Hart, sees the Thanksgiving holiday on November 25 as the perfect opportunity to share special bottles with family and friends.

He plans to start with Krug Grande Cuvee Champagne, which averages about $150 a bottle, followed by an equally expensive red Burgundy, a 1995 Mazis-Chambertin from Domaine Bernard Dugat-Py.

"We always end with a Sauterne. This year, a half-bottle of 1981 Chateau Climens, usually with some homemade pie," he said.

Chris Baggetta, the head sommelier at New York's Michelin-starred restaurant Eleven Madison Park, said her preferences for Thanksgiving wines are dry, crisp whites. She likes Austrian Rieslings or Gruner Veltliners for a hint of sweetness and dry but fruity red wines like Cru Beaujolais and Cotes du Rhone."

When pressed for American wines, she would turn first to Oregon because she is impressed by the quality of their Rieslings and their ability to age. Amity Vineyards in Yamhill County is at the top of her list with their Estate Dry Riesling.

"With turkey, I would stay in Oregon. Cristom Louise Vineyard Pinot Noir has power and perfume, with lots of spice, almost like cinnamon red hot candies -- perfect with all the Thanksgiving trimmings," she said. "Chehalem's Reserve Pinot Noir is elegant and earthy, focusing on more mushroom and savory notes."At the Peninsula Beverly Hills hotel, sommelier David Jones can't resist California's abundant offerings.

"Turkey dinner is notoriously known for being a difficult (food) pairing. We like the Keller Estate Pinot Noir ... the fruit coming from the Sonoma Coast brings cherry to the table," he explained. Wine consultant Maureen Downey is opting for some Spanish wines and California Pinot Noirs from MacMurray and Dutton Goldfield.

"I love the Pinots for quaffing and light hors d'oeuvre noshing and I love the rich, full flavors of many Spanish wines for Thanksgiving dinner," she said. "Whether the huge wines of Toro, or the lighter and fruitier wines of the south in Jumilla and Yecla, I think Spain has all the spice and richness to match well with holiday fare."

For dessert wine expert Doug Frost, who is both a Master of Wine and a Master Sommelier, has one guiding rule -- the wine should always be sweeter than the dessert. So if guests still have room for apple, pecan or pumpkin pie, break out the Port, Madeira, sherry or ice wines from Canada and New York's Finger Lakes region.

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Mango wine seeks new markets

A central Australian mango wine maker is trying to crack the Singaporean and Mexican markets, after exporting to China for more than two years. Johnny Crayford, who owns Red Centre Farm, about 200 kilometres north of Alice Springs, has been making mango wine for 16 years. He's just returned from a wine expo in Singapore and says his product seems to suit tastebuds in South-East Asia.

"We're talking to different countries in South East Asia. I'm talking to people in Mexico, our wine should go to Mexico this year," he said. "We're just created a distributor in Hong Kong, we're starting to supply Hong Kong and we've actually sent a shipment to Hong Kong about three months ago."

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Chinese billionaires splash out on fine wine

He Wei Qi, a businessman from eastern China's Zhejiang province, says he routinely pays more than 30,000 yuan ($US4,500) for a bottle of wine to entertain guests.

“A price tag of more than a million yuan a bottle - that does more than show off your wealth, it shows you have good taste,” He, 38, said while attending a three-day Hong Kong wine and spirits exhibition that drew about 700 companies from 29 countries and regions. “We don't care how outrageously expensive the wines are.

Wine sales in the city by Sotheby's and Christie's International will raise more than in New York and London combined this year, the top two auction houses said, with vintage Chateau Lafite selling in excess of $US200,000 a bottle. Sales at Hong Kong's auctions have more than quadrupled since the city cut duties to zero two years ago.
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“What we've seen emerging in the last year are people paying virtually any price for wine,” said David Elswood, Christie's London-based head of wine. “That's not investment. That is just uncontrolled spending.”

Buyers from China, where the number of billionaires rose more than 60 percent from last year, may double auction sales in Hong Kong next year, he said.

“Red wine is better than stocks,” wine merchant Alex Yu said while touting a HK$80,000 ($US10,321) 5-litre bottle of Chateau Mouton Rothschild. “Chinese wine lovers are pushing up prices.”

Vintage Lafite

Three bottles of Chateau Lafite's 1869 vintage sold for a record $US230,000 each on October 29, 28 times Sotheby's top estimate before the auction.

Chinese collectors in Hong Kong, China and Taiwan hold about one in four bottles of fine or rare vintage wine globally, according to Crown Wine Cellars, which stores about HK$1 billion of wine in a network of converted ammunition bunkers in Hong Kong. Total consumption has doubled in China in the past five years, with red wine accounting for 75 percent of demand, according to a March report by Citigroup.

Wine isn't the only product Chinese buyers are mopping up. The fastest growth of any major economy and an appreciating currency have led them to pick up properties in London and artwork in New York. In Hong Kong, mainland Chinese demand drove luxury property prices past the 1997 peak, spurring the government to warn of an asset bubble.

1,400 Percent Markup

Asia's wine market will expand four times faster than the rest of the world, said Robert Beynat, chief executive of wine exhibition organiser Vinexpo Asia Pacific. Much of the growth will come from China, which is the final destination of a “large part” of the wine imported into Hong Kong, he said.

Liu Xue Biao, a wine merchant from Shenzhen, said that wine he buys in Hong Kong for about $US3 a bottle can be sold in mainland China for 300 yuan, a 1,400 percent markup. “They are willing to pay just about any price,” said Liu, accompanied by two female assistants carrying suitcases for their purchases.

Imports by Hong Kong merchants jumped to $US600 million in the first nine months, more than the whole of last year. The value of auctions reached $US120 million this year, almost double the $US64 million in 2009, according to the government.

Sotheby's had to issue tickets for the first time for its October 29 wine auction at the Mandarin Oriental, when it offered almost 2,000 bottles of Lafite shipped directly from the Bordeaux chateau's cellars.

No Catching Up

The sale beat the auction record for a single bottle set in 1985 in London, when publisher Malcolm Forbes paid 105,000 pounds ($US169,000) for a 1787 vintage.

“New York and London aren't going to catch up,” said Richard Sleigh, who moved to Hong Kong from New York in August to run Sotheby's Asia wine business. “People like the fact that the wine is here in Hong Kong. You just go and pick it up.”

Sotheby's sold $US52 million of wine in eight auctions this year in Hong Kong compared with a combined $US24 million so far in New York and London, previously the world's biggest- and second-largest markets. The New York-based company had 11 consecutive sold-out wine auctions in the Chinese city.

The Hong Kong sales are an indication of how far mainland Chinese buyers have come since the 1990s, when they would drink Coca-Cola with wine and merchants hawked unwanted vintages to them, said Gregory De'Eb, general manager of Crown Wine Cellars.

“Through their own aggressive tasting, they have built a better knowledge of what suits their palettes,” De'Eb said. 'Inflating a Bubble' While the Chinese are the ninth-largest consumers of wine globally, the spirit accounts for only 2 percent of alcohol drunk in the country, according to Citigroup analysts.

That's changing as wine starts to win favour compared with the traditional Baijiu and Maotai liquor. In 2008, Domaines Barons de Rothschild (Lafite) agreed to develop more than 25 hectares of vines in Shandong province with Citic Group, China's biggest state-owned investment company.

The burgeoning wealth is “inflating a bubble” in wine, said Christie's Elswood. “When you're paying four, five times or even more than the reference price then you have to seriously question the market knowledge of that buyer.”

At Sotheby's April 3 auction in Hong Kong, a 12-bottle lot of Chateau Latour 1982 fetched HK$338,800 or $US43,649. About two weeks later, New York-based Tribeca Wine Merchants ran a newspaper advertisement offering the same for $US2,250 a bottle.

“Westerners drink wine slowly as a way of enjoying life,” said He, strolling around the Hong Kong exhibition holding a glass of wine. “Just look around you. Mainland Chinese tilt the glass and pour it straight down the throat.”

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