There is going to be twice as much Southcorp red wine, but I doubt there’ll be much more Grange following the news that Southcorp, our largest wine maker, will spend $145 million to double its red wine capacity. Sales have increased by 65% over the last five years and profits have doubled, reaching more than $100 million before interest and tax in 1996/97. Chief executive Bruce Kemp expects the global shortage of red wine to continue for another decade and says his company’s response represents the most significant investment in Australian wine history. $95 million is earmarked for winery expansion, with another $50 million for vineyards, with a focus on shiraz, cabernet sauvignon, merlot and pinot noir. The company’s red wine headquarters at Nuriootpa will be expanded by 40%, a new barrel hall will be constructed at Wynns Coonawarra and the wineries of Coldstream Hills and Devil’s Lair will be extended.
