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By the late 2000s the Australian viticulture and winemaking industry was in crisis. The reasons for the industry's plight are complex but include a rapid, tax-driven, increase in the grape vine plantings resulting in overproduction; the difficulties involved in establishing and growing export markets in the face of non-competitive exchange rates and competition from other, low cost, 'new world' wine producers; competition from imported wine; excessive discounting, aimed at reducing wine stockpiles, changing the 'price point' expectations of consumers; the retail dominance of Coles and Woolworths putting downward pressure on producers' returns; the 'creative', rather than business focused, culture of the industry; and the changing demographics of the wine consuming market.
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