De Bortoli Wines is tearing out some of the family’s historic vineyards due to falling red wine consumption, particularly among Gen Z.

Managing Director Darren De Bortoli told The Australian the current situation facing many Australian winemakers was “a disaster”.

Australian Grape & Wine estimates the oversupply of red wine in Australia sits at 330 million litres and has called it an “unprecedented oversupply crisis.”

“There is no point having our head in the sand, and we have got to be transparent about the situation, and we are already going quickly through an adjustment phase and for example we are removing vineyards,” De Bortoli (above) said.

“We are doing that, removing vineyards, at Bilbul and Rutherglen. And it is because of the situation with reds and, if you are going to readjust or restructure your vineyards, the best time is to do it now.

“The proportion of vineyards we are pulling out is not insignificant.” 

However, sales of prosecco and rosé are booming. In FY24, De Bortoli’s King Valley prosecco range posted 23% growth compared to the previous year.

Riverina Winegrape Growers Chair Bruno Brombal told the Australian Financial Review he estimates 15% of the area’s vineyards have been bulldozed in the last two years.

“The excavator operators are going flat out. That’s the business to be in,” he said.

Australian Vintage CEO Tom Dusseldorp said the company is trying to entice drinkers with a range called Poco Vino, which features rectangular-shaped mini bottles, the same size as those offered by airlines.

The winemaker hopes the range will compete with the RTD market that is popular with younger drinkers.

They have played to that convenience factor and flavour,” Dusseldorp said. “Wine has not kept up.”

Poco Vino will launched in the UK in July and Australia in October.