ABC Rural reports that Australia’s federal government has released details of a mandatory wine grape code of conduct, due to take effect on 1 January 2027. The code will require wineries to publish payment terms, face monitoring of payment practices and allow anonymous complaints from growers, though some industry voices say it does not yet solve deeper oversupply and ageing-grower pressures.
Australia
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Australia Considers Turning Surplus Wine Into Fuel
News.com.au reports that Australia’s Nationals are pushing a wine-to-fuel plan to help ease the country’s wine oversupply crisis, with around 262 million litres of surplus wine recorded by Wine Australia as of December 2025. The proposal would explore converting excess wine into ethanol for sustainable aviation fuel or renewable diesel, though industry figures warn wider support is still needed for struggling growers.
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Yellow Tail Owner Slips into Loss as Costs Rise
The Drinks Business reports that Yellow Tail owner Casella Wines swung to an AU$5.5 million loss in its latest financial year, reversing earlier profits as weaker US demand, tariffs and higher supply chain, energy and freight costs bit into performance. The article says the US, long central to Yellow Tail’s export success, has become markedly tougher, although growth in the UK, Europe, Asia, Canada and Australia has helped cushion the blow. It also points to higher debt and a covenant breach that was later waived, making this one of the clearest signs yet of how pressure on global wine brands is feeding back into Australia’s wider grape and grower economy.
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Treasury Wine Estates Pushes Back Against Bankruptcy Talk
The Drinks Business reports that Treasury Wine Estates has rejected suggestions that its debt load could push it towards bankruptcy, saying it remains comfortable with its funding and has ample liquidity. The concern was raised by Plato Global Alpha Fund, which argued that debt, weaker consumer confidence and higher interest rates could leave the Australian wine giant exposed. The story matters because Treasury is Australia’s largest wine producer, so market anxiety around its finances feeds directly into wider concerns about the health of large listed wine groups.
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EU Enters ‘Last Mile’ of Trade Deal Negotiations With Australia
Reuters reports that the EU is in the final phase of negotiating a trade deal with Australia, and wine and spirits are explicitly among the sectors expected to benefit if tariffs are reduced. For the wine trade, the significance is clear, Brussels says the agreement could lift EU exports to Australia by a third over 10 years and remove up to €1 billion in duties, making this one of the more consequential policy developments for European producers and exporters today.
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Australia Moves to Build a National Vineyard Register
ABC News reports that Australia’s federal government plans to develop a National Vineyard Register to improve transparency and planning, tracking vineyard ages, sizes and grape varieties. The article says Wine Australia will lead the project and Map of Ag will design and build the platform in consultation with the industry, with the register expected to be operational by the end of 2026. It notes uncertainty about whether participation will be mandatory, while highlighting that growers have long called for a system like this, particularly amid difficult decisions across the sector.
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Treasury Wine Estates Suspends Interim Dividend After US Writedown
Reuters reports that Australia’s Treasury Wine Estates has suspended its interim dividend after a A$770.5 million impairment on its US assets helped drive a statutory loss of A$649.4 million for the half year ended December 2025, with revenue down 17 per cent and operating income down 40 per cent as demand softened in China and the US. The company said it is pushing ahead with a plan to cut around A$100 million of annual costs over the next two to three years, tightening shipments into China to curb parallel imports, and prioritising debt reduction before any return to dividends.
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Australian Wine Pricing Row Flares at Wine Paris
Winetitles reports that Australian exhibitors in Paris are furious after Australian red wine was allegedly offered at about 60 cents per litre and Chardonnay at about 80 cents per litre, with claims some prices were even tied to the 2026 vintage, which has not been made yet. The article highlights concerns from growers and industry figures that ultra low pricing damages Australia’s premium ambitions, drags down grape prices, and sets a race to the bottom in international negotiations.
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Western Australia Wine Sector Rolls Out Sustainability and Profitability Partnership
Winetitles reports that Wines of Western Australia, the state government’s DPIRD, and Wine Australia are rolling out collaborative initiatives aimed at sustainability, competitiveness and future profitability, including a Sustainability Engagement Officer role and renewed support for a Sustainability and Industry Development Program Manager. The story highlights practical levers such as encouraging accreditation through Sustainable Winegrowing Australia, pushing wider uptake of Margaret River’s Lightweight Bottle Charter, and relocating the WA Vine Improvement Association germplasm collection to a new site to safeguard access to verified grapevine material, with funding support via Wine Australia’s Research and Innovation Fund and matched investment.
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Australian Wine Shipments to the UK Slide as Demand Softens
The Wine Merchant is reporting that Australian wine exports to the UK fell by 3 per cent in value to US $343 million and by 9 per cent in volume in 2025, part of a broader decline in Australian shipments as overall exports dropped amid shifting consumer habits, wellness trends and cost-of-living pressures affecting demand in major markets.