MCGUIGAN SIMEON WINES HURTING FROM GRAPE GLUT

Australia’s grape glut led to a 51% decrease in the 1st-half profit of McGuigan Simeon Wines’ whose brands include Black Label and the Black Swan. "It is still too early in the season for accurate forecasts on the 2006 Australian vintage, but indications are that there will be another significant vintage, if not a record," McGuigan Simeon Wines Chairman David Clarke said. Sales to the U.S. decreased 27% and domestic sales fell 18%. “While export volume has continued to grow, the average price of wine sold overseas has fallen,” said retiring Chief Brian McGuigan. According to Brian, the wine glut in Australia is expected to last another two years.