The vintner relies heavily on sales of less-expensive labels in the U.S., the world's biggest wine market. Treasury Wine said Monday it had overestimated U.S. demand in the past year, forcing it to discount or destroy older wines that had passed their drink-by date. The company warned it expects to ship less wine to the U.S. this fiscal year, reducing operating earnings by as much as A$30 million. By recalling unsold wine bottles from distributors and retailers and then destroying them, wine companies can recoup taxes that were paid on the wine, softening losses, Mr. Fredrikson said. "You take a steamroller and roll over the bottles and the government approves it and you get the tax back," said Mr. Fredrikson.So this might be a good business decision, but it doesn't exactly express a lot of love for their wine. Another good reason to learn about smaller producers who care about what they make.
From The Wall Street Journal: