There is a lot going on in the international wine industry. As consumers, we may not realize what happens in the background of the international wine industry, as we just tend to look at a bottle of wine for what it is. Do we really care about what happens behind the scenes?

However, there is a battle brewing amongst wine-producing countries. Over the past decade, the plantings of grapes and the marketing of wines have exploded in areas such as Australia, California, New Zealand, Chile and Argentina. In response to this, the European Union and private investors have spent heavily in upgrading the vineyards of Spain, France and southern Italy. It is the battle of the Old World versus the New World!

In 1996, the Australian industry set itself an objective to be the world’s leading exporter of wine with a target of annual sales of $4.5 billion by 2025. That target was surpassed in 2005, twenty years earlier than anticipated. One of the ways this was accomplished was to embark on a massive planting of grapes.

However, because of this enormous over-planting a decade ago, there is now a glut of well-made Australian wine on the market. Combine this with the fact that the world is just not drinking enough wine and the problem is exacerbated. And this is not just Australia’s problem.

A problem facing European wine producers is that aggressive marketing by some New World producers like Australia, as well as improved production techniques in other countries, have seen their sales increase by as much as 20 times. During this same period, exports from France dropped by 15 percent, but it still produced the same amount of wine. Add to that the French are drinking less (hard to believe, I know) and you end up with a surplus wine lake – equivalent to more than a billion bottles.

In 2006, world wine consumption rose slightly to 241 billion litres but production was 283 billion litres. This over-production or glut of wine has become so big that France distilled some of its higher end wines. In the past, France, Italy and Spain, the top three countries that produce over half of the world's wine, have turned excess low-quality wine into vinegar and ethanol but now about 100 million litres of Appellation d'Origine Controllée wine is being turned into crystal-clear ethanol to be added to gasoline.

The obvious winners from this oversupply are the consumers. We are seeing a plethora of wines on the market that offer incredible value in price and quality. Previously, these wines would have been mediocre at best but increased technology in the winemaking field has improved these wines tremendously and the large supply has driven the price down so that we, the consumer, are drinking better wines for less money. This is a buyers market and it is no time to be settling for the bulk crap. It is time to explore.

There is one thing that wine producers have to worry about though. If they go on raising the alcohol level we will fall off our stools before we can order a second bottle.

Weekend Wine Picks:

A great new find in the Spanish category, the 2006 Marques de Rojas ($10-$12 PWS & GLS) is from the tiny area of Almansa, on Spain’s southeast region. A soft juicy little red, this wine is made from 100% Garancha Tintorera, a unique clone of Garancha that has red juice instead of clear. A luscious wine displaying a dark cherry colour, lovely, grapey raspberry, blackberry and cassis fruit character with a sprinkle of leather, prune and black pepper. The texture on the palate is velvety soft, with succulent red and black fruit flavour, soft acidity and medium tannins. If there is only one wine you buy this week, make it this one. You will not be disappointed.

I first had this wine four or five years ago and it has not disappointed me yet. A blend of Riesling and Auxerrois, the 2006 Gehringer Desert Sun ($14.90 PWS) is full of delicate fruit aromas of clover honey, rose petal, red apple, grapefruit and pineapple with a hint of orange rind. Flavours of citrus, apples, pears and grapefruit with just a hint of lychee nut in the slightly off-dry finish. Finishes with crisp acidity to balance the hint of residual sugars. Perfect with summer picnics, fresh crab or grilled halibut, or spicy Chinese cuisine. Great value.

The 2004 Deakin Merlot ($11-$13…reduced by $3 PWS & GLS) offers exceptional value for the money with its ripe, almost sweet cherry, raspberry, blueberry and plum jam aromas. Hints of spicy clove, vanilla, chocolate and buttery oak round out the aromas. The palate is pure pleasure with lots of black and red fruit flavour, licorice, vanilla, chocolate, smoke and spice. The finish is soft and seductive with velvety acidity and firm tannins giving this wine the impression of being able to age another year. Superb Value!!

A new listing in the hot Argentina category, the 2007 Altivo Malbec ($11.90 PWS) is a tasty wine perfectly suited for the BBQ. Look for loads of ripe blackberry, black cherry, licorice, smoke, roasted meat, dried herbs and baked earth aromas. The flavour is all about juicy blackberry, cassis and plum fruit flavours, with soft acidity, smooth tannins and a wonderfully flavourful finish. Goes to show you why Argentina is the hottest wine country in BC. A very versatile partner fit for roasted chicken or grilled sausage.

The 2006 Estación Carmenere ($12.90 PWS) has an intense ruby colour with aromas of blackberry, cassis, black licorice, black cherry and chocolate liqueur. Flavours of blackberry, black currant, gobs of black licorice, BBQ-oak, and hints of cherry kirsch are on the palate with a ripe, pure mouth-filling texture that is absolutely delicious. The finish exhibits soft acidity, smooth tannins that velvety sensation on the finish. Enjoy with garlic-roasted lamb, spicy empanadas or fajitas or simply it on its own!

The top-selling South African red in BC, the 2007 Obikwa Merlot ($11.90 PWS) is an incredible value. A soft, supple red at a great price, the rich and ruby-violet colour frames the delicious ripe black cherry, blackberry, tobacco leaf and smoke with a tasty flavour of red and black fruit, licorice, chocolate and vanilla. Soft acidity and medium tannins round out the scrumptious finish. Stock up for the summer.