...In a local rag.....
A winery in the tropics? As unlikely as it sounds, Australian-grown grapes are being used to make wine in Bali as the price of imported alcohol soars.
Wines from Australia, New Zealand, Chile, Europe and the United States are available in supermarkets, restaurants and bars across the Indonesian resort island, but with import taxes exceeding 300 per cent, they are prohibitively expensive.
Even a bottom-shelf bottle of Australian plonk can cost more in Bali than a top-shelf drop back home.
Recent shortages of imported alcohol have driven prices even higher, triggering unprecedented demand for two pioneering local labels that offer an Australian-grown, value-for-money alternative.
"A lot of tourists come to Bali and see imported labels that might sell for $A4 at the cellar door, but are selling here in shops for $A30 to $A40," said Perth woman Bronwyn Feeney, whose Balinese husband part-owns Wine of the Gods, a boutique winery in Bali's capital Denpasar.
"Most Australians are discerning and if they're offered cheap wine at outrageous prices, they simply won't buy it."
Distributors say prices are rising as imported Australian wine becomes increasingly scarce.
"Last year, we were selling 400 cases of Stonehaven every month in Bali, plus 200 cases of Hardy's, Penfold's and Orlando Jacob's Creek, but now we have no wine from Australia," said Anom Masta, chairman of the Association of Alcohol Distributors in Bali.
"The little you see in shops is all that's left, so it's very expensive. Our customers are ordering cheaper alternatives from Chile and France."
Industry sources attribute the unreliable supply and higher prices to a new customs clearance system, introduced by the Indonesian government last year to stamp out official corruption.
A state-owned company has been granted an exclusive licence to import alcohol to Indonesia, the world's largest Muslim nation, and all shipments must now go via Jakarta.
The increased scrutiny created a three-month drought at the end of last year when panic buying emptied shops of every last bottle, prompting smaller liquor stores to close and fuelling a black market trade.
Shipments are still being held up by customs as the alcohol importer continues to baulk at higher clearance costs, which have also hit other luxury goods ranging from cappuccino machines to home theatre equipment, causing delays to new villa projects.
With foreign tourist numbers expected to hit a new record of 2 million in 2008, hoteliers are worried about another alcohol shortfall this Christmas and New Year.
"Leading up to this holiday period, it's getting pretty tight," said Michael Burchett, chairman of the Bali Hotels Association and general manager of Conrad Resort.
"We're not about to go dry, but wine supply is inconsistent and spirits are getting really low.
"But it's a well-intentioned initiative from the government and I'm hopeful now that Ramadan (the Muslim fasting month) has passed, we'll see the backlog of shipments easing."
Meanwhile, the delays and price increases have boosted orders for locally-produced wines such as Wine of the Gods chardonnay.
Under an innovative plan to provide imported-quality wine while avoiding alcohol duties and luxury tax, the winery was launched in 1999 by a consortium of Australian and Balinese investors.
It sources premium chardonnay grapes from the Swan Valley, Western Australia. They are pressed, crushed and shipped to Bali where the winemaker oversees fermentation, stabilisation and filtering.
Annual production is around 50,000 bottles, and thanks to the low operating costs, they retail for a relative steal at around $A20 each.
"There was panic-buying last year from August until November as wholesalers stocked up ahead of Christmas and New Year, and the same thing's happening now," Bronwyn Feeney said.
Bali's first winery, Hatten Wines established in 1994, began importing grape juice from Australia last year to produce chardonnay and shiraz under the label Two Islands.
Sales have already exceeded the forecast of 70,000 bottles and production will double next year, said Gigi van Kuijk, Hatten's sales director.
The concept of importing grapes is new for Hatten, whose main focus remains harvesting its premium Bali aga, alexandria and pino grapes from its north Bali vineyard.
It produces eight different local styles totalling 650,000 bottles a year, of which its rose is the most popular.
"The misconception that premium grapes cannot be grown in a tropical climate is now changing with our new Australian winemaker at the helm," said van Kuijk.
"Most tourists from Australia and Europe want a grape variety they are familiar with and introducing Two Islands means we are now working with two grape varieties that are widely accepted.