Australia / Barossa: A very dry year with below-average rainfall and a warm vintage, once again without rain, provided ideal conditions for ripening and achieving good Baumés, although this was recorded as a very bad year for powdery mildew. The vintage conditions yielded rich and generous red wines. Highlights: Government-regulated grape prices were abolished, and a base price of $190/ton for all varieties was established for dry-grown land (Riverland $170/ton). Grape prices drove economic returns for growers to an all-time low and resulted in a reduction of inputs and vineyard development.
The South Australian government vine pull scheme was launched, compensating growers who removed old vines or unwanted varieties and left their land unplanted. 1986 Barossa Cabernet Sauvignon was processed into sweet sherry! No grapes were crushed at Leo Buring, with contracted grapes being processed at Peter Lehmann Wines. Since 1983, Leo Buring had reduced its grower base from 200 to 25 growers, and its crush was reduced from 9,000 tons to 2,500 tons. Increasing salinity in the groundwater supply led to a recommendation to proclaim (or control) the Barossa irrigation water supply. Quality became a growing issue for grape growers and winemakers, as Yalumba promoted an objective quality assessment of the grape load. In the wineries, Yalumba first used cross-flow microfiltration, and Seaview opened the largest champagne plant in Australia in Nuriootpa. Australian wine consumption reached a record high of 21.6 liters per capita.
The increase in brandy excise duty had a severe impact on the brandy industry. Greenock Creek Wines was founded by Michael and Annabelle Waugh. John Duval was appointed Chief Winemaker and custodian of Grange at Penfolds. "A legacy reclaimed" is the motto of Heathvale, the name of the original 1850s homestead of William Heath, one of the first wine producers in the Eden Valley. It was 140 years later, in 1986, that Trevor and Faye March arrived and replanted the vineyard, prompting them to start their Heathvale wine label.