Leading new world wine producers are looking to go upmarket as drinkers’ palates become more discerning.

E&J Gallo is dropping E&J to call itself Gallo Family Vineyards, Rosemount will relaunch this year with new “fresh and fruity” wines, bottles and labels and Jacob’s Creek is expected to focus on premium versions.

The move comes as oversupply and signs of stagnation have put producers under pressure after a decade of rapid growth.

Financial Times 01/07/06 page 3