Australia is not suffering from a red grape glut but a lack of people willing to sell the wine, according to Western Australian producer Palandri.

Speaking to a business audience, chief executive Darrel Jarvis said: "There's an undersupply of Australians getting off their backsides, going into the northern hemisphere and selling wine.

"You don't hear from them (grape growers) through some of the good times, they just wanted you to stay away," he added. "But they do like sympathy and government cheque books when times are bad."

Jarvis said Palandri was achieving success in Scandinavian countries with a three-litre cask of quality wine and was now considering a one- or two-glass package to meet consumer demand for convenience.