(TheAustralian) - NEW Zealand's wine industry has news worth toasting: an oversupply of grapes that tainted the country's reputation as a maker of premium wines has peaked. The wine grape harvest this year was 18 per cent lower than last year because of cool weather. This has combined with a shortage of grapes in California and increasing consumption of wines in Asia, particularly China, to boost demand. "The smaller vintage is having a significant impact on our supply-demand equation in the industry," New Zealand Wine chief executive Philip Gregan said. "Grape grower and wineries are looking more positively to the future than they have been for a little while. It's certainly not all doom and gloom."