Despite the current acquisition frenzy, the financial performance of the Australian wine industry has declined considerably since 1997, according to the Winemakers Federation Of Australia. This was the conclusion of an analysis for the WFA, using unpublished data from the Australian Bureau of Statistics and undertaken by Deloitte. "Profits have fallen, shareholders' equity in the industry was replaced by an increase in long term debt, liquidity fell substantially and the cost of sales increased," it said.