Blog: Chris Brook-CarterCurrency Affairs

Chris Brook-Carter | 8 January 2004

The troubles that may face wine producers attempting to import and then sell into the US market were alluded to by the boss of the world's largest wine company, Constellation Wines, as it announced its latest quarterly results earlier this week.

Stephen Millar, who became head of Constellation's wine unit after the takeover of Australia's BRL Hardy in March 2003, said: "The wine industry is going through a challenging time, and it's tougher than it has been."
 
Australian winemakers selling in the US in particular are having to reassess pricing and strategies due to the surging Australian currency. The Australian dollar was the best performing major currency in 2003 rising 34% against the US dollar and ending the year at around 75 cents.

Australian winemakers now face a choice. Either they trim margins to maintain volumes and market share, or risk both by pushing through price increases in the US to maintain profitiability.

France, Italy and Australia accounted for 83% of the US$2.15 billion of still table wine the US imported in the first 10 months of 2003, according to the National Association of Beverage Importers. And it is producers from these countries who must make the toughest decisions, as the US has proved a lucrative balance to their declining home markets.

There was a useful article in the Sydney Morning Herald today summarising some of the probelms ahead. To see it follow the link below.

http://www.smh.com.au/articles/2004/01/06/1073268033970.html


BLOG

The (temporary) return of Paul Walsh to the drinks debate

Paul Walsh just can't stay away from the drinks industry....

BLOG

Budweiser races to stock Mars bars

For those people looking to the Red Planet as shining utopia away from all things earth, look away now....

BLOG

When life gives you lemons, make soap

Bacardi's 42 Below vodka brand has found a novel way to use the lemons left over from cocktail-making: Turn them into liquid soap....

BLOG

Small measures required as Philadelphia soda tax adds up

Philadelphia’s soda tax came into force on Sunday, and is reportedly causing a stir in the city's check-out aisles....

just-drinks homepage



Forgot your password?