Blog: Currency 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.
Today is SABMiller's final day. Some time this evening, Brussel's time, the second-biggest brewer in the world will be subsumed into the biggest, creating a beer behemoth of unprecedented proportions....
No, this is not PepsiCo's new ad slogan for its Mountain Dew brand....
Major wine players flocked to China ready for online giant Alibaba's 9.9 Global Wine and Spirits Festival, which took place on 9 September....
In May, Heineken's CEO, Jean-François van Boxmeer, called Vietnam the "poster child" for international beer thanks to strong demographics and growing demand....
- The end is nigh for Global Travel Retail - Comment
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- Pernod Ricard's Q1 results - Preview
- Pernod Ricard Q1 2017 results by region, brand
- Diageo most at risk to Thai alcohol ban - analyst
- Jobs at new India hub won't affect staff - Diageo
- Stumbling UK Pound prompts Conviviality price hike
- US craft spirits could be as big as craft beer
- AB InBev fund ZX Ventures buys homebrew co
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends