Blog: Chris Brook-CarterSuper discount market

Chris Brook-Carter | 6 February 2004

Predictions of a wine glut and the fallout of ferocious competition between retail majors are now having an impact on Australia’s retail wine market.

Bottled wine is this week being nationally advertised at A$3.95-$3.99,  (US$3.00 - $3.03) the brands being those of the respected major producers Angove and DeBortoli.

When government taxes of more than 40% are factored in, it becomes apparent that margins are exceptionally slim.

Behind the buyers' strength are three factors: the domestic retail trade is increasingly dominated by two supermarket giants, Woolworths and Coles Myer, who force economies of scale; the 2004 vintage now imminent is predicted to be 28% above that of 2003 with consequent serious pressure on storage space for new wine; and the export trade, although buoyant, is being dented by the unexpected strength of the Australian dollar, currently trading at US$0.76.

By our Australian correspondent Tony Baker


BLOG

Electric cars keep Hennessy up with current trends

It seems even 250-year-old Cognac houses want to be like Google these days....

BLOG

[Checks watch] “I best be heading home”

It's not even available on pre-order yet, but Apple's latest piece of kit has already got a breathalyser app....

BLOG

just-drinks closed for Easter

just-drinks is now closed for the Easter weekend....

BLOG

Diet Coke decline leaves Pepsi sitting pretty

Last year was tough for The Coca-Cola Co. So staff in Atlanta won't be pleased to read that Pepsi has overtaken Diet Coke as the no. 2 soda brand in the US. ...

just-drinks homepage



Forgot your password?