Blog: Super 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
Frank Sinatra liked a drink. He was famous for it. ...
Want to know how to make it to the top of the beverage business? According to Muhtar Kent, it's all about the networking....
A red sticker to a shopper is like a red rag to a bull. And as the masses charge at the deals, UK off licences and supermarkets are finding new and novel ways to entice the herd. ...
To celebrate its 250th anniversary, Cognac brand Hennessy is trumpeting a virtual time capsule, making a parallel between it and a barrel of Cognac....
- Rekorderlig Deal Sees Molson Coors Miss Out
- Comment - Diageo CFO to North America? Do the Math
- 5 reasons why Constellation's Meiomi buy works
- Hail Marie Brizard: But, For How Long?
- Constellation Brands basks in beer glory
- Bacardi buys Banks rum
- Diageo ditches Shui Jing Fang plans in China
- MillerCoors changes CMOs with immediate effect
- Diageo turns to W Ice in South Korea
- C&C Group chairman backs CEO amid turmoil