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

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?