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

To the morgue for Thai drink drivers

Would the thought of working in a morgue stop you from drink driving? ...

BLOG

Heineken plays 'hard' ball in US cider

You would be forgiven for thinking that the US cider boom is over. Sales growth of as much as 90% in the past few years has shrunk to double figures. ...

BLOG

PepsiCo's Johnston's new Twitter role is hard to Tweet

The drinks industry could do more to benefit from new technology. ...

BLOG

Lessons from the past in PepsiCo heir-apparent talk

The soft drinks world is abuzz today over what an executive shake-up at PepsiCo might mean to on-going speculation over CEO Indra Nooyi's successor....

just-drinks homepage



Forgot your password?