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 brutal truth behind India's temperance movement

Some people in India believe alcohol should be more difficult to purchase. Last month, the state of Bihar halted all alcohol sales as its chief minister made good on an election promise. ...

BLOG

How to test Heineken's sense of humour

Greetings from Zurich. Here as a guest of Heineken's Amstel brand, I'm due to sit down later today with the group's senior global director for international brands, Walter Drenth....

BLOG

Which spirits category is the next big thing?

Drinks companies spend a lot of money on trying to predict trends. At last night's Worshipful Company of Distillers City debate, any strategists in the audience got a bit of forecasting for free....

BLOG

Aperol Spritz - Just the one. A large one?

I'll admit to being partial to an Aperol Spritz now and again, more usually in the summer months, sitting outside, shades on, slowly turning more golden/rusty....

just-drinks homepage



Forgot your password?