AUS: Constellation denies cask wine exit

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Constellation Wines Australia has dismissed reports that the company is withdrawing from the cask wine business.

Constellation's (CWAU) announcement today (14 November) follows recent media reports suggesting the future of the Australian cask wine category is in question. 

A report by Citigroup Analysts said CWAU was one of two companies "strategically exiting" the market.

President of CWAU John Grant said that CWAU has no intention of withdrawing from the category, however.

"Whilst the cask wine category has been in slow decline over a number of years, it remains an important segment of the Australian wine market and is likely to enjoy a resurgence in times of economic downturn," said Grant.

"We look forward to continuing to offer our softpack wines to consumers both here and around the world for many years to come."

Grant said the overall softpack category represents around 43% of total Australian wine sales by volume and is a "significant" component of its domestic business.

"We recently introduced new tetra packaging through our convenient Banrock Station 'Ecomate' 1L range and we are continuing to offer innovation in this important category," Grant added.

"We have a firm and ongoing commitment to these products, enjoyed by loyal and discerning consumers around the world."

Sectors: Wine

Companies: Constellation Brands

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