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AUSTRALIA: Producers told to focus on premium to crack German market

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Australian wineries should resist volume temptation and concentrate on premium products and prices as they try to expand export to Germany, according to Alexander Margaritoff, chief executive of Hawesko Holdings AG, Germany’s biggest premium wine importer.

On a tour of Australian wine regions he told local journalists: “There’s a big temptation for Australian wine to go into supermarkets and into the cheap end. If you establish yourself as a producer of cheap wine it’s difficult to get into the other segments. The reputation of Australian wine should be based on premium products.”

Margaritoff’s comments were timely. The Australian industry is increasingly concerned that although exports continue to boom, volume and growth are almost confined to five English speaking markets, the UK, the US, Canada, Ireland and New Zealand, accounting for almost 84% of volume and value. Germany, just 2% of the market, is seen as a prime target.


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