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AUSTRALIA: Producers warned to get big or lose out

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Industry experts have told Australia's smaller wine producers to get bigger or face getting squeezed out.

The warning comes from Finlayson the industry's leading legal firm which claims that rationalisation has resulted in the creation of a number of bigger, more globally competitive companies, according to a report by the Canberra Times.

Speaking at the annual Finlaysons wine roadshow, company partner Will Taylor said that consolidation at the retail and wholesale levels has given buyers increased purchasing power and they demand the capacity for producers to maintain profits.

Small but powerful brands, which can sell through niche distribution and the cellar door will continue to thrive he said. But he warned that once you get to a size where you really need to sell to the big boys of the industry, it would be a different story, especially if the brand is at the back in the pack.


The World Market for Wine 2001
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