Daily Wine News

««« return to Daily Wine News index


Wine image tarnished

Oversupply was a worldwide phenomenon, he told the annual Australian Winegrape Conference in Mildura. Australia could no longer rely on being good value for money in the popular premium categories in its major markets, Britain and the United States. "Our competitors are catching up on quality at the everyday price level and we have got to graduate consumers around the world to higher priced Australia wines," he said. The industry had to work together and with its retail partners throughout the world to "open consumer's eyes to the right diversity of our regional wines", he said. He questioned whether the discounting and emphasis on popular premium wines was playing into the hands of Australia's French competitors who had accused Australia of being "industrial wine" producers. O'Dell said that 89% of Australian wines in the US sold for between $6 and $8 a bottle compared with 22% of US-produced wine. But the US market was looking increasingly healthy with strongest growth in the $15 and above category where Australian wines held less than 0.5% of the category. In Britain, Australia was taking market share from France but was losing share to New Zealand, California and Chile. The conference was given a warning about the domestic market. Cleanskin wines would pose a major challenge within the next two to three years as supplies diminished, Michael Walton, AC Nielson ScanTrack Liquor director, said. Walton said that promotion of cleanskins was eroding value. "Are we expecting our consumers to magically trade up back from $8 to $16 when we've told them for the last two to three years they should not be buying $16 wines but should be paying $8?" he asked. Despite volume growth of 4.2% in wine during the past 12 months, marginal price compression and, more significantly trading down by consumers, resulted in total value growing by only 1.7%. Walton said that while the total volume of cleanskins being sold was not yet known, each stand-alone liquor store or store attached to a hotel was selling an average of 11.8 nine-litre cases of cleanskins a week — the equivalent of a trailer load.

Seeley International


New Holland



WID 2017