AUS: Wine industry over a barrel
AUS: Wine industry over a barrel
Feb 14, 2012 6
(Smartcompany) - After 20 years of prosperity, the Australian wine manufacturing industry is in crisis. Since the mid-2000s, the industry has been hit by a perfect storm of demand and supply-side shocks.
Exports have been hurt by recession in key export markets, a soaring Australian dollar (which has made wine exports uncompetitive) and rising competition from new low-cost wine producers. At the same time, a total loss of market power to the dominant supermarket giants, changing consumer preferences and a vast oversupply of wine and wine grapes, have forced down prices, squeezed margins and forced many producers out of business.
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