Industry Analysis & Industry Trends
Difficult trading conditions have plagued the Wine Production industry over the past five years. Volatile demand from key export markets, a high Australian dollar for much of the period and rising competition from low-cost overseas wine producers have all hurt wine exports. In the domestic market, producers have been forced to contend with changing consumer preferences, and have lost bargaining power to retailers. Additionally, an oversupply of wine grapes – and the resulting oversupply of wine – has pushed prices downwards.
Wine producers use grapes and other inputs to craft a range of alcoholic beverages... purchase to read more
Industry Report - Industry Key Buyers Chapter
The four largest Australian wine producers collectively account for an estimated 39.3% of industry revenue in 2015-16. This represents a low level of market share concentration. Industry concentration was highest following the acquisition of Southcorp by Foster's Group (now Treasury Wine Estates) during the early 2000s. However, concentration in the industry has changed as major producers have purchased and then divested certain production facilities. Larger industry players are also expected to be the hardest hit due to the oversupply of grapes. Over the past five years, market share concentration has decreased as major players fall in size and cider makers and other alcoholic beverage makers enter the industry... purchase to read more