Australian wine brands are doing better than ever: Wine industry analyst

Australian wine producers have been outperforming their competitors for years, but it’s about to get a lot more competitive, as the sector prepares for a wave of new entrants. 

The wine industry has been hit hard by the global financial crisis and global economic downturn, with many wine brands having suffered financial losses. 

A lot of this has been down to the fact that consumers have become more accustomed to wine over the last couple of decades. 

But a new trend has emerged in recent years: Australian wines are becoming more expensive than in many other parts of the world, especially China. 

“That’s really driven by a shift from a more affordable consumer base,” wine analyst Andrew Niehaus said.

“People are really interested in more expensive wines because they’re getting better quality.”

Niehaus was speaking to the ABC after speaking to several of the big wineries about their plans for the coming year.

“They’re really trying to get ahead of the curve on the costs of making a wine,” he said.

The average price of a wine in Australia has fallen over the past decade from $1,000 to $1.50 a bottle.

But the price of Australian wines has continued to rise, particularly in the wine category, which is increasingly popular with younger Australians. 

For the past three years, Australian wine prices have increased at a rate of about 10 per cent a year.

But a recent study by the Australian Wine Institute found that prices are still higher than many other countries.

“In the U.S., for example, a barrel of white wine costs about $150 and in Europe, it costs about £110,” Mr Niehus said.

Mr Nieaus said that while the price increases were a “small price to pay for quality” they were a result of the changing market.

“There’s always a risk of inflationary pressures, but in general, we’ve seen a gradual decline in inflation over the years,” he added.

“The question for wine producers is do they have enough cash in the bank to maintain prices in the short term?”

It’s a question that’s likely to be a pressing one for a number of Australian wineries. 

They have been grappling with the costs associated with a shift in consumers away from the luxury brands and towards the less expensive brands.

“A lot will depend on the quality of the wines and the price you’re willing to pay,” Mr Yager said.

Australian wine producers say they’re not expecting to lose much money in the coming years.

“I’m not expecting any big downturns in the next two or three years,” Mr Young said.

He said that in the past, it was harder for wineries to survive in a market that was increasingly saturated.

“When it was cheaper, you would have to be careful,” he explained.

“You would have a lot of the smaller, more local brands going to die.”

Topics:wine,wine-industry,wine,industry-and-finance,australiaFirst posted October 12, 2019 17:31:04Contact Sarah DuttonMore stories from New South Wales

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