Username:    Password:
Thanks for stopping by...
Ripe Taste and Explosive Flavours












Expresses Mataro at the Highest Level












Brilliant Parker Winemaking
























What The Market Says
Is There A Connection Between Three Seemingly Different Trends?
Thursday, 13th August, 2009  - David Farmer

Three strong movements have shaped the wine world over the last decade - or at least the English speaking part of it. And this may have had unforeseen consequences.

In the alcohol category there has been a strong move to wine drinking in the UK, the US and Canada and while Australia moved to high consumption of wine earlier than these countries it continues to grow slowly.

As well there has been an accelerating movement to buy wine from supermarkets. This is particularly so in the UK, NZ and Australia but is underway in the US. Differences in laws that control the distribution and selling of alcohol such as exist in Canada, Australia and the US stop this from being an uninterrupted movement. Even in the US though giants like Costco sell an enormous amount of premium wine.

In the UK the nine big supermarket retailers now sell over 82% of off-license wine; the figure in Australia is over 50% and growing rapidly. What this simply means is that high street wine stores, as they are called in the UK, have no relevance and are closing. In Australia many suburban stores were purchased by Coles and Woolworths and the future for those that are left is not healthy, though they are propped up by the restrictive licensing laws of the States.

I'm not well enough versed in trends in Europe but similar supermarket growth I believe has happened in Germany, Belgium-Holland and to a lesser extent France.

The third strong trend has been the acceptance of new world wines such as those from Australia, New Zealand, Chile, South Africa and Argentine by the English speaking countries. In some older European countries (e.g. France) consumption is of course declining just as they are facing vigorous competition in export markets from new world wines.

Is there then a connection between growing wine consumption, acceptance of new world wines and growing wine sales in supermarkets? It does seem suspicious and I believe there is a link between new world wine sales and supermarkets while supermarkets possibly have contributed to the growth of wine sales against beer and spirits.

The move to drinking wine in Australia happened before supermarkets took a strong interest in selling liquor though since the mid 1990's they have increasingly focused on wine as a category they wish to control. In the UK and the US the link may be stronger as the pronounced rise in consumption may be partly due to enthusiastic promotion of wine in the UK by the big groups like Tesco, Marks and Spencer and Waitrose; the US market though is so complicated that many factors are at play.

The supermarket liquor buyers have a different mindset to the traditional wine merchant buyer. They are not wedded to 'old ways'. If the price is right and an attractive wine can be delivered in volume when wanted they will listen. They responded to the new world pitch and saw the value being offered as being good for their customers. Any advantage it gave them over rival supermarket chains was an additional bonus. If their customers had not purchased the wines it would have been a different story-but they did. Put simply, they saw promoting new world wines as giving them an advantage.

Equally important was that supermarkets made purchasing wine easier and simpler; after all how many people ask for wine advice or even want it. Supermarkets seemed to simplify a scary topic. 'Old' wine producing countries are responding to the supermarket challenge but the wine world has changed forever: there will be no return to how it was and this is good for consumers. Waves of new wine drinkers will see to that. As well the buying power has shifted and the new buyers do not respect tradition and they are not about to cede their new power. The consequences of this we will discuss another time.

2
0
1
4
2
0
1
3
2
0
1
2
2
0
1
1
2
0
1
0
2
0
0
9
2
0
0
8
2
0
0
7
2
0
0
6
2
0
0
5
2
0
0
4
WHAT THE MARKET SAYS ARCHIVE 2014
The Story of Penfolds Wine Storage Cabinets and Old Fashioned Discounting

Friday, 5th September 2014

Coles Liquor Shows Signs of Life

Friday, 1st August, 2014

The Dog Days of Being an Independent Retailer

Monday, 24th March, 2014

Crumbling Brand Access Fees for New Zealand Sauvignon Blanc

Monday, 17th March, 2014

Matua and Real New Zealand Being Made in Australia

Thursday, 27th February, 2014

The 2014 Release of the Penfolds Bins

Thursday, 20th February, 2014

Matua Marlborough and Vintrepreneur

Friday, 31st January, 2014

WHAT THE MARKET SAYS ARCHIVE 2013
Service and Shopping Experience versus The Deal

Thursday, 23rd May, 2013

Personal Experiences with Mataro in Australia

Friday, 22nd March, 2013

It's Mataro - Not Mourvèdre

Friday, 15th March, 2013

New Moves Selling Wine Online

Friday, 8th March, 2013

The U.S. Oil Industry, Bordeaux and Australian Fine Wine

Monday, 11th February, 2013

WHAT THE MARKET SAYS ARCHIVE 2012
Wine and Innovation Fashions Fads and Targeting Consumers Types

Tuesday, 11th December, 2012

The Liquor Wars - Matt Skinner Appears

Monday, 19th November, 2012

A Black Swan Event Hits the West

Wednesday, 31st October, 2012

Queen Adelaide Becomes No Name Girl

Thursday, 28th June, 2012

The Seven Teachings of Harry Brown 1918-1999

Friday, 15th June, 2012

When Does an Escort become a High Class Escort

Tuesday, 29th May, 2012

Multi-Nationals Looking for Desirable Brands

Thursday, 3rd May, 2012

WHAT THE MARKET SAYS ARCHIVE 2011
Extending the Sauvignon Blanc Brand

Sunday, 18th December, 2011

Coles Continues the War on Liquor Prices - Woolworths is Bored

Sunday, 20th November, 2011

Liquor Price War Declared

Sunday, 20th November, 2011

The Liquor Wars - Woolworths is Killing Coles

Tuesday, 8th November, 2011

The Brand Access Fee and Wines Labelled AC/DC

Tuesday, 16th August, 2011

The Good Taste of UK Consumers

Tuesday, 16th August, 2011

Wolf Blass Eaglehawk at $4.99

Tuesday, 12th July, 2011

The Battle for the Penfolds Dollar

Monday, 21st March, 2011

Woolworths and Coles Like the Taste of New Zealand Savee

Monday, 14th March, 2011

Putting the Bling Back in Champagne

Monday, 21st February, 2011

Real Wine Drinkers Discussing Favourites

Monday, 21st February, 2011

WHAT THE MARKET SAYS ARCHIVE 2010
Keeping Up with the Big Retailers

Friday, 11th June 2010

It's 2010 Not 2000

Friday, 28th May, 2010

Grange Spin from Peter Gago

Friday, 21st May, 2010

What are Wines Worth and Pointing Wines

Friday, 26th February, 2010

Killing the Champagne Brand

Tuesday, 9th February, 2010

Champagnes - the New Leaders at Harrods

Friday, 5th February, 2010

Two Co-Branded Yalumba Wines

Wednesday, 27th January, 2010

WHAT THE MARKET SAYS ARCHIVE 2009
Are High Priced Wines Worth the Money?

Thursday, 8th October, 2009

The Strange Case of Wolf Blass Verae

Thursday, 24th September, 2009

Is There A Connection Between Three Seemingly Different Trends?

Thursday, 13th August, 2009

Tintara - An Exclusive Wine for Dan Murphy

Saturday, 1st August, 2009

The Fresh Food People Strike Again

Saturday, 11th July, 2009

We All Love a Wine Bargain

Monday, 6th April, 2008

The Strange World of Liquor Retailing in 2009

Tuesday, 10th March, 2008

WHAT THE MARKET SAYS ARCHIVE 2008
Awash In a Sea of Savee

Monday, 28th November, 2008

53 Million Cases to Many

Wednesday, 19th November, 2008

More on Grays On-Line

Wednesday, 19th November, 2008

The Origin of the Fosters Multi Beverage Strategy

Sunday, 9th November, 2008

Bargains or Not on Grays Online

Sunday, 19th October, 2008

Is It The End of Nine Glorious Years?

Monday, 13th October, 2008

Will Virtual Wine Companies Work?

Sunday, 31st August, 2008

A Story about Mixing Wine and Beer

Sunday, 17th August, 2008

The Changing Tastes of Wine Drinkers

Sunday, 17th August, 2008

The Really Bad News About Sliding Exports

Wednesday, 13th August, 2008

Wine Facts, Trends, Fads and Hope

Tuesday, 20th May, 2008

The Steady Decline of Tier One Wine Companies

Friday, 9th May, 2008

Is It All Too Hard at Fosters?

Sunday, 24th February, 2008

Who Would Have Thought of This!

Tuesday, 19th February, 2008

Thank Goodness for Aldi

Monday, 11th February, 2008

WHAT THE MARKET SAYS ARCHIVE 2007
A Pleasant Day Online at Grays Auctions

Friday, 3rd August, 2007

Wine Prices, Point Scores and Retailing

Thursday, 2nd August, 2007

A Useful Marketing Lesson

Thursday, 26th July, 2007

The Dan Murphy View of Cleanskins

Tuesday, 17th July, 2007

Wine Slabs for Queen Adelaide

Tuesday, 10th July, 2007

Cheers I Hope You Enjoy the Blue Nun

Monday, 14th May, 2007

Sauvignon Blanc Sweeps All Before It

Saturday, 12th May, 2007

They Do Things Differently in Tasmania

Friday, 11th May, 2007

New Zealand Grab the Number One Spot

Sunday, 6th May, 2007

Woolworths Keeps Hammering Away

Tuesday, 24th April, 2007

The Liquor Retailer Who Forgot How to Retail - Coles Liquorland

Sunday, 22nd April, 2007

Conversations with a Sydney Liquor Merchant

Thursday, 12th April, 2007

Woolworths Charges Ahead

Sunday, 8th April, 2007

Do You Recall Recommended Retail Prices?

Sunday, 8th April, 2007

Cleanskin Shopping at Dan Murphy

Friday, 30th March, 2007

Fosters - the Incredible Shrinking Wine Company

Tuesday, 27th March, 2007

Please, Please We Need More Competition

Monday, 19th March, 2007

The Slow Death of a Great Brand - Penfolds

Thursday, 15th March, 2007

What Do Fosters and Coles Have in Common?

Tuesday, 8th March, 2007

News on the 2007 Vintage

Tuesday, 6th March, 2007

Dan Strikes Again

Friday, 23rd February, 2007

Liquorland - The Future of Retailing

Tuesday, 30th January, 2006

WHAT THE MARKET SAYS ARCHIVE 2006
Australia's Top 100 Wines

Thursday, 7th December, 2006

The Return of the Price Fighting Vortex

Sunday, 3rd December, 2006

Ah! To Make a Wine with Aspirational Status

Tuesday, 28th November, 2006

The Unusual Marketing at Brown Bros

Tuesday, 7th November, 2006

English Speakers Embrace Wine

Tuesday, 17th October, 2006

What Comes After Barossa Pearl and Ben Ean?

Monday, 18th September, 2006

High Alcohols and Bad Press About Australian Wine

Thursday, 14th September, 2006

Crown Lager Crashes the Wine Weekend

Tuesday, 29th August, 2006

Rosemount Slides Away

Wednesday, 23rd August, 2006

Wiping Your Hands and Ducking for Cover

Tuesday, 15th August, 2006

Talking with English Wine Merchant, Noel Young

Friday, 11th August, 2006

The Sky Darkens for Roséphobes

Wednesday, 9th August, 2006

Doing Hand Stands at the Dorchester

Tuesday, 1st August, 2006

How Does $5000 a Bottle Sound for Ch. Petrus 2005

Tuesday, 25th July, 2006

We Did It Because We Could

Monday, 24th July, 2006

Wine Prices and Millionaires

Thursday, 22nd June, 2006

Why Are Cleanskins So Popular?

Friday, 26th May, 2006

Rosé Raises Its Ugly Head

Wednesday, 24th May, 2006

The Release of the 2001 Grange and Old Memories

Thursday, 11th May, 2006

A Retailer With a Sense of Humour

Monday, 17th April, 2006

What About the Steak Knives?

Monday, 10th April, 2006

Little Penguin Joins Yellow Tail in Top Ten

Friday, 7th April, 2006

Grange Over Priced Says Auctioneer

Tuesday, 21st March, 2006

White Drinkers Move Up While Clean Skins Take Red Drinkers Down

Wednesday, 8th March, 2006

Woolies Keeps Growing While Coles Plays Catch Up

Wednesday, 8th March, 2006

Gobbledegook from Coles

Tuesday, 21st February, 2006

Great Vintages Growing on Trees

Tuesday, 31st January, 2006

An Insight Into Clean Skins

Tuesday, 31st January, 2006

WHAT THE MARKET SAYS ARCHIVE 2005
Retail Concentration Continues

Friday, 16th December, 2005

Big Box Number Seven

Thursday, 15th December, 2005

Fine Wine Price Slump Predicted

Sunday, 9th December, 2005

BEATEN!

Tuesday, 6th December, 2005

'Two for' and '20% Off for Six' - Retailers Follow the Changing Leader

Wednesday, 30th November, 2005

Coles Performs Predictably Poorly

Friday, 11th November, 2005

The Chasm Between Woolworths Liquor and Coles Liquor Will Create Problems

Thursday, 3rd November, 2005

And the Strong Get Stronger

Thursday, 27th October, 2005

And No Wonder - The $2.99 Wine Bottle is Back

Thursday, 27th October, 2005

The Clean Skin Surge Continues

Thursday, 27th October, 2005

Could it be True - Rosé is Rising?

Thursday, 13th October, 2005

Bargain Priced, Well Made French Wines

Monday, 22nd August, 2005

A Taste of Cleanskins from Dan Murphy

Thursday, 18th August, 2005

Winestate Recomends Orlando Jacobs Creek Reserve Shiraz

Wednesday, 17th August, 2005

The Price Vortex Gathers Speed

Wednesday, 3rd August, 2005 [Sydney]

Woolworths Quietly Rebadge First Estate to BWS

Saturday, 30th July, 2005

Itís All Happening at the Dee Why Hotel, the Northern Beaches, Sydney

Sunday, 24th July, 2005

Some Thoughts for Ms. Lucas - Liquor Retailing in Australia

Sunday, 24th July, 2005

The Price Fighting Varietals and the Spiralling Price Vortex

Sunday, 24th July, 2005

What Does the Tussle Between Woolworths and ColesMyer in Liquor Mean For Wine Consumers?

Thursday, 16th June, 2005

Wynns Cabernet for $16.99 and Thoughts on Clean Skins

Friday, 13th May, 2005

High End Wines Catch a Cold

Saturday, 16th April, 2005

The Release of the Penfolds 2002 Bin Reds plus a Great Riesling

Monday, 28th February, 2005

A Good Cheap French Champagne

Friday, 28th January, 2005

WHAT THE MARKET SAYS ARCHIVE 2004
One of the Best Buys in Red

Wednesday, 21st November, 2004

The Good Times Are With Us

Wednesday, 17th November, 2004

Glug visits the Adelaide Wine Show

Friday, 8th October, 2004

Shopping at Liquorland

Friday, 1 October, 2004

A Great Kiwi, A Great Italian And More 2002 Reds

Wednesday, 29th September, 2004

The Barossa Wine Show, September, 2004

Monday, 25th September, 2004

A Quick Trip to Dan Murphy's

Friday, 24th September, 2004



©2016 Glug  |  Contact Us  |  Privacy Policy  |   RSS Feed
Liquor Licensing Act 1997: It is an offence to sell or supply liquor to a person under the age of 18 years, or to obtain liquor on behalf of a person under the age of 18 years.
All transactions in $AUD. This web site is operated by Glug Management Company Pty Ltd ABN: 64 116 647 780 Licence No: 51401128