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drinks yearbook 2011

Wine: 2011 Year in Review 90 | drinks yearbook In 2011, wine sales in Australia grew by less than two percent, which may sound unimpressive, but in a year of virtually no growth in the packaged liquor market, it’s not bad either. Don’t let the modest growth fool you; there is definitely a tale or two to tell. Bottled red and white wine posted respectable growth, whilst cask continued its three year slide. Despite the segment’s declines, suppliers and retailers can’t turn their backs on cask wine, as it still contributes to nearly 40 percent of total wine volume. So what’s driving the growth in table wine? If you guessed private label then you would have been right in the three years prior to 2011. But last year , private label wine brands seemed to plateau, with no share gains and down to low, single digit growth rates. In a year of four consecutive declines in consumer confidence and an increase in households hoarding cash, it would be reasonable to think that wine consumers would gravitate toward the $3 cleanskins. But the opposite has happened. In fact, much like other liquor categories, premiumisation is growing. W ine priced above $20 is consistently outperforming nearly all other price segments. The same phenomenon is happening in the sparkling segment, with no growth overall in 2011, but consumers continue to increase their champagne consumption as the segment enjoys double digit growth. Champagne has increased its share of the sparkling category by over 30 percent in just two years. Consumers are finding that French bubbles offer greater affordability, with the average bottle dropping $8 since 2007. W ith the Lance Song Nielsen


drinks yearbook 2011
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