Australian drops are expected to drive growth in wine sales in the coming years, with generic labels and imports tapering off after years of dominance.
Generic labels and foreign imports – including New Zealand's ubiquitous sav blanc – have been front runners in Australia's wine industry for years, but market researcher Nielsen told the Newcastle Herald Australian wines are expected to take the lion's share of sales growth over the next three years.
Nielsen is predicting that Australian branded wines will account for 70 percent of the $400 million sales growth to 2015 and this will represent the best opportunity in a decade to thrive.
Sales growth for Australian wines will be driven by consumers' increasing preference for premium bottled wine over cask wines, which five years ago represented 60 percent of wine sold off the shelf. This figure is now down to 50 percent, according to Nielsen.
Foreign imports and generic labels are both expected to run out of puff with people expected to move towards family-owned brands, thanks to their thirst for premium wines.
Nielsen's findings come after Rabobank released its quarterly wine report for the three months to October this year. The report found that the global over-supply of wine from 2004 to 2010, which caused prices to plummet, is set to end this year.
It also found that low wine grape harvests in Europe will send prices upwards and Australian producers – who in some areas are expected to generate good yields in 2013 – will have the opportunity to make up for this shortfall. Read more here.