Published on 25/11/2016 by Punchmedia

Cheap Wine and a 5 Year Growth

The liquor arm of supermarket group Coles is set to accelerate the number of private label wine brands it stocks after a $5 house brand wine beat a field of 10,000 rivals to win an important industry award. The win by the group's private label Big & Bold Shiraz 2015 under the James Busby banner is expected to add extra grunt to the private label push across the four retail brands operated by Coles in the liquor sector. The Big and Bold Shiraz was made for Coles by McPherson Wines which operates at Mildura and at Nagambie in Victoria. It was judged the best wine under $20 across Australia and New Zealand by Winestate magazine, which had an expert judging panel doing blind tastings of 10,000 wines. The result further compounds the steady growth of the liquor retail business in recent times with the industry expected to experience increased growth of 3.1% in 2015-16, as rising discretionary income and increasing demand for premium industry products supports growth. Industry revenue is expected to increase by an annualised 3.3% over the five years through 2015-16, to reach $10.0 billion. Wine consumption has been rising steadily for most of the past decade. This growth has been largely driven by the increasing sophistication of consumer tastes and the sharp decline in the price of wine relative to other alcoholic beverages. There has been a major change in wine offerings from liquor retailers over the past five years, with consumers increasingly demanding varieties other than the traditional Australian-grown grapes such as cabernet sauvignon and chardonnay. Demand has been growing for imported New Zealand sauvignon blanc, and alternative varieties such as sangiovese, tempranillo and pinot gris from New World wine producers. This increasing demand for international diversity is expected to have boosted the profitability of the wine segment over the past five years.

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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