Wine tanks

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By Dwain Duxson - An Ag Enthusiast

Wine tanks - I was talking to a wine grower last week, and he is about done with the industry. He said it’s an industry that hit its peak about 20 years ago and has been in decline since. He also said there is no way it’s going to return to the glory days.

He said the distribution of margin had been taken away from the grower/brand owner and distributed to others, which include the big retail outlets like Dan Murphy’s, but the ones who take the most margin are restaurants they like to mark up anywhere between 500 to 600 per cent. He also added that there is no loyalty to local wines in regions. I guess you can thank the big retailers for that.

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It’s an interesting scenario as I would have thought that wines share of glass, would have risen over the years and stole some of the market off beer. I guess the industry relies on the export market so much.

It’s an interesting scenario where an industry could have been pretty lucrative a decade or two ago and lost its shine as the money shifts to others in the supply chain. It has a little bit of Wool industry about it. Maybe the wine industry has to shrink to become lucrative at a grower level again. Can you see any other Agricultural industries going this way? Reply to dwaind@farmtender.com.au

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