BRITS PUTTING WINE ON THE BACKBURNER

Britain is starting to see declines in wine sales, which comes at a bad time for Australian exporters already suffering from the glut. One of the most important wine markets in the world has come to a sudden halt – down 1.5% from 2005 - after rising steadily since the 1980s. A combination of rising fuel costs and growing consumer debt is reportedly to blame, along with low on-premise sales due to smoking bans and an aging society. This could mean bad news for U.S. and Aussie winemakers who have a huge presence in that market.

And although wine consumption is still relatively high, wine producers are currently spending less on marketing due to heavy supermarket discounts and reduced inventories, a trend that is also hurting imports. Many individuals have continued to import their wine into the UK, banking on the idea that it’s a growing market even if profits are currently slim. If British drinkers don’t soon rediscover their love for New World wines, it could get dangerous.