said the company aimed to expand in the champagne and sparkling wine category where it was under-represented. It had the option of using innovation, but that could take 10 to 15 years to pay off through building a brand from the ground up.Mr Ford told a Macquarie Australia conference that any acquisition would be likely to involve a brand specific to one country which had the potential to be expanded into other markets.
The company has made a Penfolds champagne in France with the Thienot family, and wants to tap into the strong growth forecast for that category.Mr Ford said the luxury wine category, which he defined as above $30 per bottle, and premium, priced between $10 to $30 per bottle, would be resilient to any economic downturn. This was because consumers were “buying better” and drinking higher quality wines in a premiumisation shift that had been under way for several years.
Official figures showed wine exports from Australia had tumbled by 26 per cent to $2.05 billion in the 12 months ended March 31, as the full extent of the hefty tariffson Australian wine washed through. Exports to China, Hong Kong and Macau for the 12 months tumbled by 79 per cent to $214 million.
Never thought I'd say this, but the Penfolds whites have leaped ahead. The reds are mostly over-oaked and candy bombs.