Saturday, January 06, 2007

Constellation's Sales Drop in Europe

European sales by US mega drinks group Constellation have tumbled this year - the group which owns nearly 300 wine brands including names such as Hardy's, Mondavi, Ravenswood and Banrock Station say that it is largely the UK market, for which Australian brands are a significant portion that has been hit. This has been laid at the door of the Australian grape glut forcing prices lower meaning retailers are making more own brand wines, less expensively which are then directly competing with some of the groups largest selling UK brands such as Hardy's (sales down 16%).
Personally I think that these brands doing less well is a good thing - I'm quite fed up with shopping in a Supermarket and looking at the US/Australian section and seeing massive swathes of Gallo/Blossom Hill/ Hardy's/ Rosemount type brands and often nothing more interesting at all. Occasionally it is possible to find something - but largely the brand it king.

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