FRANCE AND AUSTRALIA NECK AND NECK BY END OF THE YEAR

Published: 23 July, 2008

By Jo Burzynska

Australia and France could be neck and neck in the off-trade in value terms by the end of the year. Based on current growth rates, this was the prediction made by Chris Hipkiss, business manager at AC Nielsen, at last week's Australia Day Conference. However, it will be three years before the Australians catch up with France in volume terms. Despite predictions that Australia would overtake France in 2001, France remained ahead with a 22.5% share. However, Australia still showed itself to be in hot pursuit, with its value share rising 13% to 20.4%. Hipkiss commented that Australia could shortly win this race, due to its higher average spend per bottle, which currently stands at 4.64, compared with France's 4.08. The fastest growing countries in the UK are the more expensive ones, which proves that consumers are willing to spend more on wine,' he said. Hipkiss reported that while most wine on the UK market is sold between 3-4, Australia sold most (41%) in the 4-5 bracket. Australia experienced the highest growth in the 5-6 bracket, which grew from 9% in 1997 to 15% in 2001. The on-trade was identified by Hipkiss as presenting a huge opportunity for Australia. He thought it likely that Australia would become the second largest country in this sector. It is already the second fastest growing country in the on-trade, and is now in joint second place with Italy and Germany, with a 13% volume share. France is still way ahead with 43%, but this figure has declined from 49% in 1997. Australian wine can now be found in 43% of on-trade establishments, rising from 27% in 1997, and is particularly strong within the pub trade. However, it would appear that it still needs to make progress in restaurants and bars if it is to fulfil its promise.

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