UK supermarket chain Tesco is considering reducing its Australian wine range by up to 10% – and as perverse as this may sound, that could be good news for the Australian wine industry. That’s because a lower total percentage of the UK market may be more sustainable over decades than pushing up into the 30% plus range, antagonising the consumer (the signs are there) and dropping away as fast as the Germans and French have in the past.
Looking at it from Tesco’s point of view, why should it have four Australian chardonnays in one price bracket when two would do the job and the other two slots could go to something more interesting? It doesn’t help oversupply, we know, but it may be beneficial in the long-term. Think about it…
Read more on the Key Report website here.
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