Are supermarket own label wines under threat?
Supermarket private wine labels have been prospering while there has been an over supply of grapes by buying up cheap grapes and undercutting producers who try and hold onto margins. But, according to Australian Treasury Wine Estate's CEO David Dearie, this current cycle of wine over supply is nearing its end and he says the wine business goes through 15 or 20 year cycles.
Under supply means an increase in grape prices and less bulk wine, reducing the supermarkets' ability to source grapes and make own label wine. So Dearie predicts authentic wine brands will move back to the forefront of retail, as we move into a new business cycle.