British Columbians are turning away from Australian wine and contributing to increasing troubles at a winery conglomerate Down Under.
British Columbia Liquor Distribution Branch (BCLDB) statistics show that Australian wine sales in the province have dropped every year since 2008.
British Columbians spent $91.8 million on Australian wine in the fiscal year that ended March 31, 2013. That's more than 30% less than the 2007-08 fiscal year.
In contrast, B.C. wine drinkers have shifted their spending toward wines from Australia's neighbour, New Zealand, each year since 2008. The $27.9 million that B.C. wine consumers spent on Kiwi wine this past fiscal year was 123% more than in the fiscal year that ended March 2008.
North American consumer disaffection with Australian wine was in the spotlight last week when one of the world's largest wine conglomerates, Treasury Wine Estates (ASE:TWE), reported an earnings warning – largely because of slow sales in North America.
Treasury has more than 50 brands including Lindemans, Penfolds and Wolf Blass.
The wine conglomerate said it would ship less wine to North America in the future and it revealed a surprise AUD$160 million write-off due to overestimating North American demand.
Treasury was formerly known as Fosters Wine Estates, a Fosters Group subsidiary that had its Canadian head office in Vancouver for a few years until it moved that office to Toronto in 2009.
Fosters shareholders agreed to split the company's business into separate brewing and wine companies in early 2011. Treasury Wine Estates then became a public company in May 2011.
Treasury's website now lists only one office in North America, in Napa, California.
