Fine Wines/Champagne and Spirits in Australia

PROSPECTS

Growing preference for experiential luxury benefits fine wines/champagne and spirits

Fine wines/champagne and spirits posted robust growth in retail volume and current value sales in 2019, and looks set to continue expanding at a healthy pace in both respects over the forecast period. The category is well placed to benefit from the increasing tendency of affluent consumers to spend money on sensory experiences rather than material possessions.

More companies tap into luxury gifting trend with decorative packaging options

Fine champagne registered the fastest growth in retail volume and current value sales in 2019, and is expected to remain the most dynamic performer over the forecast period. The fact that champagne is increasingly purchased as a gift for special occasions in Australia will continue to boost demand in category.

Producers expected to increase efforts to attract female consumers

As rates of employment and spending power among women in Australia rise, female consumers are becoming a more important target group for fine wines/champagne and spirits producers. Over the forecast period, it is expected producers will step up efforts to appeal to this group by introducing new products or flavour variants and more “feminine” packaging designs.

COMPETITIVE LANDSCAPE

Promotional collaborations help Moët Hennessy to reinforce its lead

Moët Hennessy maintained its commanding lead in fine wines/champagne and spirits in 2018 with a broad portfolio that covers multiple categories and offers globally renowned brands such as Moët & Chandon, Belvedere and Hennessy. In 2019, the company teamed up with iconic Australian swimwear brand Seafolly for a third time to launch the Chandon X Seafolly collection for the summer season.

Brand heritage and CSR play key roles in Pernod Ricard’s marketing strategy

Pernod Ricard remained the second leading player in fine wines/champagne and spirits in 2018. The company’s marketing strategy is heavily focused on the provenance and heritage of its brands.

LVMH acquires rosé wine producer Chateau du Galoupet

LVMH Moët Hennessy Louis Vuitton SA, the global parent company of Moët Hennessy Australia, acquired French rosé wine producer Chateau du Galoupet in May 2019. Prompted by growing international interest in rosé wine, this acquisition is notable partly because it brings rosé wine into the LVMH portfolio for the first time, but also for the fact that Chateau du Galoupet products retail at considerably lower prices than most other alcoholic drinks brands owned by the group.

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