Spanish wine, the danger of craft beer, Costco on the go

Less is more

Spanish wine exports in 2015 were up on 2014 by 168 million litres in volume. The average value was €1.10 ($1.61) a litre. By comparison, Australian wine exports in the same period averaged $2.78 a litre.

  • Spain volume: 2396 million litres
  • Australia volume: 744 million litres
  • Spain value: €2.64 billion ($3.86 billion)
  • Australia value: $2.1 billion

The average Spanish value is kept up via bottled wine sales to China, Japan and the UK. Spanish bottled wines accounted for 33 per cent of all Spanish wine exports in volume, and 61 per cent in value, while the bulk was only 20 per cent in value and 58 per cent of volume.

Beer craze

Last week I spent a few days in Melbourne. The amount of craft beers available is amazing. Many are good, some not, and all high priced. Last night (Tuesday, October 4) I was out to dinner in Bangalow, NSW, where the pub has a good range of craft beer.

The point I am making is that I now look for the craft brews, and have one or two before I start on wine. This takes a couple of glasses of wine out of my evening consumption. Multiply that across the year and it accounts for several bottles.

It’s not just me. Craft brewers are appearing at a rapid rate across the globe. The number of breweries in the UK has risen 8 per cent to about 1700 over the past year, according to accountancy firm UHY Hacker Young. Craft brewers are doing well and taking market share from wine. I know I’m a guilty party.

Logic?

An article in The Sydney Morning Herald on October 3 starts:

“American discount retailer Costco looks set to post record sales in Australia, as it considers setting up shop in sites once occupied by Woolworths’ failed hardware chain, Masters.”

Should this come about it’s ironic that Woolworths would be offloading sites that will become competition for their grocery division. One would think the Aldi onslaught and Coles revamp would be enough to contend with.

Costco has had a hard time in Australia, but has battled through and now has eight sites, with an estimated turnover in excess of $1.3 billion.

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