Population growth in prime wine consuming age groups, the emerging generation who has grown up with wine consumption, the changing demographic profile of the Australian population, growth in the dining out market, increasing popularity of the Mediterranean diet, tourism growth and the quest for more individualised beverage experiences are significant opportunities exist for increasing domestic wine consumption. 1. 1. 2 Economic conditions Although a decline in the value of the Australian dollar inhibits profitability and the ability of Australian winemakers to hit key price oints, it helps to stimulate the other countries to import Australian wine because of lower price Increase in demand for wine may be attributed to the following economic factors: changing living standard, changes in the relative price of wine to other goods and services, the introduction of fringe benefits tax and the modification of sales tax to wine and other beverages. 1. 1. 3 Social and cultural trends Although nowadays, there is a strong trend away from alcohol beverages and alcohol consumption, quality table wine still be a favourite one for consumers.
The image of a man drinking wine, bottles to bottles until get drunk is no longer seen. People do not drink wine in quantity but prefer quality alcohol. Sales in cask wine decline whereas profits in bottled semi-premium or premium wine increase. The reason for this can be explained by: – Quality table wine has its own image and status, engenders high consumer involvement, provides variety, and has a range of flavour complexity. It is therefore a stronger alternative to other non-alcoholic beverages (soft drinks, bottled water, fruit drinks and coffee) than is beer or spirits. Quality wine has acknowledged health attributes. Recent research showed its effects in reducing cardio vascular disease. – People look for more spiritual meaning in their lives. They favour healthy products, healthy lifestyle and show environmental concerns. Media, advertising, transparency, and openness in marketing. Many of these trends favour the Australian wine industry. Wine will meet the future consumer’s demand for individualised, customised products which are natural, environmentally friendly and healthy. 1. 1. 4 Political and legal forces
The Australian wine industry has set a target to be the world’s most influential and profitable wine producer in the Year 2025. It is supported by government in terms of providing a positive investment climate and facilitation infrastructure. Taxation – Certainty in the retention of the current taxation level and structure for wine and brandy – Review the method for valuing trading stock, particularly the maturation of wine stocks geared to premium wine production – Maintain the current vineyard depreciation provisions – Vary other taxation provisions which inhibit growth or prejudice quality.