Answered! Explain and analyze the wine distribution system in Australia.(500 words)…

Explain and analyze the wine distribution system in Australia.(500 words)

Expert Answer

Each nation has its own national system of wine distribution that is influenced by a series of cultural, institutional and legal frameworks determining how wine and related products are sold and distributed within the country. For instance, in countries like Sweden, Finland and Canada, wine is sold through state monopolies to the public while in US markets, intermediaries are mandated. In Australia, wine sale through supermarkets is prohibited, unlike New Zealand where 65% of the wine is sold through supermarkets. Wine distribution system in any country is also affected by the range of media that influences production and consumption of wine in the country. For instance, in USA, Robert Parker, a wine critic and journalist influences the wine buying behaviours in the country where his recommendations can solely be the reason for the success of failure of a winery. Whereas, in Australia, no individual journalist or celebrity holds that kind of power.

Australia has a two tier wine distribution system (unlike US which has a 3 tier system, including the intermediaries which are not the part of the system in Australia). In Australia, parallel importing of wine is illegal, and the country has around 14ooo on-premise and around 9000 off-premise licensed wine retailers. With over 40,000 non-traditional licensed distribution venues like clubs, cafes and restaurants, etc. the country enjoys an easy access of wine products and a wide distribution network.

Australia has an independent incorporated supplier association, WISA (Wine Industry Suppliers Australia Inc.) for the Australian wine industry, which was formed in 2000, to support the member organizations in a variety of ways. It offers the supplier members recognition for business excellence in improved competitiveness and capabilities, promotion for meeting all the potential buyers through exhibitions like the WISA’s national exhibition and Winetech and international shows like the Vinitech, SIMEI, STIEVI, Vineexpo,the Unified Wine and Grape Symposium, etc.. It also offers education to the member companies through commercially focused seminars and networking events, and the Wine Innovation Networking and Education (WINE) online portal also offers the members an insight about the latest industry practices and trends. The partners and sponsors of WINE also offer the members financial benefits and aids.

The major wine importers and wine companies in Australia are the Echelon Wine Partners who are known for their modern portfolio which expresses its origins, the World Wine Estates who have been one of the prime wine importers and distributors in the country who specialise in imported wines and especially French wines, Elite Wine Importers who are a small family run business that began in 1994 to fulfil the need for Portuguese liquor in the country for customers of Portuguese decent in Australia, Living wines who are an Australian wine importers famous for their organic, biodynamic and natural wines portfolio importing their wine form small European producers, Eurocentric Wine Imports who import wine from Europe, New Zealand and South Africa, Grand Millesime Wine who are specialist importers of premium fine French wine, Barrique Fine Wine imports who particularly take pride in their Burgundy that they ship directly to their client’s offices, homes, restaurants and bars in climate-controlled storage, etc. other players include names like Andrew Guard Wine Imports, Vintage and Wine, Corkscrew Cellars, Enoteca Sydney, Negociants Australia, and Four Seasons Fine Wines.

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