By Annette Shailer
Constellation Wines Australia (CWAU) has repudiated a report by Citigroup analysts that claimed it is exiting the cask wine business.’
The report suggested CWAU was one of two companies exiting the category because of a fall in the cask wine market share from 60 per cent to 40 per cent over the past decade.
CWAU president John Grant confirmed the company had no intention of withdrawing from the category.
“The overall softpack category represents around 43 per cent of total Australian wine sales by volume and is a significant component of our domestic business,” he said.
“We have a firm and ongoing commitment to these products, enjoyed by loyal and discerning consumers around the world.”
CWAU has spoken to the author of the Citigroup report, who in light of CWAU’s assertions confirmed the statement regarding CWAU’s strategic withdrawal from the cask wine category was inaccurate, according to CWAU.
“Whilst the cask wine category has been in slow decline over a number of years, it remains an important segment of the Australian wine market and is likely to enjoy a resurgence in times of economic down-turn,” Grant said.