Wine in Australia cheaper than bottled water?

We at Ideal Wine Company were shocked recently to learn that some wine in Australia is cheaper than bottled water on the shelves of some big retailers.

How much do you need to pay for some Australian wines?

The BBC reported that a “little-known bottle of red” can go for as little as one Australian Dollar (or 53p).

Professor Kym Anderson, of the Wine Economics Research Centre in Adelaide said “Whatever you fancy, if you compare your purchase to an average 350m of water going for about A$2.50, then you’ve certainly got wine that’s cheaper than buying a bottle of water.”

The situation according to some experts is quite dire. However, this isn’t by any means the first time wine in Australia has been sold at such prices.

What are the causes of this fall in price?

A number of factors have conspired in recent times to lower the price of wine Down Under.

A glut of products in the domestic markets, a drop in international demand and exchange rates have all played their part to ensure that much locally produced Australian wine is – in certain instances – cheaper than water.

Another factor keeping the price on wine low is the country’s tax on alcohol which varies according to the product. In addition to this, a duopoly between two big supermarkets, Woolworths and Coles – who between them control more than 70% of all retail wine sales – plays its part.

Final thoughts…

Ultimately, the incredibly low price of a number of Australian wine seems to be acceptable to certain growers whilst also being good news for Australian wine drinkers who are looking to buy a bottle for under $10.

Whilst we deal exclusively with luxury drinks from around the world, we Ideal Wine Company sell some much sought-after wines from Australia at a reasonable price.


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