The premiumisation trend in the US

Income growth and the premiumisation trend

The latest Beverage Market Reflections report from Rabobank discusses the premiumisation trend in the US food and beverage market and how it has coincided with rising affluence. Rabobank believes that the premiumization trend is likely to continue but it sees increasing risk that could eventually undermine the premium segment’s growth momentum.

Announcements from two of Australia’s largest wine companies

Australian Vintage Ltd announced this week that the Brexit has negatively affected its year-on-year profit growth, due to foreign exchange loss. Prior to Brexit, the company was on track to achieve a profit growth of 10–15 per cent. Treasury Wine Estates also made an announcement this week that it is selling 12 brands in the United States that are part of its non-core Commercial wine portfolio. TWE also noted that the Brexit vote should not have a material impact on its future earnings expectations due to its European region having a relatively small share of earnings.