Crisis in the wine business: Risk of insolvency for Austria's winemaker is increasing!

Crisis in the wine business: Risk of insolvency for Austria's winemaker is increasing!

Austria's wine industry is under pressure. Consumption is falling, and the industry has to deal with overcrowded storage rooms and an increasing number of bankruptcies. Josef Glatt, director of the winegrowing association, reported in the "Salzburger Nachrichten" that the decline in demand was not only noticeable in Austria, but also throughout Europe. The red wine sales are particularly difficult, as many consumers deviate from more traditional, heavier red wines. As a consequence, the first bankruptcy, including at the Schiefer & Domaines Kilger winery, and the A-Nobis sparkling wine cellar, which have been renowned in the past.

premium market under pressure

The market changes are dramatic. While wine exports have dropped for the first time in 2023, there was a decrease of almost five percent in the crowd, even if the value has increased slightly to 2.7 percent. Rumors about a segmented market strategy increase, with producers from Austria, Portugal and France seeing the greatest hope in the premium segment. The situation is different for the dealers in important import markets such as North America and Scandinavia, where only a small minority is interested in an exclusive premium marketing, as in mentioned.
Particular attention is also paid to the effectiveness problem of the wine industry in relation to marketing strategies. While other alcoholic beverages have higher budgets for marketing and digitization, the wine industry sees itself in a disadvantated position. Investments in profitability and professional marketing could be the key to keeping the competition in the beverage industry.