In times of scarcity, a recent survey by Deloitte revealed, profitability increases with size.
While 2015 was a tough vintage for many small wineries, showing an average loss of 9 percent, bigger players – earning more than $20 million in revenue – averaged a profit of 30.5 percent.
According to industry experts, the results can be explained with a ‘larger than usual’ proportion of revenue being spent on sales and marketing, over 13 percent against 11 percent spent by bigger wineries.
Overall the industry appeared in good shape, with an estimated annual turnover of $2 billion, three quarters of which came from exports. Grape supply, exchange rates and marketing product overseas were identified as the top three issues.
SMALLER WINERIES DAMAGED BY TOUGH 2015
