Foster's wine sales in US dips

SALES of Australian wine have continued to slow in the US, with beverage giant Foster's experiencing declines in five of its top 10 brands.

US grocery sales data compiled by market researcher AC Nielsen showed that sales of Aussie wines fell by 3 per cent in August compared to the same month a year earlier, despite an increase of 4 per cent in US wine sales across the board.

Australian producers, who have struggled to remain competitive as the strength of the Australian dollar has increased the price for foreign consumers, continued to lose market share to winemakers from the US, Argentina, New Zealand and Chile despite a US8c fall in the value of the currency over the course of the month.

Sales of Foster's wine brands fell by 1 per cent in August, following a 1 per cent gain in the previous month and a flat result in June.

Sales of Foster's biggest brand in the US market, the California-based Beringer, were down 3 per cent, while Lindemans was down 1 per cent, Rosemount 17 per cent and Wolf Blass 8 per cent.

However, US-made Chateau St Jean was up 10 per cent, while Italian label Gabbiano posted an 8 per cent rise and Penfolds was up 5 per cent.

Meanwhile, competing Aussie export favourites Yellow Tail and Jacob's Creek reported strong growth in sales during August.

Goldman Sachs JBWere analyst Ian Abbott said he expected Foster's US dollar wine revenue to fall by 6 per cent in the current financial year, after currency movements cut $70 million from wine division earnings in 2007-08.

Foster's is reviewing the fate of its global wine division after slashing $603 million from the book value of its wine assets and sacking chief executive Trevor O'Hoy.