Future of Autralian wine cask in doubt

IT rose to prominence in the 1970s and spawned countless nicknames - now the future of cask wine is in question.

The alcoholic product otherwise known as the "goon bag" or "chateau cardboard" is at a crucial junction where the options seem to be adapt or perish.

A report by Citi Investment Research shows its share of the wine market fell from 60 per cent to 40 per cent in the past decade.

Screw cap bottles, cheaper bottled wines, low financial returns and threats of new taxes are all putting its future in doubt.

"Bag in a box" wine was first marketed to Australian consumers in the late 1960s and became popular in the following decade because it was cheap and had a long shelf life.

But sales have been flat since the mid 1980s and in 2005, it lost its lead over bottled wine.

Foster's Group - which produces Penfolds, Lindemans and Rosemount in cask form - is one company identified in the report as making a strategic exit.

The company's spokesman Troy Hey said in Australia cask wine was labelled "low level" wine and no longer profitable.

Mr Hey said there was a shift towards bottled wine, with people generally buying slightly less and slightly better quality.