MPs call for probe into supermarkets' private-label wines
Last week a report from the House agriculture committee raised concerns about the dominance of private-label wines and the impact on competition.
Chaired by Tasmanian MP Dick Adams, the committee pointed to the topic as part of a wider inquiry into the operations of industry body Wine Australia.
Wine Australia chief operating officer Andreas Clark told the committee: "I think the producer would argue that it is a challenging market for them ... trying to get their product into the market with heavy dominance by the two major retailers, and their preparedness to invest heavily in their own brands, which compete on the shelves with the traditional brands, as we call them."
"So, the producers will say they are getting squeezed, and then that follows down the chain."
Private-label wines have been a bugbear for the wine industry. Many wines sourced by Coles or Woolworths receive pride of place on their shelves. To consumers they look like traditional brands and some have scored wine awards.
Last year, Ross Brown, the former boss of Brown Brothers winery, criticised Coles and Woolworths for flooding stores with private-label wines that he said were "hollow", "copycats" and "masquerading as real brands".
Later he said, "in fact they are just a label, which has none of these values that traditional family wine companies bring to the market and really give the aspiration and values to what quality wine is all about".
Mr Adams said evidence needed to be gathered to clarify whether private-label wines were displacing wines from traditional winemakers. But he stopped short of saying he would ask the competition regulator to investigate.
He said he hoped the next Parliament would inquire further.
Australian Competition and Consumer Commission head Rod Sims in February referred to the threat posed by private-label foods, saying he would investigate the supermarkets for potential breaches of the law and bullying tactics against grocery suppliers.
An allegation raised consistently with the ACCC by suppliers was conduct discriminating in favour of house-brand products by the chains, Mr Sims said.
Woolworths has argued that only about 4 per cent of wines it stocks are private label while Coles said its proportion of own-brand wines had remained stable, with consumers deciding what they wanted.
Frequently Asked Questions about this Article…
A House agriculture committee chaired by Tasmanian MP Dick Adams has called for an investigation into whether supermarkets Coles and Woolworths are stocking large volumes of private‑label wines that could be squeezing out traditional winemakers, as part of a wider inquiry into the operations of Wine Australia.
Wine Australia’s chief operating officer Andreas Clark told the committee producers find it challenging to get products into a market dominated by the two major retailers, which are prepared to invest heavily in their own brands that compete on supermarket shelves with traditional brands—producers say they are being squeezed down the chain.
Former Brown Brothers boss Ross Brown has criticised Coles and Woolworths for flooding stores with private‑label wines he described as “hollow,” “copycats” and “masquerading as real brands,” saying many are effectively just a label without the values of traditional family wine companies.
ACCC head Rod Sims has highlighted the threat posed by private‑label foods and said he would investigate supermarkets for potential breaches of the law and bullying tactics against grocery suppliers; suppliers have consistently alleged conduct discriminating in favour of house‑brand products.
Woolworths has argued that only about 4% of the wines it stocks are private label, and Coles says its proportion of own‑brand wines has remained stable, noting that consumers ultimately decide what they want to buy.
The committee said evidence needs to be gathered to clarify whether private‑label wines are displacing wines from traditional winemakers; Dick Adams indicated more inquiry is needed but stopped short of immediately asking the competition regulator to investigate.
Everyday investors should watch for further parliamentary inquiries, any ACCC investigations or findings, and industry evidence about market share shifts—these developments could affect the competitive position and market access of traditional wine producers.
No formal regulatory enforcement was announced in the article; the committee called for evidence gathering, Rod Sims said the ACCC would investigate concerns about private‑label foods and supplier bullying, and the issue may be further examined by the next Parliament.
Call 1300 880 160
Start a chat
Schedule a call
