Australia’s wine industry is in crisis mode. But some makers are rising above it
Exclusive: Australian winemakers are facing a generational downturn in sales, with once-famous vineyards shutting down and an alcohol giant pulling out of winery ownership almost entirely.
But one family-owned business is finding a way to survive and flourish.
The big, bold red was once the Australian drink of choice - but not anymore. iStock
Local wine production has slumped to a 25-year low of 1.27 million tonnes – the smallest vintage since 2000, according to Wine Australia’s National Vintage Report 2026.
The decline represents 33 million fewer cases of wine, a sobering snapshot of how growers and winemakers are struggling to find their place in the changing market.
Bold reds were once the crème de la crème of Australia’s internationally recognised wine. It seems sparkling and prosecco is now reigning supreme instead.
Family-owned wine company Brown Brothers has been operating for 137 years and has avoided becoming collateral damage in our fading love affair with wine.
Fourth-generation winemaker Katherine Brown told nine.com.au that her family company has survived over a century of industry changes because of its willingness to “listen”.
Fourth-generation Brown Brothers winemaker Katherine Brown. Brown Brothers
“Part of the family legacy has always been about understanding the consumer, and actually listening to what the consumer wants rather than turning around saying, ‘Well, I like riesling, I’m going to make riesling, and that’s the way it is.’,” Brown said.
“We’ve always come into our winemaking with very open minds.”
Brown identified flavoured moscato as one of Brown Brothers’ top-selling products.
The winemakers have played around with different flavour profiles and, as Brown explained, are not afraid to get it wrong.
“We’ve seen some of the most amazing so-called experiments turn into some of the most amazing products,” she said.
“We keep trying to be like at forefront of the next wave of what people are drinking.”
But what about if people simply aren’t drinking alcohol?
A report released by Vypr’s Australian Consumer Horizon report found that one in two Australians have consciously taken a break from drinking in the past 12 months, and another 42 per cent are planning to cut back.
Chief winemaker Joel Tilbrook said the company is finding success in the tough Chinese market. Brown Brothers
Chief winemaker Joel Tilbrook said the company is aware of the “tough climate”, exacerbated by a trend towards sobriety and zero alcohol products.
“Recruiting a younger drinker into the wine category has been an area of wine where there’s been some challenge,” Tilbrook said.
“We’re seeing a different result to many out there, but it’s not an easy path either.”
Tilbrook described the zero alcohol category as one Brown Brothers is keeping a close eye on.
“It’s not just the younger demographic; it’s not Gen Zs... we’re also seeing more and more from the Boomer generation that aren’t drinking for medical reasons or maybe lifestyle reasons,” Brown added.
Australian wine exports declined by eight per cent in value to $2.34 billion in 2025, a downward trend driven by fading interest from the Chinese market.
Brown Brothers, however, nearly doubled its export between 2025 and 2026, and is having success in China with its sparkling varieties.
“Moscato is doing a lot of the heavy lifting,” Tilbrook said.
“We’re getting some really exciting growth in the UK, Canada, and China.”
The company is famed for its sparkling varieties, notably prosecco and moscato. Brown Brothers
Keeping the cellar door open
Vineyards and cellar doors are closing around the country.
Heartland Wines, a red wine producer located in Norwood in Adelaide’s east, collapsed into voluntary administration this month with debts totalling $3.6 million.
Endeavour Group will close more than half of its wineries in NSW, Victoria and South Australia in a “strategic transformation” of its wine business, slashing its winery assets from seven to just three.
Brown said their cellar door in Milawa, Victoria remains a key part of the Brown Brothers business.
She understands that wineries are not the “moneymaker” for big wine producers, but they serve an important purpose.
“You can turn around and say, ‘Look, it’s not money-making money for us. Get rid of it’,” Brown said.
“We understand that people come and visit us, and they become ‘brand loyal’ for life.
“We give them memories to take away with them, and something like that, in terms of recruiting and keeping customers, is really where we hold the value.”
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