A drawn-out price feud between Woolworths and one of the world’s largest liquor suppliers has led to supply shortages of luxury Champagnes including Dom Perignon and Moet.
The dispute has left stocks of high-end sparkling wines – which account for an estimated $300million in sales every year in Australia – running low at Woolworths-owned liquor chain Dan Murphy’s.
Supply issues are understood to have begun in February when Dan Murphy’s refused a price increase by luxury French firm LVMH.
The Paris company is behind other luxury champagne brands such as Krug and Veuve Clicquot.
A resolution to the price issue has yet to be found between the two sides and Dan Murphy’s is now struggling with dwindling supplies of LVMH’s popular brands, The Australian reported.
Included among the luxury labels no longer listed on Dan Murphy’s website are Moet, Veuve Clicquot, Cape Mentelle and Glenmorangie whisky.
Other well-known brands the chain has stopped advertising online include Chandon and the popular New Zealand wine Cloudy Bay.
Despite Dan Murphy’s being the biggest liquor outlet in Australia, LVMH has a market value of $2billion and the price disagreement has significantly impacted the chain’s supply of in-demand luxury goods.
In 2018, 8.4 million bottles of Champagne were sold in Australia alone.
Woolworths subsidiary Endeavour Drinks – which owns Dan Murphy’s – has declined to comment on the issue.
The dispute follows Arnott’s, the confectionery giant behind Tim Tam, cutting supply to Coles after the supermarket refused to agree to price rises.
Arnott’s had wanted price increases of up to ten per cent for some of its products – including TeeVee Snacks and its Scotch Finger.
Daily Mail Australia has contacted LVMH for comment.