Australian wine continues to grow in export markets

Exports of bottled wine increased by 8 per cent in value to A$2.16 billion and 2 per cent in volume to 366 million litres (41 million cases). Shipments of bulk wine also grew strongly, with a 23 per cent increase in value to A$525 million and a 9 per cent increase in volume to 468 million litres, according to the latest figures released by Wine Australia today

Average value of wine exported also saw an increase of 7 per cent for bottled wine to A$5.90 per litre. Bulk wine recorded a 13 per cent increase to A$1.12 per litre and a 5 per cent increase of all wine exported to A$3.21 per litre.

This is the third year of double-digit growth on a year ended September basis’, Andreas Clark, CEO of Wine Australia, said, adding ‘These figures are the result of a lot of hard work by Australia’s 2401 wine exporters, the people who spend time in market to build their brands, distribution networks and awareness of all that Australian wine has to offer consumers.’

Australia exported 61 per cent of the total wine produced. ‘In the 12 months to 30 September, 2018, there was healthy growth across the whole of price spectrum. Exports above A$10 per litre increased by 20 per cent to $804 million, with the A$20 to $30 segment in particular, showing considerable growth. Below $10 per litre, the $5 to $7.50 segment had a growth of a commendable A$50 million’, he said. There was also a sizable growth in the expensive wines- 30% for the A$ 50-100 wines while A$100-200 wines recorded an impressive 35% growth.

Growing the Chinese and the USA markets are the key focus of the Australian Government’s A$ 50 million Export and Regional Wine Support Package which is under implementation. ‘We are seeing strong growth in China and we have redoubled our efforts in the USA to capture more of the premium end of the market as American consumers trade up to higher priced wines’, Mr Clark said.

 ‘Looking at the value and growth of exports over the past five years shows where we’ve come from. Just five years ago, Australian exports were worth only A$1.813 billion.'

Wine Australia is an Australian Commonwealth Government statutory authority, established under the Wine Australia Act 2013, and funded by grape growers and winemakers through levies and user-pays charges and the Australian Government, which provides matching funding for RD&E investments.  It supports a competitive wine sector by investing in research, development and extension (RD&E), growing domestic and international markets, protecting the reputation of Australian wine and administering the Export and Regional Wine Support Package.

For more details, please visit www.wineaustralia.com or visit their FB page WineAustralia.

One of the reasons the Oz wine market survived the global meltdown and the image created of cheap wines, was their belief in themselves, the commitment to better quality, competitive pricing thanks to the devalued Australian dollar A$1.31 = US $1- it had reached almost 1 for 1 a few years ago but has been facing continuous devaluation making it more competitive overseas.

The second reason is an active support to the wine industry by the Australian government for export, unlike in India. An A$50 million fund has been set up especially to promote wine export. In India, there is no such help-if there is, it is latent or shoddy. Without the support from the government the exports will be difficult, beyond serving the Indian Diaspora overseas. The government and industry together need to put their heads together for exports which is very important for the improvement in quality and sales-editor

Subhash Arora

Tags: Wine Australia, Andreas Clark, Export and Regional Wine Support Package, Wine Australia Act 2013, Australian wine

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