HK returns record Aus wine imports

Hong Kong has recorded record levels of Australian wine imports this year and is among a core of increasingly strong Asian markets.

Hong Kong was one of the best performing export markets in the year ending September 2014 according to the latest Wine Export Approval Report September 2014, released today by the Australian Grape and Wine Authority (AGWA).

Singapore, Malaysia and Taiwan were among the strong Asian performers with Hong Kong a standout, sales increasing 9% to 7.5 million litres worth AU$94m.

Singapore’s exports went up to AU$55.4m, Malaysia’s to AU$34.7m and Taiwan’s to AU$10.6m.

China’s export figures continued to decline but at a slower rate, down 5% to 37m litres, while the on-going austerity measures hit the premium segment; the average value of bottled wine exports to China slipping 8% to AU$6.13 per litre.

Nonetheless, as Hong Kong’s figures show, “the island may be immune from the austerity of the mainland.

“The average value of bottled shipments increased by 19% to AU$13.02 per litre. This propelled the total value of exports to a record AU$94m. A strong auction market is likely to be helping deliver these strong results.

“The average value increased due to a combination of declines in the lower priced segments and an increase in the upper segments. Bottled exports under AU$5.00 per litre declined by 14% to 2.3m litres. In contrast the AU$5.00 to AU$7.49 increased by 6% to 1.5m litres, the AU$7.50 to AU$9.99 segment increased by 67% to 1.2m litres and the above AU$10.00 segment increased by 20% to 2.2m litres.”

As the Wines of Australia report continued, the decline in China is no cause for immediate concern as, “according to Chinese customs data, most countries experienced declines in bottled wine exports in the last year except for Spain, the US and Chile.

“In the above US$10.00 per litre segment the only exceptions are New Zealand and Spain. Australia’s performance in this premium category, although down, was relatively better than that of France, our major competitor in the Chinese market (French wine is down 18 per cent to 6.9 million litres).”

Overall, Australian wine exports globally saw a small rise, the sixth year in a row growth has been registered.

In total, wine exports increased 0.7% to 688 million litres worth AU$1.7bn, with the average value of bottled wine exports rising 6% to AU$4.83 per litre and value of bulk exports falling 1% in value to AU$1 per litre.

Despite the rise in value, by volume, bottled wine exports actually declined 7% to 283m litres and bulk increased by 7% to 399m litres.

AGWA’s acting chief executive, Andreas Clark, said: “Growing interest by consumers in premium wines was a contributing factor in wine exports in the AU$7.50-$9.99 price segment increasing by 8% to 15m litres and by 6% in the AU$10.00 and above segment to 16.7m litres.

“Total Australian wine exports increasing in volume were helped in part by the stronger performance of the white wine category which offset declines in red wine.

“White wine exports rose by 5% to 290m litres while Pinot Gris continued to demonstrate its popularity with drinkers increasing by 32% to 38m litres while Chardonnay remained flat at 166m litres.

“Red wine exports fell by 3% to 383m litres with Shiraz, Cabernet Sauvignon and Merlot all recording falls.”