UK and US still top for Aussie wine exports

The UK, US and Canada remain the top three destinations by volume for Australian wines 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).

However, the two biggest Australian wine markets recorded contrasting figures, with exports to the UK increasing by 1% to 245 million litres and exports to the US dropping by 8% to 164 million litres.

The UK remains Australia’s biggest export market by volume due to bulk wine exports due for Europe but only 15% of wine exported to the UK was in bottle, a drop of 19% on the previous year, although the average price for bottled wine rose significantly by 13% to A$4.19 (£2.3/$US3.7) per litre.

In the US, a record domestic grape crush, greater consumer demand for premium wine and a weaker Australian dollar have been contributing factors to the drop in Australian imports.

Although both bottled and bulk wine exports declined to the US, the biggest decline was in the bulk wine segment – down 10% to 57 million litres – whereas bottled wine exports declined at a slower 6 per cent to 107 million litres.

The strongest price bracket in the US was A$7.50-$9.99, increasing in volume by 19% to 2.8 million litres, followed by the A$10.00 and above segment which recorded growth of 14% to 1.7 million litres.

Exports under A$2.49 per litre dropped substantially, down 85% to 2.4 million litres, mainly due to the weakening Australian dollar as, by contrast, the A$2.50-$4.99 segment increased by 5 per cent to 96 million litres.

And Canada remains the third most important market for Australian wine exports where a surge in bulk shipments contributed to an increase in exports of 20 per cent to 60 million litres with an increase of 53% to 29 million litres with an average value of A$0.82 per litre while bottled wine exports remained flat at 30 million litres but saw a marginal increase in average value of 1% to A$5.13 per litre.

Overall, total Australian wine exports increased by 0.7% to 688 million litres while total value was steady at A$1.78 billion (£970 million/$US1.57 million).

The average value of bottled wine exports also grew by 6 per cent to A$4.83 per litre, continuing six years of consistent growth and reflecting a slow but increasing demand for wines in the premium category but, by comparison, bulk wine exports fell in value by 1% to A$1.00 per litre.

And bottled wine volumes dropped by 7% to 283 million litres but the this was offset by an overall increase of 7% to 399 million litres in bulk wine exports.

AGWA’s Acting Chief Executive Andreas Clark said: “Growing interest by consumers in premium wines was a contributing factor in wine exports in the A$7.50-$9.99 price segment increasing by 8% to 15 million litres and by 6% in the A$10.00 and above segment to 16.7 million 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 290 million litres while Pinot Gris continued to demonstrate its popularity with drinkers increasing by 32% to 38 million litres while Chardonnay remained flat at 166 million litres.

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