Premium boosts Aussie wine exports, but volumes flat

The growth of premium bottled wine sales in China and North America helped boost the value of exports from Australia, but sales were down in the UK and Europe.

Wine exports from Australia climbed 11% in value in the 12 months to June 2016 to $2.11bn, according to new figures from Wine Australia, driven by strong demand in China and North America – but sales in Europe fell 1% to $574m.

The Wine Australia’s Export Report said the boost came largely on the back of a growth in bottled wine, which rose 15% to $1.7m, and higher priced wines, with the price per litre hitting a 12 year high at $5.35 per Litre. There was also a boost to bottle wines priced over $10, with the $30-49.99 bracket seeing the biggest growth.

However volume sales remained relatively flat at 0.5% or 728m Litres, it said.

Although the UK remained Australian largest market by volume, because over 80% of wine is shipped in bulk, value sales were flat at $369m – making it only Australia’s third biggest market by value.

The USA retained its top spot as Australia’s biggest wine market by valued, with exports up 8% $449 million, but it was growth in China that was most notable, rising 50% to $419m, as the country’s middle classes increasingly embraced wine.

Wine Australia CEO Andreas Clark noted this boost to more premium wines, above $10 which grew 26% of its total exports, and said it was pleasing that demand for Australian fine wine had continued to grow across its five top markets. This was particularly evident in North America and Asia, he added.

“Our finest wines contributed to almost half of the total value growth in the last 12 months, with exports priced at $10 FOB and over per litre up 26% to a record $499 million,” he said. “This growth contributed an additional $102 million to the value of Australia’s wine exports.”

Exports priced $10 FOB and over grew 16% in the USA 71% in mainland China by 71% and Hong Kong by 5%. 15% in the UK, and 12% in Canada.