India gearing up to replace China for Australian wine exports

The governments of India and Australia are reportedly in talks regarding a free trade deal, which would boost Aussie wine exports to India.

In light of the ongoing trade dispute with China, Australian winemakers are not content to wait for new consumers to come knocking on their door. Developing new markets – and consolidating existing ones – is the top priority.

“We see huge potential for the Australian wine category in India,” Brett McKinnon, chief operations officer, Pernod Ricard Winemakers, told the drinks business. “While it is only small currently, wine consumption is certainly on the upswing there, with growth of 3.7% CAGR between 2016 and 2020, according to IWSR.”

The respective governments of both nations have reportedly discussed signing a free trade agreement that would dramatically widen access to the Indian market for Australian wines, though nothing is finalised at this stage.

It may go some way to soothing the fall-out of the UK’s proposed reform to the alcohol-duty system, which producers argue will increase costs and wipe out the benefits of the UK/Australia trade deal signed in December 2021.

However, Australia may have some housekeeping to do first, as research shows there is a sizeable disconnect between how its wines are perceived domestically, compared with how they are recognised internationally.

“We have had many discussions with our Aussie winemakers, and what stands out is how different their domestic market is to their export market,” says Stuart McCloskey, owner of The Vinorium, a major UK importer and retailer of Australian wines. “Fresh, light, natural, skin-contact and European varietals seem to be the key buzz words on the Australian wine scene. However,  our export and sales figures paint a very different story, which concerns me greatly.”

Producers and stakeholders are concerned that the critical mass of global consumers remain aloof to the diversity of Australian wines, which include cool-climate Pinot Noir, Clare Valley Riesling and traditional-method sparkling wines. Most international consumers are largely concerned with “the big three” – Chardonnay, Shiraz and Cabernet Sauvignon, from the country.

 

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