Value of Australian wine exports up 11% despite dip in US demand

Australian wine exports increased by 11% in value to AUD 2.71 billion ($1.93 billion) and 5% in volume for the year ended 30 September, with strong growth in northeast Asia, according to new figures from Wine Australia.

Shipments of bottled wine were up by 8% in value to AUD 2.16 billion ($1.53 billion) and 2% in volume. Meanwhile, exports of unpackaged wine saw a 23% rise in value to AUD 525 million ($373 million) and a 9% increase in volume to 468 million litres.

There were also increases in the average value of wine exported, with a 7% rise for bottled wine to AUD 5.90 ($4.19) per litre and a 13% rise of unpackaged wine to AUD 1.12 ($0.8) per litre.

The positive figures come a year after the Australian government unveiled an AUD 50 million ($39.5 million) investment to promote the country’s wine exports and wine tourism offer.

Wine Australia CEO Andreas Clark said: “Today’s export figures show that there has been strong and sustainable growth over the past 12 months, delivering the third year of double-digit growth on a year ended September basis.

“These figures are the result of a lot of hard work by Australia’s 2,401 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 exports more than 60% of the wine we produce, so it’s important that we continue to build our export markets. Wine Australia is currently delivering Growing Wine Export workshops in regional Australia to help new and experienced exporters to grow their exports.”

Wine exports grew to all but one of the major destination regions. The standout growth of 24% was experienced in northeast Asia, where shipments grew to AUD 1.14 billion ($809.8 million) in value, while in North America, an AUD 16 million ($11.4 million) increase in exports to Canada only partially offset an AUD 38 million ($27 million) decline in exports to the US.

Clark added: “There is positive sentiment about Australian wine in the USA among key influencers and consumers. While consolidation at the distribution level of the three-tier system is proving to be a difficult barrier to overcome, the hard work of Australian exporters willing to get into market is starting to pay off.”

Earlier this year, Wine Australia and Australia’s National Wine and Grape Industry Centre signed an AUD 9 million ($6.6 million) agreement to develop new technologies and provide information for growers and winemakers to increase profitability and competitiveness, as well as improve environmental sustainability.