Average value of bottled wine exports hits new high

04 November, 2019 by Andy Young

Australia’s wine exports are enjoying a continued run of growth with the value of exports in the 12 months to September 2019 increasing by seven per cent to $2.89bn.

Other positive milestones include:

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  • the average value of bottled exports reach a record $6.79 per litre;
  • further growth in exports, particularly above $10 per litre free on board (FOB), to the United States of America;
  • the value of exports over $10 per litre FOB reaching the $1 billion mark for the first time
  • continued growth in exports to China;
  • encouraging growth in exports to the Netherlands, United Arab Emirates, Denmark, South Korea and Belgium.

Wine Australia Chief Executive Officer Andreas Clark said the growth in value reflected a strong underlying story with growth in all price segments above $5 per litre, with wine shipped at an average value of $10 per litre and above reaching record levels for both value and volume.

“The positive numbers also reflect that the average value of bottled wine to all but three of our top 20 destinations are in growth and nearly all the major global regions imported more Australian wine in the past year, with the exception of Europe, which declined by three per cent.

“Australian wine exports to China (including Hong Kong and Macau) reached a record value of $1.25bn, an increase of 18 per cent, with average value increasing by 40 per cent to $8.42 per litre FOB.”

Clark also said the Australian wine sector is putting a lot of effort into improving its performance in the USA.

“September and October marked the largest-ever promotion of Australian wine in the USA. The recently executed Far From Ordinary campaign included more than 100 wine exhibitors, three nights of consumer events and a six-city roadshow of trade tastings, in a marketing strategy designed to lift the perception and demand for Australian wine among American trade, consumers and media.

“As its name suggests, there was nothing typical about the Far From Ordinary campaign. Its non-traditional marketing approach was designed to spark intrigue, get people’s attention and cut through in the competitive USA market. We’ve been pleased by the positive publicity generated by the the campaign, which was partially funded by the Australian Government’s $50m Export and Regional Wine Support package,” Clark said.

Exports to the United Kingdom declined by four per cent in value to $365 million and two per cent in volume to 233 million litres (26 million nine-litre case equivalents).

The economy in the UK remains soft as a result of uncertainty around Brexit but Australia remains number one in the UK off-trade market as it has been for 20 years, with sales growing by 0.2 per cent in value to £1.2bn in the year ended June 2019.