Australian wine exports continue to grow at higher price points
Australian bottled wine exports grew across higher price points during the last financial year, along with the average value of bottled and bulk wine exports, according to the latest Wine Export Approvals Report June 2013, released by Wine Australia today.
While the shipment of higher priced wines above $7.50 per litre represents only 4 per cent of the volume of wine exports, it represents 23 per cent of the total value of wine exported. The $7.50 to $9.99 per litre segment recorded growth on a moving annual total (MAT) basis for the first time in six years, up by 2.3 per cent to 14 million litres, while the above $10 per litre segment grew 5.3 per cent to 16 million litres.
Overall the volume of Australian wine exports declined by 2.1 per cent to 698 million litres (valued at $1.82 billion), while the average value of bottled wine increased by 2 per cent to $4.50 per litre and bulk wine increased by nearly 1 per cent to $1.02 per litre.
The top five export markets by volume accounted for 80 per cent of the total volume and included the United Kingdom (246 million litres), USA (190 million litres), Canada (49 million litres), China (41 million litres) and New Zealand (32 million litres).
The number of wine exporters for the year ending 30 June 2013 increased to 1,367, up from 1,309 the previous year. Just under 60 per cent (798 exporters) of exporters recorded an increase in exports. The sector’s focus on Asia, China and Hong Kong in particular continues, with the number of exporters up by 65 to 1,042. Singapore recorded the second highest number of exporters with 280, ahead of the UK (273), Canada (253) and USA (226).
Wine Australia’s Chief Executive, Andrew Cheesman said that the growth across higher price segments was encouraging despite declines in overall wine exports.
“The growth across higher price segments suggests Australia’s continued strategy to build a stronger perception of the quality of Australian wine is achieving cut-through, but there’s still a lot of work to be done,” Mr Cheesman said.
“The growth in the above $7.50 per litre segment is significant because while this segment accounts for only 4 per cent of total volume, its value share is 23 per cent.
“This segment is important to the sustainability of the sector and is a major focus for Australian wine exporters.
“The growth in exports above $7.50 per litre was offset by declines at the lower price points, particularly at below $2.50 per litre. This has been influenced over the year by the strong Australian dollar, however, the recent depreciation of the dollar may result in some improved competitiveness by Australian producers in this segment.”
For the full Wine Australia statement download the Media Release below.