Australian exports are on the up, according to the latest figures from Wine Australia, with value continuing to grow.
In a statement, Wine Australia said that the value of exports had increased by 7% to A$2.89bn ($1.9bn) in the year to September 2019, with the average value of bottled exports hitting A$6.79 per litre.
“Australian wine exports to China (including Hong Kong and Macau) reached a record value of A$1.25bn, an increase of 18%, with average value increasing by 40% to A$8.42 per litre FOB,” said Andreas Clark, Wine Australia’s CEO.
While the International Monetary Fund had reduced its forecast growth rate for China’s economy to 6.1% in 2019, the potential softening of consumer demand was offset by Australia’s continued strong performance in the market.
Global Trade Atlas figures for the year ended August 2019 showed that overall wine imports declined by 11% in value, with French wine being the biggest contributor to the decline. Australia’s long-term growth trend, coupled with France’s sudden decline, has led to Australia becoming the number one source for wine by value in China’s imported market for the first time.
Overall export volumes decreased 8 per cent to 774m litres (86m 9-litre case equivalents); the climb in export value and the decline in volume meant the average value increased 16% to A$3.74 per litre, the highest level since 2008.
Efforts to improve Australia’s image in the USA have also paid off, with sales increasing by 3% to A$436mm while volumes declined by 9%.
“September and October marked the largest-ever promotion of Australian wine in the USA,” said Mr Clark. “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.”
Exports with an average value of A$10 and above increased by 20% to A$47m, the highest value since 2009.
Exports to the United Kingdom declined by 4% in value to A$365m and 2% in volume to 233m.
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.
Via press release.