The average value of wine exports continued to rise, while the total Australian wine exports declined in the 12 months ended March 2014, according to a new report.
The latest Wine Export Approval Report March 2014, released by Wine Australia, found the average value of exports increased by 1 percent to A$2.59 per litre, due mainly to a 6 percent increase in the average value of bottled wine to A$4.68 per litre.
While total Australian wine exports declined by 6 percent to 677 million litres valued at A$1.75 billion, there are signs that this downward trend in volumes is turning around.
Wine Australia’s Chief Executive, Andreas Clark said that while volume was declining at the lower end, increases in volume and value at the higher end showed the industry’s efforts to create interest in Australian wines at the higher end of the market were achieving cut-through.
“While the decline in the volume of Australian wine exports to many of our major markets is a concern, it is positive to see that the average value of Australian wine exports has increased in many of our key markets,” Mr Clark said.
“And while overall volumes declined, there were more exporters who recorded a volume increase (769) compared to those that recorded a decline (580).
“There are some positive developments that show the industry’s combined efforts to create greater awareness of the quality, diversity and regionality of Australian wine were starting to produce some tangible results.”
Exports to US still strong
Bottled exports above A$5 per litre increased by 1% in volume to 66 million litres valued at A$644 million, with the average value of exports in this segment rising to a record A$9.57 per litre.
In the US, the average value of Australian exports increased by 15%, according to the report. US exports at above A$7.50 per litre segment increased by 6% to 4 million litres and the average value in this segment also grew by 6% to a record A$13.32 per litre.
In the UK, export volumes declined in line with the overall decline in UK wine consumption. However, the average value of bottled and bulk exports to the UK increased.
Exports to China declined 12% to 37 million litres valued at A$217 million.
Mr Clark said new austerity measures on Government bodies have continued to impact on the imported wine sector.
Brand building strategies
“As a result of this, we encourage Australian wine companies to work with their importers and distributors on long term, brand building strategies in China, Mr Clark said. “This will help ensure that Australian wine maintains the highest average value per litre of the eight largest imported wine countries now and into the future.”
Mr Clark said Wine Australia is continuing to work with the industry to build on the growth in average value in key markets.
This included a global program of initiatives including:
- An Australian wine promotion at ProWein 2014 in Germany in March
- The Pebble Beach Food & Wine Festival at California in April
- The Wine Australia Seminar and Grand Tasting Roadshow across China in April
- A strong presence at Vinexpo Asia-Pacific in May and
- Aussie Wine Month in May