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22/10/2014

AGWA reports rise in Aussie wine exports

Australia has seen a small rise in its wine exports according to the latest Wine Export Approval Report September 2014, released yesterday by the Australian Grape and Wine Authority (AGWA).

In the year ended September 2014, total Australian wine exports increased by 0.7 per cent to 688 million litres while total value was steady at A$1.78 billion.

The average value of bottled wine exports also grew by 6 per cent to A$4.83 per litre, continuing six years of consistent growth and reflecting a slow but increasing demand for wines in the premium category.

In contrast, bulk wine exports fell in value by 1 per cent to A$1.00 per litre.

Bottled wine exports declined by 7 per cent to 283m litres which was offset by an increase in bulk wine exports by 7 per cent to 399m litres.

Andreas Clark, AGWA’s acting chief executive, said the premium price segments continued to be the strongest performers.

“Growing interest by consumers in premium wines was a contributing factor in wine exports in the A$7.50-$9.99 price segment increasing by 8 per cent to 15 million litres and by 6 per cent in the A$10.00 and above segment to 16.7 million litres," he said.

“Total Australian wine exports increasing in volume were helped in part by the stronger performance of the white wine category which offset declines in red wine.

“White wine exports rose by 5 per cent to 290 million litres while Pinot Gris continued to demonstrate its popularity with drinkers increasing by 32 per cent to 38 million litres while Chardonnay remained flat at 166 million litres.

“Red wine exports fell by 3 per cent to 383 million litres with Shiraz, Cabernet Sauvignon and Merlot all recording falls.”

Key figures released in the report by market are as follows:

UK and Europe

The UK remains Australia’s biggest export market by volume dominated by bulk wine exports that are destined for Europe. Total volume increased slightly by 1 per cent to 245m litres.

Just 15 per cent of wine exported to the UK is bottled, falling from 19 per cent on the previous year although the average price for bottled wine rose significantly by 13 per cent to A$4.19 per litre.

The US

The record domestic grape crush, greater consumer demand for premium wine and a weaker Australian dollar have all been contributing factors in the latest export figures for North America.

While total exports declined by 8 per cent to 164m litres, bulk wine exports and bottled wine exports both increased in value up 4 per cent to A$0.96 per litre and up 6 per cent to A$3.49 per litre respectively.

The strongest performing price segment was A$7.50-$9.99, increasing by 19 per cent to 2.8m litres followed by the A$10.00 and above segment which recorded growth of 14 per cent to 1.7m litres.

Exports under A$2.49 per litre dropped substantially, down 85 per cent to 2.4m litres. This is likely to be due in part to the weakening Australian dollar. The A$2.50-$4.99 segment increased by 5 per cent to 96m litres.

Canada

Canadian export figures have experienced growth of 20 per cent to 60m litres as a result of a significant increase in bulk wine exports. Bulk wine exports increased by 53 per cent to 29m litres with an average value of A$0.82 per litre.

Bottled wine exports remained flat at 30m litres but the average value increased marginally by 1 per cent to A$5.13 per litre.

Bottled exports below A$5.00 per litre to Canada declined by 11 per cent to 18m litres.

Asia

Chinese export figures continued to decline albeit at a slower rate with total wine exports down 5 per cent to 37m litres.

Bottled wine exports fell 4 per cent to 34m litres and bulk wine exports fell 12 per cent to 3.2m litres.

The austerity measures continue to impact the premium wine segment with the average value of bottled wine exports to China down 8 per cent to A$6.13 per litre.

Other Asian markets had strong results including Singapore, Malaysia, Taiwan and in particular Hong Kong which returned a record A$94 million in Australian wine exports.

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