After 20% growth in the value of Australian wine exports to $2.76 billion — the highest rate of growth in 15 years — and the average value of wine growing by nine per cent to $3.24 per litre (its highest value since 2009), the Australian grape and wine community is redoubling its efforts in the USA market.

Wine Australia CEO Andreas Clark said the strong growth in the value and volume of Australian wine exports is very welcome, but Wine Australia’s Export Report for the year ended 30 June 2018 makes the challenges and opportunities for the sector very clear.

“Of our five largest markets, only one market — the USA — didn’t grow in value last year.

“Importantly, the USA is the world’s largest wine market and Australia has the opportunity to capture more of the premium end of the market as American consumers trade up to higher priced wines,” Clark said.

Australia has been very strong in the commercial half of the USA market, with 54% of the US off-trade wines under US$8 per bottle, however the market is decreasing.

Clark said Australia has to capture the opportunity, as American consumers shift from commercial wines to more premium.

“The premium end of the USA wine market is enjoying robust growth, as are Australian exports in nearly all price points above $10 per litre (albeit off small bases) and we’re working to accelerate this growth in demand through a marketing push supported by the Australian Government’s $50 million Export and Regional Wine Support Package.

Senator Anne Ruston said wine regions across Australia are benefitting from these export opportunities.

“The fact that both value and volumes of wine exports are growing, with values growing at twice the rate of volumes, shows that our international customers value our quality wines,” she said.

“From grapegrowers to winemakers there has never been so much support from an Australian Government with the Coalition’s $50 million Export and Regional Wine Support Package really starting to pay dividends,” she added.

Clark said the recent launch of the inaugural Australia Decanted at Lake Tahoe, California will create more export opportunities through consumer education in the USA.

“This four-day wine education program is immersing 100 key influencers from the USA in Australia’s diverse and thriving wine scene to raise awareness of the breadth of Australia’s fine wine offering and the perception of the Australian wine category in the USA.

“Australia Decanted will become Wine Australia’s signature annual event in the USA and will be followed by Aussie Wine Week in September this year and Aussie Wine Month in September 2019,” Clark concluded.

Wine Australia Export Report highlights for the 12 months ending 30 June 2018

• The highest export value growth rate in 15 years: the value of Australian wine exports grew by 20 per cent to $2.76 billion.
• Record export volume: volume grew by 10 per cent to a record 852 million litres, or 95 million 9 litre case equivalents.
• Highest average value since 2009: the average value of exported wine increased by 9 per cent to $3.24 per litre.
• Record average value of bottled wine: the value increased by 19 per cent to $2.2 billion, the volume increased by 8 per cent to 376 million litres (around 42 million 9 litre case equivalents) and the average value of bottled exports reached a record $5.94 per litre.
• Record value and volume of exports in bulk containers: value increased by 22 per cent to $504 million, volume increased by 11 per cent to 467 million litres (or about 52 million 9 litre cases) and the average value of bulk exports increased by 10 per cent to $1.08 per litre.
• The increase in average value of bottled exports was shared by 69 of the 127 destinations for Australian wine, with demand for premium Australian wine in Northeast Asia being the biggest contributor to value and volume growth.
• The growth in exports was driven by a 15 per cent increase in active exporters compared to the previous 12 months, with 2298 exporters shipping 23,761 unique products. Of these exporters, 1616 either started exporting or grew the value of their exports, contributing $653 million to the growth in overall export value.