Australian wineries continue to grow DtC sales

A DtC Benchmarking Report just released by Wine Business Solutions has revealed that DtC sales now represent 38 per cent of revenue for Australian wineries.

The report, Taking the Direct Route 2023, compares Australian, New Zealand and South African performance with US data. According to the report, Australian wineries managed to grow DtC sales by 8% on average, as did New Zealand and South African wine businesses. This was ahead of inflation in all three markets and considerably ahead of what US wineries are currently achieving.

DtC sales now represent 38% of revenue for Australian wineries. This compares to 68% for US wineries according to Silicon Valley Bank.

For wineries producing less than 50,000 cases across Australia, New Zealand and South Africa, an average of 45% of their revenue is derived from direct sales.

The biggest growth driver of direct sales is improved visitor numbers, with some regions in the US are struggling to attract customers. Napa, however, remains strong.

Visitor numbers across Australian, New Zealand and South African were up by an average of 18% for the year to June 2023 vs 2022, with some regions reporting very strong growth.

Those interested in finding out more can access the 50 page report by clicking this link or contact [email protected] for more information.

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