Wine industry pivots to new markets amidst continuing challenges

The latest Australian and New Zealand Wine Industry Directory (WID) reveals that Australian wine producers have continued a shift toward new markets in the wake of China’s tariffs on exports.

In a year of ongoing challenges for the national wine sector – including adverse weather events, global freight disruptions, rising production costs and lower grape prices – data published in the 2023 WID shows that overall Australian wine exports were down 19 per cent in value for the last financial year, compounded by a massive 96% decline in exports to China,

However, a falling Australian dollar helped to lift exports to the United States which recorded a 9% increase in sales. While exports to the post-Brexit UK stalled, shipments to some smaller international markets (Denmark, Japan, Singapore, Thailand) improved.

As wineries reached tank capacity in 2022, last year’s vintage saw a reduced national crush, with yields adversely affected by high rainfall, hail storms and disease pressure.

This volatility within the wine industry was reflected in lower prices for wine grapes, with the average across all varieties being $640 per tonne, down from $701 in the previous year. Red varieties in particular took a severe hit while producers of white varieties experienced a slight 2% increase in their average purchase price.

Among Australia’s wine regions, the national crush continues to be dominated by the three largest inland producing areas – the Riverland, Riverina and Murray Darling – despite yields being down across them all. Among the major wine producing states, Western Australia was the only one to experience an overall increase in the size of its crush in 2022.

According to the Directory’s national producer survey, South Australia remains home to the largest number of the country’s wine producers with 31% based in the state, contributing to just over half of the national crush. Around 38% of producers surveyed nationally revealed they processed less than 50 tonnes of grapes last year. It’s the first time in recent years that smaller producers accounted for less than 40% of the total number of winemakers.

The 41st edition WID published and released by Winetitles Media, shows that Treasury Wine Estates (TWE) maintained its dominance as the largest Australian producer and exporter of branded wine, largest revenue earner and biggest producer in terms of vineyard area with more than 17,600 hectares under vine.

Major revenues were again concentrated among the top five wine companies – Treasury Wine Estates, Pernod Ricard Winemakers, Accolade Wines, Casella Family Brands and Australian Vintage.

Further details on Australia’s Top 20 ranked wine producers will be published in The Top 20 Australian Wine Companies report to be published in the April 2023 journal Australian and New Zealand Grapegrower and Winemaker, also published by Winetitles Media.

New Zealand

Across the Tasman, New Zealand’s domestic wine market fell by 14% to reach a two-decade low. However, global demand for NZ wine remained as strong as ever with the value of its exports increasing to a record high of NZ$1.953 million in 2022. The volume of exports was down by 7%, however, following 2021’s smaller-than-expected vintage. In 2022, harvest yields bounced back to record a 44% increase in the national crush.

New Zealand’s star variety, Sauvignon Blanc, recorded a record harvest last year with this almost double its annual crush. The variety now accounts for around 74% of all wine grapes produced in the country. Pinot Noir is becoming the country’s fastest growing variety with production of this up by 57% from the previous year.

Among New Zealand regions, Marlborough remains the most important, contributing 78% of the national harvest.

The Directory

The Directory has listed all Australian wine companies who commercially sell wine every year since 1983, making it an invaluable barometer of trends, personnel and the overall health of the industry.

The 2023 edition published in print and online, includes an updated comprehensive listing of wine producers, grape growers, suppliers, distributors, retailers, universities, research and education facilities, writers, wine publications, wine blogs, organisations and industry personnel.

The WID includes the Wine Industry Directory Buyers’ Guide, which is also available as an app. The benefits to users include having immediate access via a phone or tablet device to industry products and services, even when offline, plus easy navigation and hyperlinks to supplier websites.

As information evolves and new media delivery methods are developed, the Directory will continue to offer additional digital sections and information for the Australian and New Zealand industries.

Purchasers of The Directory also receive access to the WID Online, and can search listings, via Winetitles Media’s website (www.winetitles.com.au). The Directory is available from Winetitles Media for only AU$95.00 plus postage and includes a subscription to the online options.

For details, contact Winetitles Media on tel. +618 8369 9500; e-mail [email protected], or via the online bookstore at www.winetitles.com.au

Note to editors: A high resolution image of the cover of the Directory can be downloaded at www.winetitles.com.au/wid/imagebank

For more information contact Emma Millbank on +618 8369 9529 or email [email protected]

For a special 15% discount use coupon code: wid23press at the checkout.

To order your copy of the 2023 Directory now, click HERE.

 

The Australian and New Zealand Wine Industry Directory is proudly published by Winetitles Media.