AUSTRALIAN winemakers are redoubling their efforts in the United States with the major market the only sore point in a year when the rest of Australia’s wine exports grew in value by 20 per cent.
In the 12 months to June, Australia wine exports grew in value to $2.76 billion, with the average value at its highest point since 2009 – up 9pc to $3.24 a litre.
Wine Australia chief executive officer Andreas Clark welcomed the strong growth in the value and volume of Australian wine exports, but said Wine Australia’s export report for 2017-18 made the challenges and opportunities for the sector clear.
“Of our five largest markets, only one market – the US – didn’t grow in value last year,” he said.
“Importantly, the US 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.
“Australia has been very strong in the commercial half of the US market, but this market is shrinking.
“As American consumers transition from commercial wines to more premium wines, Australia has to be there to capture the opportunity.”
Mr Clark said growth at the premium end in the US wine market was “robust” – as were all exports in price points above $10 a litre – and they were working to accelerate this growth through a marketing push supported by the Australian government’s $50 million export and regional wine support package.
This includes the launch of the inaugural Australia Decanted event in California.
“This four-day wine education program is immersing 100 key influencers from the US 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,” he said.
“Australia Decanted will become Wine Australia’s signature annual event in the US and will be followed by Aussie Wine Week in September this year and Aussie Wine Month in September 2019.”
Last year, North America was the only major region to decline in value, dropping 4pc to $624m, with most of that in the US.
But there were positive figures with the European market up 7pc to $608m, Southeast Asia up 3pc to $168m, Oceania up 15pc to $99m and the Middle East up 39pc to $30m.
Nearly all regions Australia exports wine to increased in value in the past 12 months, with Northeast Asia having the standout performance, growing by 51pc to $1.2b.
The top five markets by value in 2017-18 were China, which makes up 40pc of export value, the US, United Kingdom, Canada and New Zealand.
Assistant Agriculture and Water Resources Minister Anne Ruston said the positive results were a win for winemakers and regional Australia.
“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.
