Wine Industry Statistics

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Australian Wine Exports

WINE EXPORTS

According to the December 2007 Wine Export Approval Report (WEAR) from the Australian Wine and Brandy Corporation, in 2007 value growth outstripped volume growth as Australian wine exports broke the $3 billion barrier for the first time mid-year. The volume of wine exported reached 785ML, up 3% from 759.5ML in December 2006, while the average price grew 3% over the year to reach A$3.83 per litre (See Table).

Although the incremental volume growth of 26ML was the smallest since 1997, the incremental value growth of $178m was the largest since 2004. It is the first time the average price per litre has increased on a calendar basis since 2002.

The AWBC attributes the growth in average price per litre to an increase in the share of relatively higher-priced bottled wine in the export mix, which rose 4%. Bottled wine shipments accounted for all volume growth during the year, up 10% to 580ML with reds leading the way, up 12% to 371ML. White bottled wine grew 4%, or 8ML to 190ML and sparkling grew 19%, or 3ML, to 17ML. Shipments of bulk wine declined 9% or 18ML to 195ML in 2007. The average price of bulk wine, however, increased by 4% to $1.09 per litre (See Table).

Despite the demand for bottled wine a combination of market competition and unfavourable exchange rates placed downward pressure on the bottled unit values with a 1% decline in average price to $4.77 per litre.

The United Kingdom remains Australia’s number one export market by volume and value. Volume grew 9% to 290ML and value grew 6% to $985m. In the United States the appreciation of the Australian dollar contributed to a decline in shipments. Volume declined 7% to 204ML, driven by a sharp 57% fall in bulk wine shipments. Value declined 2% to $917m. An increased share of higher-priced bottled wine shipments in the export mix resulted in a 7% increase in average price to $4.49 per litre.

2007 was a year of significant growth for wine exports to the Netherlands where volumes almost doubled, led by 95% growth in bottled wine shipments and 83% growth in bulk shipments. Value in this market grew 77% to $82m, although the average price declined to $2.88 per litre. Other strongly performing markets were Ireland, Germany, Denmark, Belgium and Finland.

The ABS reports exports of Australian brandy fell to 8,000 litres.

The 2008 Wine Industry Directory lists 1,165 wine producers that export wine—more than half of all producers. Two companies, Foster’s Group and Hardy Wine Company, account for 49% of all exports by volume, while the top 20 exporters account for an estimated 91% (See Table). The remaining 1,145 exporters compete for 9% of the exports by volume. The largest wine exporters by value are ranked in (See Table).

According to data supplied to the Directory, the companies at the top of the export tree continued to grow volumes of exports shipped, however, a significant number of companies making up the mid-large tier (beneath the top four), showed reductions in the volumes of wine shipped to export markets. This may reflect the large companies using up excess wine from previous vintages to fill export markets.

McWilliam’s Wines completed the purchase of Western Australian-based Evans & Tate at the end of 2007, outside of the reporting period for the Directory. This acquisition will see McWilliam’s move up the list of producers in comparative rankings. De Bortoli Wines is another success story. This producer was ranked 14th in exports of branded wines by volume in the 2003 Directory, and has moved up in five years, to sit in 6th position in 2008.

In export value terms, Nugan Estate backed up its growth reported in the 2007 Directory, moving up another three places in the rankings to 13th. Cumulus Wines was a noted mover, coming into the top 20 for the first time.

Looking towards the future, in the medium term, ABARE’s Strategic Global Directions and Australian Outlook to 2010-11 report forecasts exports of Australian wine to reach 1.29 billion litres with a value of $4.32 billion by 2010-11. Up to 2008-09, unit values of exports are forecast to continue to fall but beyond this, tightening of both domestic and international supplies for some varieties is forecast to give rise to a modest increase in the average export price.