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Australian Wine Falls Further In U.S.

July 20, 2015

Australian vintners are toasting a general upturn in exports, but the category continues to struggle in the U.S. market. According to trade group Wine Australia, the country’s wine shipments to the U.S. fell 8% to A$415 million ($306m) in the 12 months through June, with bottled exports declining at all price points. The slide was mitigated only slightly by a 4% uptick in bulk shipments, to A$53 million ($39m). According to Nielsen, the Australia category in the U.S. was down 7% to 12.5 million cases in the 52 weeks through June 20, while IRI shows the segment declining 3% to 3.1 million cases in 2015 year-to-date.

According to Impact Databank, Australia’s total wine exports to the U.S. fell by 9% to 18 million cases in calendar 2014. As recently as 2010, the category was only 2.5 million cases behind U.S. import segment leader Italy, but by last year the gap had widened to more than 9 million cases. Australia is now only about 1.3 million cases larger than third-ranked Chile in the U.S. imported wine market. Five states—California, New York, Florida, Texas and New Jersey—account for two-thirds of Aussie wine’s U.S. export value.

The U.S. remains Australian wine’s top export market by value, ahead of the U.K., which decreased 1.5% to A$369 million ($272m) over the past 12 months. Overall, however, Australia’s wine exports posted a healthy 5% rise to A$1.9 billion ($1.4b), led by China and Hong Kong, whose combined shipments surged by around 30% to more than A$390 million ($288m).

 

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