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Australia Wine Exports Top $2 Billion In Annual Value, Best Performance In 13 Years

November 6, 2020

Australian wine exports increased 4% to just under A$3 billion ($2.1b) in the 12 months through September, as shipments grew in value terms across each of the country’s top five markets. Volume dipped 0.4% to approximately 85.7 million cases.

Shipments to the U.S., Australia’s second-largest export market by value after mainland China, increased 1% to A$439 million ($315m) even as volume slipped 4% to 15.6 million cases. “Different markets have had different trends,” observed Wine Australia CEO Andreas Clark. “In markets such as the UK and USA, growth was primarily at the commercial/value end, while in China growth for premium wines has remained strong this year.”

The Australian wine category was up 5% to 5.1 million cases in IRI channels in the year-to-date through October 4. The top two brands both showed solid growth over that period, with Yellow Tail up 6.6% to 3.3 million cases and 19 Crimes rising 33% to 840,000 cases, according to IRI.

While Australia’s shipments to China advanced 4% to A$1.17 billion ($840m) in the 12 months through September, the category’s growth in that market is now being threatened by the possibility of new tariffs. In a statement this week, Treasury Wine Estates said it “has been advised that the China Alcoholic Drinks Association (CADA) has submitted a written request to the Chinese Ministry of Commerce (MOFCOM) that imports of Australian wine in containers of two liters or less into China be subject to retrospective tariffs.”—Daniel Marsteller

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