Australia Wine Exports Top $2 Billion In Annual Value, Best Performance In 13 YearsNovember 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 MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.