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Overview
Australia’s exports in wine have grown at an extraordinary rate in recent years. Australia is the market leader in the UK and stands at second place in the US. In 1990 exports totalled A$10 million and in 2005-06 had reached a staggering A$2.8 billion with 722 million litres leaving its shores. (Statistics: Australian Wine & Brandy Corporation [AWBC] export approval database).
On a national scale, Australia has about 2000 wine companies and the sector employs around 31,000 people. There are 167,000 hectares under vine and the total grape crush in 2006 was 1.85 million tonnes.
Australia’s export and wine success has been due to a number of reasons including:
Good supply factor – Australia is able to consistently deliver quality and value. It has developed excellent varietal choice at all given price points. For example, Shiraz, Chardonnay and Cabernet Sauvignon may represent around 60 per cent of the grapes used, but there are around 140 others varieties grown and produced into wine. Australian wine also has a competitive advantage because of its natural resources and environment. Lower land costs, a large choice of climates and terroir offering genuine regional diversity spread across 62 regions, have all contributed to the expansion of exporting.
Flexible winemaking practices – have allowed winemakers leeway to experiment and try new things. This has encouraged the development of fruit forward approachable and affordable wine styles which have been instrumental in the growth of new wine drinkers.
Brand – The Australian wine industry has been able create strong identifiable brands. With few restrictions on grape variety, yield or region Australia has become known for creating interesting wines and combining tradition with new thinking.
Skills infrastructure – Australia has a strong infrastructure of viticulturists and winemakers, research institutions and an industry structure which is free from the regulatory rigidity found in European viticulture. There is also genuine unity in the Australian wine sector and close working relationships with related industries such as food and tourism.
Regulation and integrity – importantly, the industry regulates through the AWBC wine exports ensuring only quality wine is exported.
What are the key opportunities?
Export opportunities in the wine sector include:
- The most popular varietals such as Shiraz, Chardonnay, Cabernet Sauvignon blends.
- Australian varietals and styles produced in hot and cool climate regions.
- Wine with price points from FOB40 – 100. There are only niche opportunities for wine with price points of FOB100+.
- Wine with innovative packaging, marketing and styles developed for particular market segments such as women.
Where are the key opportunities?
The strongest export growth is in the mature markets of the USA and Canada. Niche export opportunities are also available in emerging markets such as Russia, Eastern Europe such as Poland and Czech Republic and Asia such as Singapore, South Korea and China. The size of these opportunities is dependent on suppliers’ price points, varietals, packaging, promotion and marketing support.
The top three markets by value are:
- UK - A$962 million
- US - A$887 million
- Canada - A$251 million
Please see the list of industry country profiles for the wine industry at the end of this overview.
How can we help you?
With a network of over 140 overseas locations in more than 60 countries backed by highly experienced and qualified staff, Austrade provides a number of dedicated and tailored services to Australian exporters.
Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au.
Useful contacts
Government contacts
Australian Wine & Brandy Corporation – www.awbc.com.au
NSW Department of State & Regional Development – www.business.nsw.gov.au
Queensland Government – www.sd.qld.gov.au
SA State Government – www.sa.gov.au
Victorian State Government – www.business.vic.gov.au
Western Australia Government – www.doir.wa.gov.au
General industry contacts
Australian Wine Research Institute – www.awri.gov.au
The Grape and Wine Research and Development Corporation – www.gwrdc.com.au
Winemakers Federation of Australia – www.wfa.gov.au
Last updated: 24 Jul 2008
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