Opportunities for Australian Wine Exports

by admin on August 11, 2011

Australian wine exports in recent years experienced a rapid growth particularly in the UK and US markets as Australian wines are increasing known worldwide for excellent quality and unique wine styles. Exports in 2005-2006 reached A$2.8 billion or the equivalent of 722 million litres, with plenty of room for growth as new markets in Asia and the Eastern European countries are opening up for Australian wine exports.

Factors for growth in export business

Abundant supply: Over 167,000 hectares all over Australia are devoted to vineyards and over 900 million litres of wine are bottled yearly. Australia regularly produces high quality varietal wines such as Shiraz, Chardonnay and Cabernet Sauvignon, at various price points that appeal to a wide market. In addition, over a hundred varieties are used to produce wine across Australia, each bearing distinctive qualities. Lower land costs, variable choices of climates and soil types contribute to the diversity of excellent wines Australia produces.

Winemaking practices: Australian winemakers constantly innovate and experiment with new production techniques to create wine styles that appeal to more people, leading to the growth of new wine drinkers.

Branding: Australian wines bear some of the strongest and well-known brands as well as interesting wine styles that integrate tradition and modern thinking.

Skills infrastructure: The wine industry is characterized by a solid network of viticulturists and winemakers, research institutions and a flexible structure that is a contrast to the rigid European viticulture.

Regulation and quality: Wine Australia (formerly the Australian Wine and Brandy Corporation) regulates the export of Australian wine and ensures that only quality wines are exported.

Export opportunities

Specific varietals such as Shiraz, Chardonnay and Cabernet Sauvignon continue to have great export opportunities while there are foreign markets for other wine varieties with price points from FOB 40-100. Wine with innovative packaging, marketing design and styles that appeal to targeted markets such as women also possess good chances of export.

Exports to USA and Canada showed the strongest growth but with the conclusion of the International Agreement between Australia and the European Community, increased exports to these countries may be expected. The Agreement accepts all Australian winemaking techniques and relaxes the requirements for labeling, blending rules, alcohol levels and the display of Australian awards.

New opportunities also exist in Russia, Eastern European countries such as Poland and Czech Republic and in Asia.

Commitment to quality, suppliers’ price points, varietals, packaging, promotion and marketing support are expected to boost Australian wine exports.

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