Australian wine exports growing at fastest rate in 15 years, China sales pass $1billion

OVERSEAS drinkers seeking better quality wines have propelled Australian exports at their fastest rate in 15 years and sales to China have surged past the $1 billion mark, new industry figures show.

AUSTRALIAN wine exports are growing at their fastest rate in 15 years as overseas drinkers seek out more expensive drops.

And sales to China have surged past the $1 billion mark, new industry figures show.

But local winemakers are losing ground in the US — the world’s biggest wine market — and will refocus their efforts on raising awareness around higher-end Australian tipples.

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Overseas sales of wine surged 20 per cent to $2.76 billion during the year to June, according to figures released on Tuesday by government body Wine Australia.

China has further cemented its status as the nation’s single-biggest customer and now accounts for 40 per cent of all exports.

Sales to China surged 55 per cent last financial year, rising from $848 million to a new ­record of $1.12 billion. By value, exports to China — the world’s second-biggest economy — have surged 150 per cent in the past two years.

Australia also exported a record volume of wine the past financial year, at 852 million litres. That is the equivalent of 95 million 12-bottle cases.

The sector also received the best prices for its products since 2009, with demand for premium product among drinkers in China lifting the average value of exports 9 per cent to $3.24 a litre.

Wine Australia chief Andrea Clark said while the strong growth in the value and volume of exports was welcome, the focus would now be on improving sales in the US. “Of our five largest markets, only one market — the USA — didn’t grow in value last year,” Ms Clark said.

Overseas sales of Australian wine are surging in a boon for exporters such as the All Saints and St Leonards wineries, led by chief executive Eliza Brown, near Rutherglen in Victoria’s north.

The value of exports to the US fell 8 per cent to $424 million in the year to June, with the volume of Australian wine sold to America decreasing by 11 per cent.

The US market remains the nation’s second-biggest export destination by value.

Britain is Australia’s largest market by volume, followed by China and the US. Ms Clark said Australian winemakers had experienced a lot of success at the cheaper end of the US market but were beginning to lose ground as US drinkers sought out more expensive drops.

“The USA is the world’s largest wine market and Australia has the opportunity to capture more of the premium end of the market as American consumers trade up to higher-priced wines,” she said.

“As American consumers transition from commercial wines to more premium wines, Australia has to be there to capture the opportunity.”

Wine Australia, supported by Federal Government funding, has launched a campaign targeting key US “influencers” to challenge and change perceptions around Aussie wine.

A four-day invitation-only event, bringing together Australian winemakers and 100 US industry figures, kicked off on Sunday at Lake Tahoe, in the Sierra Nevada Mountains.

Some 61 per cent of wine made in Australia is exported with 21.8 million glasses of local plonk consumed overseas every year.