Aussie wine exports to the UK rise, catching up to US sales

Australian wine export value has risen by 4 per cent in the last 12 months. But which countries are taking the lead?

Drink up: Australian wines are enjoying a surge in appeal in the UK.

A SURGE in wine exports to the UK has helped push Australia’s total global sales revenue to nearly $3 billion for the 12 months to September 30.

The latest Wine Australia figures show the value of exports to the UK rose by 18 per cent to $430 million, edging it closer to Australia’s second most valuable buying nation, the US, on $439 million.

China is Australia’s biggest buyer of wine, buying $1.26 billion for the 12 months to the end of September, a rise of 1 per cent from the previous corresponding period.

In terms of volume, the UK took the most nine-litre cases of the 117 countries Australia exports to: 28.4 million, an increase of 10 per cent from the previous corresponding period.

That is well ahead of the US on 15.6 million cases and China on 14.4 million.

All up, Australian global wine exports rose 4 per cent in value to $2.998 billion, while volume fell by 0.4 per cent to 771 million litres.

Wine Australia chief executive Andreas Clark said the rise in exports to the UK was due to two factors.

The first was Britain’s transition to Brexit and the second related to consumer sales channels.

Mr Clark said importers were stockpiling Australian wine in the lead-up to Brexit as a hedge against potential and unforeseen disruptions to the market.

The issue of consumer sales channels related to the coronavirus pandemic and closure of restaurants and bars.

“People purchase wine through multiple channels, either through restaurants, bars or retail (liquor outlets),” Mr Clark said.

“Retail is where Australia has been No. 1 in the UK for more than 20 years.

“If people are only able to buy wine through retail (outlets), that plays to our strength.”

Wine Australia said the value of exports to the UK was the highest since 2011.

About 85 per cent of the 256 million litres was shipped as unpackaged wine before being bottled in the UK.

Some wine is then transported to other European markets.

The European market accounted for the most significant growth in terms of value, rising 16 per cent to $678 million and overtaking the US for the first time since 2011.

China remained the dominant buyer of premium wine from Australia, taking 67 per cent of the top wine value category, greater than $10 a litre.

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