NEWS
AUSSIE WINE CHINA EXPORT HIT AUD1.3B, CONTINUES TO BEAT FRANCE
By Siulan Law Mathews DipWSET
7-2-2020
Source: Wine Australia
Australia has consolidated its position as China’s top source of imported wines ahead of France in 2019, wine exports to China (including Hong Kong and Macau) increased by 12 percent in value to AUD1.3 billion (USD0.86b), according to latest figures released by Wine Australia.
However, the trade declined by 17 percent in volume to 142 million litres, indicating more high valued wines were exported to the region in the period.
Given that the impact of the new coronavirus is yet to be reflected, coupled with lower than expected exports to the United States and Canada, export performance in 2020 is under pressure.
“Looking ahead into 2020, we anticipate that coronavirus will have an impact on sales, particularly to China, but at this stage, it is difficult to predict the degree of that impact,” said Andreas Clark , CEO of Wine Australia.
“Our first concern is people’s well-being in China and elsewhere and there will be time down the track to consider other impacts,” he added.
Total value of Australian wine exports grew by 3 percent to AUD2.91b last year, despite a 12 percent fall in total volume to 744 million litres.
Clark said that they had focused on growing exports at higher price points and the results reflected the success of that strategy.
Performance in North America is sluggish despite that Wine Australia spent AUD8 million last year on its largest-ever campaign in USA.
Exports to USA showed a 1 percent decline to AUD419m and a 13 percent drop to Canada to AUD183m.
“This is a long-term play to grow the Australian presence in the world’s largest market and it will require ongoing investment as we continue to reshape the conversation in the USA with influencers, the trade and consumers,” Clark said.
(the writer can be contacted at: info@thewinechronicle.com)
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