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Thanks to a strong export growth to China and the United States, the value of Australian wine export increased by 10 percent in 2016-17, the Wine Australia Export Report announced.

With the increase of value to AUD 2.31 billion, Australia is now world’s fifth-biggest exporter of wine, behind France, Italy, Spain and Chile.

According to Wine Australia chief executive officer Andreas Clark nearly all price points experienced growth, and there were benefits for exporters in all segments of the market. Andreas said that the strongest growth was in more premium wines where the price segment of AUD 10 per litre FOB and above experiencing growth; the strongest rate of growth was for wines between the AUD 30–49.99 per litre FOB.

In the last financial year, there were a record 1,997 exporters from the region, of which 69 percent contributed to the shown increase in value.

Another interesting development from last year was the growth in the carbonated wine category—which includes varieties such as Moscato.

Exports more than doubled to AUD 30 million. The United States was the destination for 35 percent of the carbonated wine exports, with mainland China (at 15 percent) and Japan (14 percent) the other two that made the top three destinations.

All Australian wine export regions, except Europe (which dropped to AUD 568 million) and Oceania (which dropped to AUD 87 million) showed growth. Both Europe and Oceania recorded negative 1 percent growth in terms of Australian wine exports.

Exports to Greater China increased by 33 percent making it to AUD 271 million, thanks to the China-Australia Free Trade Agreement (ChAFTA) which came into being at the end of 2015. Here it has to be noted that Hong Kong is an important hub for Australian wines—with 95percent of re-exports going from there to mainland China and Macau.
In the 2018 Vinexpo Hong Kong, Australian wine will take centre stage as the Country of Honour. By value,
Australia represents 24 percent of wine imported into mainland China, behind only France with its 41 percent share.

The UK remains the No.1 destination for Australian exports by volume. Overall, however, the total value of exports to the UK declined by 7 per cent, to AUD 341 million.

Bulk wine exports more than doubled—to AUD 31 million, with a low bulk share at 6 percent. Bottled wine exports also grew strongly: up 41 percent to AUD 568 million, representing a 94 percent share.
In 2016-17, exports to the US increased by 3 percent to AUD 464 million (the highest score since 2011-
12), driven by white wine exports (which showed a 3 percent growth to AUD 181 million), and carbonated wine mainly Moscato—increasing ten-fold to AUD 11 million in value. This shows that the positive trend towards Australian premium wines in the US continued.

Exports at $10 per litre or more increased, by 21 per cent, to AUD 43 million. (Vinexpo Newsroom)

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