Australia wines chase high-end China image

Exports of Australian wine to China fell in volume in the past year, but industry body Wine Australia is focusing on a more premium image for the country after a rise in demand for higher-priced wine.

Exports of Australian wines to China dived 12% to 37 million litres in the 12 month ended March 2014, while the average value of exports increased by 2% to A$5.94 per litre, according to the Wine Export Approval Report March 2014 released by Wine Australia yesterday (16 April).

‘The austerity measures on Government bodies have continued to impact on the mechanics of the imported wine sector,’ said Andreas Clark, chief executive of Wine Australia.

Oversupply is one of the biggest issues to have affected profits in the Australia wine industry in recent years.

However, China continues to be the biggest market for Australian bottled wine exports above A$7.50 per litre, and the decline in volumes in this price segment have slowed down as the volume in the latest quarter (January to March) dropped by 6% compared to the same quarter in the preview year.

‘As a result of this, we encourage Australian wine companies to work with their importers and distributors on long term, brand building strategies in China,’ said Clark. ‘This will help ensure that Australian wine maintains the highest average value per litre of the eight largest imported wine countries now and into the future.’

Wine Australia believes that China remains a developing market, and is working with its producers to build a premium image of Australia wines in the country.

An Australia wine roadshow with 34 wineries from 16 regions took place in Shanghai, Shenyang and Nanning during April. Activities included wine courses, a masterclass and grand tasting events.