More growth for premium Australian wine means more choice for U.S. consumers
Australian wine exports to the United States increased 3 percent in 2016, to A$458 million, according to the Wine Australia Export Report released today. Exports above A$10 per liter FOB were up 23 percent, to A$41 million, and the number of individual wines retailing at US$13 per bottle and above increased by 59 percent.
The average value of bottled wine exports was up 9 percent for the calendar year, to US$3.95 per liter FOB, suggesting that the recent premiumization of the Australian category is set to continue.
Aaron Ridgway, Head of Market for Wine Australia Americas said ‘Throughout 2016 there were significant signs of improvement for the Australian category. To end the year up in value and with more options for U.S. consumers to enjoy our premium wines puts our winemaking community on the front foot.’
While the value of exports A$10+ per liter FOB peaked in 2006 with 1731 products exported, this segment fell to 739 products exported in 2012, affected by a strong Aussie dollar and the fallout of the global financial crisis. This past year, the number of products exported in this price segment reached a 5-year high of 1245.
Today’s exchange rates continue to play a part in the category’s resurgence. The Aussie dollar is steady at around 75 U.S. cents, about 40 percent lower than in 2012, when sales of Australian wines bottomed out. ‘The relaxation of currency has enabled us to reinvest, and achieve better pricing’, said Rob Buono, president of Old Bridge Cellars.
In the past years, exports to Greater New York (New York, New Jersey and Delaware) of wines valued A$10+ per liter FOB grew by 58 per cent to A$9.5 million, while the overall rate of growth to the US for this segment was 23 per cent to A$41 million.
In 2016, the global value of Australian wine exports grew by 7 per cent to A$2.22 billion. This value growth was driven by bottled exports, particularly those at higher price points. Bottled exports grew by 10 per cent to A$1.8 billion. The average value of bottled exports hit a calendar year record, up by 5 per cent to A$5.48 per liter FOB.
Australia’s top five export markets by value
- Mainland China – A$520 million ▲40%
- US – A$458 million ▲3%
- UK – A$355 million ▼5%
- Canada – A$193 million ▼0.2%
- Hong Kong – A$110 million ▼16%.
Table 1: The relationship between FOB and indicative retail price
FOB price per litre |
Indicative retail price (domestic currency per bottle, 750ml) |
||||||
UK |
US |
China |
Canada (Quebec) |
Canada (Ontario) |
Germany |
Hong Kong |
|
A$2.50 |
£7 |
US$4 |
¥26 |
C$7.30 |
C$6.70 |
€ 3.10 |
HK$22 |
A$5.00 |
£9 |
US$7 |
¥49 |
C$11.35 |
C$10.20 |
€ 5.70 |
HK$42 |
A$7.50 |
£11 |
US$10 |
¥72 |
C$13.70 |
C$13.70 |
€ 8.30 |
HK$62 |
A$10.00 |
£13 |
US$13 |
¥94 |
C$13.80 |
C$17.10 |
€ 10.90 |
HK$82 |
A$20.00 |
£20 |
US$25 |
¥186 |
C$30 |
C$31 |
€ 21 |
HK$160 |
A$30.00 |
£28 |
US$37 |
¥277 |
C$44 |
C$45 |
€ 31 |
HK$238 |
A$50.00 |
£44 |
US$60 |
¥460 |
C$71 |
C$73 |
€ 52 |
HK$395 |
A$100.00 |
£82 |
US$120 |
¥917 |
C$140 |
C$142 |
€ 104 |
HK$790 |
A$200.00 |
£159 |
US$240 |
¥1,832 |
C$280 |
C$281 |
€ 207 |
HK$1572 |
For media enquiries please contact
Emily England – Wine Australia
Communications Manager, North America
Phone: +1 415 529 7645
Email: emily.england@wineaustralia.com
About Wine Australia
Wine Australia supports a competitive wine sector by investing in research, development and extension (RD&E), growing domestic and international markets and protecting the reputation of Australian wine.
Wine Australia is funded by grape growers and winemakers through levies and user-pays charges and the Australian Government, which provides matching funding for RD&E investments. Wine Australia is the trading name of the Australian Grape and Wine Authority, a Commonwealth statutory authority established under the Australian Grape and Wine Authority Act 2013.