Canadians are embracing Australia’s finest wines

Australian finest wines are enjoying strong growth in the Canadian market, with exports of premium wines (A$10 and above FOB) growing 9 per cent to C$26 million in 2016 according to the Wine Australia Export Report December 2016.

Aaron Ridgway, Head of Market for Wine Australia Americas said ‘It’s great to see that sales of Australia’s fine wines are growing in Canada. It’s clear that our best wines are resonating with Canadian consumers and the diversity of Australia’s regions and styles exported is on the rise.”

For wines priced A$10 and above FOB, Cabernet Sauvignon grew 24 per cent to C$6.4 million , Pinot Noir grew 55 per cent to C$380,000, and red blends, a hot segment for Australia in North America, grew 128 per cent to C$790,000.

Overall, in 2016 there was a slight decline in total exports of 0.2 per cent to C$191 million as a 4 per cent increase in average value was offset by a 4 per cent reduction in volume.

Despite the decline over the full year, Australian exports remain in an upward trend. The last quarter of 2016 saw a 3 per cent increase in volume, and the average value of exports to Canada increased 2 per cent, resulting in a total value increase of 5 per cent.  

Total exports

Australian wine export value grew by 7 per cent to C$2.20 billion in 2016. This value growth was driven by bottled exports, particularly those at higher price points. Bottled exports grew by 10 per cent to C$1.8 billion. The average value of bottled exports hit a calendar year record, up by 5 per cent to C$5.43 per litre FOB.

Wine Australia CEO Andreas Clark said, ‘Last year, Australia’s most premium wines took centre stage. Our highest priced wines (A$10 or more per litre FOB) achieved record value in 2016, up an impressive 19 per cent to C$568 million.

‘In another promising sign that we’re starting to see commercial benefits from an improved perception and increasing demand for our finest wines, the majority of Australian wine exporters (70 per cent) saw value growth in 2016.

Australia’s top five export markets by value

• Mainland China – C$515 million ▲40%
• US – C$453 million ▲3%
• UK – C$351 million ▼5%
• Canada ­– C$191 million ▼0.2%
• Hong Kong ­– C$109 million ▼16%

Table 1: The relationship between FOB and indicative retail price

*Free on board (FOB) - ‘Free on board' value of the wine, where the point of valuation is where goods are placed on board the international carrier, at the border of the exporting country. The FOB value includes production and other costs up until placement on the international carrier but excludes international insurance and transport costs.