World develops taste for top Aussie wines

AUSTRALIAN wine exports are growing strongly as consumers worldwide demand higher quality, especially in China, industry research shows.

Wine exports grew 13 per cent by value, to $2.44 billion, in the year to September, according to the latest annual export report by industry group Wine Australia.

By volume, exports climbed 9 per cent to 799 million litres.

Wine Australia chief Andreas Clark said the average value of bottled exports rose 1 per cent to $5.53 a litre.

Exports of premium wines — those priced above $10 a litre — grew 23 per cent by value to a record $672 million.

“This growth reflects increasing demand for premium Australian wines in most regions around the world, where consumers are trading up to higher-value products across a range of categories,” Mr Clark said.

Red wine accounted for 74 per cent of exports by value.

The top export market was mainland China, which accounted for 30 per cent of total export value, followed by the US, UK, Canada and Hong Kong.

Wine Australia said the value of exports to mainland China rose 56 per cent to a record $739 million.

It was driven by strong consumer demand, and exporters shipping directly to mainland China instead of Hong Kong now that tariffs have been reduced under the China-Australia free trade agreement.

The top five markets by volume were Britain — which had a 28 per cent share — followed by the US, mainland China, Canada and Germany.

Australian wine is exported to 124 countries, and the value of exports rose in 82 of those countries.

The report comes after Treasury Wine Estates, which owns the Penfolds brand, this week announced a limited release under its most famous label, Grange, blending three vintages.

Priced at $3000 a bottle, the so-called G3 wine was unveiled in Hong Kong as part of Treasury Wine’s continuing pitch for high-value customers there and in China.

Treasury Wine shares rallied 3.2 per cent, or 46c, yesterday to close at $14.75. AAP

The top export market was mainland China, which accounted for 30 per cent of total export value, followed by the US, UK, Canada and Hong Kong.