Chinese demand for Australian wine pushes towards $1b
24 January 2018, Written by David Simmons
EXPORTS of Australian wine to mainland China have soared by 63 per cent to a record breaking $848 million in 2017.
China accounted for a third of total exports by value last year, with growth to the Asian powerhouse offsetting declines in exports to the US, UK, and Canada.
Overall, Australian wine exports were worth $2.56 billion in 2017.
Total exports by value surged 15 per cent, the highest annual growth rate since 2004, while volume increased eight per cent to a record 811 million litres.
Chief executive of industry body Wine Australia, Andreas Clark, pointed out the average value per litre free on board had risen seven per cent to $3.16 - the highest level since 2009.
"Growing demand for premium Australian wine, particularly in northeast Asia, increased the value of bottled wine exports by 17 per cent to $2.1 billion," says Clark.
The average price per litre for a bottle of wine also grew over 2017, by three per cent to $5.63.
Out of all the delicious drops coming from Australia, red wine was the major performer. The darker of the blends continued to dominate in 2017, with Shiraz generating $601 million, Cabernet Sauvignon $341 million, and blends contributing $187 million.
Chardonnay was the next most popular internationally, generating $182 million, followed by Merlot at $114 million.
Following the announcement of these figures, shares in Treasury Wine Estates (ASX: TWE), a major exporter of wine to China, hit an all-time high of $16.65.
Business News Australia
Author: David Simmons