Australian white wines excel in Finland and Norway

Finland

Finland has a population of 5.5 million and is a small market for wine. At home consumption is becoming more important, to the detriment of the on-trade, but interest in food and wine pairing and the growth of more casual dining are driving light wine sales. Italian wines dominate, particularly the bold ripasso styles, and Prosecco has also contributed to the overall increase in wine sales.

Finland is increasingly enthusiastic about the Australian category and consumers are keen to learn more about our wines. Wine Australia’s goal is to grow market share in both the on-trade through engagement with importers and sommeliers and the off-trade via the monopoly Alko.

Alko has indicated an increasing interest in lower alcohol wines as consumers are becoming more health conscious. Organic wines are not a target here and Australia, in sixth position, is in growth, particularly in white wines that increased by 12 per cent to 1.5 million litres in 2015. Australian red wine has been flat at 2.7 million litres and 11 per cent market share. Overall, Australian wine sales in Finland increased by 1 per cent in 2015 to 4.5 million litres.

Australian export data for Finland in the 2015-16 financial year indicates a shift in demand from lower priced and bulk wines to premium bottled brands. The volume of bulk shipments has decreased by 22 per cent, while the volume of bottled wine has increased by 6 per cent, leading to an overall decrease in volume to Finland of 16 per cent to 6.4 million litres. However, the growth in value of wines in higher price points is offsetting this loss in volume, which has resulted in a relatively stable value of total exports (down 1 per cent to $14.8 million). Exports in the $7.50–9.99 average price per litre FOB segment have increased by 41 per cent to $1.9 million, while exports at $10 per litre FOB and over have increased by 17 per cent to $1.4 million.

Norway

Norway has a population of 5.2 million and a small wine market. Wine sales in Norway are diluted by cross-border shopping with Sweden and other Baltic markets. It is estimated that the monopoly, Vinmonopolet, has lost 30 per cent of sales to other countries easily accessed by ferries and road connections. Italian wines dominate the market, with Australia in sixth place.
In the on-trade, the natural wine movement does not seem to have resonated in Norway, although there is a lot of interest in organic and biodynamic wines. Only 10 per cent of the total wine sales are through the on-trade and the main volume and trends are driven through Vinmonopolet. Current trends include growth in the Prosecco and rosé sectors. Norwegians are great travellers and this is reflected in the growth of wines from countries with good air links with Norway such as the US. However, there is a distinct bias towards old world country origins. The 3 litre bag in box remains a key format through the monopoly with over 50 per cent of their sales.

Norwegian sales data from Vinmonopolet indicates that, just like in Finland, Australian white wine is growing well at 8 per cent, selling 1.2 million litres in 2015. However, overall Australian wine sales declined by 3 per cent to 4.4 million litres and Australian export data reveals a decline in direct shipments to Norway. Volume decreased by 16 per cent in the 2015-16 financial year to 2.1 million litres and value declined by 21 per cent to $5.7 million.