Supply and demand pressures pushing bulk prices higher
Market Bulletin | Issue 14
Supply and demand pressures pushing bulk prices higher
The June 2016 Ciatti World Pricing report indicates that pricing for Australian bulk wines have been stable or rising for most varietals due to increased demand. In particular, Sauvignon Blanc, Cabernet Sauvignon and Moscato remain very popular. Decreased supply due to small crops in Chile and Argentina is also helping lift prices.
Varietal focus: Sauvignon Blanc
With bulk pricing for the 2016 vintage of Sauvignon Blanc showing an upward trend, for Australia and our competitors globally, this is an opportune time to examine Sauvignon Blanc’s profile in Australia. In 2015, total area for Sauvignon Blanc was 6,100 hectares and 83,500 tonnes were crushed nationwide. Some 21.2 million litres of Sauvignon Blanc were exported in 2015, with the majority making its way to the UK and the United States.