Exports of Australian wines $10 per litre FOB and over hit record value

Premium wine drives growth in exports

Wine Australia’s Export Report September 2016 shows that the value of Australian wine exports continued to experience strong growth in the 12 months to the end of September 2016.

From July 2015 to June 2016, the value of exports grew by 11 per cent, driven by bottled exports, particularly at higher price points. Bottled exports grew by 15 per cent to $1.7 billion and the average value of bottled exports increased by 9 per cent to $5.35 per litre, the highest since October 2003.

Exports valued at $10 FOB and over per litre grew by 26 per cent to a record $499 million and contributed to almost half of the total value growth in the 12 months to the end of June 2016. The increase in demand for premium Australian wine was reflected in all top five export markets.

Analysis: Consumer demand driving sustained growth for premium Australian wine exports

Wine Australia engaged the Export Finance and Insurance Corporation (EFIC) to conduct an analysis of the impact of exchange rate movements on Australian wine exports. 

There are two key findings from their analysis. Firstly, a lower AUD allows Australian commercial wines to have more competitive pricing in market thereby lifting overall volumes. Secondly, a lower AUD has less of an impact on more premium wines where consumers are less price sensitive.  The overall conclusion is that the sustained growth in exports of Australian premium wines (above $7.50 per litre) is driven more by genuine consumer demand and less by exchange rates.