Australia: Wine Business Flashcards
Australia: Wine Business
-5th largest wine exporter in the world by value and volume
Top 5 markets,: USA< UK< CANADA> HK> SINGAPORE
- 2021 , 2,160 producers with a brand in Australia
-small producers are the norm
-50% crush 50 tonnes or less - sell to larger companies
16% crush over 10,000 tonnes
Five main companies
Treasury Wine Estates
Accolade Wines
Casella Family Brans
Pernod Ricard
Australian Vinatage
China is the fastest growing market - 2019 accounted for 42% of wine exports - catastrophy in 2020 when China imposed high tarriffs as part of a trade dispute
Domestic market sales have declined - Cellar doors are the most important. for small producers - 1,00 cases or less sell 70% of their wine by wine club, cellar door and website sales ( online shops )
Contrast , large companies only sell 4% this way
Wine tourism is well established - important driver of growth raising the profile fo the region, increasing profit margin and immediate payments
Esp. near Melbourne, Sydeny and Adelaide , and Margaret River ( more isolated)
New plantings of less common varieits are popular - can be hard to sell on export market as a result of high prices / low production and competition in the eport market
**Wine Australia **is the leading promotional body - governemnt authority - funds and coordinates research and development to the wine industry - income from a levy on grape growesr
Controls exports of wine and promoted Marekting of Australian wine through education in the domestic and export marekts
Key aim to increase the competiveness , quality and demand for Australian Wines
