Chinese demand for Australian wine pushes towards $1b

Chinese demand for Australian wine pushes towards $1b

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Does your pay structure answer today's challenges?
Partner Content
If you are not reassessing how your organisation remunerates and rewards employees as a...
Aon
Advertisement

Related Stories

Solar champions Anson Zhang and Jeff Yu win Sydney Young Entrepreneur of the Year Award

Solar champions Anson Zhang and Jeff Yu win Sydney Young Entrepreneur of the Year Award

It was a case of third time's a charm last night for the founde...

ANZ sued by ASIC over alleged lending failures

ANZ sued by ASIC over alleged lending failures

One of the country’s largest banks is in the sights of the Au...

Beach Energy taken to the Federal Court by shareholders

Beach Energy taken to the Federal Court by shareholders

Slater and Gordon (ASX: SGH) has launched a class action against Ad...

Shine launches class action against QSuper

Shine launches class action against QSuper

Members of QSuper have filed a class action against the super fund ...