China, a strong contributor to value growth of wine

Australian wine exports have declined in the last year.

The Australian Wine and Brandy Corporation reported that in the year ended April 2008, the volume of Australian wine exports was down by 8.5% to 730 million litres. Value declined by 4% to $2.81 billion on an average price increase of 4% to $3.85 per litre.
 
Driving the decline in overall volume were reductions in bulk and soft-pack shipments which were partially offset by an increase in bottled volumes. Bulk shipments declined by 33% (78 million litres) and soft-packs by 41% (7 million litres) while bottled shipments grew 3% (17 million litres). In the preceding year, all three categories grew.

A combination of less relatively lower-priced bulk wine in the mix and a 17% increase in the average price of bulk wine to $1.19 per litre were key to the increase in the overall average price. The average price of bottled wine fell 5% to $4.62 per litre, constraining the overall price increase.

China was a strong contributor to value growth. Value increased A$10 million on the back of a 150% increase in the average price to A$4.62 per litre. The main contributor to the price rise was an increase in the share of bottled wine shipments, from a quarter to just over three-quarters. This was due to a 16 million litre decline in bulk shipments and a 3 million litre increase in bottled shipments.