In the year ended November 2007, Australian wine export volumes grew 6% to 795 million litres and value grew 8% to A$3.02 billion. The average price grew 2% to $3.80 per litre, the second month the change in price has been positive on amoving annual total (MAT) basis. While the year ended November results represent a slowing in volume growth – it was the smallest volume increment in nineyears, at 44 million litres – the value growth was the biggest in three years, at an increment of A$227 million.
Contributing to the increase in average price that drove the value growth was solid growth in the volume of the relatively higher-priced bottled wine shipments, particularly reds, and a decline in the relatively lower-priced soft pack volumes.
Note: MAT – Moving Annual Total
Bottled wine accounts for growth
Bottled wine shipments accounted for all the growth during the last 12 months. Bottled shipments grew 10% to 578 million litres. Bottled reds were the leading growth category, growing 13% to 370 million litres. The average price for red still wine was steady at A$5.06 per litre.
Bulk and soft pack shipments wane
Shipments of bulk wine fell 0.3% or a half million litres to 205 million litres and soft pack shipments declined 36% or 6 million litres to 11 million litres. This is in sharp contrast to the previous twelve months when bulk wine grew 59 million litres and soft packs grew 2 million litres.
US volume declines, value grows
For the first time since electronic records were kept by the AWBC (starting 1991), volume shipments to the US have declined on a MAT basis. Volume declined 2% or 4 million litres driven by a significant 38% drop in bulk wine shipments. On the back of this reduction in bulk wine shipments and an 8% growth in bottled shipments, the average price increased 23 cents to A$4.45 per litre. Value grew 4% to A$938 million.
UK volume strong, average price falls
The UK market remained the number one ranked export market by volume and value. Volume grew 7% to 289 million litres being assisted by continued growth of bulk shipments. Contributing to the 10 cent decline in average price to A$3.39 per litre was the 13% growth in bulk wine volumes and a 2% decline in the average price of bottled wine. Value grew 4% to A$980 million.
[Source: Lawrie Stanford – Manager Information and Analysis, AWBC. Rodney Cargin – Analyst, AWBC]
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