Wine Export Approval Report. Moving Annual Total (MAT) To JUNE 2014

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1 Wine Export Approval Report Moving Annual Total (MAT) To JUNE 2014

2 Wine Australia would like to acknowledge the support of the following Australian Wine Export partners Partners Released quarterly Disclaimer: While Australian Wine and Grape Authority makes every effort to ensure the accuracy and currency of information within this report, we accept no responsibility for information, which may later prove to be misrepresented or inaccurate, or reliance placed on that information by readers. Provisions of the Copyright Act 1968 apply to the contents of this publication, all other right reserved. For further copyright authorisation please see the website 2

3 Contents Summary Report Bottled Report Bulk Report Notes and definitions p4 p18 p33 p42 3

4 Summary Report Commentary Historic Overview Exports by container type Wine exports by country, container and colour (Vol) Wine exports by country, container and colour (Val) Exports by top 15 destinations Exports by colour/wine style p5 p12 p13 p14 p15 p16 p17 4

60 per litre due mainly to a continuing shift towards shipping branded wine in bulk containers (which naturally has a lower price without its packaging).

5 Commentary Total Exports In the year ended June 2014, total Australian wine exports declined by 2 to 684 million litres valued at A$1.78 billion 1. The average value of exports declined marginally to A$2.60 per litre due mainly to a continuing shift towards shipping branded wine in bulk containers (which naturally has a lower price without its packaging). This offset a 6 increase in the average value of bottled exports to A$4.77 per litre. The increase in the average bottled value was driven by a turnaround in fortunes for exports of premium Australian wines in our key markets, which for many has seen a reversal of the downward trends that were set in place when the global financial crisis (GFC) took hold in late Some of these increasing sales could be from wineries seeking opportunities in other markets in response to the slowdown in China. A decline in bottled wine exports offset an increase in bulk wine exports. Bottled exports declined by 10 to 285 million litres, which partially caused its share of the export mix to decline by over three percentage points to a 42 share of total exports. Bottled exports have been in a long-term downward trend as more branded wine is being shipped to Australia s major markets to be packaged offshore (see figure 1a). Over the past three months, the decline in bottled exports appears to have stabilised but it is too early to determine if this reflects a reversal in the trend. 1 All references to value and average value per litre are in Free On Board (FOB) terms. Bulk wine exports have increased in the first half of 2014 after being on a downward trajectory during In the latest 12 month period, bulk exports increased by 4 to 392 million litres, resulting in the share of bulk in the mix to increase by three percentage points to 58. Figure 1a: Volume by container type (million litres) Figure 1b illustrates that the average value of bottled exports has been on the rise since hitting a trough in June Two key factors contributed to the increase in the bottled average value. Firstly, there has been a decline in bottled exports at lower prices, with some of this volume most likely now shipped in bulk containers. Bottled wine shipments under A$5.00 per litre declined by 11 to 254 million litres, with the rate of decline stronger at the lower end. Secondly, there has been an increase in exports at higher price segments. Bottled exports of wine at above A$7.50 per litre increased by 4 to 31 million litres. 5

Commentary (continued) Although this segment is relatively small in volume terms with a 5 share, the segment is valued at A$443 million annually, representing a 25 value share.

Figure 1b: Average value by container type (AUD per litre) Despite international headwinds for bulk wine pricing, the average value of bulk wine exports firmed slightly, up by 0.2 to A$1.

6 Commentary (continued) Although this segment is relatively small in volume terms with a 5 share, the segment is valued at A$443 million annually, representing a 25 value share. Furthermore, growth has been strongest in the ultra-premium segment (above $50 per litre), which grew by 25 to a record 0.95 million litres valued A$76 million. Figure 1b: Average value by container type (AUD per litre) Despite international headwinds for bulk wine pricing, the average value of bulk wine exports firmed slightly, up by 0.2 to A$1.02 per litre (see figure 1b). Australia performed well given that both the volume and average value of bulk exports increased whereas other competitors average value declined when volume increased. Other major exporters took large sacrifices on price when increasing volumes during the year. Spain, for example, increased bulk exports by 29 to 381 million litres in the first four months of 2014, but the average value they received declined by 30 to US$0.59 per litre implying revenue declined. Exports of bulk wine increased at polar ends of the price spectrum and declined marginally in the mid-price ranges. Signalling that some stock may have been unprofitably cleared throughout the year, the amount of bulk wine exports shipped for under A$0.50 per litre increased by 256 to 9.2 million litres. However, three quarters of these exports were shipped in the second half of 2013 and these exports have been subsiding in This recent trend may indicate some collective easing of concern by wineries about current stock levels. Exports above A$1.50 per litre also increased, up 43 to 41 million litres. Conversely, bulk wine shipped between A$0.50 and $1.49 per litre declined by 1 to 341 million litres. The United Kingdom remained Australia s biggest export market by volume and exports fell by 1 to 244 million litres. The United States remained the second largest export market. Two consecutive record wine grape crushes in the US helped drive Australian exports down by 15 to 161 million litres. Exports to third-ranked Canada increased by 20 to 59 million litres. In contrast, exports to China declined by 10 to 37 million litres, due mainly to Government austerity measures and Chile s trade advantage. Germany re-joined the top five largest export markets by volume with exports to the destination increasing by 3 to 33 million litres. New Zealand dropped to sixth place, with exports to the country declining by 5 to 31 million litres. Red wine accounted for the majority of the decline in the volume of Australian wine exports. Red exports declined by 6 to 383 million litres and accounted for a 56 volume share. White wine exports increased by 3 to 287 million litres, representing a 42 share. Sparkling wine accounted for much of the remaining 2 share and exports of the category declined by 11 to 11 million litres. Exports of fortified wine also declined, down by 13 to 900,000 litres. This was the first time fortified wine exports dipped below one million litres in at least twenty five years. 6

Commentary (continued) UNITED KINGDOM Total exports to the United Kingdom declined by 1 to 244 million litres valued at A$274 million.

The average value of both container types increased with the bulk average up by 5 to A$1.10 per litre and the bottled average up by 10 to A$4.05 per litre.

$Bottled wine exports above A$7.50 per litre increased by 14 to 2.2 million litres. Although these levels are a fraction of their peak in 2007 (10.$

7 Commentary (continued) UNITED KINGDOM Total exports to the United Kingdom declined by 1 to 244 million litres valued at A$274 million. The shift towards shipping wine in bulk continued (see figure 2a). Bulk wine exports increased by 6 to 208 million litres while bottled wine exports declined by 28 to 36 million litres. The average value of both container types increased with the bulk average up by 5 to A$1.10 per litre and the bottled average up by 10 to A$4.05 per litre. Figure 2b illustrates that the average value of both container types has been increasing steadily. The bottled average value is being driven higher by growth in exports in the higher price segments alongside the shift to shipping relatively cheaper bottled wine in bulk. Bottled wine exports above A$7.50 per litre increased by 14 to 2.2 million litres. Although these levels are a fraction of their peak in 2007 (10.7 million litres), it was the first year since this peak that this segment recorded growth in a financial year. While the high-end of the UK off-trade market is growing, the volumes are relatively small with, according to Nielsen, total sales of 1 million cases above 10 per bottle. Figure 2b: UK Average value by container type (AUD/litre) Figure 2a: UK Volume by container type (million litres) 7

Commentary (continued) UNITED STATES The volume of wine exports to the United States also declined, down 15 to 161 million litres valued at A$432 million.

The two record harvests in the US have reduced the demand for imported wines, particularly towards the commodity end where the consumer is buying on price and not necessarily on country of origin or

Despite declining on an annual basis, Australian bulk exports have shown signs of stabilization over the past four months (see Figure 3a).

Evidence of this is that imports of bulk wine from all sources in the four months to April are up on 2013 despite record production in the previous two years.

8 Commentary (continued) UNITED STATES The volume of wine exports to the United States also declined, down 15 to 161 million litres valued at A$432 million. Almost three quarters of the decline was due to a 28 reduction in bulk exports to 53 million litres. The two record harvests in the US have reduced the demand for imported wines, particularly towards the commodity end where the consumer is buying on price and not necessarily on country of origin or brand. All imported wine sources were hit and in the year to April 2014, total bulk wine imports from all sources to the US declined by 21 to 294 million litres. Despite declining on an annual basis, Australian bulk exports have shown signs of stabilization over the past four months (see Figure 3a). This stabilization could be US wineries concerned about supply due to most of California experiencing a severe to exceptional drought. Evidence of this is that imports of bulk wine from all sources in the four months to April are up on 2013 despite record production in the previous two years. Figure 3a: USA Volume by container type (million litres) Australian bottled wine exports also declined, down 7 to 109 million litres, but at a slower rate than bulk. The decline came in the lower price segments while the higher price segments recorded growth. Bottled wine under A$5.00 per litre declined by 7 to 100 million litres while exports above A$7.50 per litre increased by 8 to 4.3 million litres. Figure 3b illustrates how the increasing demand for Australia s more expensive wines has turned the average value of bottled wine exports around. After declining steadily since the GFC, the average value of bottled wine (the green line) has tracked continuously higher over the past year since hitting a low in mid Wine exports to the US above A$7.50 per litre hit their peak in 2003 and then declined. In the two years leading into the GFC (late 2007) exports had begun to recover. However the GFC impacted the segment severely and exports plummeted once again. Although exports in this segment are just a quarter of what they were in 2007, the segment has recorded two years of consecutive growth and look to have formed a solid, sustainable base. All the major varietals have benefited from this lift and there was some particularly strong growth for Sauvignon Blanc (up 116) and Merlot (up 56) off lower bases. Regions such as McLaren Vale (up 20), Margaret River (up 57) and Coonawarra (up 86) also performed strongly in this segment. Figure 3b: USA Average value by container type (AUD/litre) 8

Figure 4a illustrates that bulk exports have been in a strong upswing since the beginning of 2014 following an already upward, albeit weaker, two year trend.

9 Commentary (continued) CANADA Wine exports to Canada grew strongly during the year, up 20 to 59 million litres valued at A$182 million. Bulk wine exports, up 66 to 28 million litres offset a decline in bottled exports (down 5 to 30 million litres). Figure 4a illustrates that bulk exports have been in a strong upswing since the beginning of 2014 following an already upward, albeit weaker, two year trend. Much of the increase in bulk wine exports appears driven by supermarket wines bottled in Quebec. Figure 4a: Canada Volume by container type Figure 4b illustrates the average value for both bottle and bulk exports to Canada. The strong increase in bulk volumes is correlated with the decline in average value of bulk exports. Over the year, the average value declined by 6 to A$0.84 per litre. Conversely, the average value of bottled wine recorded strong growth, up 4 to A$5.21 per litre. This reverses a trend set in place when the GFC hit in Bottled wine exports have followed a similar trend to that in the US and UK. Exports below A$5.00 per litre declined by 11 to 18 million litres while exports above A$5.00 per litre increased by 7 to 13 million litres. The strongest growth in bottled exports was in the above A$10.00 per litre segment, with volume up 16 to 1.6 million litres. The GFC also had a big impact on this segment of the market. In the year to June 2009, exports above A$5.00 declined by 41 and declined every year after until this year. Figure 4b: Canada Average value by container type 9

Commentary (continued) CHINA After extraordinary growth over the past five years, the imported wine market in China faltered during the year as government austerity measures and weaker consumer

Australia was not immune from this slowdown and Australian bottled exports to China declined by 8 to 33 million litres and bulk wine exports by 26 to 3 million litres.

Figure 5a: China Volume by container type (million litres) The austerity measures hit harder at the top end of the market, which was another reason that relatively cheaper Chilean wine was able to

10 Commentary (continued) CHINA After extraordinary growth over the past five years, the imported wine market in China faltered during the year as government austerity measures and weaker consumer confidence in the first half of the year hit the wine market. Total wine imports from all source countries declined by 13 to 354 million litres. Australia was not immune from this slowdown and Australian bottled exports to China declined by 8 to 33 million litres and bulk wine exports by 26 to 3 million litres. Chile was the only major country to avoid a decline and tellingly it has a trade advantage through its Free Trade Agreement with China. Figure 5a: China Volume by container type (million litres) The austerity measures hit harder at the top end of the market, which was another reason that relatively cheaper Chilean wine was able to buck the trend and record growth. Similarly, cheaper Australian bottled wine exports below A$2.50 per litre recorded an increase of 75 to 1.5 million litres while exports above A$2.50 declined by 10 to 32 million litres. The rate of decline was stronger as the average value of wine increased. These market dynamics are easily visible by the sharp decline in the average value of bottled exports at the start of 2014 (see Figure 5b). The decline stabilised in the last three months as it appears that the sharp declines in the volume of premium Australian wine exports recorded in late 2013 have eased. Figure 5b: China Average value by container type (AUD/litre) 10

Commentary (continued) GERMANY Total exports to Germany increased by 3 to 33 million litres valued at A$47 million.

The increase in bulk wine shipments came against the back drop of a large 2013 vintage in Europe.

Conversely, the average value of bottled exports increased 4 to $4.19 per litre. This was driven by a decrease in exports below A$2.

Figure 6b: Germany Average value by container type (AUD/litre) Figure 6a: Germany Volume by container type (million litres) REST OF THE WORLD The trend of bottled exports

11 Commentary (continued) GERMANY Total exports to Germany increased by 3 to 33 million litres valued at A$47 million. An increase in bulk wine exports (up 6 to 29 million litres) offset a decline in bottled exports (down 11 to 5 million litres). The increase in bulk wine shipments came against the back drop of a large 2013 vintage in Europe. This may have been the major driver dragging the bulk wine average value downwards (see Figure 6b). The average value of bulk wine exports declined 9 to $0.93 per litre. Conversely, the average value of bottled exports increased 4 to $4.19 per litre. This was driven by a decrease in exports below A$2.50 per litre (down 31 to 1 million litres) and an increase in exports above A$7.50 per litre (up 2 to 425,000 litres). Figure 6b: Germany Average value by container type (AUD/litre) Figure 6a: Germany Volume by container type (million litres) REST OF THE WORLD The trend of bottled exports increasing at higher prices and declining at lower prices was recorded for the aggregation of the rest of the world (i.e. exports excluding the UK, US, Canada, China and Germany). Bottled exports below A$5.00 per litre declined by 11 to 46 million litres, while bottled exports above A$5.00 per litre increased by 10 to 27 million litres. Singapore, Hong Kong, Malaysia, Thailand and Taiwan were some of the markets to perform strongly particularly in the second half of the financial year. 11

12 Historic Overview Volume by container type Value by container type Volume (Million litres) Alternative Packaging Soft Pack Bulk Glass Bottle Value (Million AUD) Alternative Packaging Soft Pack Bulk Glass Bottle Bottled average value (AUD per litre) $5.00 $4.90 $4.80 $4.70 $4.60 $4.50 $4.40 $4.30 $4.20 $4.10 $4.00 Average value by container type Bottled - LHS Bulk - RHS January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June $1.30 $1.25 $1.20 $1.15 $1.10 $1.05 $1.00 $0.95 $0.90 $0.85 $0.80 Bulk average value (AUD per litre) Bulk wine share of export volumes Bulk wine volume 60 Bulk wine share of export volumes Bulk wine Jan 1992 Jan 1993 Jan 1994 Jan 1995 Jan 1996 Jan 1997 Jan 1998 Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 Jan 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan Bulk wine export volume (million litres) 12

13 Exports by container type 2014 Volume (million litres) Glass Bottle, 285, 42 Bottled Bulk Other Total Volume (ML) Value (A$M FOB) Average Value (A$/L FOB) MAT Jun , Share MAT Jun Share MAT Jun Share 1 1 MAT Jun , Share Other includes wine in soft-packs and alternative packaging Volume change (million litres) Bulk, 392, 57 Volume Other, 7, 1-40 Total Bulk Glass Bottle Other 13

14 Wine exports by country, container and colour Volume for 2014 Glass Bottle Red 2014 ('000 Litres) Wine Bulk Red Wine Other Red Wine ('000 ('000 Litres) Litres) Glass Bottle White 2014 ('000 Litres) Wine Bulk White Wine Other White Wine Sparkling Wine Other Wine Total Wine (' (' ('000 (' ('000 Litres) Litres) Litres) Litres) Litres) United Kingdom 18, , na 14, , na 2, , United States Of America 69, , , , , , Canada 20, , , , , China, Pr 29, , , , Germany, Federal Republic 4, , na , na , New Zealand 7, , , , , Netherlands 4, , na 2, , na , Denmark 1, , na , na , Japan 3, , , , , Italy , na , na na 8, Russia na 0 na , na , Hong Kong 6, na na , Belgium , na , na , Sweden 2, , na 1, na , Singapore 3, na na , Finland 1, , na ,346 na 0 na , Ireland 1, na 1, na 0 na , United Arab Emirates 1, na , na , France , na , na , Thailand 1, , Rest of the world 10, , , , , World 190, , , , , , , , ,

15 Wine exports by country, container and colour Value for 2014 Glass Bottle Red Bulk Red Wine Other Red Wine Glass Bottle White Bulk White Wine Other White Wine Sparkling Wine Other Wine Total Wine 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) United States Of America 256, , , , , , , United Kingdom 82, , na 52, , na 8, , , China, Pr 184, , , , , , , Canada 114, , , , , , , , Hong Kong 77, na , na , , New Zealand 40, , , , , , , Singapore 39, na , na , , Germany, Federal Republic 17, , na 2, , na , Japan 16, , , , , , , Malaysia 30, na , na , Netherlands 15, , na 9, , na 1, , Denmark 10, , na 2, , na , Sweden 13, , na 4, na 1, , United Arab Emirates 7, na , na , , Ireland 7, na 5, na 0 na , Thailand 9, , , , Finland 6, , na 2, ,204 na 0 na 1, , Belgium 2, , na 1, , na 1, , Italy , na , na na 9, Taiwan Province 8, na na , Rest of the world 48, , , , , , , , , World 989, , , , , , , , ,777, ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 15

16 UK USA Canada China Germany New Zealand Netherlands Denmark Exports by top 15 destinations Volume (million litres) for Japan Italy Russia Hong Kong Belgium Sweden Singapore = Percentage growth during the latest year Singapore Sweden Belgium Hong Kong Russia Italy Japan Denmark Netherlan ds New Zealand Germany China Canada USA UK MAT Jun MAT Jun

17 Exports by colour/wine style Volume (million litres) in volume 15 White table wine, 287, 42 Sparkling, 11, 2 Other, 3, 0 Red table wine, 383, 56 in Volume (million litres) Total exports Red table wine Sparkling Other White table wine change Vol change

18 Bottled wine exports report Contents Bottled exports by price point and destination volume Bottled exports by colour/wine style volume Bottled exports by colour/wine style value Bottled exports by colour/wine style average value Bottled exports by top 15 destinations volume Bottled exports by top 15 destinations value Bottled exports by top 15 destinations average value Bottled exports by top 15 varietals volume Bottled exports by top 15 varietals value Bottled exports by top 15 varietals average value Bottled exports by top 15 GI regions volume Bottled exports by top 15 GI regions value Bottled exports by top 15 GI regions average value Bottled exports by price point volume p19 p20 p21 p22 p23 p24 p25 p26 p27 p28 p29 p30 p31 p32 18

19 Bottled exports by price point and destination Volume ( 000 litres) for 2014 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over Total 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) USA 8, , , , , ,709-7 UK 1, , , , , China 1, , , , , ,992-8 Canada , , , , ,193-5 New Zealand , , , Netherlands 1, , ,869-2 Hong Kong , , , , , Japan , , ,318 4 Singapore , , , Germany 1, , , Sweden , , Ireland , , United Arab Emirates , , Malaysia , ,746-4 Denmark , ,709-5 Thailand , ,184-2 Finland , ,895-1 Norway , Taiwan Province ,257 2 Russia , Other , , , , , Total 15, , , , , ,

20 Bottled exports by colour/wine style Volume (million litres) in volume 10 5 Bottled red, 190, 67 Bottled other, 2, 1 Bottled sparkling, 11, 3 in Volume (million litres) Bottled white, 82, Total bottled Bottled red Bottled white Bottled sparkling Bottled other change Vol change

21 Bottled exports by colour/wine style Value (million AUD) in value $20 $10 Bottled red, 989, 73 Bottled other, 11, 1 Bottled sparkling, 54, 4 in Value (million AUD) $0 -$10 -$20 -$30 -$40 -$50 Bottled white, 306, 22 -$60 -$70 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change Val change

22 Bottled exports by colour/wine style 2014 Average value (AUD per litre) in average value Bottled red Bottled white Bottled sparkling Bottled other $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Bottled other Bottled sparkling Bottled white Bottled red MAT Jun 2014 $5.49 $5.09 $3.72 $5.20 in Average Value (AUD/litre) $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 -$0.10 -$0.20 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change Av. Val change $0.27 $0.28 $0.23 $0.52 $

23 Bottled exports by top 15 destinations Volume (million litres) for 2014 USA UK China Canada New Zealand Netherlands Hong Kong Japan Singapore Germany Sweden Ireland United Arab Emirates Malaysia Denmark = Percentage growth during the latest year -7.1 Denmark Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun MAT Jun

24 Bottled exports by top 15 destinations Value (million AUD) for 2014 USA UK China Canada New Zealand -3.3 Netherlands -2.9 Hong Kong 21.0 Japan -4.7 Singapore 29.0 Germany Sweden Ireland United Arab Emirates Malaysia = Percentage growth during the latest year Note: Destinations ranked by volume Denmark 1.1 $0 $100 $200 $300 $400 $500 Denmark Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun MAT Jun

25 Bottled exports by top 15 destinations Average Value (AUD per litre) for 2014 USA UK China = Percentage growth during the latest year Note: Destinations ranked by volume Canada 3.7 New Zealand 9.9 Netherlands -1.2 Hong Kong 8.4 Japan Singapore Germany 3.7 Sweden 4.8 Ireland 14.4 United Arab Emirates 4.3 Malaysia 14.2 Denmark 6.1 $0.00 $3.00 $6.00 $9.00 $12.00 Denmark Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun 2014 $5.14 $11.94 $5.23 $4.05 $4.43 $4.19 $10.03 $5.14 $11.92 $3.32 $4.77 $5.21 $6.17 $4.06 $3.51 MAT Jun 2013 $4.84 $10.45 $5.02 $3.54 $4.23 $4.04 $9.10 $5.59 $11.00 $3.36 $4.34 $5.02 $6.65 $3.68 $

26 Bottled exports by top 15 varietals Volume (million litres) for 2014 Shiraz Chardonnay Cabernet Sauvignon Merlot Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre = Percentage growth during the latest year Note: The data is based on varietal label claim Cabernet Shiraz/MourSemillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay/ Sauvignon/S Pinot Noir Sauvignon Cabernet Shiraz/Caber Cabernet Pinot Grigio Sauvignon/ net Merlot Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun MAT Jun

27 Bottled exports by top 15 varietals Value (million AUD) for 2014 Shiraz Chardonnay Cabernet Sauvignon Merlot Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Cabernet Cabernet Shiraz/Cabe Shiraz/Mour Semillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay Sauvignon Cabernet Sauvignon/S Pinot Noir Pinot GrigioSauvignon/ rnet Merlot /Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun MAT Jun

28 Bottled exports by top 15 varietals Average Value (AUD per litre) for 2014 Shiraz 8.2 Chardonnay 8.1 Cabernet Sauvignon 1.9 Merlot 2.9 Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir 19.1 Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre $0.00 $2.50 $5.00 $7.50 $10.00 Cabernet Cabernet Shiraz/Caber Shiraz/MourSemillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay/ Sauvignon Cabernet Sauvignon/S Pinot Noir Pinot GrigioSauvignon/ net Merlot Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun 2014 $12.42 $3.50 $3.26 $4.45 $10.28 $5.37 $4.23 $3.53 $3.16 $4.33 $4.02 $3.43 $4.95 $3.66 $6.14 MAT Jun 2013 $11.84 $3.41 $3.28 $4.26 $10.57 $4.51 $4.05 $3.38 $2.84 $4.27 $3.81 $3.33 $4.86 $3.38 $

29 Bottled exports by top 15 GI regions Volume (million litres) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek Western Australia Yarra Valley = Percentage growth during the latest year Note: The data is based on regional label claim Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun MAT Jun

30 Bottled exports by top 15 GI regions Value (million AUD) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek Western Australia Yarra Valley = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim $0 $200 $400 $600 $800 Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun MAT Jun

31 Bottled exports by top 15 GI regions Average Value (AUD per litre) for 2014 South Eastern Australia 4.2 South Australia 1.2 Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim 15.9 Western Australia 13.8 Yarra Valley 12.4 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun 2014 $11.77 $5.85 $7.77 $4.03 $7.97 $6.35 $10.79 $8.81 $10.29 $6.37 $15.49 $10.54 $8.90 $7.04 $3.34 MAT Jun 2013 $10.47 $5.15 $8.85 $3.67 $7.28 $6.41 $9.95 $8.33 $10.28 $5.80 $13.37 $10.35 $8.34 $6.96 $

32 Bottled exports by price point Volume (million litres) in volume Volume (million litres) in Volume (million litres) $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over -30 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over MAT Jun change MAT Jun Vol change

33 Bulk Wine Export Report Contents Bulk exports by price point and destination volume Bulk exports by colour/wine style volume Bulk exports by colour/wine style value Bulk exports by colour/wine style average value Bulk exports by top 15 destinations volume Bulk exports by top 15 destinations value Bulk exports by top 15 destinations average value Bulk exports by price point volume p34 p35 p36 p37 p38 p39 p40 p41 33

34 Bulk wine exports by price point and destination Volume ( 000 litres) for 2014 $0.50 and under $0.50 to $1.00 $1.00 to $1.50 $1.50 to $2.00 $2.00 to $2.50 $2.50 and above Total 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) UK , , , , ,493 6 USA - na 35, , , , Germany , , ,579 6 Canada 1,807 na 20, , na , New Zealand , , , ,254 0 Denmark - na 8, , , Italy - na 2,355 na 6, na - na 8, Russia 6, na - na - na - na - na 6, Netherlands - na 4, , na - na 6, Belgium 277 na 4, , na - na 6, China 168 na , France 24 na 1, , na ,080 6 Finland - na 1,272 na 1, na - na 2, Sweden - na na , Norway - na - na 1, na , Switzerland - na na Ireland - na - na 152 na na 102 na Japan - na 144 na na - na Other - na , Total 9, , , , , , ,

35 Bulk exports by colour/wine style Volume (million litres) in volume 20 Bulk white, 202.5, 52 in Volume (million litres) Bulk red, 188.5, 48 Bulk other, 0.8, 0-5 Total Bulk Bulk red Bulk white Bulk other change Vol change

36 Bulk exports by colour/wine style Value (million AUD) in value Bulk red, 220.4, 55 Bulk white, 179.2, 45 $20 $18 Other bulk, 0.9, 0 in Value (million AUD) $16 $14 $12 $10 $8 $6 $4 $2 $0 -$2 Total Bulk Bulk red Bulk white Other bulk change Val change

37 Bulk exports by colour/wine style 2014 Average value (AUD per litre) in average value $0.04 Other bulk Bulk white Bulk red in Average Value (AUD/litre) $0.03 $0.02 $0.01 $0.00 -$0.01 -$0.02 -$0.03 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Bulk red Bulk white Other bulk MAT Jun 2014 $1.17 $0.89 $1.14 -$0.04 Total Bulk Bulk red Bulk white Other bulk change Av. Val change $0.00 $0.02 $0.00 -$

38 Bulk exports by top 15 destinations Volume (million litres) for 2014 UK 6.1 USA Germany Canada New Zealand Denmark Italy Russia Netherlands Belgium China France Finland Sweden Norway = Percentage growth during the latest year Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun MAT Jun

39 Bulk exports by top 15 destinations Value (million AUD) for 2014 UK 11.4 USA Germany Canada New Zealand Denmark Italy Russia Netherlands Belgium China France Finland Sweden Norway = Percentage growth during the latest year Note: Countries ranked by volume $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun MAT Jun

40 Bulk exports by top 15 destinations Average Value (AUD per litre) for 2014 UK USA = Percentage growth during the latest year Note: Destinations ranked by volume Germany -9.3 Canada -6.3 New Zealand 1.0 Denmark Italy Russia Netherlands Belgium China France Finland Sweden Norway $0.00 $0.50 $1.00 $1.50 $2.00 Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun 2014 $1.15 $1.09 $1.05 $1.06 $1.66 $0.91 $0.91 $0.41 $1.08 $0.93 $0.86 $0.84 $0.93 $0.97 $1.10 MAT Jun 2013 $1.24 $1.35 $1.23 $1.01 $2.10 $0.97 $0.98 $0.39 $1.25 $1.20 $0.85 $0.90 $1.02 $0.93 $

41 Bulk exports by price point Volume (million litres) in volume Volume (million litres) in Volume (million litres) $0.00 to $0.49 $0.50 to $0.99 $1.00 to $1.49 $1.50 to $1.99 $2.00 to $2.49 $2.50 and above -20 $0.00 to $0.49 $0.50 to $0.99 $1.00 to $1.49 $1.50 to $1.99 $2.00 to $2.49 $2.50 and above MAT Jun change MAT Jun Vol change

42 Notes & Definitions Export Approvals: Wine approved by the AGWA for export on specified dates. Exports reported in this document refer to the date wine is shipped and not the date of approval. Note that the A$ FOB value of wine reported in this document may differ from export values reported by the Australian Bureau of Statistics (ABS). The divergence between the two values derives from differences between the AGWA and ABS in the method of converting the value of exports denominated in foreign currency to A$. In the case of Australia, the exporter makes the conversion when submitting wine for export approval while the ABS converts the value on the day of shipment, at the daily conversion rate. With the AGWA method, it is expected that some of the conversions will occur at hedged rates while this does not occur with the ABS method. When the Australian exchange rate is moving significantly the alternative methods will result in diverging valuations. Volumes reported by the AGWA and ABS differ only marginally due to the approval versus shipment basis of reporting as well as marginal differences in scope and definition. MAT: Moving Annual Total - refers to the twelve months ending with the nominated month. : Is calculated as the percentage change in the MAT for the immediate past 13 months compared to the preceding 13 months. Formula: = ((current MAT - preceding MAT)/preceding MAT) x 100 AUD: Australian dollars FOB: Free on board' value of the wine, where the point of valuation is where goods are placed on board the international carrier, at the border of the exporting country. The FOB value includes production and other costs up until placement on the international carrier but excludes international insurance and transport costs. Country: In most instances, this indicates where the wine is consumed. In some instances, it may be the country at which the wine is off-loaded for bottling and/or trans-shipment to the country of final consumption. 42

43 Notes & Definitions (continued) Still wine: Still wine in bottles, casks, flagons or bulk containers. Bulk: Wine shipped for repackaging elsewhere. This may involve containers with a capacity of 20 litres or more but will most often mean large shipping containers of size ranging between and litres. Cask or Soft packs: Plastic containers within cardboard outers usually carrying between 2 and 20 litres. Flagons: Glass containers holding 2 litres or more. Bottles: Glass containers holding less than 2 litres. Alternative Packaging: Includes: Flagon, Tetra-pak, PET and Aluminium Red Wine: Amounts reported may or may not include both dry red wine and rose White wine: Amounts reported may or may not include both dry and sweet white wine Fermented sparkling: Sparkling wine in which the effervescence is produced naturally through secondary fermentation in the bottle. 43

Wine Export Approval Report. Moving Annual Total (MAT) To September 2014

Wine Export Approval Report. Moving Annual Total (MAT) To September 2014 Wine Export Approval Report Moving Annual Total () To 2014 Wine Australia would like to acknowledge the support of the following Australian Wine Export partners Partners Released quarterly Disclaimer: