Wine Export Approval Report

Wine Export Approval Report Moving Annual Total (MAT) To June 2015

Contents Summary Report Bottled Report Bulk Report Notes and definitions p3 p19 p34 p43 2

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 p4 p11 p12 p13 p14 p15 p16 3

Total exports rise in value and volume in 2014 15 Commentary In the 12 months to 30 June 2015, the value of Australian wine exports increased by 5 per cent to A$1.89 billion 1 and the average value of exports increased by 0.3 per cent to A$2.61 per litre. Australian wine exports increased in volume by 4 per cent to 724 million litres. This is the first time value has increased on a financial year basis since 2006 07 while volume is the highest since 2010 11. Factors that continue to assist growth include the weaker Australian dollar, the free trade agreements with Japan and South Korea, a rebound from austerity measures in China and improved economic conditions in the United Kingdom and the United States. Favourable trade and media responses to promotional activities with a strong Australian contingent such as ProWein and the Vancouver International Wine Festival have also contributed to a resurgent interest in Australian wine around the world. Australian wine was exported to 122 countries by 1,405 exporters, 45 more than the previous year. More exporters recorded volume growth compared to those in decline (904 in growth v 816 2 n decline). The opposite was true in 2013 14. The number of products exported also grew, from 16,360 in 2013 14 to a record 17,731. Value increased in most price points, with exports at: below A$2.49 per litre down 3 per cent to A$426 million; A$2.50 4.99 up 2 per cent to A$713 million; A$5.00 7.49 up 0.2 per cent to A$225 million; A$7.50 9.99 up 3 per cent to A$131 million; and above A$10.00 up 25 per cent to A$398 million. The strong growth at the higher price points contributed to the average value of bottled exports increasing by 4 per cent to A$4.91 per litre, the highest since 2003 04 (see figure 1). In contrast, the average value of bulk exports fell by 7 per cent to A$0.95 per litre. This was driven by a 25 per cent increase in bulk exports below A$1.00 per litre combined with a 21 per cent decline above A$1.00 per litre. Figure 1: Average value of bottled and bulk wine exports 1 All references to value and average value per litre are in Free On Board (FOB) terms. 2 This includes exporters that exported in 2013 14 but not in 2014 15 hence they are not included in the 1405 that exported in 2014 15 4

Commentary (continued) Growth in value to Asia offset a decline in the value of exports to Europe and North America: Northeast Asia up 29 per cent (up A$103 million); Europe down 1 per cent (down A$3 million); Southeast Asia up 18 per cent (up A$20 million); and North America down 6 per cent (down A$37 million). The top five countries for Australian wine exports by value remained the United States (US), the United Kingdom (UK), China, Canada and Hong Kong with a combined value share of 72 per cent. Exports increased to 73 countries, with the biggest value increases to China (up A$68 million), Hong Kong (up A$25 million), Malaysia (up A$9 million), Italy (up A$8 million), Vietnam (up A$6 million), Taiwan (up A$5 million), Japan (up A$4 million) and Germany (up A$4 million). The key wine styles recorded mixed results. Red table wine exports grew by 8 per cent to A$1.3 billion, while white table wine declined by 1 per cent to A$504 million and sparkling wine declined by 1 per cent to A$54 million. Red wine s stronger performance can in part be attributed to growth in Asian markets where white wine has yet to gain as much popularity. Furthermore, due to shorter cellaring periods, white wine is more likely to be exported in bulk containers having a negative effect on the unit price of wine. to 27 billion litres. France is the biggest producer and production increased by 11 per cent to 4.7 billion litres. After huge crops in 2013, production in Italy, Spain and the US declined, by 17 per cent to 4.5 billion litres, by 16 per cent to 3.8 billion litres and by 5 per cent to 2.2 billion litres respectively. There were mixed results in South America, with production in Argentina up by 1 per cent to 1.5 billion litres and Chilean production down by 18 per cent to 1 billion litres. Australia is the fifth largest exporter of wine in the world behind Spain, Italy, France and Chile (see figure 2). Spain, after coming off a large 2013 crop, recorded significant volume growth in the last 12 months but the growth was mainly in low priced bulk shipments. Australia, Italy and Portugal were the only other countries among the top ten to record an increase in volume. Figure 2: Exports from the ten biggest exporters Competitor analysis The International Organisation of Vine and Wine (OIV) recently estimated that global wine production fell by 7 per cent in 2014 Source: Global Trade Atlas 5

Commentary (continued) Growth in higher price points Growth continued in the above A$7.50 per litre segment for the third consecutive financial year. Value rose by 19 per cent to A$529 million, average value by 8 per cent to a record A$15.40 per litre while volume grew by 10 per cent to 34 million litres. While the segment accounts for 5 per cent of total export volume, the value share is much higher at 28 per cent. More than half of exports above A$7.50 per litre were destined for Asia, a quarter to North America and 16 per cent to Europe. The average value per litre for the price segment in Asia was A$18.49 compared to A$12.29 for Europe and A$11.54 for North America. Growth was also strongest in Asia, up 18 per cent, compared to 7 per cent in Europe and 6 per cent in North America. Exports of Australia s highest priced wines (>A$50 per litre) grew for the fifth successive year and while relatively small in volume this segment is a significant contributor to total value. Exports in this segment grew 62 per cent to a record A$123 million (from 1.6 million litres). The segment accounted for only 0.2 per cent of the volume but 7 per cent of the value of all Australian wine exports. There were 299 companies exporting in this price segment with 221 recording growth. Continued volume growth in Europe Europe accounts for a third of all exports by value but more than half the volume of Australian wine exports. Exports to the region are on the rise, up 5 per cent to 374 million litres but value declined by 1 per cent to A$584 million. The major contributorstotheincreaseinvolumeweretheuk,italy, Germany, Russia and Finland. United Kingdom The value of exports to the UK declined by 2 per cent to A$369 million while volume increased by 3 per cent to 251 million litres. The reason behind the contrast in volume and value can be attributed to a 10 per cent decline in the average value of bulk exports to A$0.99 per litre which offset the first growth in the value of bottled exports since 2006 07. It should be noted that 80 per cent of bulk wine exports to the UK are intra company shipments which may impact on the pricing in this segment. There 314 exporters to the UK with 115 recording volume growth. Australia is ranked second behind Italy in total volume of wine exports to the UK. It should be noted that the UK is increasingly used as a trading hub, with some Australian wine sent in bulk and bottled in the UK then shipped to other destinations in Europe, such as Ireland and Scandinavia. 6

Commentary (continued) TherewasgrowthinthemiddleandhighpricepointsforAustralian exports to the UK. Exports at A$2.50 7.49 increased by 7 per cent to A$123 million and strongest growth was in the above A$10 segment rising 30 per cent to A$22 million. Exports above A$10 achieved growth for the second successive financial year and the value of this segment is at its highest since 2010 11. While volumes are relatively small, there were 252 Australian companies exporting wines at this price point compared to 226 in 2013 14. An increase in the number of independent retailers (which generally stock a higher proportion of premium wines) and an increase in listings of Australian regional wines onpremise are key contributors to the growth in exports above A$10. The growth at the higher end in the UK saw the average value of bottled exports to the UK increase by 1 per cent to A$4.11 per litre, the highest since 2006 07. Germany Australia is the sixth biggest exporter of wine to Germany. The value of Australian exports to Germany increased by 6 per cent to A$50 million while volume increased by 15 per cent to 39 million litres. There were 109 exporters to Germany with 32 recording growth. There was growth in both bulk and bottled exports for Australia. Bulk exports to Germany grew by 1 per cent to A$27 million and bottled exports by 13 per cent to A$23 million. The growth was offset however by a decline in average value, with the average value of bulk exports falling 10 per cent to A$0.84 per litre and bottled exports falling 15 per cent to A$3.58 per litre. Mixed results in North America North America accounts for close to a third of total Australian wine exports and the region is home to the second and third ranked markets for Australian wine in volume terms. Total wine exports to North America declined by 6 per cent in value to A$598 million and volume declined by 2 per cent to 223 million litres. There were contrasting results for the US and Canada. United States The value of total Australian exports to the US declined by 8 per cent to A$415 million and volume declined by 3 per cent to 164 million litres. With a 15 per cent volume share, Australia is the second ranked exporter to the US behind Italy. There were a handful of companies that experienced the majority of the volume decline. Excluding those exporters from the analysis, total exports for the remaining exporters increased by 17 per cent. Furthermore, the number of exporters recording value growth (175) exceeded those in decline (125). This indicates that the market is showing some positive signs for the majority of exporters. Australian bulk wine exports increased by 4 per cent to A$53 million while in contrast bottled exports declined by 9 per cent to A$362 million. The decline was recorded against all five price segments reported in this report. Wine consumption in the US varies by state. The five biggest wine consuming states are California, New York, Florida, Texas and New Jersey. They are also the biggest states for Australian wine, accounting for two thirds of Australian exports. 7

Commentary (continued) Exports to California declined by 10 per cent to A$125 million and to Florida by 12 per cent to A$36 million. In contrast, the following states recorded growth: New York up 3 per cent to A$45 million; Texas up 8 per cent to A$26 million; Pennsylvania up 8 per cent to A$10 million; and Maryland up 20 per cent to A$9 million. Canada The value of Australian wine exports to Canada declined by 1 per cent to A$182 million while volume increased by 1 per cent to 60 million litres. The growth in volume was strongest below A$2.50 per litre, up 5 per cent to A$25 million. Most of this is bulk wine and likely to bottled and labelled as cellared in Canada. There was also growth at A$5.00 7.49 per litre, up 4 per cent to A$51 million. This contributed to the average value of bottled exports to Canada increasing by 1 per cent to A$5.26 per litre, the highest since 2009 10. The alcohol market in Canada is controlled by provincial liquor boards that control the importation of wine and operate the majority of retail outlets. The exception is Alberta which is a partially deregulated market. By far the two biggest provinces for wine in Canada are Quebec and Ontario with market shares of 36 and 30 per cent respectively. The other key provinces for wine are British Columbia (16 per cent) and Alberta (10 per cent). Together, the four provinces account for 92 per cent of wine sales in Canada. Australian exports follow a similar provincial profile with Ontario (34 per cent), Quebec (29 per cent), British Columbia (26 per cent) and Alberta (5 per cent) accounting for 94 per cent of the volume of Australian exports to Canada. Australian exports increased to Ontario (up 4 per cent), British Columbia (up 3 per cent) and Alberta (up 0.5 per cent) but declined to Quebec (down 5 per cent). A bright spot for Australia is Nova Scotia, with exports up 13 per cent and volume overtaking Alberta for the first time. Record exports to Asia The strongest growth for Australian exports was to Asia. The value of exports to Asia grew by 26 per cent to a record A$600 million and volume increased by 30 per cent to 93 million litres. Australia exported to 25 countries in Asia and volumes increased to 19 of those countries. While China was the main contributor to the growth, there were also strong performances in Japan, Hong Kong, Malaysia, Thailand, Taiwan, South Korea, and the Philippines, many at record levels. China China continues to rebound strongly after the austerity measures impeded growth in 2012 13 and 2013 14. The value of exports to China increased by 32 per cent to a record A$280 million while volume grew by 44 per cent to 53 million litres. Bulk exports more than doubled to 8 million litres (although well below the peak of 24 million litres shipped in 2010 11) while bottled exports grew by 34 per cent to a record 44 million litres. The number of exporters also increased, from 913 in 2013 14 to 931 in 2014 15. 8

Commentary (continued) Figure 3 illustrates that austerity measures impacted most negatively on bottled exports to China above A$5 per litre (the red line) but also slowed growth below A$5 per litre (the blue line). However, we ve seen recovery in both price segments. Bottled exports below A$5 per litre grew by 42 per cent to 28 million litres while above A$5 per litre increased by 22 per cent to 17 million litres, just above the peak achieved in 2012 13. Figure 3: Bottled exports to China by price point China remains the number one destination for Australian exports priced at more than A$7.50 per litre with A$123 million worth of trade from a volume of 8 million litres, well ahead of the US (4 million litres at A$50 million) and Canada (4 million litres at A$44 million). Japan Exports to Japan grew by 10 per cent to A$44 million which was from a record volume of 12 million litres, in continuing signs that Australian wine companies are reaping benefits from the Japan Australia Economic Partnership Agreement (JAEPA). Under JAEPA, the 15 per cent import tariff on Australian bottled wine will be eliminated over 7 years. The first reduction of 1.875 per cent on bottled wine occurred on 15 January 2015, and the second round of cuts came into effect on 1 April 2015, reducing the tariff on bottled Australian wine to 11.3 per cent. The tariff on bulk wine was immediately reduced from 45 per litre to zero under JAEPA. Reflecting the removal of tariffs, the strongest growth has come in bulk wine exports, with volumes increasing five fold to 3.5 million litres. While the JAEPA has had less impact on bottled wine exports,thereisgrowthinhigherpricedsegmentswiththeabove A$10 per litre segment up 51 per cent to A$8.1 million. Other Asian markets Excluding China, in value terms, the biggest market for Australian wine in Asia is Hong Kong while Japan is the largest in volume terms. Exports to Hong Kong hit a record in both volume and value in 2014 15, with value up 28 per cent to A$112 million, average valueup23percenttoa$14.12perlitreandvolumeup5percent to 8 million litres. Exports above A$10 per litre to Hong Kong accounted for almost a third of all exports to that market. This indicates the success and popularity of some of Australia s finest wines in that market, where there is zero tax on wine. Of Australia s 100 biggest export markets, Hong Kong recorded the highest average value. 9

Commentary (continued) Exports to Malaysia hit record levels, with value up 26 per cent to A$42 million, average value up 7 per cent to A$12.00 per litre and volume up 18 per cent to 3.4 million litres. Australia is the number one exporter to Malaysia and 127 companies exported to the country during the year, virtually all bottled exports. The high average value reflects that more than half the wine exported to Malaysia was priced at above A$7.50 per litre. Record value and volume was achieved in exports to Thailand, with value up 13 per cent to A$16 million and volume up 16 per cent to 3.7 million litres. Australia isthe second ranked exporter to Thailand behind South Africa. The number of Australian companies that exported to Thailand increased, up 16 to 112. There was growth in all container types, with bottled exports up 11 per cent to A$15 million, soft packs up 65 per cent to A$1.2 million and bulk exports up 7 per cent to A$0.6 million. This growth may have been assisted by the import duty on Australian wine finally reaching zero in 2015, after reducing by 4 per cent per annum since 2005 (a result of the FTA between Australia and Thailand, ratified a decade ago). Taiwan was another growing destination for Australian wine in Asia. The value of exports grew 47 per cent to A$15 million, the average value climbed 20 per cent to A$8.33 per litre and volume increased 22 per cent to 1.8 million litres. There were 105 companies exporting to Taiwan, up by 24 compared to the previous year. Exports to South Korea increased by 28 per cent to A$10 million and volume by 38 per cent to 1.5 million litres. Both value and volume are at their highest since 2008 09. The growth in 2014 15 may have been assisted by the Australia South Korea Free Trade Agreement which came into force on 12 December eliminating a 15 per cent tariff immediately. Record exports to the Philippines were reached in 2014 15. Value grew by 19 per cent to A$6.1 million and volume increased by 24 per cent to 1.3 million litres. There were 51 exporters to the Philippines, up 3 on the prior year. 10

900 Alternative Packaging Soft Pack Bulk Glass Bottle 800 700 600 500 400 300 200 Historic Overview Volume by container type Value by container type 3500 3000 2500 2000 1500 1000 Alternative Packaging Soft Pack Bulk Glass Bottle 100 500 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 11 Volume (Million litres) Value (Million AUD) $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 $1.30 $1.25 $1.20 $1.15 $1.10 $1.05 $1.00 $0.95 $0.90 $0.85 $0.80 January March May July September November January March May July September November January March May July September November January March May July September November January March May July September November January March May July September November January March May July September November January March May July September November January March May Bottled average value (AUD per litre) Bulk average value (AUD per litre) 2007 2008 2009 2010 2011 2012 2013 2014 2015 70 60 50 40 30 20 10 0 450 400 350 300 250 200 150 100 50 0 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 2014 Jan 2015 Bulk wine share of export volumes Bulk wine export volume (million litres) Bulk wine volume Bulk wine share of export volumes Bulk wine

Exports by container type 2015 Volume (million litres) Glass Bottle, 301, 42 Bottled Bulk Other Total Volume Value Average Value (ML) (A$M FOB) (A$/L FOB) 2015 301 1,477 4.91 2 6 4 Share 42 78 2015 415 397 0.95 6 1 7 Share 57 21 2015 8 19 2.41 11 7 4 Share 1 1 2015 724 1,893 2.61 4.3 4.6 0 Share 100 100 Other includes wine in soft packs and alternative packaging Volume change (million litres) 35 30 25 20 15 10 5 Bulk, 415, 57 Volume Other, 8, 1 0 Total Bulk Glass Bottle Other 12

Wine exports by country, container and colour Volume for 2015 Glass Bottle Red 2015 ('000 Litres) Wine Bulk Red Wine Other Red Wine 2015 2015 ('000 ('000 Litres) Litres) Glass Bottle White 2015 ('000 Litres) Wine Bulk White Wine Other White Wine Sparkling Wine Other Wine 2015 2015 ('000 2015 ('000 2015 ('000 ('000 Litres) Litres) Litres) Litres) Total Wine 2015 ('000 Litres) United Kingdom 19,574 6 117,821 0 0 na 16,670 13 93,157 3 36 na 3,237 42 317 30 250,812 2.6 United States Of America 65,234 7 12,455 25 0 100 40,862 6 38,003 10 0 na 5,949 283 570 65 163,074 2.7 Canada 19,099 5 13,195 7 200 31 9,736 3 16,433 6 149 10 584 19 294 4 59,690 1.4 China, Pr 40,726 37 5,343 117 502 13 2,529 2 2,859 304 57 6 1,030 14 408 85 53,454 44.4 Germany, Federal Republic 5,056 24 13,575 23 0 na 1,402 81 18,608 5 0 na 5 47 1 0 38,646 15.0 New Zealand 8,750 9 6,230 24 445 31 1,710 18 6,672 40 387 63 1,135 13 432 6 25,761 18.4 Italy 177 50 10,272 83 0 na 58 50 4,507 51 0 na 10 na 0 13 15,024 71.2 Netherlands 3,654 20 3,289 15 0 na 3,119 4 3,395 15 0 na 215 34 5 26 13,677 7.4 Japan 3,322 2 2,029 345 1,336 5 2,172 11 1,305 444 536 6 880 28 454 53 12,033 28.0 Denmark 2,052 10 6,046 14 0 na 909 14 2,825 23 0 na 148 8 12 22 11,993 11.1 Russia 399 39 24 na 0 na 225 53 10,352 51 0 na 38 96 0 100 11,038 37.6 Hong Kong 6,161 1 0 na 494 88 923 5 0 na 108 107 143 26 109 126 7,937 4.5 Finland 978 15 2,524 85 0 na 410 5 3,388 147 0 na 187 30 70 60 7,556 63.1 Belgium 455 10 2,615 12 0 na 326 3 3,472 4 0 na 170 15 13 656 7,051 6.6 Singapore 3,263 12 0 na 204 29 965 10 0 na 57 8 595 5 77 8 5,161 8.5 Sweden 2,390 17 1,127 13 0 na 1,191 0 24 50 0 na 190 33 3 503 4,926 13.5 Thailand 1,579 12 431 20 459 62 648 1 144 0 245 69 135 3 39 57 3,680 16.5 Malaysia 2,914 27 10 na 92 48 439 1 0 na 9 40 21 41 15 57 3,500 17.6 France 188 10 2,051 9 0 na 95 16 1,086 6 0 na 1 99 0 83 3,422 9.6 United Arab Emirates 1,428 1 0 na 347 9 835 24 0 na 223 11 255 9 92 80 3,179 6.5 Rest of the world 11,500 10 2,258 25 1,032 9 5,135 1 984 23 561 10 647 30 517 126 22,634 1.0 World 198,899 4 201,296 6 5,111 10 90,359 0 207,214 2 2,369 15 15,574 40 3,429 33 724,250 4.3 13

Wine exports by country, container and colour Value for 2015 Glass Bottle Red Bulk Red Wine Other Red Wine Glass Bottle White Bulk White Wine Other White Wine Sparkling Wine Other Wine Total Wine 2015 ('000s AUD) 2015 ('000s AUD) 2015 ('000s AUD) 2015 ('000s AUD) United States Of America 232,365 10 15,580 8 0 100 122,107 10 33,203 9 0 na 8,875 70 2,911 44 415,042 7.9 United Kingdom 88,657 8 129,177 7 0 na 60,227 14 80,408 10 124 na 8,995 2 1,329 20 368,917 1.5 China, Pr 248,166 34 6,194 31 1,123 2 14,692 6 2,155 294 155 17 4,788 4 2,230 85 279,502 32.1 Canada 109,506 4 11,872 2 713 29 42,020 6 13,040 11 492 10 3,250 1 1,514 9 182,407 0.7 Hong Kong 102,231 31 0 na 1,236 72 6,471 2 0 na 420 237 1,138 25 590 68 112,086 28.4 New Zealand 46,021 15 6,223 30 907 20 6,383 12 4,698 40 758 47 5,613 18 1,848 7 72,451 0.3 Singapore 41,126 3 0 na 361 31 7,453 8 0 na 116 56 5,705 10 732 15 55,494 1.4 Germany, Federal Republic 19,426 9 13,068 11 0 na 3,607 42 13,838 7 0 na 56 30 21 18 50,016 6.0 Japan 19,305 15 2,232 246 3,349 2 10,183 10 1,364 306 1,283 8 4,263 38 2,329 25 44,307 9.7 Malaysia 39,195 30 17 na 148 47 2,331 6 0 na 15 35 209 28 74 47 41,989 26.2 Netherlands 12,940 18 3,203 7 0 na 9,604 4 2,538 20 0 na 902 28 54 1 29,241 10.0 Denmark 12,110 16 6,580 12 0 na 3,651 14 2,152 15 0 na 666 23 158 26 25,316 3.7 Italy 894 61 11,893 96 0 na 232 70 5,044 58 0 na 91 na 0 100 18,155 82.2 Sweden 10,913 19 1,414 0 0 na 4,571 2 23 50 0 na 866 32 37 158 17,824 14.5 Thailand 10,587 13 518 18 733 59 2,798 5 128 21 461 86 1,020 2 183 93 16,429 13.5 Finland 5,476 10 3,115 84 0 na 2,098 3 3,021 146 0 na 888 28 355 97 14,954 19.9 Taiwan Province 12,827 53 0 na 227 14 1,100 1 37 na 68 15 237 7 288 273 14,783 46.9 United Arab Emirates 8,421 10 0 na 578 8 4,026 30 0 na 345 13 1,098 6 299 92 14,768 5.7 Ireland 6,399 15 31 96 0 na 4,589 21 62 92 0 na 204 56 101 94 11,386 25.9 Belgium 2,795 5 2,688 12 0 na 1,708 0 2,830 3 0 na 1,027 19 92 215 11,139 4.5 Rest of the world 57,992 18 4,988 14 2,225 8 18,258 5 6,140 36 1,203 8 3,670 21 2,035 72 96,512 12.3 World 1,087,351 10 218,794 1 11,601 5 328,108 1 170,682 5 5,441 12 53,561 1 17,180 30 1,892,719 4.6 2015 ('000s AUD) 2015 ('000s AUD) 2015 ('000s AUD) 2015 ('000s AUD) 2015 ('000s AUD) 14

Exports by top 15 destinations Volume (million litres) for 2015 UK 2.6 USA 2.6 Canada China 44.4 1.4 Germany New Zealand 18.4 15.0 Italy Netherlands Japan Denmark Russia Hong Kong Finland Belgium Singapore 71.2 7.4 28.0 11.1 37.6 4.5 63.1 6.6 8.5 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 250 275 Singapore Belgium Finland Hong Kong Russia Denmark Japan Netherlan ds Italy New Zealand Germany China Canada USA UK 2015 5.2 7.1 7.6 7.9 11.0 12.0 12.0 13.7 15.0 25.8 38.6 53.5 59.7 163.1 250.8 2014 5.6 7.5 4.6 7.6 8.0 13.5 9.4 14.8 8.8 31.6 33.6 37.0 58.9 167.5 244.5 15

Exports by colour/wine style 2015 - Volume (million litres) in volume 35 White table wine, 300, 41 Sparkling, 16, 2 Other, 3, 1 in Volume (million litres) 30 25 20 15 10 Red table wine, 405, 56 5 0 Total exports Red table wine Sparkling Other White table wine change 4 5.3 40 32 1 Vol change 29.9 20.3 4.5 0.8 4.2 16

Contents Bottled wine exports report 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 p18 p19 p20 p21 p22 p23 p24 p25 p26 p27 p28 p29 p30 p31 17

Bottled exports by price point and destination Volume ( 000 litres) for 2015 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over Total 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) USA 3,120 64 97,291 0 3,346 25 2,280 14 1,697 0 107,734 6 China 2,952 100 24,929 37 8,490 12 2,917 43 5,204 31 44,492 34 UK 1,978 4 30,642 7 3,208 2 1,220 5 1,265 37 38,313 7 Canada 88 61 16,809 4 8,664 5 2,568 6 1,585 2 29,714 2 New Zealand 82 21 7,267 5 3,385 18 836 47 400 49 11,971 4 Hong Kong 22 88 2,106 10 1,778 12 922 19 2,489 23 7,317 1 Netherlands 419 59 5,879 4 561 7 77 24 55 1 6,992 12 Japan 151 95 4,616 4 868 23 476 14 380 19 6,493 0 Germany 3,466 233 1,928 31 698 13 242 9 131 18 6,463 33 Singapore 10 75 1,611 8 704 29 977 4 1,587 7 4,889 10 Sweden 132 499 2,750 12 521 33 319 12 53 27 3,775 13 Malaysia 51 62 947 3 633 140 328 80 1,428 3 3,387 22 Denmark 67 245 1,999 4 455 20 275 3 326 55 3,121 11 Ireland 383 152 2,232 17 170 56 146 12 47 25 2,977 13 United Arab Emirates 159 10 1,642 1 502 21 79 34 181 20 2,563 8 Thailand 138 38 1,573 27 208 35 159 9 321 19 2,401 8 Finland 2 93 952 26 434 28 162 4 95 18 1,644 13 Taiwan Province 42 152 955 9 250 30 76 7 281 46 1,605 19 Norway 30 ####### 1,205 50 272 48 12 75 78 67 1,598 12 Korea, R 145 5428 763 48 226 10 74 13 190 21 1,397 41 Other 576 17 7,521 5 1,841 9 1,055 5 1,258 32 12,251 2 Total 14,013 12 215,618 3 37,215 0 15,200 2 19,052 16 301,099 2 18

Bottled exports by colour/wine style 2015 - Volume (million litres) volume in 10 8 Bottled red, 199, 66 Bottled other, 3, 1 Bottled sparkling, 9, 3 in Volume (million litres) 6 4 2 0 Bottled white, 90, 30 2 4 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change 2.4 4.2 0.1 13.9 37.6 Vol change 7.1 7.9 0.1 1.5 0.8 19

Bottled exports by colour/wine style 2015 - Value (million AUD) in value $100 $80 Bottled red, 1,087, 74 Bottled other, 15, 1 Bottled sparkling, 47, 3 in Value (million AUD) $60 $40 $20 Bottled white, 328, 22 $0 $20 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change 6.4 9.5 1.0 11.8 31.9 Val change 88.5 94.5 3.2 6.3 3.5 20

Bottled exports by colour/wine style 2015 Average value (AUD per litre) in average value $0.40 Bottled red Bottled white Bottled sparkling Bottled other in Average Value (AUD/litre) $0.30 $0.20 $0.10 $0.00 $0.10 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Bottled other Bottled sparkling Bottled white Bottled red 2015 $5.23 $5.22 $3.63 $5.47 $0.20 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change 3.9 5.1 0.8 2.4 4.1 Av. Val change $0.18 $0.27 $0.03 $0.12 $0.23 21

Bottled exports by top 15 destinations Volume (million litres) for 2015 USA 6.2 China 33.6 UK 7.1 Canada New Zealand Hong Kong Netherlands Japan Germany Singapore Sweden Malaysia Denmark Ireland United Arab 4.0 0.6 11.6 0.1 32.7 9.9 13.2 21.7 11.0 12.7 8.0 2.5 = Percentage growth during the latest year 0 25 50 75 100 125 United Netherlan New Arab Ireland Denmark Malaysia Sweden Singapore Germany Japan Hong Kong Canada UK China USA ds Zealand Emirates 2015 2.6 3.0 3.1 3.4 3.8 4.9 6.5 6.5 7.0 7.3 12.0 29.7 38.3 44.5 107.7 2014 2.8 3.4 2.8 2.8 4.3 5.4 4.9 6.5 7.9 7.3 11.5 30.5 35.8 33.3 114.9 22

Bottled exports by top 15 destinations Value (million AUD) for 2015 USA China UK Canada New Zealand Hong Kong Netherlands Japan Germany Singapore Sweden Malaysia Denmark Ireland United Arab 10.5 10.6 4.3 13.0 2.0 15.5 26.8 15.0 18.2 6.0 27.7 8.6 1.5 31.4 9.4 = Percentage growth during the latest year Note: Destinations ranked by volume $0 $100 $200 $300 $400 $500 United Arab Ireland Denmark Malaysia Sweden Singapore Germany Japan Netherlan New Hong Kong Canada UK China USA ds Zealand Emirates 2015 13.7 11.3 16.6 41.8 16.4 55.0 23.1 34.6 23.5 110.3 59.8 156.3 157.5 269.4 361.8 2014 14.6 13.8 14.4 33.0 19.4 53.9 20.4 33.2 26.3 86.4 54.1 158.7 145.1 205.0 399.3 23

Bottled exports by top 15 destinations Average Value (AUD per litre) for 2015 USA China 3.4 1.6 = Percentage growth during the latest year Note: Destinations ranked by volume UK 1.4 Canada 1.0 New Zealand 6.2 Hong Kong 26.9 Netherlands 1.1 Japan 4.4 Germany Singapore 14.8 13.1 Sweden 2.6 Malaysia 4.1 Denmark 3.6 Ireland United Arab 6.3 2.1 $0.00 $3.00 $6.00 $9.00 $12.00 United Arab Ireland Denmark Malaysia Sweden Singapore Germany Japan Netherlan New Hong Kong Canada UK China USA ds Zealand Emirates 2015 $5.35 $3.79 $5.31 $12.34 $4.34 $11.24 $3.58 $5.34 $3.36 $15.08 $4.99 $5.26 $4.11 $6.06 $3.36 2014 $5.24 $4.05 $5.13 $11.85 $4.46 $9.94 $4.20 $5.11 $3.32 $11.88 $4.70 $5.21 $4.06 $6.15 $3.48 24

Bottled exports by top 15 varietals Volume (million litres) for 2015 Shiraz Chardonnay Cabernet Sauvignon Shiraz/Cabernet Sauvignon Merlot Sauvignon Blanc Cabernet Sauvignon/Merlot Pinot Grigio Pinot Noir 11.2 7.1 21.7 6.4 1.8 12.2 4.2 2.7 3.5 Pinot Gris Cabernet Sauvignon/Shiraz Chardonnay/Pinot Noir Riesling Shiraz/Cabernet Sauvignon/Merlot/Ruby Cabernet Chardonnay/Semillon 63.9 3.6 7.3 15.0 #DIV/0! 5.0 = Percentage growth during the latest year Note: The data is based on varietal label claim Chardonnay/ Semillon Shiraz/Caber net Sauvignon/M erlot/ruby Cabernet Riesling Chardonnay/ Pinot Noir 0 25 50 75 Cabernet Sauvignon/S hiraz Pinot Gris Pinot Noir Pinot Grigio Cabernet Sauvignon/M erlot Sauvignon Blanc Merlot Shiraz/Caber net Sauvignon Cabernet Sauvignon Chardonnay 2015 1.6 2.0 3.1 3.7 4.1 4.5 5.7 7.2 8.6 9.0 24.6 26.0 38.5 45.5 64.5 2014 1.6 0.0 3.7 4.0 4.0 2.7 6.1 9.2 9.3 8.0 25.0 23.2 37.0 46.8 62.3 Shiraz 25

Bottled exports by top 15 varietals Value (million AUD) for 2015 Shiraz 2.8 Chardonnay 5.9 Cabernet Sauvignon 19.6 Shiraz/Cabernet Sauvignon 11.7 Merlot 0.5 Sauvignon Blanc 12.6 Cabernet Sauvignon/Merlot 5.5 Pinot Grigio 21.1 Pinot Noir Pinot Gris Cabernet Sauvignon/Shiraz 0.7 59.3 74.3 = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim Chardonnay/Pinot Noir 5.8 Riesling 11.5 Shiraz/Cabernet Sauvignon/Merlot/Ruby Cabernet #DIV/0! Chardonnay/Semillon 1.0 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Shiraz/Caber net Chardonnay/ Sauvignon/ Riesling Chardonnay/ Cabernet Cabernet Shiraz/Caber Sauvignon Cabernet Sauvignon/S Pinot GrisPinot Noir Pinot Grigio Sauvignon/ Merlot net Semillon Pinot Noir Blanc Sauvignon ChardonnayShiraz Merlot/Ruby hiraz Merlot Sauvignon Cabernet 2015 4.5 6.3 14.5 20.1 70.9 14.3 26.1 22.9 38.1 32.0 86.3 104.3 217.9 160.8 392.9 2014 4.6 0.0 16.3 21.3 40.7 9.0 25.9 29.1 40.3 28.4 85.8 93.4 182.3 170.9 382.4 26

Bottled exports by top 15 varietals Average Value (AUD per litre) for 2015 Shiraz Chardonnay Cabernet Sauvignon Shiraz/Cabernet Sauvignon Merlot Sauvignon Blanc Cabernet Sauvignon/Merlot Pinot Grigio Pinot Noir Pinot Gris Cabernet Sauvignon/Shiraz 3.3 0.5 2.4 1.3 1.8 0.8 7.6 2.8 14.8 0.7 = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim Chardonnay/Pinot Noir Riesling Shiraz/Cabernet Sauvignon/Merlot/Ruby Cabernet Chardonnay/Semillon 5.7 #DIV/0! 4.1 1.7 Chardonnay/ Semillon Shiraz/Caber net Sauvignon/M erlot/ruby Cabernet Riesling Chardonnay/ Pinot Noir $0.00 $2.50 $5.00 $7.50 $10.00 Cabernet Sauvignon/Sh iraz Pinot Gris Pinot Noir Pinot Grigio Cabernet Sauvignon/M erlot Sauvignon Blanc Merlot Shiraz/Caber net Sauvignon Cabernet Sauvignon Chardonnay 2015 $2.73 $3.16 $4.64 $5.46 $17.29 $3.18 $4.55 $3.19 $4.41 $3.57 $3.51 $4.01 $5.66 $3.53 $6.09 2014 $2.90 $0.00 $4.46 $5.37 $10.28 $3.27 $4.23 $3.16 $4.33 $3.53 $3.43 $4.02 $4.93 $3.66 $6.14 Shiraz 27

Bottled exports by top 15 GI regions Volume (million litres) for 2015 South Eastern Australia South Australia Mclaren Vale Barossa Barossa Valley Victoria Coonawarra Margaret River Clare Valley Adelaide Hills Limestone Coast Western Australia Langhorne Creek Riverina New South Wales 10.0 22.9 16.7 10.1 5.2 12.3 10.9 16.7 22.5 13.2 3.5 20.9 45.8 13.8 = Percentage growth during the latest year Note: The data is based on regional label claim 3.7 0 25 50 75 100 125 150 175 200 New South Wales Riverina Langhorne Creek Western Australia Limestone Adelaide Coast Hills Clare Valley MargaretCoonawarr River a Victoria Barossa Valley Barossa Mclaren Vale South South Eastern Australia Australia 2015 1.0 1.2 1.2 1.2 1.4 1.7 1.8 1.8 2.1 2.4 3.4 4.9 5.3 38.2 168.6 2014 0.7 1.5 1.2 1.1 1.9 1.5 2.0 2.1 2.0 2.7 2.9 6.3 5.9 33.5 175.0 28

Bottled exports by top 15 GI regions Value (million AUD) for 2015 South Eastern Australia South Australia Mclaren Vale Barossa Barossa Valley Victoria Coonawarra Margaret River 10.4 18.6 19.2 5.0 2.6 4.3 32.3 6.1 Clare Valley Adelaide Hills Limestone Coast Western Australia Langhorne Creek Riverina New South Wales 3.0 18.6 21.0 0.2 7.9 21.7 47.8 = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim $0 $200 $400 $600 $800 New South Wales Riverina Langhorne Western Creek Australia Limestone Adelaide Coast Hills Clare Valley MargaretCoonawarr Victoria River a Barossa Valley Barossa Mclaren Vale South South Eastern Australia Australia 2015 4.3 4.7 9.7 6.2 9.4 14.1 16.8 20.8 22.1 16.0 53.5 45.7 56.0 312.5 549.4 2014 2.9 6.0 8.9 6.2 11.9 11.9 17.3 21.7 21.5 16.8 44.9 56.1 62.5 236.2 585.2 29

Bottled exports by top 15 GI regions Average Value (AUD per litre) for 2015 South Eastern Australia South Australia Mclaren Vale 2.5 16.3 0.4 Barossa 5.5 Barossa Valley Victoria Coonawarra 5.7 2.5 Margaret River 9.2 Clare Valley Adelaide Hills Limestone Coast Western Australia Langhorne Creek 11.8 2.0 1.6 4.3 8.9 = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim Riverina New South Wales 1.1 1.4 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 New South Wales Riverina Langhorne Western Creek Australia Limestone Adelaide Coast Hills Clare Valley MargaretCoonawarr Victoria River a Barossa Valley Barossa Mclaren Vale South South Eastern Australia Australia 2015 $4.34 $3.97 $8.11 $5.16 $6.48 $8.10 $9.32 $11.24 $10.49 $6.70 $15.82 $9.39 $10.50 $8.19 $3.26 2014 $4.29 $4.01 $7.77 $5.85 $6.35 $7.97 $8.56 $10.29 $10.76 $6.34 $15.49 $8.90 $10.54 $7.04 $3.34 30

Bottled exports by price point 2015 - Volume (million litres) in volume 250 7 6 Volume (million litres) 200 150 100 50 in Volume (million litres) 5 4 3 2 1 0 1 0 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over 2 3 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over 2015 14 216 37 15 19 change 12.3 2.9 0.5 1.9 16.2 2014 16 210 37 15 16 Vol change 2.0 6.0 0.2 0.3 2.6 31

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 p33 p34 p35 p36 p37 p38 p39 p40 32

Bulk wine exports by price point and destination Volume ( 000 litres) for 2015 $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 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) 2015 ('000 Litres) UK 1,067 4344 137,947 33 51,047 30 13,899 40 7,612 10 889 25 212,461 2 USA na 37,358 6 16,327 4 48 83 524 992 1,093 16 55,351 5 Germany na 26,232 39 5,061 43 696 30 121 406 72 178 32,183 12 Canada 100 28,069 37 1,519 72 14 46 100 26 46 29,628 6 Italy 143 na 1,187 50 13,279 117 155 8 15 na na 14,779 71 New Zealand na 9,312 33 2,652 32 768 40 100 217 26 12,949 33 Russia 10,304 50 72 na na na na na 10,376 51 Denmark na 6,963 17 239 81 1,142 37 167 596 360 152 8,871 17 China 168 0 5,279 550 2,142 121 144 50 120 77 517 19 8,370 162 Netherlands na 4,856 8 1,828 23 na na na 6,684 3 Belgium 100 4,165 0 1,727 9 196 30 na na 6,087 8 Finland na 2,978 134 2,762 109 74 24 48 0 50 na 5,912 116 Japan na 2,398 1565 456 na 624 13 na na 3,478 400 France 100 2,514 43 482 69 52 8 48 na 42 56 3,137 9 Sweden na 288 43 600 27 24 na 240 905 na 1,151 14 Switzerland na 668 99 288 42 96 0 48 na 48 0 1,147 18 Norway na 240 na 644 43 na 100 na 885 23 Thailand na 144 50 431 29 100 na na 575 14 Other na 456 30 558 9 178 80 na 109 21 1,302 41 Total 11,681 27 271,126 25 102,043 19 18,110 37 8,944 3 3,423 1 415,326 6 33

Bulk exports by colour/wine style 2015 - Volume (million litres) in volume 25 Bulk white, 207.2, 50 Bulk other, 6.8, 2 in Volume (million litres) 20 15 10 5 Bulk red, 201.3, 48 0 Total Bulk Bulk red Bulk white Bulk other change 5.6 6.3 2.0 725.5 Vol change 21.9 11.9 4.0 6.0 34

Bulk exports by colour/wine style 2015 - Value (million AUD) in value Bulk red, 218.8, 55 Bulk white, 170.7, 43 Other bulk, 7.1, 2 in Value (million AUD) $15 $10 $5 $0 $5 $10 $15 Total Bulk Bulk red Bulk white Other bulk change 1.5 1.3 5.2 655.2 Val change 5.9 2.8 9.3 6.2 35

Bulk exports by colour/wine style 2015 Average value (AUD per litre) in average value Other bulk Bulk white Bulk red in Average Value (AUD/litre) $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 Bulk red Bulk white Other bulk 2015 $1.09 $0.82 $1.04 $0.20 Total Bulk Bulk red Bulk white Other bulk change 6.7 7.1 7.0 8.5 Av. Val change $0.07 $0.08 $0.06 $0.10 36

Bulk exports by top 15 destinations UK USA Volume (million litres) for 2015 5.2 1.8 Germany Canada Italy New Zealand Russia Denmark China 71.4 33.5 51.2 16.9 162.1 12.0 6.0 Netherlands Belgium Finland Japan France Sweden 2.6 7.9 116.0 399.7 9.4 14.3 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 Sweden France Japan Finland Belgium Netherlan New China Denmark Russia Italy Canada Germany USA UK ds Zealand 2015 1.2 3.1 3.5 5.9 6.1 6.7 8.4 8.9 10.4 12.9 14.8 29.6 32.2 55.4 212.5 2014 1.3 3.5 0.7 2.7 6.6 6.9 3.2 10.7 6.9 19.5 8.6 27.9 28.7 52.6 208.8 37

Bulk exports by top 15 destinations UK USA Germany Canada Italy New Zealand Russia Denmark China Netherlands Belgium Finland Japan France Sweden 82.7 34.8 61.8 12.6 63.8 7.2 8.0 110.3 280.4 20.4 1.7 0.7 6.2 Value (million AUD) for 2015 4.0 = Percentage growth during the latest year Note: Countries ranked by volume 8.0 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Sweden France Japan Finland Belgium Netherlan New China Denmark Russia Italy Canada Germany USA UK ds Zealand 2015 1.4 2.9 3.7 6.1 5.5 5.7 8.7 8.7 4.6 11.0 16.9 24.9 26.9 53.3 211.3 2014 1.5 3.7 1.0 2.9 6.0 6.2 5.3 10.0 2.8 16.9 9.3 23.5 26.7 51.2 229.5 38

Bulk exports by top 15 destinations Average Value (AUD per litre) for 2015 UK USA Germany Canada Italy New Zealand Russia Denmark China Netherlands Belgium Finland Japan France Sweden 7.0 10.1 0.1 2.0 4.7 0.1 12.2 5.2 1.2 37.5 2.6 9.6 23.9 6.6 = Percentage growth during the latest year Note: Destinations ranked by volume 14.8 $0.00 $0.50 $1.00 $1.50 $2.00 Sweden France Japan Finland Belgium Netherlan New China Denmark Russia Italy Canada Germany USA UK ds Zealand 2015 $1.25 $0.94 $1.07 $1.04 $0.91 $0.86 $1.04 $0.98 $0.44 $0.85 $1.15 $0.84 $0.84 $0.96 $0.99 2014 $1.09 $1.07 $1.41 $1.07 $0.91 $0.90 $1.66 $0.94 $0.41 $0.87 $1.08 $0.84 $0.93 $0.97 $1.10 39

Bulk exports by price point 2015 - Volume (million litres) in volume 300 60 Volume (million litres) 250 200 150 100 50 in Volume (million litres) 50 40 30 20 10 0 10 20 0 $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 30 $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 2015 12 271 102 18 9 3 change 27.5 24.7 18.6 37.1 3.1 0.6 2014 9 217 125 29 9 3 Vol change 2.5 53.7 23.3 10.7 0.3 0.0 40

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. 41

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 10 000 and 24 000 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. 42