Wine Export Approval Report. Moving Annual Total (MAT) To December 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: 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 www.agwa.net.au website 2

Contents Summary Report Bottled Report Bulk Report Notes and definitions p4 p19 p34 p43 3

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 p13 p14 p15 p16 p17 p18 4

Commentary Total shipments, volume and value increasing In 2014, the volume of total Australian wine exports increased by 1.9 per cent to 700 million litres and value increased by the same rate to A$1.82 billion 1, the first increase in total value since the global recession took hold in 2007. The average value of exports remained constant at A$2.60 per litre as an increase in the average value of bottled wine exports was offset by a combination of an increased proportion of bulk wine exports and a decline in the average value of bulk wine. Australian wine was exported to 121 destinations by 1,329 exporters. More exporters recorded volume growth compared to those in decline (893 in growth v 809 2 in decline). The opposite was true in 2013. The increase in volume of wine exports was aided to some degree by the depreciating Australian dollar but a huge Spanish crush in 2013 put downward pressure on bulk wine prices. Figure 1 illustrates that the bottled average value has increased consistently since the trough in 2010. The average value of bottled export increased by 7 per cent to A$4.85 per litre, the highest in a decade. This was driven by stronger growth for Australia s premium wines (above A$7.50 per litre) in North America, Europe and much of Asia. The above A$10 per litre segment increased by 15 per cent to 17 million litres, while the A$7.50 to $10 segment increased by 5 per cent to 15 million litres. In value terms, the above A$10 segment, at 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 but not in 2014 hence they are not included in the 1329 that exported in 2014 A$356 million, is just below the record high of A$371 million set in September 2007. In the ultra-premium segment, exports above A$50 per litre segment grew 55 per cent, hitting a record A$107 million. Another contributing factor to the increase in the average value of bottled wine was a decline in exports under A$5.00 per litre, much of which is now being shipped in bulk containers to bottle in-market. Figure 1: Average Value of bottled and bulk wine exports Figure 2 illustrates the rate of growth in the value of Australian wine exports over the past decade. It shows from late 2007 there was negative growth through a combination of factors such as a major shift to shipping branded wine in bulk cont. 5

Commentary (continued) containers and the global recession. The chart also shows a gradual improvement in growth rates from 2009 as the move to shipping branded wine in bulk containers stabilised and Australia s two largest export markets, the UK and US, slowly emerged from deep recessions which had reduced consumers propensity to spend, particularly on luxury wine. The US emergence from recession has also contributed the depreciation of the Australian dollar, which was at historically high levels for much of the period with negative growth. More recently, the impact of the austerity measures in China have eased and we are again seeing growth in wine exports to that destination. Furthermore, demand in developing markets is on the rise Hong Kong (up A$30M to A$108M), Singapore (up A$16M to A$59M), Malaysia (up A$9M to A$35M) and to a lesser extent Taiwan (up A$5M to A$13M). Figure 2: Rate of value growth in Australian wine exports Global supply and the effects on Australian exports Australia competes in a global wine market that produces 28 billion litres. At 700 million litres, Australia is a relatively small producer in comparison to the major producers of France, Italy, Spain, and, to a lesser degree, the US. The supply situation in these countries has a significant impact on Australia s trade, particularly at the commodity end of the market which is price driven. In 2013, Spain produced a huge crop, up 44 per cent to 4.6 billion litres according to the OIV. Such a large volume of wine has had a deflationary effect on prices for commodity wine, not just for Spain but for other producers such as Australia. Although Spain s wine exports increased by 18 per cent to 2.1 billion litres, the total value declined by 3 per cent to US$3.3 billion (a 17 per cent decline in average value). The effects are visible in global bulk wine export statistics (see figure 3). Only two countries of the major wine exporters recorded an increase of both volume and average value New Zealand and the US. All others either sacrificed on price to gain volume or lost market share. Figure 3: Bulk wine exports from the biggest wine exporters Volume Average value million USD/ YE ended 2014 litres change litre change Spain October 1,208 36 $ 0.56-32 Italy September 561-9 $ 0.98-7 France November 246-9 $ 1.66 8 Chile November 335-24 $ 0.92-4 Australia November 400 5 $ 0.94-7 South Africa October 290-29 $ 0.84 6 United States November 182 3 $ 1.46 4 Germany October 68 3 $ 1.76-5 Portugal October 60-36 $ 1.08 9 Argentina November 81-30 $ 1.05 15 New Zealand November 55 14 $ 3.30 2 United Kingdom November 37 11 $ 3.14 3 Source: Global Trade Atlas 6

Commentary (continued) Despite the increase in global supply, Australian wineries increased the total volume of wine exports. Higher volumes were assisted by a weaker Australian dollar which resulted in Australian bulk wine becoming more attractive to international buyers. However, Spain s large crop made it difficult to command the most profitable price and the average value of Australian bulk white wine exports declined by 3 per cent to $A0.85 per litre while the average value of Australian bulk red exports declined by 2 per cent to A$1.13 per litre. Figure 4: Exports of Australian wine by wine style Wine style The volume of both red and white wine exports increased during 2014. Australian exports of red wine increased by 1 per cent to 388 million litres while exports of white wine increased by 3 per cent to 298 million litres. However, in the past three months white wine exports have moved in a downward trajectory (see figure 4), whilst red wine exports have continued to gather momentum. A factor in the recent weakness in white wine exports is that Australian white wine stock levels declined in 2013-14 due to a combination of higher sales (both exports and domestic sales) but also lower production. For example, the Australian Chardonnay crush was down 10 per cent in 2014. Conversely, red wine stocks increased in 2013-14, primarily as a result of lower exports. It is likely that the huge Spanish crop of 2013 had a greater impact on Australian reds than whites as 54 per cent of Spanish vineyard area is planted with red varieties. Australia s finest wines excel Exports of Australia s highest-priced wines (>A$50 per litre) are growing and while relatively small in volume this segment is obviously a significant contributor to value. Exports in this segment grew 74 per cent to 1.4 million litres and value climbed 55 per cent to A$107 million (see figure 5). The segment accounted for only 0.5 per cent of the total volume but 8 per cent of the value of Australian bottled exports. More than 90 per cent of exports in this ultra-premium segment were destined for Asia. Hong Kong, which has a strong secondary auction market, was by far the largest export market with just under a half share of value and 7

Commentary (continued) exports grew 127 per cent to A$52 million. Strong segment growth in other markets included: Singapore (up 123 per cent to A$12 million), Malaysia (up 60 per cent to A$10 million), Taiwan (up 190 per cent to A$5 million), United Kingdom (up 128 per cent to A$2 million), Japan (up 214 per cent to A$2 million), Vietnam (up 106 per cent to A$1 million) and Canada (up 78 per cent to A$1 million). United Kingdom/Europe Figure 5: Exports above A$50 per litre The United Kingdom is increasingly being 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. This trade is difficult to track but examining exports from the UK provides some insights. According to the Global Trade Atlas, in the year ended November 2014, wine exported from the UK increased by 7 per cent to 101 million litres. The original source of this wine cannot be determined from the data available but only a negligible amount would be UK wine. Europe is the major destination accounting for a 93 per cent share of exports from the UK. France, which is connected by rail, is the biggest single destination receiving with a 31 per cent share. Therefore, it is appropriate to examine Europe in greater context to account for these trans-shipments. For example, Australian exports to Scandinavia have declined in recent years but some of this can be explained by wine shipments being routed through the UK rather than directly to market. Australia accounts for a 43 per cent share of bulk wine imports into the UK so it is plausible that Australia accounts for at least that share of wine exported from the UK. This would equate to 44 million litres of Australian wine which may be reexported form the UK to other destinations in Europe. In 2014, Australian wine exports to Europe increased by 4 per cent to 361 million litres valued at A$581 million. The increase was driven by bulk wine exports, up 8 per cent to 294 million litres, while bottled wine exports declined by 11 per cent to 67 million litres. Despite the decline in volume, the average value of bottled exports increased by 6 per cent to A$4.25 per litre. This increase was driven by increased exports at above $10 per litre, up by 21 per cent to 2.3 million litres. The United Kingdom was the largest European market for Australia for this price segment growing 36 per cent to 1.2 million litres. This may be a reflection of the UK s economy which is the best performing among the large western European countries. There was also solid growth in Denmark (up 55 per cent to 280,000 litres), Norway (up 113 per cent to 91,000 litres), Finland (up 29 per cent to 72,000 litres) and the Netherlands (up 38 per cent to 58,000 litres). 8

Commentary (continued) North America North America accounts for the second and third ranked markets for Australian wine; however overall the region imports less Australian wine than Europe. Total wine exports to North America decreased by 3 per cent to 224 million litres valued at A$604 million and there were divergent results between Canada and the US. United States Two consecutive record US harvests have reduced the demand for imported wine. However, according to Rabobank the 2014 vintage is likely to be down around 10 per cent. This may increase demand for imported wine but domestic stock levels are still at high levels. As a result, in the year to November 2014, total wine imports into the US declined by 5 per cent to 1.1 billion litres. Of the top ten countries who export wine to the US, only Portugal and New Zealand did not record declines in export volumes. Total Australian wine exports declined by 9 per cent to 164 million litres valued at A$423 million. The decline in exports was recorded in the lower-priced segments, i.e. those most affected by large US harvests. Australian bulk wine exports also declined by 9 per cent to 54 million litres, with the decline being recorded in the below A$1.00 per litre segment. Conversely, bulk wine exports above A$1.00 per litre increased by 12 per cent to 19 million litres. A similar pattern was recorded for bottled wine exports where the under A$2.50 per litre segment declined by 79 per cent to 3.1 million litres. Bottled exports above A$2.50 increased by 2 per cent to 106 million litres. A second factor at play was the declining Australian dollar which may have enabled some Australian wineries to increase prices. Many wines that were previously exported in the under A$2.50 per litre segment were exported in higher priced segments in 2014. Growth continued in the higher priced segments for the third consecutive year. The US emergence from the recession and buoyant stock markets is increasing wealth levels. This provides wine consumers the purchasing power to spend more on higher priced wines, a category which was hit savagely during the recession. Exports above $10 per litre segment increased by 3 per cent to 1.6 million while the $7.50 to $10 segment also increased by 3 per cent to 2.6 million litres. Canada With a relatively small domestic wine industry, Canada relies heavily on imported wines. According to Canadian Vintners Association, sales of Canada - non VQA wine increased by 5 per cent to 88 million litres in the 12 months to October 2014. These wines are generally imported wine and labelled as cellared in Canada. To fuel this demand, imports of bulk wine into Canada from all sources increased by 8 per cent to 103 million litres in the year to October (according to Global Trade Atlas). Meanwhile, imports of bottled wine from all sources increased by just 1 per cent to 271 million litres. Australia was the major source of bulk wine and our bulk wine exports to Canada increased by 48 per cent to 31 million litres during 2014. To gain share from European producers and to compete against increasing exports from the United States, the average value of Australian bulk wine declined by 8 per cent to A$0.82 per litre. 9

Commentary (continued) Bottled exports weakened during the year, down 3 per cent to 30 million litres. However, the average value of bottled exports increased by 2 per cent to A$5.22 per litre as exports of higher priced wines increased and a weaker Australian dollar may have assisted in margins increasing for some exporters. Exports priced at above A$5 per litre increased by 5 per cent to 12.6 million litres. China rebounding The biggest influence on the Chinese imported wine market over the past two years was the austerity measures introduced by the Chinese Government in late 2012. At its lowest, bottled wine imports from all sources declined by 8 per cent in the year to May 2014 after growing by 16 per cent a year earlier. However over the past seven months, bottled wine imports have resumed growth, albeit from a lower base up 1 per cent to 283 million litres. Volumes have not quite recovered to the earlier peak and the market has changed. The wines being imported from all sources are at lower prices and there are less wine importers operating (according to China Pro Tools the number of wine importers declined by 830 to 3,696 in 2014). In 2014, total Australian wine exports to China increased by 8 per cent to 40 million litres valued at A$224 million. In volume terms, bottled exports have almost recovered to the levels recorded before the full effects of the austerity measures took hold. The A$2.50 to A$5.00 per litre segment was the key driver of the recovery increasing by 15 per cent to 20 million litres. There was also strong growth in the A$7.50 to A$9.99 segment which increased by 17 per cent to 2.4 million litres. The above A$10 segment declined by 3 per cent to 4.1 million litres; however the segment has been edging higher over the last few months. The performance in 2014 marks a stark turnaround from a year earlier when total Australian wine exports declined by 16 per cent. These figures are even more impressive given the timing of Chinese New Year in 2015, 19 days later than in 2014. The implications are that wine can be shipped from Australia this month to reach China in time for the celebration, adversely impacting the 2014 figures, whereas the year before most wine needed to be shipped in. Wine exports to Asia increasing Excluding China, Australian exports to the rest of Asia increased by 7 per cent to 36 million litres valued at A$299 million. In value terms, the biggest market for Australian wine is Hong Kong with A$108 million (see figure 6) while Japan is the largest in volume terms with 9 million litres. Figure 6: Export value to top Asian markets by value (exc. China) 10

Commentary (continued) Although volumes to Hong Kong have been increasing steadily over the long term, the rapid value growth in 2014 was driven by an increase in average value (up 43 per cent to A$14.57 per litre). Exports to Singapore (up 37 per cent to A$59 million) and Malaysia (up 33 per cent to A$35 million) have also grown rapidly due mainly to higher priced wine exports. Singapore and, to a lesser extent, Malaysia are trading hubs in Asia. Exports to Japan declined by 2 per cent to A$41 million. Figure 7 illustrates the value growth of five of Asia s smaller but key markets for Australian wine exports. Four of these five markets recorded value growth over the year. Taiwan recorded the strongest growth, up 55 per cent to A$14 million. However, Thailand, the second largest market, recorded a 10 per cent decline in value while the volumes increased slightly. Exports to South Korea increased by 4 per cent to A$8.4 million but have remained relatively flat for the past three years. The Australia-South Korea Free Trade Agreement came into force on 12 eliminating a 15 per cent tariff immediately. The timing could explain the weakness in exports to South Korea in as some businesses may have delayed imports to save on duty. Exports to the Philippines increased by 6 per cent to A$5.3 million and appear to be on a steady ascent. On the other hand, exports to Vietnam increased by 65 per cent to A$6 million but the chart illustrates exports to this market can be volatile. Figure 7: Export value to second tier Asian markets by value (exc. China) Best performances from the rest of world Other smaller markets to record growth in exports include; the United Arab Emirates (up 16 per cent to A$15.7 million), Finland (up 41 per cent to A$13.8 million), Italy (up 136 per cent to A$12.5 million), Norway (up 12 per cent to A$8.5 million), India (up 24 per cent to A$3.7 million) and Papua New Guinea (up 19 per cent to A$3.6 million). 11

Commentary (continued) What s in store for 2015? A number of fundamentals indicate that 2015 should be a brighter year than 2014. In January 2015, the AUD has been trading around the US$0.81 mark whilst in January 2014 the AUD was trading around the US$0.89 mark (see figure 8). Although the precise impact on wine exports is difficult to predict, the lower dollar will improve the competitiveness of Australian exporters and all else being equal should improve margins. Furthermore, due to different exchange rate hedging policies by businesses, the full effects of the lower dollar can take some time to be fully felt meaning more benefits should flow through in 2015. Another positive is global wine production in 2014 is estimated to be down on 2013. According to Rabobank, the US crop is estimated to be 5 to 10 per cent smaller than in 2013, albeit still larger than crops before 2012. They also suggest that European production looks set to register a significant decline in 2014 with Spain down from a huge crop along with Italy while production in France is likely to be up. Australia s harvest was also down by 7 per cent in 2014. However, even though global production is estimated to be down in 2014, wine stocks in many producing countries may still be high as a result of the large 2013 vintage. Some significant Free Trade Agreements (FTA) came into force during 2014 and the benefits will begin to flow in 2015. The South Korean and Japanese FTAs came into effect and the China FTA should bring even greater benefit. Figure 8: Australian dollar v USD and Euro (Indexed) A potential challenge on the horizon is that European Union export subsidies for promotional activities are speculated to extend to the United Kingdom. Previously much of the EU promotional subsidies were restricted to developing markets outside of the Union, with the majority of funds spent in Asia and the Americas. The budget for promotion is also being doubled in the 2014 to 2018 period from 522 million per annum to 1.15 billion. 12

Historic Overview Volume by container type Value by container type Volume (Million litres) 900 800 700 600 500 400 300 200 Alternative Packaging Soft Pack Bulk Glass Bottle Value (Million AUD) 3500 3000 2500 2000 1500 1000 Alternative Packaging Soft Pack Bulk Glass Bottle 100 500 0 Bottled average value (AUD per litre) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $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 February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October February January March April June May August July September November October 2007 2008 2009 2010 2011 2012 2013 2014 $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 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 70 Bulk wine volume 60 Bulk wine share of export volumes 50 40 30 20 10 0 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 2014 450 400 350 300 250 200 150 100 50 0 Bulk wine export volume (million litres) 13

Exports by container type 2014 Volume (million litres) Glass Bottle, 290, 41 Bottled Bulk Other Total Volume (ML) Value (A$M FOB) Average Value (A$/L FOB) 2014 290 1,404 4.85-5 1 7 Share 41 77 2014 402 398 0.99 8 5-2 Share 58 22 2014 8 19 2.45 11 6-5 Share 1 1 2014 700 1,820 2.60 1.9 1.9 0 Share 100 100 Other includes wine in soft-packs and alternative packaging Volume change (million litres) 35 30 25 20 15 10 5 0-5 -10-15 Bulk, 402, 58 Volume Other, 8, 1-20 Total Bulk Glass Bottle Other 14

Wine exports by country, container and colour Volume for 2014 Glass Bottle Red 2014 ('000 Litres) Wine Bulk Red Wine Other Red Wine 2014 2014 ('000 ('000 Litres) Litres) Glass Bottle White 2014 ('000 Litres) Wine Bulk White Wine Other White Wine Sparkling Wine Other Wine Total Wine 2014 2014 ('000 2014 ('000 2014 ('000 ('000 2014 ('000 Litres) Litres) Litres) Litres) Litres) United Kingdom 18,609-17 118,332 5 0 na 15,181-9 93,292 10 7-100 3,696 53 443-127 249,560 4.5 United States Of America 65,972-10 13,097 4 0-100 41,869-6 41,249-11 0-100 1,177-36 476-128 163,841-8.5 Canada 19,226-6 13,939 58 253-21 9,429 1 16,694 42 165 21 579-22 311 12 60,596 17.2 China, Pr 32,311 8 2,282-24 422-22 2,410 6 1,270 266 41-21 834 9 307 57 39,878 7.8 Germany, Federal Republic 4,510-8 10,773-8 0 na 1,272 206 17,635 9 0 na 9-62 1-68 34,199 2.7 New Zealand 8,323-4 7,574 12 351-5 1,798-19 9,888-7 282 20 975-8 392-14 29,584-2.6 Netherlands 3,676-26 2,860-2 0 na 2,878-10 3,775-10 0 na 259-22 2-29 13,450-13.9 Denmark 1,861-1 6,502-18 0 na 830 24 3,234-30 0 na 178 39 11 8 12,616-16.9 Italy 134 40 7,067 138 0 na 55 28 2,991 70 0 na 10 5400 0-100 10,256 110.7 Japan 3,185-2 552 44 1,323-10 2,159 14 312 30 569-10 909-34 381 41 9,389-1.4 Russia 497-39 0 na 0 na 355-28 7,410-14 0 na 22-73 0-100 8,284-17.0 Hong Kong 5,922-2 0 na 327 26 896-9 0 na 68 20 163-28 32-32 7,409-2.5 Belgium 342-22 2,804 15 0 na 271-17 3,320 5 0 na 153-29 14 141 6,904 4.8 Finland 1,000-14 2,376 607 0 na 453 7 2,379 726 0 na 215-19 54 107 6,477 158.9 Singapore 3,601 4 0 na 244 72 1,089 3 0 na 59 20 614 115 85 77 5,692 12.5 Sweden 2,462-18 1,321 20 0 na 1,231-8 48-60 0 na 231-24 3 214 5,296-9.9 France 208-18 2,142 17 0 na 126 55 1,012 14 0 na 52 946 0 na 3,541 15.7 Thailand 1,281-14 455 171 554 365 670 4 192 299 241 424 132-5 15-57 3,541 31.8 United Arab Emirates 1,442 19 0 na 314 60 998 6 0 na 243-8 281-3 59 34 3,337 13.2 Ireland 1,470-17 208-25 0 na 1,129-32 285 24 0 na 43-60 12-28 3,147-22.5 Rest of the world 12,068 10 2,465-13 1,206 22 4,290 14 936 70 580-117 741-8 347-92 22,633 9.3 World 188,101-6 194,746 9 4,995 12 89,389-4 205,923 6 2,256 14 11,272-1 2,946 28 699,629 1.9 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 2014 2014 2014 2014 2014 2014 2014 2014 ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) ('000s AUD) United States Of America 235,562-10 17,120 3 0-100 127,016-4 36,220-7 0 na 4,924-8 2,507 50 423,348-7.2 United Kingdom 84,486-9 134,837 5 0 na 56,404 0 86,534 6 25 na 10,476 15 1,829 42 374,590 1.4 China, Pr 198,767 1 3,200-44 978-25 13,208-2 1,023 321 121 7 4,695 16 1,608 33 223,600-0.1 Canada 109,480-3 12,756 55 883-17 40,180 5 12,277 23 542 27 3,159-6 1,513 27 180,791 2.8 Hong Kong 99,041 46 0 na 880 19 6,326-4 0 na 168 14 1,236-28 264-20 107,915 39.1 New Zealand 43,460 5 8,107 14 737-8 6,389-15 6,759-12 581 15 4,737-2 1,643-18 72,413 0.8 Singapore 42,707 34 0 na 672 167 8,511 13 0 na 275 155 5,705 125 765 103 58,635 37.3 Germany, Federal Republic 18,096-11 11,151-15 0 na 3,514 119 13,979-5 0 na 70-53 16-38 46,826-6.0 Japan 18,209 9 741 37 3,240-6 10,036 12 375 11 1,395-9 4,380-45 2,124 25 40,500-2.0 Malaysia 31,634 33 17 na 282 104 2,604 31 0 na 24 275 231-11 69 87 34,861 33.2 Netherlands 13,209-19 2,945-6 0 na 8,930-10 2,879-22 0 na 1,040-19 27-55 29,030-15.6 Denmark 11,076 8 7,006-27 0 na 3,313 23 2,120-49 0 na 661 41 154-8 24,330-11.4 Sweden 11,413-19 1,627 34 0 na 4,764-6 46-71 0 na 1,046-21 30 37 18,926-13.6 United Arab Emirates 8,141 21 0 na 528 61 5,306 19 0 na 388-51 1,184 2 194 49 15,742 15.8 Finland 5,341-10 2,861 585 0 na 2,213 15 2,073 747 0 na 1,021-9 258 150 13,766 40.9 Taiwan Province 11,759 63 0 na 221 42 1,123 20 0 na 89 56 134-57 164 529 13,490 55.3 Thailand 7,252-30 564 184 874 527 2,661-3 203 347 450 382 998 24 69-42 13,070-10.1 Italy 737 99 8,168 170 0 na 204 42 3,289 88 0 na 90 4524 0 na 12,487 136.0 Ireland 6,034-16 327-31 0 na 4,359-24 514 62 0 na 168-66 37-14 11,439-19.8 Belgium 2,349-18 2,863 15 0 na 1,604-6 2,679-1 0 na 966-26 109 66 10,568-5.0 Rest of the world 55,839 6 5,714 6 2,269 10 18,467 3 4,789 1 1,208 5 4,142-17 1,509 31 93,938 4.5 World 1,014,591 1 220,004 7 11,565 8 327,132 0 175,758 3 5,265 7 51,063-3 14,887 27 1,820,266 1.9 16

UK USA Canada China Germany New Zealand Netherlands Denmark Exports by top 15 destinations Volume (million litres) for 2014-8.5 17.2 7.8 2.7-2.6-13.9-16.9 4.5 Italy Japan Russia Hong Kong Belgium Finland Singapore 110.7-1.4-17.0-2.5 4.8 158.9 12.5 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 250 275 Singapore Finland Belgium Hong Kong Russia Japan Italy Denmark Netherlan ds New Zealand Germany China Canada USA UK 2014 5.7 6.5 6.9 7.4 8.3 9.4 10.3 12.6 13.4 29.6 34.2 39.9 60.6 163.9 249.6 2013 5.1 2.5 6.6 7.6 10.0 9.5 4.9 15.2 15.6 30.4 33.3 37.0 51.7 179.1 238.8 17

Exports by colour/wine style 2014 - Volume (million litres) in volume 14 White table wine, 298, 43 Sparkling, 11, 2 Other, 3, 0 in Volume (million litres) 12 10 8 6 4 2 Red table wine, 388, 55 0-2 Total exports Red table wine Sparkling Other White table wine change 2 1.2-1 29 3 Vol change 13.2 4.6-0.1 0.7 8.1 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 p20 p21 p22 p23 p24 p25 p26 p27 p28 p29 p30 p31 p32 p33 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 3,126-79 98,328 4 3,807-25 2,641 3 1,609 3 109,511-8 UK 2,242 78 28,462-19 3,411 10 1,087-16 1,165 36 36,368-13 China 1,534 27 19,886 15 7,849-4 2,411 17 4,143-3 35,823 8 Canada 205 21 16,803-9 8,528 11 2,485-7 1,525 2 29,546-3 New Zealand 87-84 7,154-15 3,067 13 740 59 385 44 11,433-7 Hong Kong 74-82 1,937-26 1,537-3 1,080 29 2,381 31 7,009-4 Netherlands 205-80 6,016-11 457-24 78-7 58 38 6,815-20 Japan 70-41 4,611 4 965-9 415-35 331 4 6,392-3 Germany 2,695 174 2,139-29 520-44 312 57 125-28 5,792 9 Singapore 21-68 1,709-12 886-14 1,010 50 1,752 53 5,379 11 Sweden 61 140 2,869-14 620-25 319-20 58-10 3,927-16 Denmark 32 136 1,981 16 323-33 263-6 280 55 2,880 8 Malaysia 59 137 877-3 352-46 222-22 1,241 60 2,750 4 United Arab Emirates 205-49 1,670 31 520 9 116 37 239 18 2,749 13 Ireland 157-39 2,081-26 256-31 111 56 49 19 2,654-25 Thailand 296 638 1,234-19 226-40 173 74 170-31 2,099-8 Norway 25 DNE 1,261 74 380-16 36-11 91 113 1,791 43 Finland 2-97 1,168-4 323-14 156-7 72 29 1,721-8 Taiwan Province 19 208 973 32 194-5 71 3 242 54 1,499 28 Korea, R 57 1187 638 13 221-11 64-32 168 8 1,148 7 Other 484-29 7,875 4 1,723-14 1,117 3 1,140 2 12,338-1 Total 11,657-48 209,674-3 36,165-6 14,907 5 17,224 15 289,626-5 20

Bottled exports by colour/wine style 2014 - Volume (million litres) volume in 10 Bottled red, 188, 65 Bottled other, 2, 1 Bottled sparkling, 10, 3 in Volume (million litres) 5 0-5 -10 Bottled white, 89, 31-15 -20 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change -5.2-6.2-3.7-7.8 39.1 Vol change -16.0-12.4-3.4-0.8 0.7 21

Bottled exports by colour/wine style 2014 - Value (million AUD) in value $20 Bottled red, 1,015, 72 Bottled other, 13, 1 Bottled sparkling, 49, 4 in Value (million AUD) $15 $10 $5 $0 Bottled white, 327, 23 -$5 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change 0.9 1.4-0.4-4.7 33.9 Val change 13.0 13.6-1.3-2.4 3.2 22

Bottled exports by colour/wine style 2014 Average value (AUD per litre) value in average 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 2014 $5.31 $5.07 $3.66 $5.39 in Average Value (AUD/litre) $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 6.5 8.0 3.4 3.4-3.8 Av. Val change $0.30 $0.40 $0.12 $0.17 -$0.21 23

Bottled exports by top 15 destinations Volume (million litres) for 2014 USA UK China Canada New Zealand Hong Kong Netherlands Japan Germany Singapore Sweden Denmark Malaysia United Arab Ireland -7.4-3.5-19.9-2.7 8.8 10.7-15.7 8.1 3.8 12.5-25.3-3.3-13.0 8.4 = Percentage growth during the latest year -8.1 0 25 50 75 100 125 150 United Netherlan New Ireland Arab Malaysia Denmark Sweden Singapore Germany Japan Hong Kong Canada China UK USA ds Zealand Emirates 2014 2.7 2.7 2.8 2.9 3.9 5.4 5.8 6.4 6.8 7.0 11.4 29.5 35.8 36.4 109.5 2013 3.6 2.4 2.7 2.7 4.7 4.9 5.3 6.6 8.5 7.3 12.3 30.6 33.0 41.8 119.2 24

Bottled exports by top 15 destinations Value (million AUD) for 2014 USA UK China -5.3 0.9-7.5 Canada -1.0 New Zealand 0.7 Hong Kong 39.3 Netherlands -16.0 Japan -1.8 Germany -1.4 Singapore Sweden Denmark Malaysia United Arab 36.3-15.9 11.8 32.7 19.3 = Percentage growth during the latest year Note: Destinations ranked by volume Ireland -21.3 $0 $100 $200 $300 $400 $500 United Ireland Arab Malaysia Denmark Sweden Singapore Germany Japan Netherlan New Hong Kong Canada China UK USA ds Zealand Emirates 2014 10.6 14.7 34.5 15.2 17.3 57.6 21.7 33.4 23.2 106.8 56.1 154.3 218.2 151.4 370.1 2013 13.5 12.4 26.0 13.6 20.5 42.3 22.0 34.0 27.6 76.7 55.7 155.9 216.3 159.9 399.9 25

Bottled exports by top 15 destinations Average Value (AUD per litre) for 2014 USA UK China 0.7 8.9-6.9 = Percentage growth during the latest year Note: Destinations ranked by volume Canada 2.4 New Zealand 8.8 Hong Kong 44.4 Netherlands 4.9 Japan 0.9 Germany -9.4 Singapore 23.1 Sweden -0.3 Denmark 3.4 Malaysia 27.9 United Arab 6.0 Ireland 5.4 $0.00 $3.00 $6.00 $9.00 $12.00 United Ireland Arab Malaysia Denmark Sweden Singapore Germany Japan Netherlan New Hong Kong Canada China UK USA ds Zealand Emirates 2014 $3.99 $5.36 $12.56 $5.28 $4.39 $10.72 $3.75 $5.22 $3.40 $15.24 $4.91 $5.22 $6.09 $4.16 $3.38 2013 $3.79 $5.06 $9.82 $5.11 $4.41 $8.70 $4.13 $5.18 $3.25 $10.55 $4.51 $5.10 $6.55 $3.82 $3.35 26

Bottled exports by top 15 varietals Volume (million litres) for 2014 Shiraz -7.5 Chardonnay Cabernet Sauvignon Shiraz/Cabernet Sauvignon Merlot -12.5-10.0-7.9-6.0 Cabernet Sauvignon/Merlot -11.5 Pinot Grigio -3.3 Sauvignon Blanc -4.5 Pinot Noir Chardonnay/Pinot Noir Riesling Cabernet Sauvignon/Shiraz Pinot Gris Chardonnay/Semillon Semillon/Chardonnay -4.1-12.6-10.1-26.3-34.9-11.0-22.7 = Percentage growth during the latest year Note: The data is based on varietal label claim 0 25 50 75 Cabernet Semillon/Cha Chardonnay/ rdonnay Semillon Pinot Gris Sauvignon/S Riesling Chardonnay/ Pinot Noir Sauvignon Cabernet Shiraz/Caber Cabernet Pinot GrigioSauvignon/M Merlot net Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz erlot Sauvignon 2014 1.5 1.6 2.8 3.4 3.4 3.7 6.0 8.0 8.3 8.9 23.9 24.1 35.9 46.1 60.2 2013 1.9 1.9 4.3 4.6 3.8 4.2 6.3 8.3 8.6 10.0 26.6 27.5 39.0 49.0 65.1 27

Bottled exports by top 15 varietals Value (million AUD) for 2014 Shiraz Chardonnay Cabernet Sauvignon Shiraz/Cabernet Sauvignon Merlot Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir Riesling Cabernet Sauvignon/Shiraz Pinot Gris Chardonnay/Semillon Semillon/Chardonnay -8.8 2.5-0.5 1.3-8.3-3.6 13.1-34.3-16.8-20.2-6.2-11.5-3.7 7.3-2.2 = 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 Semillon/Ch Chardonnay/ ardonnay Semillon Pinot Gris Sauvignon/S Riesling Chardonnay/ Cabernet Shiraz/Caber Sauvignon Cabernet Pinot Noir Pinot GrigioSauvignon/ Merlot net Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon 2014 5.2 4.6 9.0 50.5 15.8 19.4 26.2 28.6 26.2 38.9 83.5 94.9 201.4 166.0 374.9 2013 6.5 5.5 13.7 44.7 16.4 21.1 25.8 28.7 25.5 42.7 89.0 107.2 187.6 172.4 383.3 28

Bottled exports by top 15 varietals Average Value (AUD per litre) for 2014 Shiraz Chardonnay Cabernet Sauvignon Shiraz/Cabernet Sauvignon Merlot Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir Riesling Cabernet Sauvignon/Shiraz Pinot Gris Chardonnay/Semillon Semillon/Chardonnay 2.4 1.1 4.2 3.0 6.0 4.2 5.6 7.2 0.9-6.6 3.2 4.9 16.5 5.8 = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim 53.4 $0.00 $2.50 $5.00 $7.50 $10.00 Cabernet Semillon/Cha Chardonnay/ rdonnay Semillon Pinot Gris Sauvignon/Sh Riesling Chardonnay/ Cabernet Shiraz/Caber Sauvignon Cabernet Pinot Noir Pinot GrigioSauvignon/M Merlot net Pinot Noir Blanc Sauvignon Chardonnay Shiraz iraz erlot Sauvignon 2014 $3.56 $2.76 $3.25 $15.00 $4.59 $5.30 $4.35 $3.60 $3.16 $4.38 $3.49 $3.94 $5.61 $3.60 $6.23 2013 $3.45 $2.96 $3.22 $9.78 $4.28 $5.05 $4.12 $3.45 $2.98 $4.25 $3.35 $3.90 $4.81 $3.52 $5.89 29

Bottled exports by top 15 GI regions Volume (million litres) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Coonawarra Margaret River Clare Valley Limestone Coast Adelaide Hills Langhorne Creek Riverina Western Australia Yarra Valley -17.6-11.3 3.2-16.1 10.9-7.5-9.6 10.8 1.1 34.0-36.6-16.1 2.3 4.0 = Percentage growth during the latest year Note: The data is based on regional label claim -10.6 0 25 50 75 100 125 150 175 200 Yarra Valley Western Australia Riverina Langhorne Creek Adelaide Limestone Hills Coast Clare Valley MargaretCoonawarr River a Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia 2014 0.9 1.2 1.2 1.3 1.6 1.8 1.8 1.9 2.0 2.4 3.1 5.4 5.5 34.3 167.9 2013 0.8 1.4 1.9 0.9 1.6 1.6 2.0 2.1 1.8 2.9 3.0 6.1 6.7 33.0 187.9 30

Bottled exports by top 15 GI regions Value (million AUD) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Coonawarra Margaret River Clare Valley Limestone Coast Adelaide Hills Langhorne Creek Riverina Western Australia Yarra Valley -7.5-12.0 7.9-11.7 28.5-3.6-5.7 18.0 10.8 34.5-31.0-18.1 18.6 21.4-10.0 = 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 Australia Riverina Langhorne Creek Adelaide Hills Limestone Coast Clare Valley MargaretCoonawarr Victoria River a Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia 2014 10.9 5.9 4.9 10.4 13.0 12.1 15.7 21.0 22.5 15.7 46.8 56.1 51.9 271.1 554.0 2013 9.2 7.3 7.2 7.7 11.7 10.3 16.6 21.7 17.5 17.8 43.4 63.8 56.0 223.4 615.5 31

Bottled exports by top 15 GI regions Average Value (AUD per litre) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale 0.7 16.7 12.4-0.8 Barossa Valley Victoria Coonawarra 5.3 15.9 Margaret River 4.3 Clare Valley Limestone Coast Adelaide Hills Langhorne Creek Riverina 8.7 6.5 9.6 0.4 4.3 = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim Western Australia Yarra Valley -2.4 15.9 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Yarra Valley Western Australia Riverina Langhorne Creek Adelaide Hills Limestone Coast Clare Valley MargaretCoonawarr Victoria River a Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia 2014 $12.57 $5.02 $4.10 $8.24 $8.21 $6.80 $8.69 $10.84 $11.16 $6.50 $15.27 $10.38 $9.42 $7.91 $3.30 2013 $10.85 $5.15 $3.77 $8.21 $7.49 $6.39 $8.33 $10.39 $9.63 $6.17 $14.60 $10.46 $8.38 $6.78 $3.28 32

Bottled exports by price point 2014 - Volume (million litres) in volume 250 4 2 Volume (million litres) 200 150 100 50 in Volume (million litres) 0-2 -4-6 -8-10 0 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over -12 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over 2014 12 210 36 15 17 change -47.9-2.8-5.9 5.1 14.9 2013 22 216 38 14 15 Vol change -10.7-6.0-2.3 0.7 2.2 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 p35 p36 p37 p38 p39 p40 p41 p42 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 264 na 120,523 13 65,842 3 18,115-8 7,545 40 894 22 213,184 8 USA - na 35,357-17 17,446 15 120-77 120 150 1,303 1 54,346-9 Canada 1,807 na 23,883 37 4,914 55 26-46 2-96 2-96 30,633 48 Germany - -100 20,517 28 6,759-37 960-16 97 305 74 208 28,408 2 New Zealand - na 12,672 3 3,109-29 1,368 186 - -100 361 191 17,510 1 Italy 143 na 1,260-31 8,465 199 191 165 - na - na 10,058 113 Denmark - na 8,137 18 240-94 928-17 96-20 336 0 9,736-22 Russia 7,410-14 - na - na - na - na - na 7,410-14 Netherlands - na 4,470 7 2,164-23 - -100 - na - na 6,634-7 Belgium 253 955 3,730-8 1,992 46 150-2 - na - na 6,124 9 Finland - na 2,281 692 2,280 691 99 106 96 na - na 4,755 662 China 264 na 1,303 89 1,479 40 216 0 72-88 242-69 3,576 7 France - -100 1,856 40 1,182-8 24 0 48 na 96 33 3,206 18 Sweden - na 455-9 698 8 - -100 216 na - -100 1,369 12 Switzerland - na 528 100 335-43 120 152 48 na 48 na 1,079 20 Norway - na - na 1,030-10 - na - -100 - -100 1,030-16 Japan - na 384 na - -100 528 38 - na - na 912 46 Thailand - na 144 200 431 157 72 na - na - na 647 200 Other - na 553 5 483-40 620 45 - na 196 307 1,852 3 Total 10,141 17 238,053 10 118,846 4 23,536-4 8,340 31 3,552 1 402,469 8 35

Bulk exports by colour/wine style 2014 - Volume (million litres) in volume 30 Bulk white, 205.9, 51 in Volume (million litres) 25 20 15 10 5 Bulk red, 194.7, 48 Bulk other, 1.8, 1 0 Total Bulk Bulk red Bulk white Bulk other change 7.6 9.2 5.8 64.4 Vol change 28.4 16.5 11.2 0.7 36

Bulk exports by colour/wine style 2014 - Value (million AUD) in value Bulk red, 220.0, 55 Bulk white, 175.8, 44 $25 Other bulk, 2.3, 1 in Value (million AUD) $20 $15 $10 $5 $0 Total Bulk Bulk red Bulk white Other bulk change 5.4 7.2 2.7 80.0 Val change 20.4 14.8 4.6 1.0 37

Bulk exports by colour/wine style 2014 Average value (AUD per litre) value in average $0.25 Other bulk Bulk white Bulk red in Average Value (AUD/litre) $0.20 $0.15 $0.10 $0.05 $0.00 -$0.05 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Bulk red Bulk white Other bulk 2014 $1.13 $0.85 $1.27 -$0.10 Total Bulk Bulk red Bulk white Other bulk change -2.0-1.8-2.9 9.5 Av. Val change -$0.02 -$0.02 -$0.03 $0.11 38

Bulk exports by top 15 destinations Volume (million litres) for 2014 UK 8.2 USA -9.2 Canada Germany New Zealand Italy Denmark Russia Netherlands 0.6 112.6-22.2-13.8-6.7 48.0 1.6 Belgium Finland China France Sweden Switzerland 9.3 661.9 7.2 17.8 11.9 19.6 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 Switzerlan Sweden France China Finland Belgium Netherlan New Russia Denmark Italy Germany Canada USA UK d ds Zealand 2014 1.1 1.4 3.2 3.6 4.8 6.1 6.6 7.4 9.7 10.1 17.5 28.4 30.6 54.3 213.2 2013 0.9 1.2 2.7 3.3 0.6 5.6 7.1 8.6 12.5 4.7 17.4 28.0 20.7 59.8 197.0 39

Bulk exports by top 15 destinations Value (million AUD) for 2014 UK USA Canada Germany New Zealand Italy Denmark Russia Netherlands Belgium Finland China 1.0 139.9-34.1-9.6-14.4 7.1 644.6-28.7 36.4-9.6-5.1 6.4 France Sweden Switzerland 20.4 21.6 32.6 = Percentage growth during the latest year Note: Countries ranked by volume $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Switzerlan Sweden France China Finland Belgium Netherlan New Russia Denmark Italy Germany Canada USA UK d ds Zealand 2014 1.3 1.7 3.4 4.2 4.9 5.5 5.8 3.2 9.1 11.5 14.9 25.1 25.0 53.3 223.1 2013 1.0 1.4 2.8 6.0 0.7 5.2 6.8 3.5 13.8 4.8 14.8 27.8 18.3 56.2 209.7 40

Bulk exports by top 15 destinations Average Value (AUD per litre) for 2014 UK USA Canada Germany New Zealand Italy Denmark Russia Netherlands Belgium Finland China France Sweden Switzerland 4.8-7.8 0.4-11.1-8.3-15.3-2.0 4.4-1.7-2.3 2.2 12.8 = Percentage growth during the latest year Note: Destinations ranked by volume -33.5 8.6 10.8 $0.00 $0.50 $1.00 $1.50 $2.00 Switzerlan Sweden France China Finland Belgium Netherlan New Russia Denmark Italy Germany Canada USA UK d ds Zealand 2014 $1.18 $1.22 $1.06 $1.19 $1.04 $0.90 $0.88 $0.43 $0.94 $1.14 $0.85 $0.88 $0.82 $0.98 $1.05 2013 $1.06 $1.12 $1.04 $1.79 $1.06 $0.92 $0.96 $0.41 $1.11 $1.01 $0.85 $0.99 $0.89 $0.94 $1.06 41

Bulk exports by price point 2014 - Volume (million litres) in volume 250 25 Volume (million litres) 200 150 100 50 in Volume (million litres) 20 15 10 5 0 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 -5 $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 2014 10 238 119 24 8 4 change 16.7 10.1 3.5-4.0 30.8 1.1 2013 9 216 115 25 6 4 Vol change 1.5 21.8 4.1-1.0 2.0 0.0 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. : Moving Annual Total - refers to the twelve months ending with the nominated month. : Is calculated as the percentage change in the for the immediate past 13 months compared to the preceding 13 months. Formula: = ((current - preceding )/preceding ) 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. 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 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. 44