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

Wine Export Approval Report Moving Annual Total (MAT) To JUNE 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 p18 p33 p42 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 p12 p13 p14 p15 p16 p17 4

Commentary Total Exports In the year ended June 2014, total Australian wine exports declined by 2 to 684 million litres valued at A$1.78 billion 1. The average value of exports declined marginally to A$2.60 per litre due mainly to a continuing shift towards shipping branded wine in bulk containers (which naturally has a lower price without its packaging). This offset a 6 increase in the average value of bottled exports to A$4.77 per litre. The increase in the average bottled value was driven by a turnaround in fortunes for exports of premium Australian wines in our key markets, which for many has seen a reversal of the downward trends that were set in place when the global financial crisis (GFC) took hold in late 2007. Some of these increasing sales could be from wineries seeking opportunities in other markets in response to the slowdown in China. A decline in bottled wine exports offset an increase in bulk wine exports. Bottled exports declined by 10 to 285 million litres, which partially caused its share of the export mix to decline by over three percentage points to a 42 share of total exports. Bottled exports have been in a long-term downward trend as more branded wine is being shipped to Australia s major markets to be packaged offshore (see figure 1a). Over the past three months, the decline in bottled exports appears to have stabilised but it is too early to determine if this reflects a reversal in the trend. 1 All references to value and average value per litre are in Free On Board (FOB) terms. Bulk wine exports have increased in the first half of 2014 after being on a downward trajectory during 2013. In the latest 12 month period, bulk exports increased by 4 to 392 million litres, resulting in the share of bulk in the mix to increase by three percentage points to 58. Figure 1a: Volume by container type (million litres) Figure 1b illustrates that the average value of bottled exports has been on the rise since hitting a trough in June 2010. Two key factors contributed to the increase in the bottled average value. Firstly, there has been a decline in bottled exports at lower prices, with some of this volume most likely now shipped in bulk containers. Bottled wine shipments under A$5.00 per litre declined by 11 to 254 million litres, with the rate of decline stronger at the lower end. Secondly, there has been an increase in exports at higher price segments. Bottled exports of wine at above A$7.50 per litre increased by 4 to 31 million litres. 5

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

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

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

Commentary (continued) CANADA Wine exports to Canada grew strongly during the year, up 20 to 59 million litres valued at A$182 million. Bulk wine exports, up 66 to 28 million litres offset a decline in bottled exports (down 5 to 30 million litres). Figure 4a illustrates that bulk exports have been in a strong upswing since the beginning of 2014 following an already upward, albeit weaker, two year trend. Much of the increase in bulk wine exports appears driven by supermarket wines bottled in Quebec. Figure 4a: Canada Volume by container type Figure 4b illustrates the average value for both bottle and bulk exports to Canada. The strong increase in bulk volumes is correlated with the decline in average value of bulk exports. Over the year, the average value declined by 6 to A$0.84 per litre. Conversely, the average value of bottled wine recorded strong growth, up 4 to A$5.21 per litre. This reverses a trend set in place when the GFC hit in 2007. Bottled wine exports have followed a similar trend to that in the US and UK. Exports below A$5.00 per litre declined by 11 to 18 million litres while exports above A$5.00 per litre increased by 7 to 13 million litres. The strongest growth in bottled exports was in the above A$10.00 per litre segment, with volume up 16 to 1.6 million litres. The GFC also had a big impact on this segment of the market. In the year to June 2009, exports above A$5.00 declined by 41 and declined every year after until this year. Figure 4b: Canada Average value by container type 9

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

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

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 January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June 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) 12

Exports by container type 2014 Volume (million litres) Glass Bottle, 285, 42 Bottled Bulk Other Total Volume (ML) Value (A$M FOB) Average Value (A$/L FOB) MAT Jun 2014 285 1,360 4.77-10 -4 6 Share 42 77 MAT Jun 2014 392 401 1.02 4 5 0 Share 57 23 MAT Jun 2014 7 17 2.53-3 -4-1 Share 1 1 MAT Jun 2014 684 1,778 2.60-2.0-2.4 0 Share 100 100 Other includes wine in soft-packs and alternative packaging Volume change (million litres) 20 10 0-10 -20-30 Bulk, 392, 57 Volume Other, 7, 1-40 Total Bulk Glass Bottle Other 13

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 18,491-30 118,167 2 0 na 14,557-23 90,163 13 0 na 2,279-39 452-29 244,110-0.8 United States Of America 69,903-6 9,950-49 0-100 37,311-9 42,203-21 0-100 1,558-6 339-22 161,264-15.1 Canada 20,089-7 12,294 42 288-14 9,185 1 15,529 92 130-18 733 7 305 9 58,552 19.6 China, Pr 29,566-9 2,462-36 446-18 2,276 5 707 69 53-11 964 12 221 31 36,694-9.8 Germany, Federal Republic 4,082-18 10,897-11 0 na 773 62 17,682 21 0 na 9-62 1-62 33,445 3.4 New Zealand 7,979-10 8,236 8 341-4 1,667-20 10,970-5 236 11 978-12 447-16 30,855-4.6 Netherlands 4,573-5 2,856-8 0 na 2,967 3 3,883-21 0 na 326 5 4 58 14,609-8.9 Denmark 1,863-11 6,812-18 0 na 694 7 3,649-15 0 na 137 19 15 55 13,170-14.8 Japan 3,252 3 456 12 1,403-3 1,782 9 240 25 555-12 1,223-3 296 14 9,207 2.6 Italy 118 2 5,628 7749 0 na 39-30 2,992 3022 0 na 0-100 0 na 8,777 2491.5 Russia 649-20 0 na 0 na 474-4 6,864 258 0 na 19-84 4 361 8,011 139.2 Hong Kong 6,073 14 0 na 263 44 914 0 0 na 52 17 193-3 48 116 7,542 12.5 Belgium 410 0 2,987 15 0 na 311-15 3,626 12 0 na 201 6 2-72 7,536 11.0 Sweden 2,839-14 1,296-2 0 na 1,188-24 48-75 0 na 282-15 1-26 5,653-15.6 Singapore 3,660 12 0 na 159-33 979-4 0 na 53-5 555 233 72 84 5,477 14.2 Finland 1,154-2 1,224 1599 0 na 430-10 1,346 na 0 na 268 7 43 244 4,465 125.0 Ireland 1,734-31 459 1662 0 na 1,539-20 488 na 0 na 104-48 20-62 4,345-8.2 United Arab Emirates 1,404 31 0 na 317 45 1,094 33 0 na 251-21 279-6 51 36 3,397 22.7 France 209-7 1,876-4 0 na 91 2 1,152 20 0 na 52 538 0 362 3,380 4.7 Thailand 1,384-5 359 200 123-39 641 9 144 100 145 40 140-20 24-24 2,960 7.7 Rest of the world 10,974-10 2,564-37 1,117 12 3,491-1 792-3 506-10 850 9 205 1 20,499-11.5 World 190,407-10 188,523-1 4,458-1 82,403-9 202,478 10 1,981-8 11,149-11 2,551-7 683,949-2.0 14

Wine exports by country, container and colour Value for 2014 Glass Bottle Red Bulk Red Wine Other Red Wine Glass Bottle White Bulk White Wine Other White Wine Sparkling Wine Other Wine Total Wine 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) United States Of America 256,219 1 14,471-40 0-100 118,039 0 36,290-16 0-100 5,239-7 2,022-24 432,280-3.5 United Kingdom 82,027-22 139,507 8 0 na 52,280-17 89,420 17 0 na 8,814-35 1,666-22 373,713-3.7 China, Pr 184,303-16 4,729-44 1,098-13 12,911 1 547 11 129-7 5,325 26 1,202 13 210,244-15.4 Canada 114,000-3 11,637 41 1,009-6 38,629 4 11,723 72 436-11 3,401-4 1,397 17 182,233 3.6 Hong Kong 77,897 23 0 na 718 37 6,324 1 0 na 125 6 1,525 2 346 87 86,936 21.1 New Zealand 40,320-2 8,931 4 753 1 5,796-13 7,605-1 512 12 4,553-3 1,957-7 70,428-2.2 Singapore 39,523 23 0 na 523 6 7,544 4 0 na 262 68 5,123 267 631 134 53,607 28.9 Germany, Federal Republic 17,770-11 11,669-16 0 na 2,533 37 14,807 9 0 na 80-51 18-54 46,876-5.4 Japan 16,647-6 646 23 3,294-4 8,624 5 336 38 1,361-21 6,849-12 1,866 9 39,622-4.3 Malaysia 30,083 6 0 na 277 115 2,356 54 0 na 23 25 294 55 50 46 33,084 9.7 Netherlands 15,705-4 2,998-11 0 na 9,112-3 3,111-31 0 na 1,252 5 54 38 32,232-7.2 Denmark 10,444-3 7,180-34 0 na 2,733 9 2,527-40 0 na 540 31 214 68 23,638-18.1 Sweden 13,185-11 1,415-21 0 na 4,624-21 46-82 0 na 1,268-4 14-15 20,553-14.3 United Arab Emirates 7,635 29 0 na 535 47 5,722 45 0 na 399-62 1,170 3 156 43 15,616 24.6 Ireland 7,468-19 764 1855 0 na 5,773-10 800 na 0 na 463-43 52-73 15,321-8.3 Thailand 9,284-5 439 230 210 4 2,605-1 162 125 247 107 1,038 7 91-25 14,077 0.7 Finland 6,095 9 1,503 1592 0 na 2,038-1 1,204 na 0 na 1,240 18 180 229 12,259 38.6 Belgium 2,616-1 3,070 12 0 na 1,670-6 2,927 1 0 na 1,267 22 29-56 11,579 3.6 Italy 555 4 6,083 6594 0 na 136-19 3,188 2600 0 na 0-100 0 na 9,962 989.1 Taiwan Province 8,584 16 0 na 200 41 731-2 0 na 80 28 207-41 77 333 9,879 13.5 Rest of the world 48,970-14 5,391-26 2,045-2 15,954-10 4,503 85 1,076-9 4,686-4 1,118 13 83,743-10.5 World 989,331-5 220,433 1 10,662 2 306,134-3 179,197 10 4,649-16 54,334-3 13,141 0 1,777,881-2.4 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 2014 ('000s AUD) 15

UK USA Canada China Germany New Zealand Netherlands Denmark Exports by top 15 destinations Volume (million litres) for 2014-15.1 19.6-9.8 3.4-4.6-8.9-14.8-0.8 Japan Italy Russia Hong Kong Belgium Sweden Singapore 2.6 2491.5 139.2 12.5 11.0-15.6 14.2 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 250 275 Singapore Sweden Belgium Hong Kong Russia Italy Japan Denmark Netherlan ds New Zealand Germany China Canada USA UK MAT Jun 2014 5.5 5.7 7.5 7.5 8.0 8.8 9.2 13.2 14.6 30.9 33.4 36.7 58.6 161.3 244.1 MAT Jun 2013 4.8 6.7 6.8 6.7 3.3 0.3 9.0 15.5 16.0 32.4 32.4 40.7 49.0 190.0 246.2 16

Exports by colour/wine style 2014 - Volume (million litres) in volume 15 White table wine, 287, 42 Sparkling, 11, 2 Other, 3, 0 Red table wine, 383, 56 in Volume (million litres) 10 5 0-5 -10-15 -20-25 Total exports Red table wine Sparkling Other White table wine change -2-5.5-11 -6 3 Vol change -14.3-22.3-1.3-0.2 9.6 17

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

Bottled exports by price point and destination Volume ( 000 litres) for 2014 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over Total 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) 2014 ('000 Litres) USA 8,252-13 91,755-7 4,417-15 2,656 9 1,629 5 108,709-7 UK 1,886-7 28,399-33 3,135-7 1,278 20 918 6 35,616-28 China 1,459 75 18,030-3 7,495-17 2,026-14 3,982-19 32,992-8 Canada 226-25 17,426-11 8,206 7 2,729-1 1,605 16 30,193-5 New Zealand 103-89 7,257-15 2,820 22 564 29 272 8 11,016-12 Netherlands 1,025 580 6,088-17 600 51 101 11 56 15 7,869-2 Hong Kong 176-57 2,319 1 1,561 20 1,144 92 2,020 8 7,218 12 Japan 78 25 4,260 11 1,116 5 550-26 315-20 6,318 4 Singapore 42-52 1,675-4 917-12 942 70 1,687 57 5,262 17 Germany 1,040-31 2,782 9 618-38 267 9 158-8 4,865-11 Sweden 22-69 3,112-21 758-6 345-2 73 61 4,309-17 Ireland 151-76 2,669-26 383 9 132 66 62 48 3,398-28 United Arab Emirates 176-70 1,626 58 634 133 119 33 227 4 2,780 27 Malaysia 32-30 899 4 249-60 182-40 1,385 34 2,746-4 Denmark 19-50 1,823-6 378-27 282 47 207 30 2,709-5 Thailand 222 505 1,202-18 314-17 177 52 269 11 2,184-2 Finland 25-82 1,283 4 338-8 168 23 81 145 1,895-1 Norway 0-100 777-17 525 156 48 97 47 74 1,398 16 Taiwan Province 17 107 780-3 188-5 70-22 202 52 1,257 2 Russia 110 475 835-22 95-54 40-48 67 24 1,147-20 Other 373-49 7,240-3 1,813-13 1,020-9 1,028-30 11,475-11 Total 15,434-15 202,238-12 36,558-5 14,839 7 16,287 2 285,356-10 19

Bottled exports by colour/wine style 2014 - Volume (million litres) in volume 10 5 Bottled red, 190, 67 Bottled other, 2, 1 Bottled sparkling, 11, 3 in Volume (million litres) 0-5 -10-15 -20-25 Bottled white, 82, 29-30 -35 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change -9.7-9.8-9.0-12.9-4.6 Vol change -30.5-20.7-8.1-1.6-0.1 20

Bottled exports by colour/wine style 2014 - Value (million AUD) in value $20 $10 Bottled red, 989, 73 Bottled other, 11, 1 Bottled sparkling, 54, 4 in Value (million AUD) $0 -$10 -$20 -$30 -$40 -$50 Bottled white, 306, 22 -$60 -$70 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change -4.2-4.8-2.9-3.1 2.5 Val change -60.0-49.4-9.2-1.7 0.3 21

Bottled exports by colour/wine style 2014 Average value (AUD per litre) in average value Bottled red Bottled white Bottled sparkling Bottled other $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Bottled other Bottled sparkling Bottled white Bottled red MAT Jun 2014 $5.49 $5.09 $3.72 $5.20 in Average Value (AUD/litre) $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 -$0.10 -$0.20 Total bottled Bottled red Bottled white Bottled sparkling Bottled other change 6.0 5.6 6.7 11.3 7.4 Av. Val change $0.27 $0.28 $0.23 $0.52 $0.38 22

Bottled exports by top 15 destinations Volume (million litres) for 2014 USA UK China Canada New Zealand Netherlands Hong Kong Japan Singapore Germany Sweden Ireland United Arab Emirates Malaysia Denmark -12.0-1.7 11.6 3.7 17.1-11.0-16.9-27.8 26.7-4.3-4.7-28.3-7.7-4.7 = Percentage growth during the latest year -7.1 Denmark 0 25 50 75 100 125 Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun 2014 2.7 2.7 2.8 3.4 4.3 4.9 5.3 6.3 7.2 7.9 11.0 30.2 33.0 35.6 108.7 MAT Jun 2013 2.8 2.9 2.2 4.7 5.2 5.5 4.5 6.1 6.5 8.0 12.5 31.7 35.8 49.7 117.0 23

Bottled exports by top 15 destinations Value (million AUD) for 2014 USA UK China Canada -20.8-1.2-14.4 0.2 New Zealand -3.3 Netherlands -2.9 Hong Kong 21.0 Japan -4.7 Singapore 29.0 Germany Sweden Ireland United Arab Emirates Malaysia -7.7-13.0-17.4 32.2 9.3 = Percentage growth during the latest year Note: Destinations ranked by volume Denmark 1.1 $0 $100 $200 $300 $400 $500 Denmark Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun 2014 13.9 32.8 14.5 13.8 19.1 20.4 52.8 32.5 86.1 26.1 52.5 157.3 203.7 144.6 381.1 MAT Jun 2013 13.8 30.0 11.0 16.7 21.9 22.1 40.9 34.1 71.1 26.9 54.3 159.2 237.9 182.6 380.4 24

Bottled exports by top 15 destinations Average Value (AUD per litre) for 2014 USA UK China 7.8 10.4-7.2 = Percentage growth during the latest year Note: Destinations ranked by volume Canada 3.7 New Zealand 9.9 Netherlands -1.2 Hong Kong 8.4 Japan Singapore -8.1 10.2 Germany 3.7 Sweden 4.8 Ireland 14.4 United Arab Emirates 4.3 Malaysia 14.2 Denmark 6.1 $0.00 $3.00 $6.00 $9.00 $12.00 Denmark Malaysia United Arab Emirates Ireland Sweden Germany Singapore Japan Hong Kong Netherlan ds New Zealand Canada China UK USA MAT Jun 2014 $5.14 $11.94 $5.23 $4.05 $4.43 $4.19 $10.03 $5.14 $11.92 $3.32 $4.77 $5.21 $6.17 $4.06 $3.51 MAT Jun 2013 $4.84 $10.45 $5.02 $3.54 $4.23 $4.04 $9.10 $5.59 $11.00 $3.36 $4.34 $5.02 $6.65 $3.68 $3.25 25

Bottled exports by top 15 varietals Volume (million litres) for 2014 Shiraz Chardonnay Cabernet Sauvignon Merlot Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc 10.6-7.2-14.1-8.3-25.4-8.4-9.0-11.0 Pinot Noir Chardonnay/Pinot Noir Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre -7.9-20.4-3.6-11.5-40.2-18.0 15.0 = Percentage growth during the latest year Note: The data is based on varietal label claim 0 25 50 75 Cabernet Shiraz/MourSemillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay/ Sauvignon/S Pinot Noir Sauvignon Cabernet Shiraz/Caber Cabernet Pinot Grigio Sauvignon/ net Merlot Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun 2014 1.6 1.6 2.7 3.7 4.0 4.0 6.1 8.0 9.2 9.3 23.2 25.0 36.9 46.8 62.3 MAT Jun 2013 1.4 2.0 4.5 4.1 4.1 5.0 6.7 8.7 8.3 10.8 31.1 27.3 40.3 51.4 70.0 26

Bottled exports by top 15 varietals Value (million AUD) for 2014 Shiraz Chardonnay Cabernet Sauvignon Merlot Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio Sauvignon Blanc Pinot Noir Chardonnay/Pinot Noir Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre -12.8 23.2-3.2-4.0-5.2-6.3-7.4-40.6-15.8 20.5-5.7-21.2-1.6-6.6-3.7 = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 Cabernet Cabernet Shiraz/Cabe Shiraz/Mour Semillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay Sauvignon Cabernet Sauvignon/S Pinot Noir Pinot GrigioSauvignon/ rnet Merlot /Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun 2014 20.1 5.8 8.8 16.3 40.6 21.3 25.9 28.4 29.0 40.3 93.3 85.8 182.9 171.0 382.6 MAT Jun 2013 16.7 6.8 14.8 17.6 43.4 22.5 27.0 29.4 23.6 46.2 118.4 91.0 195.8 173.8 397.1 27

Bottled exports by top 15 varietals Average Value (AUD per litre) for 2014 Shiraz 8.2 Chardonnay 8.1 Cabernet Sauvignon 1.9 Merlot 2.9 Shiraz/Cabernet Sauvignon Cabernet Sauvignon/Merlot Pinot Grigio 11.3 5.7 1.5 = Percentage growth during the latest year Note: Varietals ranked by volume. The data is based on varietal label claim Sauvignon Blanc Pinot Noir 4.3 4.3 Chardonnay/Pinot Noir 19.1 Cabernet Sauvignon/Shiraz Riesling Pinot Gris Semillon/Chardonnay Shiraz/Mourvedre -0.7 2.7 4.6 $0.00 $2.50 $5.00 $7.50 $10.00 Cabernet Cabernet Shiraz/Caber Shiraz/MourSemillon/Ch vedre ardonnay Pinot Gris Riesling Chardonnay/ Sauvignon Cabernet Sauvignon/S Pinot Noir Pinot GrigioSauvignon/ net Merlot Pinot Noir Blanc Sauvignon Chardonnay Shiraz hiraz Merlot Sauvignon MAT Jun 2014 $12.42 $3.50 $3.26 $4.45 $10.28 $5.37 $4.23 $3.53 $3.16 $4.33 $4.02 $3.43 $4.95 $3.66 $6.14 MAT Jun 2013 $11.84 $3.41 $3.28 $4.26 $10.57 $4.51 $4.05 $3.38 $2.84 $4.27 $3.81 $3.33 $4.86 $3.38 $5.67 28

Bottled exports by top 15 GI regions Volume (million litres) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek Western Australia Yarra Valley -11.8-1.3-13.9-14.6-15.8 3.2 0.0 8.9-12.2-8.9 31.7-34.2-8.6 6.6 = Percentage growth during the latest year Note: The data is based on regional label claim -12.4 0 25 50 75 100 125 150 175 200 225 Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun 2014 0.8 1.1 1.2 1.5 1.5 1.9 2.0 2.0 2.1 2.3 2.9 5.9 6.3 33.3 175.0 MAT Jun 2013 0.9 1.6 0.9 1.6 1.7 1.7 2.0 2.0 2.5 2.7 3.4 6.0 7.2 31.3 199.7 29

Bottled exports by top 15 GI regions Value (million AUD) for 2014 South Eastern Australia South Australia Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek Western Australia Yarra Valley -5.9 0.6-0.2-6.2-15.7 9.2 8.5 7.9-3.9 0.1 15.5-25.2 2.7 7.8-8.7 = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim $0 $200 $400 $600 $800 Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun 2014 9.5 6.2 9.0 5.9 11.9 11.9 21.6 17.9 21.7 14.9 44.8 62.0 56.2 234.6 585.2 MAT Jun 2013 9.3 8.2 7.7 5.9 12.4 11.0 19.9 16.4 25.8 15.9 44.9 61.6 59.8 217.6 640.7 30

Bottled exports by top 15 GI regions Average Value (AUD per litre) for 2014 South Eastern Australia 4.2 South Australia 1.2 Barossa Mclaren Vale Barossa Valley Victoria Margaret River Clare Valley Coonawarra Limestone Coast Adelaide Hills Riverina Langhorne Creek 9.9 9.8-0.9 9.5-12.3 6.7 5.8 1.9 0.1 8.5 = Percentage growth during the latest year Note: Regions ranked by volume. The data is based on regional label claim 15.9 Western Australia 13.8 Yarra Valley 12.4 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Yarra Valley Western Langhorn Australia e Creek Riverina Adelaide Hills LimestoneCoonawar Coast ra Clare Valley Margaret River Victoria Barossa Valley Mclaren Vale Barossa South South Eastern Australia Australia MAT Jun 2014 $11.77 $5.85 $7.77 $4.03 $7.97 $6.35 $10.79 $8.81 $10.29 $6.37 $15.49 $10.54 $8.90 $7.04 $3.34 MAT Jun 2013 $10.47 $5.15 $8.85 $3.67 $7.28 $6.41 $9.95 $8.33 $10.28 $5.80 $13.37 $10.35 $8.34 $6.96 $3.21 31

Bottled exports by price point 2014 - Volume (million litres) in volume 250 5 Volume (million litres) 200 150 100 50 in Volume (million litres) 0-5 -10-15 -20-25 0 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over -30 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and over MAT Jun 2014 15 202 37 15 16 change -14.9-11.9-4.8 7.1 2.0 MAT Jun 2013 18 229 38 14 16 Vol change -2.7-27.3-1.8 1.0 0.3 32

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

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 95 296 103,584-4 72,667 5 23,125 38 8,430 412 592-30 208,493 6 USA - na 35,195-31 15,726-21 288-29 48 0 1,303-17 52,560-28 Germany - -100 18,877 17 8,685-10 993 3 24 0 - -100 28,579 6 Canada 1,807 na 20,522 53 5,489 70 26-73 50 na 48 100 27,942 66 New Zealand - -100 13,969 5 3,673-10 1,272 83 48-78 292-16 19,254 0 Denmark - na 8,427 81 1,032-84 835-8 24-86 143-70 10,461-17 Italy - na 2,355 na 6,122 4165 144 498 - na - na 8,621 5045 Russia 6,864 258 - na - na - na - na - na 6,864 258 Netherlands - na 4,366-12 2,374-20 - -100 - na - na 6,740-16 Belgium 277 na 4,151 3 1,906 17 279 94 - na - na 6,612 14 China 168 na 812-3 968-25 96-83 511 159 638-55 3,193-26 France 24 na 1,752 11 1,160-1 48 0 - na 96-5 3,080 6 Finland - na 1,272 na 1,152 2299 98 308 48 na - na 2,569 3469 Sweden - na 503 0 818 10 - -100 24 na - -100 1,344-11 Norway - na - na 1,128-17 - na 24-50 - -100 1,152-20 Switzerland - na 336 40 494-36 96 34 - na 48-71 974-22 Ireland - na - na 152 na 694 2562 - na 102 na 948 3536 Japan - na 144 na - -100 552 360 - na - na 696 16 Other - na 744 82 695-61 269 124 - -100 36-62 1,744-27 Total 9,235 256 217,009-1 124,240-1 28,814 37 9,231 292 3,297-39 391,827 4 34

Bulk exports by colour/wine style 2014 - Volume (million litres) in volume 20 Bulk white, 202.5, 52 in Volume (million litres) 15 10 5 0 Bulk red, 188.5, 48 Bulk other, 0.8, 0-5 Total Bulk Bulk red Bulk white Bulk other change 4.4-0.8 9.7 19.0 Vol change 16.4-1.6 17.9 0.1 35

Bulk exports by colour/wine style 2014 - Value (million AUD) in value Bulk red, 220.4, 55 Bulk white, 179.2, 45 $20 $18 Other bulk, 0.9, 0 in Value (million AUD) $16 $14 $12 $10 $8 $6 $4 $2 $0 -$2 Total Bulk Bulk red Bulk white Other bulk change 4.6 0.6 10.1-4.4 Val change 17.6 1.3 16.4 0.0 36

Bulk exports by colour/wine style 2014 Average value (AUD per litre) in average value $0.04 Other bulk Bulk white Bulk red in Average Value (AUD/litre) $0.03 $0.02 $0.01 $0.00 -$0.01 -$0.02 -$0.03 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Bulk red Bulk white Other bulk MAT Jun 2014 $1.17 $0.89 $1.14 -$0.04 Total Bulk Bulk red Bulk white Other bulk change 0.2 1.4 0.4-19.7 Av. Val change $0.00 $0.02 $0.00 -$0.28 37

Bulk exports by top 15 destinations Volume (million litres) for 2014 UK 6.1 USA -27.9 Germany Canada New Zealand Denmark Italy Russia Netherlands Belgium China France Finland Sweden Norway 6.3 66.5 0.0-17.1 5045.3 257.5-16.1 13.6-25.8 5.9 3468.6-11.0-19.7 = Percentage growth during the latest year 0 25 50 75 100 125 150 175 200 225 Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun 2014 1.2 1.3 2.6 3.1 3.2 6.6 6.7 6.9 8.6 10.5 19.3 27.9 28.6 52.6 208.5 MAT Jun 2013 1.4 1.5 0.1 2.9 4.3 5.8 8.0 1.9 0.2 12.6 19.3 16.8 26.9 72.9 196.5 38

Bulk exports by top 15 destinations Value (million AUD) for 2014 UK 11.4 USA -24.2 Germany Canada New Zealand Denmark Italy Russia Netherlands Belgium China France Finland Sweden Norway -3.6 55.9 0.9-35.6 4337.4 277.6-22.0 6.3-41.3 11.9 2947.6-28.4-25.2 = Percentage growth during the latest year Note: Countries ranked by volume $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun 2014 1.3 1.5 2.7 3.3 5.3 6.0 6.1 2.8 9.3 9.7 16.6 23.5 26.5 51.2 229.1 MAT Jun 2013 1.8 2.0 0.1 2.9 9.0 5.6 7.8 0.8 0.2 15.1 16.5 15.0 27.5 67.5 205.6 39

Bulk exports by top 15 destinations Average Value (AUD per litre) for 2014 UK USA 5.2 5.0 = Percentage growth during the latest year Note: Destinations ranked by volume Germany -9.3 Canada -6.3 New Zealand 1.0 Denmark -22.4 Italy -13.8 Russia Netherlands Belgium China 5.6-7.1-6.4 France Finland Sweden Norway 5.7-14.6-19.5-6.8 $0.00 $0.50 $1.00 $1.50 $2.00 Norway Sweden Finland France China Belgium Netherlan ds Russia Italy Denmark New Zealand Canada Germany USA UK MAT Jun 2014 $1.15 $1.09 $1.05 $1.06 $1.66 $0.91 $0.91 $0.41 $1.08 $0.93 $0.86 $0.84 $0.93 $0.97 $1.10 MAT Jun 2013 $1.24 $1.35 $1.23 $1.01 $2.10 $0.97 $0.98 $0.39 $1.25 $1.20 $0.85 $0.90 $1.02 $0.93 $1.05 40

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 0-5 -10-15 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 -20 $0.00 to $0.49 $0.50 to $0.99 $1.00 to $1.49 $1.50 to $1.99 $2.00 to $2.49 $2.50 and above MAT Jun 2014 9 217 124 29 9 3 change 1138.6-6.6-8.1 39.2 267.4-40.3 MAT Jun 2013 3 219 125 21 2 5 Vol change 9.4-15.1-10.5 7.9 5.7-2.3 41

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

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. 43