Australia producing too many wine grapes

Bad news today for the Australian wine industry as national stock levels rise.

Wine production exceeded sales in 2024–25, leading to a rise of 5% in national stock levels, The Australian Wine Production, Sales and Inventory Report 2025, released by Wine Australia.

The worsening imbalance between supply and demand comes as global conditions for wine remain tough. 

Analysis of global market conditions suggests that the outlook for wine has deteriorated in the past 12 months. 

Global consumption has continued to decline and remains lower than global production. Consumption is forecast to decrease further in the next five years.

These unfavourable market conditions are compounded for Australia by the high stock levels carried forward from 2024–25. 

The increase in Australian wine stocks without an increase in sales is likely to reduce future demand for wine and wine grapes. As a result, grape prices are unlikely to improve in the next few years.

Results large winemakers in Australia indicated that total Australian wine production from the 2025 vintage was 1.13 billion litres, or 126 million 9-litre case equivalents. This was 9% higher than in 2024, but 7% below the 10-year average of 1.22 billion litres.

The production of red wine increased by 15%, while the production of white wine increased by 2%. 

Wine Australia manager for market insights Peter Bailey said that the result was expected, after the grape crush in 2025 increased by 11%, with nearly 90% of the additional tonnes being red.

“Production was still below the 10-year average, but it was the second vintage in a row where the crush increased from the 20-year low in 2023, despite the high levels of stock going into the 2025 vintage,” Bailey said.

Export sales increased by 3% to 638 million litres, driven by growth in exports to mainland China, which increased by 53 million litres to 85 million litres in the latest 12-month period.

Image: Andrii Omelnytskii, Scop.io

Australia's wine culture on the move

Australia’s wine consumption trends have been put under the microscope with the recent release of a first of its kind report called State of the Grapes, which reveals large-scale shifts in the nation’s palates, our Hunter Valley correspondent Rick Allen reports.

A collaboration between Wine Australia and the Endeavour Group, the report analyses sales data from BWS and Dan Murphy’s and gives an insight into what the wine shelves of the future could look like.

"We are witnessing a significant evolution in how Australians are choosing their wine," says Andrew Shedden, general manager of Premium and Luxury at Endeavour Group.

"Not just fleeting trends, but long-term, global patterns that are reshaping the entire Australian wine landscape.

“From the surging popularity of rosé and prosecco to the 'spritz culture' invigorating the market, consumers are sending a clear message: they want lighter, more versatile, and often more affordable options."

Across every state, there is a clear trend towards lighter-bodied and more refreshing wine styles. 

Varieties such as pinot noir, pinot grigio/gris, rosé, and prosecco have all grown their market share significantly. This comes at the expense of traditional fuller-bodied red wine varieties which have seen a decline in sales since 2018.

Cask wine, sauvignon blanc, traditional red blends and non-vintage sparkling joined shiraz in experiencing the most significant declines over the long term.

Innovation has breathed new life into the wine sector. 

The 'spritz' category (sparkling-wine-based cocktails) has spearheaded this. Driven by Millennial and Gen Z consumers seeking accessible, refreshing and Instagrammable options, the desire for Spritz has the potential to define attitudes towards flavoured and sparkling wine styles.

Value is being prioritised above all else for younger Australians, making promotional deals a big factor in consumer decision making.

Findings suggest that younger drinkers are bypassing the traditional 'rules' of wine and prioritising their personal taste over conventional food pairings or norms. This is changing where and when wine is consumed, challenging its once-dominant place at the dinner table.

Around the states:

Victoria: leading the way nationally with new drinkers and innovation; national leader in Spritz sales; a trend away from shiraz to pinot noir.

NSW: Australia’s leading market, but with less state loyalty than other states, with 90% of sales on wines from other states or countries.

Western Australia: deep loyalty to local producers, with their preference for local heritage and classic varieties; a thirst for prosecco.

South Australia: a growing appreciation for shiraz despite the national decline; the highest commitment of any state to Australian wine.

Tasmania: The highest allegiance to local producers with nearly 20% of wine sales on in-state products, a figure that is eight times the national average.

Image: Elena Pasenko, Scop.io  

Why is Australian wine not making an impact in Canada?

Someone at Wine Australia appears to be falling down on the job. 

And someone at the Liquor Control Board of Ontario in Canada is doing their customers a disservice. 

On a recent visit to Kingston and Toronto in Ontario I visited several different restaurants and there was hardly any Australian wine to be found on any of the wine lists. 

And visits to monopoly LCOB stores showed that while mass market brands like Yellow Tail and 19 Crimes are available in abundance there are hardly any upmarket, or boutique, Australian wines on display. 

This is at a time when all US wines and spirits have been removed from the shelves, creating what should be a huge opportunity for Australian producers with a lake of quality red wine to offload. 

New Zealand, is contrast, has its sauvignon blanc well represented on wine lists. Thee are also plenty of choices from Italy, Spain, France, Argentina and Portugal, among others. 

I purchased a decent Wakefield (Taylor's) Promised Land shiraz an LCBO store to share with family. but there were precious few other enticing options from Australia. 

The question has to be asked: Why is Wine Australia not leaping in to fill the gap caused by the absence of US wines? Particularly as Canadians are comfortable with wines sold under screw cap and have a positive relationship with Australians.

Friends living in Toronto tell me promotions of Australian wine in the fourth-biggest city in North America are non-existent. 

And why is the LCBO offering only mass market Australian options to local consumers? Would they not like to try something different? 

Something, somewhere is very wrong.  

Image: Filotero Venturo, Scopio          

Wine Australia launches new marketing campaign

Wine Australia has launched a new marketing campaign aiming to highlight the versatility of wine styles from around the country.

A barbecue "just because" the sun came out. A lazy night in with your favourite person. A camping trip where the fire crackles and the stories get better as the night goes on.

The campaign is billed as a "fresh new message inviting Australians to see wine differently".

It showcases wines not only as suitable for celebrations and more formal occasions, but as something to share alongside smaller, unscripted moments using the slogan "We make a wine for that."

Australian winemakers use over 100 grape varieties grown in 65 wine regions around the country.

From August 4, people across the country are being invited to take a moment to make a moment, and share their Aussie wine experiences with @_australianwine for the chance to win one of 20 "We make a wine for that" prize packs, valued at $240 each.

A national calendar of Australian wine events is now live at www.wemakeawineforthat.com showcasing wine experiences across the country that wine lovers can get involved in.

China syndrome lifts Australian wine exports

China's renewed appetite for Australian wines has helped drive a 13% increase in export values over the financial year 2024-2025.

In the 12 months ended June 2025, Australian wine exports also increased 3% in volume,  Wine Australia’s Export Report released today reveals.

Peter Bailey, manager, Market Insights, Wine Australia said the latest data shows the impact of the China market reopening in March 2024 is beginning to stabilise.

“The year-on-year increase in exports was almost entirely driven by mainland China after tariffs on Australian bottled wine were removed at the end of March 2024," Bailey said.

"Over 12 months have passed since tariffs in mainland China were removed and the initial surge in exports has eased, resulting in 85 million litres of wine exports to the market in the 12 months ended June 2025, worth $893 million.

“The quarter ended June 2025 was 35% smaller in value than the same quarter in the previous year. This indicates that the level of exports to mainland China may be normalising after the initial re-stocking phase.

“The return of mainland China offers a valuable market, with global wine consumption at its lowest level since 1961. However, it has only had a small impact on total export volume, as the volume shipped to mainland China is half of what it was at its peak in 2018.

“This reflects the decline in wine consumption in the Chinese market over the last five years; the market is now only a third of the size it was in 2019."

In the past 12 months, imports from France, Italy, Spain, and Chile to China have all declined.

Exports from Australia to the rest of the world declined by 11% in value to $1.59 billion and 6% in volume to 554 million litres. 

While the decline in value was mainly driven by Hong Kong as sales transitioned to mainland China, the drop in volume reflected a reduced supply of Australian wine available for export after three smaller vintages, as well as declining demand from key export markets.

In a concerning stat, Australian wine exports to the United States declined by 10% in volume to 111 million litres and 12% in value to $314 million, the lowest value in over two decades.

The US wine market continues to face headwinds that developed after the Covid-19 pandemic, leading to reduced overall wine consumption in the last five years, Wine Australia said.

Health and wellness concerns, particularly among older wine consumers, lack of attachment recruitment to the category from younger generations, increased competition from other alcoholic beverages, high wholesaler inventories, and ongoing economic and political uncertainty, including import tariffs, have all contributed to a suppressed outlook for wine exports to the market in the near-term.

The top export destinations by value were:

* Mainland China, up 123% to $893 million
* United Kingdom, down 1% to $350 million
* United States, down 12% to $314 million
* Canada, up 7% to $157 million, and
* Hong Kong, down 54 per cent to $127 million.

For more information, see Wine Australia’s Export Report

Some positive news for Australian wine producers

The Australian wine industry is celebrating some positive news with the wine grape crush up in 2025 after two record low vintages.

Sadly, it is still below the long-term average and there are negatives.

The 2025 Australian wine grape crush is estimated to be 1.57 million tonnes, 160,000 tonnes (11%) more than the 2024 crush but still 140,000 tonnes below the 10-year average of 1.71 million tonnes, the National Vintage Report 2025, released today by Wine Australia, shows.

The smaller crush relative to the long-term average is likely to have been a result of both seasonal and strategic factors, with a decline in demand for wine globally driving adjustment in the Australian wine sector, according to Peter Bailey, manager for market insights at Wine Australia.

“The 2025 crush equates to around 1.1 billion litres of wine, which is in line with current sales of Australian wine on domestic and export markets,” Bailey said.

The year-on-year increase in the crush was driven by red varieties, which were up by 20%, while the crush of white varieties was 2% higher than in 2024.

“The crush of red grapes is still estimated to be the third-smallest in more than a decade (the past two years being the smallest) and was 9% below its 10-year average, while the crush of white grapes was 8% below the 10-year average,” Bailey added.

He noted that the mix of red versus white was problematic.

“The significant increase in red varieties this year could exacerbate the challenges facing the sector in terms of excess stocks of red wine, and might further reduce demand for these varieties next vintage,” he said.

The total value of the Australian wine grape crush in 2025 is estimated to be $1.13 billion, an additional $136 million (14% compared with 2024.

Bailey said that despite the increases, the average purchase values for warm inland reds in the past two years were the lowest in over a decade, and for many growers would not be sufficient for production to be economically viable.

“Conditions are not likely to improve for red grapes until there is a significant reduction in the supply base,” Bailey said.

“The wine sector needs to continue to work together to bring supply and demand back into balance at a profitable price point for growers and winemakers.”

Shiraz regained its position as the number one variety, increasing by 23%, while chardonnay dropped back to second place, after significant frosts across many regions caused it to decrease by 13%.

South Australia accounted for the largest share of the national crush by size, with 48%. New South Wales was the next largest, with a 33% share of the crush.

The National Vintage Report is available from www.wineaustralia.com/market-insights/national-vintage-report. 

New promotion campaign for Australian wines

The Australian grape and wine sector is being urged to rally behind a new promotional campaign with the message: "We make a wine for that."

This new marketing invites the entire wine sector to connect with Australian drinkers by celebrating the quality and diversity of Australian wine. 

The messaging aims to remind consumers that whatever the occasion, there is an Australian wine that meets their needs. 

From backyard barbecues to camping trips and dinner parties, the idea is there is an Australian wine for the occasion. 

The plan is developed by Wine Australia as part of the One Grape & Wine Sector Plan. 

Dr Martin Cole, CEO of Wine Australia, says the campaign was developed in collaboration with the sector to elevate Australian wine as the beverage of choice. 

“Experts from the sector Joint Marketing Group (JMG) provided guidance and insight to support the development of the campaign and ensure it meets the needs of our very broad business types," Cole said.

“Highlighting Australian wine’s relevance for more occasions was clearly identified as a strong platform to build the campaign around. We already make world-class wines that belong in those moments, so this is our opportunity to remind people of that and give them confidence in choosing Australian wine.

“The real value here is relevance. Showing Australian wine as a relevant option for the moments that matter, with messaging that makes Australian wine feel familiar, local, and easy to choose. We encourage the sector to get behind this campaign, to amplify the message and impact purchasing behaviours for the benefit of the sector." 

Check out wineaustralia.com/wemakeawineforthat. 

Cheers to some good news for the Australian wine industry

Australian wine exports increased by 41% in value to $2.64 billion and by 6% cent in volume to 647 million litres over the past 12 months, Wine Australia’s Export Report released today revealed. 

The average value of exports increased by 33% per litre, the highest average value in almost two decades.

Australian wine exports to mainland China exceeded $1 billion one year after the removal of tariffs. 

“The increase in average value is mainly due to the elevated level of premium wine shipments to mainland China, after tariffs on Australian bottled wine were removed at the end of March 2024," said Peter Bailey, manager for market insights for Wine Australia. 

"The 12 months ended March 2025 represented a full year’s worth of exports to mainland China since the tariffs were eliminated - resulting in 96 million litres of exports to the market, valued at $1.03 billion.

“While the total value of shipments to mainland China is now at a similar level to the years immediately before tariffs on Australian bottled wine came into force, volume in the last 12 months is 23% smaller than the 5-year average between 2016 and 2020 and 44% below the peak in 2018.

“Additionally, the average value of packaged wine shipped to mainland China was $23.00 per litre, much higher than any other major export market. The lower volume and high average value demonstrate that mainland China is a premium market for Australian wine and will therefore not solve oversupply issues in Australia.”

Exports to the rest of the world (excluding mainland China) declined by 13% to $1.62 billion and 9%in volume to 551 million litres, adding to the wine supply glut. 

This was the lowest value to the rest of the world in 10 years and lowest volume in over 20 years. While the decline in value was mainly driven by Hong Kong as sales transitioned to mainland China, the volume drop was due to the declines in exports key destinations such as the United Kingdom, United States, and Canada.

The global wine market is facing considerable headwinds which are impacting on results for other markets aside from mainland China and are unlikely to be resolved in the near-term, Wine Australia said. 

While there has been a long-term trend of consumers drinking less alcohol due to health and wellness concerns, more recent cost-of-living pressures could continue or potentially get worse in certain markets, given the economic and political turmoil taking place globally. 

Escalating trade wars have the potential to increase prices, complicate supply chains, and rapidly change the competitive landscape in key wine markets in the near-term.

The top five destinations by value were:

• Mainland China (up $1.01 billion to $1.03 billion)
• UK (down $12 million to $353 million)
• US (down $32 million to $323 million)
• Hong Kong (down $136 million to $154 million), and
• Canada (up $3.8 million to $151 million).

For more info see Wine Australia’s Export Report and Wine Australia’s Export Dashboard.

 

Where have all the vineyards gone?

The global wine grape harvest in 2024 is estimated to be even lower than the historic low 2023 vintage, reflecting negative weather events combined with active strategies to reduce production, Wine Australia reports. 

In the southern hemisphere, Australia and Argentina both saw substantial increases compared with their 2023 vintages, but remained below their 5-year averages. 

Chile and South Africa both declined to their lowest totals for more than 10 years, and well below their 5-year averages. 

Argentina regained its position as largest southern hemisphere producer, while Chile slipped to third.

Chile is believed to have removed up to 20% of its vineyard area in 2023-24, while New Zealand had a smaller vintage than the past two near-record crops. 

In the northern hemisphere, France saw the greatest reduction: down 23% compared with 2023 and 16%  below its 5-year average. 

Unfavourable weather conditions related to climate change were the main driver, although distillation and removal programs also contributed. 

Italy increased by 7% after its very low 2023 harvest, to reclaim the title of world's largest wine 

producer while Spain saw the largest increase globally - up 18% - to be close to its 5-year average.

International Organisation of Vine and Wine figures indicate that global wine production in 2024 was even lower than 2023, making it two in a row that are the lowest in 60 years.

The 2024 vintage total of 23 billion litres was 10 per cent below the 5- year average. 

Good news - and bad news - for the Australian wine industry

There is good news - and bad news - for the Australian wine industry.

In the 12 months to December 2024, Australian wine exports increased by 34% in value to $2.55 billion and by 7% cent in volume to 649 million litres, Wine Australia’s Export Report released today shows.

That sounds great but the increase in value was a result of high levels of shipments to mainland China between April and December 2024, after tariffs on Australian bottled wine were removed at the end of March 2024.

In those nine months, 83 million litres of wine, worth $902 million, have been exported to mainland China.

The average value of exports to mainland China for the 12 months ended December 2024 was $10.79 per litre, contributing to a 24% increase in the average value of total packaged exports to $9.35 per litre – a record value.

But sales to key markets in the US and UK fell - with the threat of US tariffs looming.

“While there has been month-to-month volatility in the value of shipments to mainland China in the period since tariffs were removed, the performance is nonetheless very positive," said Peter Bailey, manager for market insights at Wine Australia said.

“Chinese wine consumption is much lower than it was before the import tariffs were imposed, however, so it will take more time before it becomes clear what the ‘new normal’ level of exports to mainland China will be, after this initial re-stocking period.

“Continued growth is not assured, and it is still important to focus on market diversification in a challenging global business environment.”

Outside of the unique circumstances relating to exports to mainland China, global alcohol consumption is facing numerous headwinds, and this is impacting the results to other markets.

In many established wine markets consumption is declining due to health and wellness concerns and the rising cost of living.

This has contributed to a global oversupply of wine and increased competition in already strained supply chains.

Australian wine exports to the rest of the world declined by 13% in value to $1.64 billion and 7% in volume to 565 million litres during the 12 months to December 2024.

The decline in value was largely driven by Hong Kong, after a large increase in shipments to this destination at the end of 2023 likely driven by some Australian exporters anticipating the removal of import tariffs in mainland China in early 2024.

A decline in unpackaged wine exports to the United States after a period of heightened exports further contributed to the volume decline.

Exports to North America declined by 5 per cent to $482 million, driven by the United States, with growth in exports to Canada offsetting some of the decline.

The top five destinations by value were: China (up $898 million to $907 million); UK (down $9 million to $352 million); US (down $38 million to $325 million); Hong Kong (down $125 million to $171 million) and Canada (up $13 million to $156 million).

For more information, see Wine Australia’s Export Report.

Image: Marco Simola, Scop.io  

Australia making more white wine than red

Total sales of Australian wine exceeded production for the second year in a row, but there is still a lot of red wine in tanks waiting for a home.

The good news followed successive small vintages, says the Australian Wine Production, Sales and Inventory Report 2024 released today by Wine Australia.

Wine production was just over 1 billion litres, an 8% increase compared with 2022–23 but still the second-smallest reported production in 17 years, and 16% below the 10-year average of 1.24 billion litres.

Peter Bailey, manager for market insights at Wine Australia, said that the below-average production from the small 2024 vintage was the result of a combination of seasonal factors and economic and market conditions.

“This was another difficult season in many regions, with heavy rainfall and flooding, widespread windy conditions affecting flowering, and dry spring weather leading to cold nights and the potential for frost damage,” Bailey said.

“However, the result has also stemmed from deliberate decisions by grape growers and wine businesses to reduce production or intake, driven by the current economic and market conditions affecting demand for wine.”

The overall increase of 8% cent compared with 2022–23 was made up of a 20% increase in white wine production, partly offset by a 2% decrease in red wine production.

This saw white wine’s share of production increase from 46% to 51% - the first time in 12 years that the production of white wine has exceeded that of red wine in Australia.

Bailey said that this change reflected adjustments made by the sector to counter the oversupply of red wine that had arisen over the past three years.

The total volume of sales of Australian wine in export and domestic markets was 1.08 billion litres - a decrease of 1% compared with 2022–23, with both domestic and export sales showing very small declines.

Bailey said growth in red wine exports was driven by the re-commencement of exports to mainland China following the removal of import tariffs in late March 2024.

“It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in–market,” Bailey said.

“Any increase in production is likely to result in stock levels rising again, unless there is a corresponding increase in sales. This is a particular concern for reds, where the stock-to-sales ratio is still well above the long-term average.”

Bailey noted that the global outlook for Australian wine remains challenging. 

World wine consumption has continued to decline over the past 12 months and is expected to decline further in the next five years, driven by economic constraints, overall alcohol moderation trends and competition for wine from other beverages.

Image: Elena Pasenko, Scop.io 

The new plan to rescue the Australian wine industry

A new plan to help lift the wine industry in Australia was unveiled today in Adelaide.

Australian Grape & Wine and Wine Australia have launched the One Grape & Wine Sector Plan at the Wine Industry Update 2024 conference.

Developed to support the sector’s recovery from a period of ongoing challenges, the One Grape & Wine Sector Plan aims to chart a clear path of action and to reflects "the sector’s resilience and commitment to forge a vibrant and prosperous future".

The Plan provides the framework for collaborative and co-ordinated action for the sector, as well as a roadmap for achieving the sector's goals and vision articulated in Vision 2050.

Australian Grape & Wine Chief Executive Officer Lee McLean said the Plan’s development is the result of extensive consultation across the entire sector.

“Grapegrowers, winemakers, exporters, industry associations, researchers, business and suppliers have shared their views, insights, aspirations, concerns and expectations on the challenges and opportunities for the sector,” McLean said.

“As a result, the Plan launched today, provides greater linkages to existing plans, such as Vision 2050, demonstrates stronger industry leadership, collaboration and coordination, and provides practical action and guidance for all.”

The Plan provides the framework for collaboration and coordination among all sector players to achieve the ambitious goals outlined in Vision 2050. Six key themes shape the roadmap for sector success:Our place and product: consumers, customers and community; markets, sustainability, people, systems and infrastructure.

“The breadth of the Australian grape and wine sector is its strength; from family-owned grapegrowers, commercial and premium winemakers, to vertically integrated businesses and corporates," says Wine Australia Chief Executive Officer Dr Martin Cole.

"The strength of the Plan lies in our ability to share the load to optimise the opportunities ahead..

“But success is dependent on action: collaboration and shared responsibility, to learn from the past, acting on the challenges of today, to set the course for sector success."

The One Grape & Wine Sector Plan can be downloaded from agw.org.au or wineaustralia.com.

Image: Emanuele Lattarulo, Scop.io 

Finally some good news for Australian wine producers

At last there is some good news for the Australian wine industry.

Australian wine exports increased in value by 17% to $2.2 billion in 2023–24, the highest level since the 12 months ended September 2021, Wine Australia’s Export Report released today reveals.

The growth in value was due to a surge in exports to mainland China in the last three months of the financial year, as Australian wine re-stocked supply pipelines following the removal of the duties on Australian bottled wine in China in late March.

But Wine Australia manager for market Insights, Peter Bailey, said that the rise in exports to mainland China is still a small fraction of the historical peaks achieved to the market.

“The surge in exports to mainland China towards the end of the financial year saw volume rise from 1 million litres to 33 million litres and value grow by $392 million to $400 million compared to last financial year,” Bailey said.

“While the figures are very positive, they represent the re–stocking of Australian wine in the pipeline of a major market after a long absence and do not necessarily equate to retail sales. It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in-market.

“Consumption of both domestic and imported wines in mainland China is less than a third of what it was six years ago and thus it is very unlikely that Australian wine exports will return to those previous peaks in the short to medium term.”

There were 574 companies exporting to mainland China in 2023–24, up from 115 in 2022–23. Prior to the imposition of duties, there were more than 2,000 companies exporting to China.

“The growth in value has seen mainland China return to the top export market by value,” Bailey said.

“However, the volume of exports at 33 million litres, is relatively small, equating to less than 5% of Australia’s wine grape harvest in 2024 and so is unlikely to make a significant impact on the current oversupply of red wine grapes, particularly in the big volume-producing warm inland regions.”

Exports to the rest of the world (excluding mainland China) declined by 4% ($68 million) to $1.8 billion and volume decreased by 5% (33 million litres) to 587 million litres.

This is the lowest volume exported to the rest of the world in a financial year since 2003–04.

“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures," Bailey said.

"There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise.”

So the news is decidedly mixed.

But Australia is not the only country negatively impacted by these factors. Wine exports have also declined from other major wine producing countries.

In the 12 months ended April 2024, the volume of wine exported from Spain fell by 2%, France by 7%, Chile by 7%, South Africa by 12% and New Zealand by 14%.

Wine industry looks to boost gender equality/diversity

The Australian wine industry is launching a new survey to investigate the state of gender equality, and to identify strengths, weaknesses, and opportunities for progress in the grape and wine sector.

The collaborative effort is being run by Australian Grape & Wine’s Diversity, Equality and Inclusion in Wine (DEIW) committee and is funded by Wine Australia.

Research will be undertaken by Charles Sturt University and the University of New South Wales.

The research team will engage wine and grape sector stakeholders to identify recommendations and develop a practical toolkit for businesses and sector organisations, translating best practices and innovative ideas for gender equality, into actionable steps.

There's a whole lot of politically correct jargon in that one sentence, but hopefully the sentiment is serious.

Wine Australia Chief Executive Officer Martin Cole said the study will help the sector tap the depth of diversity across the breadth of the sector’s value chain. Yikes.

“Achieving long-term sector profitability, resilience and sustainability means we must have the best people at the table," Cole said. "A vibrant future demands we look to broaden the expertise, experience and perspectives of those at decision-making tables across the value chain.

Gender equality and diversity were identified by the sector as a priority through recent consultation for the One Grape & Wine Sector Plan.

“This research project will build on efforts made by the sector in recent years, recognising the need to progress these, providing evidence-based support for ongoing improvement,” Cole said.

“Our goal is to equip the sector with practical resources to be more inclusive, fostering equality and diversity to strengthen business and sector performance.”

Australian Grape & Wine DEIW committee chair Ali Laslett said the grape and wine sector was a significant employer in regional areas and had shown commitment to increasing gender equality.

“Promoting gender equality aligns with the strategic priorities of many primary industries," she said.

"The DEIW committee identified several initiatives in our workplan, and we are delighted that our recommendation to provide practical resources for all businesses within the sector will be realised through this project.

"Our sector’s future success is built on practices that support and retain a diverse workforce.”

White heat: Major wine industry player has its export licence cancelled

A major player in the Australian wine industry has had its export licence cancelled.

Wine Australia today announced it has cancelled the export rights held by Jindalee Road Wines Pty Ltd, an entity operating out of the New South Wales Murray Darling region.

Jindalee Road says on its website that it is a specialist in the growth and production of white varieties and the biggest sauvignon blanc and pinot grigio grower in Australia.

Jindalee Road does not own a label but specialises in bulk sales to other wine producers.

Wine Australia’s Label Integrity Program investigation found that Jindalee Road Wines had failed to meet its record-keeping obligations established by the Wine Australia Act 2013.

Wine cannot be exported from Australia without an export licence issued by Wine Australia.

There are no concerns about health or safety for consumers of the wine, Wine Australia said. "However, wine label claims in relation to vintage, variety and region strongly influence people’s purchasing decisions.

"The licence cancellation reflects Wine Australia’s commitment to ensuring that consumers worldwide can be confident that label claims reflect what is in the bottle."

Jindalee Road Wines may make an application to the Administrative Appeals Tribunal for review of the decision to cancel its export licence in accordance with the Administrative Appeals Tribunal Act 1975.

Wine Australia was not able to comment further as the matter is subject to an ongoing investigation.

It is not the first time the wine entity has found itself in trouble.

Jindalee Road Wines and its ex-manager David Littore were in March fined $500,000 for stealing irrigation water.

Wine Australia says, however, that there is generally a strong culture of compliance in the Australian grape and wine sector. Wine Australia has only suspended or cancelled eight licences in the past 10 years, including Jindalee Road Wines. There are more than 2000 active licence holders.

More information on the Label Integrity Program can be found at www.wineaustralia.com/labelling

Australian wine producers hail "strong" results from Vinexpo Asia

Australian wine producers from 31 different regions attended Vinexpo Asia, the leading trade exhibition for wine and spirits professionals in the region in Hong Kong last week.

Wine Australia led the Australian contingent of 63 wineries as Vinexpo Asia 2024 brought together more than 14,000 trade visitors from 60 countries, who had the opportunity to engage with exhibitors from around the world over three days.

The Australian Wine Pavilion is a firm fixture at the event and offered producers a chance to showcase their brands to the most influential buyers, importers, distributors, producers, sommeliers, and merchants from around the world,

Wine Australia general manager for marketing, Paul Turale, said the activities around the pavilion supported Australian wineries to build connections to help unlock the growing opportunities across markets in Asia.

“In-person connections are so important for our sector and it’s been heartening to see such a strong interest from the trade in the diversity and quality of Australian wine over the three days,” he said.

“There is a real sense of optimism about the opportunities for Australian wine in Asia - it’s a hopeful and exciting time for Australian wine producers.”

Turale said the new Australian Wine national branding was also previewed at Vinexpo.

“The national brand encapsulates the adventure and diversity of Australian winemaking and it was great to see this applied across the pavilion and in supporting regional and wine brand assets at Vinexpo,” he said.

“This is our first time at Vinexpo Asia and it's been a really great experience to try and understand the big complex market that is Asia," said Kim Chalmers of Chalmers Wines in Victoria.

"We've been impressed with our visitors from mainland China who are so excited to have new, different Australian wines back and we've also been excited to learn that there is a thirst for understanding the diversity of Australian wine.”

Paul McArdle from Small Wonder in Tasmania and Wayfinder in Western Australia said: "The numbers and the diversity of cultures and countries at Vinexpo Asia is overwhelming.

"We’ve certainly had a lot of interest out of mainland China but also out of South Korea, Thailand, Malaysia, Singapore and Japan.

"It feels a bit like the old days where there is very good representation and a strong presence of Australian wine and a strong interest in Australian wine. So that all goes well for our export markets. Fingers crossed. We await the orders.”

Women making strides in the Australian wine industry

 

Women are making strides in the wine industry in Australia - but much work remains to be done until full equality is reached.

Ten years on from one of the world’s first published studies of its kind, there is some good news for women’s advancement in key roles in the Australian grape and wine sector.

A new report Women in the Australian wine sector: How have the numbers changed in CEO, winemaking, viticulture, and marketing roles since 2013? conducted by Dr Jeremy Galbreath of Strateos Group, funded by Wine Australia, has revealed an increase in the representation of the studied roles in the Australian grape and wine community.

Dr Galbreath’s original study assessed gender composition of the wine sector over the period 2007–2013. The new study covering 2021-2023 has shown that nationally, the number of women in a CEO role is now 33.7%, an increase of 21% over the previous findings of 12.7 %. 

Women in winemaking roles is now 16.7%, an increase of 7.9% over the previous findings, while women in a viticulture role is now 21.5%, an increase of 11.5%. 

The percentage of women in wine marketing is now 58.4 %, an increase of 4.9%. 

Dr Galbreath said that the report highlights particularly strong evidence of progression of women in CEO roles compared to the 2007–2013 averages.

“A decade ago, only around 13% of women held CEO roles in the Australian grape and wine sector, which was on par with the average for women CEOs in Australia at that time of around 10–12%. 

"The latest data indicates that the Australian grape and wine community has increased representation of women in CEO roles to 33.7%, surpassing the estimated Australian average of 22%. 

“The number of women in winemaking and viticulturist roles have shown good increases as well, while the number of women in marketing roles remains relatively steady. While these results are encouraging, in critical roles such as winemaking and viticulture there is room for improvement.”

Australian Grape & Wine’s Diversity and Equality in Wine Committee Chair Ali Laslett said: “While we are happy to see a shift in the dial with these results, there is still some way to go on many fronts, including the gender pay gap. 

"This research provides us with significant evidence over a 10-year period and we are grateful to Dr. Galbreath for conducting this very important research for us again.”

Wine Australia General Manager Research and Innovation Dr Liz Waters said evidence shows that women in the sector need sustained support to help achieve their career aspirations, particularly in senior and leadership positions.

“Since the original report was released, significant efforts have been made by many in the sector to promote the achievements of women and raise awareness of the importance of diversity, equality and inclusion in our sector,” Waters said.

“This new report shows an improvement in our gender representation over the past decade, but there is more that can be done and it remains an ongoing priority, as identified by the sector in consultations for the One Grape & Wine Sector Plan.”

In the report, Dr Galbreath makes several recommendations to keep improving the share of roles held by women in the Australian grape and wine sector, including pay equality, business ownership, regional women’s networks, mentorship and ‘male champions’, data reporting graduate career pathways, and consideration of benchmarks to aim for greater share of women in underrepresented roles.

The full report can be downloaded from wineaustralia.com.

Global wine focus will be on Paris

Wine events do not get much bigger than Wine Paris and Vinexpo Paris, to be held this month in the French capital.

The event will be held at Porte de Versailles from February 12-14 and will comprise over 4,000 exhibitors from around the world and welcome an expected 40,000 trade visitors for a program that includes 122 conferences, debates, panel discussions and masterclasses.

There will be masterclasses featuring regions such as Alsace, Bourgogne, Champagne, Languedoc, Beaujolais, Cognac, Auvergne, Bordeaux, the Loire, and the Rhone Valley, alongside Friuli, Tuscany and Vinho Verde.

There will also be a focus on Italian wines - Prosecco, Chianti and Pinot Grigio - as well the Napa Valley, and wines from Türkiye.

Among the key topics will be sustainability, the future of the wine industry, marketing and no- and low-alcohol wines.

Australian exhibitors include Hewitson Barossa, Shaw + Smith and Calabria Family Wines, while New Zealand representatives include Greywacke and Clos Henri.

For the first time, Wine Australia will be taking a stand with wineries including Blue Pyrenees Estate, Brown Family Wine Group, Byrne Vineyards, Glenlofty Wines, Mitolo Wines, Overstory/Small Wonder, Rathbone Wine Group and Torbreck Vintners.

For details see wineparis-vinexpo.com

Australian wines losing their global appeal

More bad news for the Australian wine industry today with news that exports declined by 2% in value to $1.90 billion and 3% in volume to 607 million litres in the 12 months to December 2023.

The Wine Australia Export Report released today said that although these figures are an improvement on than those reported in the September 2023 Export Report, the results are still well below long-term averages.

Particularly disturbing will be major falls in sales in the US, a declining market for Australian wines.

Wine Australia manager for market insights, Peter Bailey said that Europe and North America drove the reduction in Australia’s export value over the year, declining by 7% and 12% respectively.

“In Europe, exports to the top 15 markets declined in value as the region suffers through higher inflation rates than North America and Asia, as well as supply chain issues," he said.

"This includes the United Kingdom, Australia’s largest export market by volume. Pleasingly, Australia’s exports to the UK grew in volume for the first time since mid-2021.

“Both the United States and Canada contributed to North America’s decline in value. In 2023, packaged shipments to these markets continued their decline and unpackaged shipments, which were growing strongly, have started to ease off.

“The decline in exports to Europe and North America has resulted in their share of export value dropping to 29 and 27% respectively. Meanwhile, Asia’s share of export value has grown to 37%.

“Hong Kong and Singapore were stand out destinations for Australian wine in Asia, driving the growth of value to the region. Further, the number of exporters to Hong Kong also grew – up 138 export businesses to a total of 531 in 2023. Hong Kong and Singapore are key trading hubs in the Asian region and, as such, some of the wine is on-shipped to other markets.”

The decline in Australia’s exports comes at a time when most wine producing countries are reporting decreasing sales, Wine Australia says.

The global alcohol market is softening and impacting the entire wine category, especially in mature markets. This trend has been attributed to a combination of global economic tightening resulting in less discretionary spending and consumers being more conscious of their health.

Australians have a taste for imported wines

Australian wine drinkers have a healthy appetite for imported wines, Wine Australia has reported.

Imported wine has an estimated 20% share by volume on the domestic market in Australia - and more by value.

New Zealand accounts for approximately half of all imported wine, followed by France (20%), Italy (17%) and others (10%).

Customs figures show total wine imports have grown from 82 million litres in 2014 to 106 million litres in the year 2023.

Wine Australia says: "It is no surprise that other wine-producing countries are targeting this market in a competitive, free-trade global environment, characterised by declining demand and excess supply."

Imports from France and Italy have both grown by a compound annual growth rate of around 7% since 2014, although figures have dropped over the past two years.

Wine Business Solutions reported Australian wine-producing states and New Zealand lost ground to European countries in 2023 in terms of share of wine listings in licensed premises across Australia.

Overall, wine listings from France increased by 16% to be second only to South Australia, while Italy grew 1% to take third spot from Victoria, which slipped from second to fourth.

Another warning sign for Australian producers is that although the volume of French wine imports may have declined in the past 12 months, the value increased by 9% overall, driven by Champagne (up 30%).

Overall, French wine imports account for 49% of the total value of imports.