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

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 

Here's cheers to a global beer monopoly

Talk about a monopoly.

One company owns eight of the 10 most valuable beer brand in the world, a new research report shows.

AB InBev, the merged entity of Anheuser-Busch and InBev SA/NV, is a Belgian-Brazilian multinational brewing and drinks company based in Belgium is the global behemoth, research firm Kantar says.

AB InBev was formed through acquiring American company Anheuser Busch.

AB INBev-owned Corona is the world’s most valuable beer brand in 2024, says the London-based market researcher its annual BrandZ global rankings.

“Valued at more than US$19 billion, Corona has become the most valuable global beer brand due to consistent acceleration of growth globally and specifically tapping into growing markets, like Brazil, China, South Africa while maintaining its stronghold in Mexico,” says Kantar CEO Chris Jansen.

The top 10 ranking for beers is:

1. Corona

2. Budweiser

3. Heineken

4. Modelo

5. Brahma

6. Michelob

7. Bud Light

8. Skol

9. Guinness

10. Stella Artois

Of these, Ab InBev owns Corona, Budweiser, Modelo, Brahma, Michelob Ultra, Bud Light, Skol and Stella Artois, industry authority the drinks business reports.

Marcel Marcondes, AB InBev’s global chief marketing officer, said of the results: “Growing our megabrands is a key part of our business strategy to lead and grow the category.”

He said the company’s focus was “on delivering against the needs of our consumers in a way that gives them what they seek, but also in a way that earns their love.”

Hard to believe anyone could love Bud Light, but there you go.

Published annually, the Kantar BrandZ Most Valuable Global Brands Report ranks the world’s top brands, the sector leaders, big movers and brands to watch.

Is the wine industry in trouble in the US?

Declining wine sales in the US loom as a major problem for the industry in 2024, a new report says. 

The annual Silicon Valley Bank’s wine industry report reveals “near 0% value growth” and warns that “flash sales” and “increased discounts” will become more commonplace in the US, industry authority The Drinks Business reports.

Wine sales in the US are predicted to continue their slow decline during 2024, although tasting room visits and direct-to-customer sales are expected to slightly increase during the year, as will premium wine sales, according to the 23rd annual wine report issued by the bank this week. 

Preliminary 2023 year-end estimates show a decline in wine volume sales of 2%-4%, and final value sales figures for 2023 are expected to “hover near 0% growth,” the report says, although adding, “Total premium wine sales by value will improve in 2024.”

A further issue for US producers is that exports are relatively minimal with global markets not keen on wines made with sweetness and lashings of new oak. 

A continuing healthy American economy is key to predictions, says the report’s author, Robb McMillan, who predicts that “the US economy is  unlikely to enter a recession in 2024.

“Wholesalers are full up, as far as they can go,” McMillan says, which is making them “more picky” in what they buy from wine producers. 

Wholesalers “are more afraid of being stuck with inventory that they may have to discount,” McMillan says, than they are with inflation and “the costs of carrying inventory.”

One concern the report cited was continued over-production in two of the three major wine states - California and Washington - even though sales have declined for three years. Oregon production was assessed to be “in balance with demand”. 

Image: Filoteo Ventiuro, Scop.io