Boom time for wine tourism

Wine producers who do not invest in tasting facilities and tourism drawcards risk missing out on valuable income.

A new international study has found that wine tourism remains a profitable and expanding part of the global wine industry, with 65% of wineries reporting positive returns and more than half planning to invest further, trade news hub drinks business reported this week.

Wine tourism continues to prove a strong revenue driver for producers worldwide, with 65% of wineries describing it as profitable or very profitable, according to a new study by Geisenheim University in collaboration with UN Tourism, the OIV, the Great Wine Capitals Global Network and WineTourism.com.

The Global Wine Tourism Report 2025, based on responses from 1,310 wineries across 47 countries, found that 88% currently offer some form of wine tourism activity, most commonly tastings (79%), cellar tours (68%) and vineyard tours (61%). 

The report records a median of 1,500 visitors per winery each year, with domestic tourists making up 65% of total visitors. 

While most wineries report stable or rising visitor numbers, 43% of European producers saw growth over the past year compared to 28% of those overseas.

The largest visitor segment is aged 45–65 (82%), followed by 25–44 (59%), while only 2% of wineries report guests under 25, suggesting ongoing challenges in engaging younger audiences.

More than half of wineries surveyed (51%) plan to invest further in wine tourism, and 73% expect their wine tourism activities to grow in the future. The study also found that 78% of wineries collaborate with other organisations to enhance experiences.

In my experience, producers in South Africa and Argentina are among those most proactive with tourists.  

Wine tourism contributes an average of 25% of total winery revenue, rising to 32% in non-European wineries. Key challenges identified include economic pressures (51%), decreasing consumption (51%), and changing consumer preferences (40%).

Overall, 68% of wineries believe wine tourism will grow in their region, and more than 60% see it as a valuable tool in times of crisis.

The report says wine tourism “plays a key role in diversifying rural economies, creating jobs, and supporting local communities”. 

And, of course, there are the financial benefits of sales direct to customers. 

Image; Solms Delta Wines in Franschhoek, South Africa, will offer wine tastings, live music, and an on-site museum in 2026, and is planning to reopen its Fyndraai Restaurant.

How our love of tapping is changing our lives

Remember when a phone was an implement you used to talk to someone in another location?

Nowadays our phones are a key element of our daily lives.

Tap. Pay. Done. 

That simple, secure, and increasingly mobile action has transformed the shopping experience and unlocked opportunities for small businesses worldwide.

Visa this week announced that Tap to Phone has experienced a 200% increase in usage over the past year, supporting millions of sellers of all sizes.

In the highest Tap to Phone countries - the US, UK, and Brazil - adoption rates have surged, showing a combined growth rate of 234%.

Tap to Phone expanded Visa’s tap capabilities with a technology that turns a smartphone into a point-of-sale (POS) device, simply by downloading an app.

With nearly 30% of Tap sellers being new small businesses, this technology is helping to democratise access to commerce tools and empower microsellers and SMBs (small and mid-sized businesses)  around the world to start accepting contactless payments by using their NFC-enabled smartphones.

“Tap to Phone is a tech equalizer for businesses. Walk into some of the world’s largest retailers or go to your local farmer’s market and they’re using this same technology to accept payments right on their phone,” said Mark Nelsen, global head of consumer products, Visa.

Ariel Davis, owner an upcycling business in New York that gives new life to vintage china, says Tap to Phone technology helped her pivot to open an in-person studio for customers. Notably absent from her compact space is a desk, computer setup or register.

“You don't typically couple vintage china and innovation, but in some ways, I feel like a tech start-up because we're always trying to figure out what's going to make this experience the best for our customers and the latest technology that will take us there,” said Davis.

Call me old fashioned but I worry about losing my phone or having it stolen. And I prefer cash anyway. 

 

Asian destinations hot for summer travel

Bangkok and other Asian destinations have been summer favourites for travellers booking summer trips on digital travel platform Agoda.

Agoda has just unveiled the top five international flight destinations based on booking data on the platform between June and August 2024.

This year's rankings show a mix of familiar favorites and some shifts in traveller preferences compared to last year.

The updated Agoda rankings highlight Bangkok, Seoul, and Kuala Lumpur as top choices for international travelers, underscoring a preference for destinations within the Asia-Pacific region during the warmer months.

Bangkok retains its position as the top summer destination for the second consecutive year. 

Seoul overtook Singapore to take the second spot. Kuala Lumpur also sees an improvement, moving from fourth to third place. Singapore now ranks fourth while Tokyo makes its entry into the top five, replacing Ho Chi Minh City, Vietnam.

"The summer of 2024 currently shows a trend towards Asia Pacific travel,” says Andrew Smith, Senior Vice President, Supply at Agoda,

“Destinations like Bangkok, Seoul, and Kuala Lumpur continue to attract many travelers, reflecting their appeal and the diverse experiences they offer.

“The popularity of these destinations highlights the ongoing fascination with vibrant cities like Bangkok, known for their unique blend of modernity and tradition. Seoul captivates visitors with its cutting-edge technology and historic palaces, while Kuala Lumpur offers a dynamic mix of skyscrapers and cultural landmarks. 

“Singapore's futuristic skyline and Tokyo's eclectic neighborhoods also continue to draw travelers seeking both urban excitement and cultural heritage.”

The ranking is based on flights booked on Agoda between June and August 2024, compared to the same period in 2023.

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.”

Wine writer wants to "re-imagine" online purchasing

 

One of Australia's most experienced wine writers wants to help you make the best of your next purchase.

Jeremy Oliver, author of 30 books, says it is time for a re-imagination of online wine retail.

The critic has launched his new online platform, Oliver’s Wines, which includes a website and an App (iOS and Android) which he says will "transform the way wine enthusiasts discover and buy".

‘We’re using world-leading tech to try to give our users an old-fashioned wine experience in which each customer and their own preferences are recognised’, says Oliver.

"Developed locally in Melbourne, the world’s leading wine recommendation engine is able to treat every single user as an audience of one and suggest wines for them based on their very own favourites.

"Customers can create and manage their own lists of favourite wines, buy the wines our system recommends and then give feedback to help the system do its job even better.

‘I’m excited to be going back to my old day job as an independent critic. I’ll be rating and commenting on all the major wines in Australia, regardless of whether or not they’re for sale on this platform. My opinion is not for sale, just as it never has been."

It is said that Oliver’s Wines will feature a comprehensive database of ratings, tasting notes, articles and videos that he has assembled over four decades as one of Australia’s most respected writers.

There’s no subscription charge for users to access the resource, which Oliver updates regularly.

"We’re providing wine enthusiasts with a place to learn, research, engage with and buy from," he says.

"We’re not at all interesting in discounting wines; we just want to ensure that people enjoy the wines they are buying online.

"Once they start to trust the IT, we’ll take them on a journey that will introduce them to an entire spectrum of wine they might never have heard of. That’s the exciting thing about the system we’ve developed."

When I entered Chablis into the search engine I got the response: "No products were found matching your selection". 

So some refinement is still needed.   

See https://olivers-wines.com.au/

China news sees optimism return to the Australian wine industry

There were toasts all round in the Australian wine industry today after Prime Minister Albanese announced that China has agreed to a review of the 220% import duties currently imposed on Australian bottled wine.

There has been an oversupply of Australian wine over the past three years after Chinese markets virtually closed.

"This is great; all Australian winemakers are very happy about this," said Mitchell Taylor, managing director Taylors Wines, talking to Channel 9.

"We've been suffering for the past three years."

Treasury Wine Estates CEO Tim Ford said: “It’s great to see an agreement for an expedited pathway forward to allow our Australian brands and wine to be sold in the Chinese market.

"There are only positives to come out of a favourable review, for the Chinese consumer, customers, and the wine category, as well as for the Australian wine industry and TWE.

"We're well placed to rebuild our Australian wine export business to China should tariffs be removed at the end of the review period."

NSW Wine Industry Association president Mark Bourne echoed that the announcement was good news for the entire industry.

“This is an encouraging step forward that will hopefully lead to the removal of Chinese import duties on Australian wine,” Bourne said.

“It is currently a very difficult time for the wine industry. Following several seasons of challenging weather events and the Covid pandemic, we are now facing worldwide falling consumer demand and an oversupply of wine.

"The announcement of a potential pathway to resolve the multi-year trade dispute, and the reopening of the Chinese market, is positive news for many grape growers and winemakers.”

It has been reported the Chinese Government’s review may take five months to complete.

“Under the current circumstances, we are hopeful that the proposed approach is the best way for the Australian wine industry to achieve its desired result within the shortest time frame.” 

Prior to the imposition of crippling import duties in 2020, the value of Australian wine exports to China were $1.2 billion annually.

Do you really know where your seafood comes from?

An innovative hand-held scanner could change the way Australians buy their seafood.

Warming waters due to climate change, pollution, overfishing and fraud in the seafood supply chain means that knowing where our seafood comes from is more important than ever.

Australia has the third-largest fishing zone in the world, covering over 8 million square kilometres, , but it is estimated that over 60% of seafood eaten in Australia is imported from overseas. 

Researchers at UNSW Sydney are part of an ongoing collaborative project, led by ANSTO, that is developing novel ways to determine exactly where seafood has been sourced, and whether it has been farmed or was wild caught.

“The seafood supply chain, especially with seafood imported from across the globe, is quite long," says Associate Professor Jes Sammut, from the School of BEES.

"And there are various people at different points in the supply chain that handle a seafood product. In that process, there is the risk of what we call ‘food fraud’.”

A common type of food fraud is mislabeling. “For example, a product may say that it’s a barramundi fillet from Australia, when it’s really a barramundi fillet from overseas. Mislabeling can also happen at the retail end, so a cheaper product can be labelled as more expensive based on its origin and production method,” says Sammut.

Looking for solutions to these ongoing challenges, ANSTO scientists, led by Dr Debashish Mazumder and a research team at UNSW have developed protocols and mathematical models for a hand-held device that is able to determine the origin of seafood by providing a unique profile of its elements.

“The idea is to use the hand-held device at any point in the supply chain, providing details that can lead to a more sustainable and ethical seafood trade,” says Sammut.

This ongoing research is part of a huge collaborative effort between ANSTO, UNSW, Sydney Fish Market, Macquarie University and the National Measurement Institute.

“This device is really about empowering the consumer, empowering the retailer and also empowering the wholesalers to know more about the produce they’re buying and selling.”

In a recent study published in Food Control, the team used the hand-held X-ray device to locate the site of origin of black tiger prawns from across Australia, with over 80% accuracy.

“This paper brings us a step closer to seeing the scanner device being used on the fish-market floor, to determine in real time, where seafood has come from, and how it was produced,” says Sammut.

Image: Marco Brivo, Scop.io  

Wine is a boom industry in Britain

It was once considered a joke, but the British wine industry is booming.

Plantings of wine grapes have increased by 74% over the past five years due to soaring demand, Decanter magazine reports.

There are now 943 vineyards spread across Britain, accounting for 3,928 hectares under vine, a new report from national organisation WineGB reveals.

England has 3,855ha under vine, while 70.3ha of Wales and 1.9ha of Scotland are now dedicated to viticulture.

The industry produced 12.2 million bottles in 2022, which represents a 130% increase on the 5.3 million bottles produced in 2017 and sparkling wine trailblazer Nyetimber (above) is now imported into Australia by Deja Vu Wine Co. 

Sparkling wine accounts for 68% of UK production, a figure that has remained pretty consistent over the past five years.

Viticulture is now the fastest growing agricultural sector in the UK, official government figures show.

The industry employs 2,300 people on a full-time basis, while a further 8,300 people are employed in part-time or seasonal work.

Sam Linter, formerly of Bolney Wine Estate in West Sussex and the chair of WineGB, told Decanter: ‘These truly are exciting times for English and Welsh wine. We have become an internationally acclaimed wine growing region of the highest quality."

Kent is a hotspot for wine production, as it accounts for 1,033ha under vine – 26% of the country’s total plantings. Then come West Sussex, East Sussex and Hampshire. 

Chardonnay is the most widely planted variety accounting for 31% of total plantings, followed by pinot noir (29%), pinot meunier (9%), bacchus (8%) and seyval (3%).

Special offers pile up if you are a wine lover with a credit card

Wine is big business. And there are a plethora of sellers - big and small - offering "special" deals to anyone with some cash to spend right now. 

My monthly email from American Express lists no fewer than four special offers from wine sellers - each slightly different. 

All are designed to offer extra value top cardholders, but you have to wonder just how all these discounts are feasible.

Splash out, by all means, but remember your local liquor store offers free advice when you buy face to face; and the big outlets often have great deals on some of the big names. 

Here are the offers I have to choose from right now: 

Pendolino Wine Shop. Spend over $500 get $125 back  "Receive $125 every time. Exclusions apply." So perhaps not every time then. 

Just Wines. Spend $250 or more, get $50 back. But this is limited to the first 10,000 cards to sign up. 

Vinomofo. Spend $299 or more, get $70 back. This one is limited to the first 30,000 cards to sign up. 

Liquorland. Spend $100. Get $10 back. Exclusions apply.

# Just as I was writing this another email landed from Virgin Australia, urging me me to: "Get up to 3,000 points & gifts up to $160 with Virgin Wines".

And I haven’t checked the post box yet. 

Check 'em all out for sure. But caveat emptor should be be your watchwords.   

Sparkling Champagne sales figures in Australia

Times are tough, we are told, and consumer spending is down.

Also, Australia now produces some of the best sparkling wines in the world.

But sales of Champagne in Australia continue a remarkable upward trajectory.

Champagne exports to the Australian market reached an unprecedented 10.5 million bottles in 2022 - up by 6% when compared to 2021 and ahead of all previous records.

Australia is currently ranked as the sixth-biggest export market for Champagne in the world – in both volume and value.

The Brut Non-Vintage style remains the most popular category of Champagne in Australia and makes up 88% of all imports.

Analysis shows that all Champagne categories grew in volume when compared to 2021 including rosé and vintage Champagne.

One of the key trends reported by the Champagne Bureau is a growing demand for lower dosage Champagne.

The relaxed style of contemporary Australian dining, with small plates and a selection of tastes, is seen an ideal opportunity for wine-savvy consumers and sommeliers to pair different styles of Champagne with cuisine.

“The Champagne shipments to Australia in 2022 show that we are a dynamic and evolving market for Champagne," says John Noble, director of the Champagne Bureau Australia.

"It has become clear that adventurous Australian consumers are searching for some of the lesser-known and more boutique styles of Champagne that are now becoming available.”

Another one bites the dust: Hyatt swoops for Mr & Mrs Smith

Another independent travel organisation has been snapped up by one of the big guys - although that is not the way they will spin it.

Hyatt Hotels is to buy the Mrs & Mrs Smith curated hotel booking platform, taking a 100% stake, Travel Mole reports.

Founded in 2003 by James and Tamara Lohan (above), Mr & Mrs Smith sells bookings for a collection of around 1,500 boutique and luxury hotels and resorts.

Hyatt says the deal will double its access to boutique and luxury hotels globally and it will employ over 100 Mr & Mrs Smith employees in its commercial services team, including the founders.

“We are excited by this planned acquisition and bringing World of Hyatt members even more global luxury offerings,” Hyatt said.

The Mr & Mrs Smith portfolio includes properties in over 20 countries where Hyatt has no presence.

Co-founder Tamara Lohan said she was "very excited to share the news that Hyatt Hotels Corporation is planning to acquire Mr & Mrs Smith."

She added: "20 years ago, James Lohan MBE and I were told we were crazy - that the world didn’t need another travel guide, that we’d never find a distributor or make a success out of hotel curation if we insisted on such rigorous standards. Sending reviewer couples out to make sure each and every hotel was perfect? Nuts! They said.

"Back then, we didn’t know how to publish a book, build a website or run a 24/7 travel team. We weren’t sure how to raise money or recruit a team of curators to seek out the very best hotels around the world. 

"We made it up as we went along, made plenty of mistakes, picked ourselves back up, and carried on. There have been times when things have been very challenging indeed, but we’ve always been able to adapt and survive - and now those two decades of working, learning and winging it have paid off."

The sale price is reported as being around $US66 million. 

Champagne sets a course for the next decade

Champagne makers and growers have revealed a major investment plan for the next decade, and set the course for the future of the world's most famous sparkling wine region.

The Comité Champagne recently unveiled a plan to "ensure that Champagne is always available, always desirable and always exemplary".

The Comité Champagne will increase its annual budget by an additional €10 million, which will be invested in particular in research and development along with sustainability and strengthening its foundational missions.

The announcement followed the revelation that Champagne shipped 326 million bottles in 2022 (+ 1.6% compared to 2021).

Champagne is also experimenting with new grape varieties, researching ways to combat the various forms of vineyard decline, defining new soil maintenance methods and new oenological strategies.

"It is not just a question of responding to the changing demands of consumers; it is a question of ensuring the productivity and sustainability of the Champagne vineyard; of designing and promoting a viticulture that is in balance with the ecosystem, to produce a sufficient quantity of quality grapes," says Maxime Toubart, president of syndicat général des vignerons and co-president of the Comité Champagne.

"This is what we aim to achieve, and the course we have set for ourselves."

David Chatillon, president of the Union des Maisons de Champagne and co-president of the Comité Champagne, added: "The investment we make embodies the social responsibility of our sector.

"It is an absolute priority to ensure that Champagne continues to be recognised as an exceptional wine, supported by a united, responsible and committed industry.

"Our plan gives new impetus for new ambitions, for our appellation and our terroir."

New-release flagship wines available via expressions of interest

 

Levantine Hill has unveiled details of the second release of its Optume series - and sales will be made via expressions of interest. 

The initial Optume release was the most expensive range of wines ever made in Victoria.

The Yarra Valley winery says the new vintage releases will comprise the inaugural chardonnay release from the 2020 vintage, and the 2018 Optume Shiraz.

The winey told mailing list memebers: "Due to limited quantities made of each wine, we invite you to register your interest in advance of the official release on market."

Registrations of interest will access pre-release pricing, which is only available until February 24.

There are 984 bottles of the shiraz, which has an RRP of $880 a bottle, and 600 bottles of the chardonnay, which has an RRP of $600. 

Both wines are made by Levantine Hill chief winemaker Paul; Bridgeman (above). 

See levantinehill.com.au

Under-fire Qantas predicts a massive profit

It may have been under fire for poor customer service and a plague of late and cancelled flights but Qantas announced today that it expects an underlying profit before tax of between $1.2 billion and $1.3 billion.

So I'm sure they will be giving back the taxpayer money they were given during Covid. Only joking.

In a press release issued this morning, Qantas insisted operational performance continues to improve with the airline back at or around pre-Covid service levels in first half of October.

Strong travel demand is accelerating the Qantas Group’s recovery, the airline said.

"Based on forward bookings, current fuel prices and latest assumptions about the second quarter, the group expects underlying profit before tax of between $1.2 billion and $1.3 billion for the first half of FY23," the statement said.

"This follows five consecutive halves of heavy losses due to the pandemic and cumulative statutory losses of $7 billion."

Both Qantas and JetStar have announced sale fares starting today, with more than 1 million fares across 67 domestic destinations starting at $35 one-way.

Qantas Group CEO Alan Joyce, said: “It’s been a really challenging time for the national carrier but today’s announcement shows how far we’ve come.

“Since August, we’ve seen a big improvement in our operational performance and an acceleration in our financial performance.

“It’s clear that maintaining our pre-Covid service levels requires a lot more operational buffer than it used to, especially when you consider the sick leave spikes and supply chain delays that the whole industry is dealing with. That means having more crew and more aircraft on standby and adjusting our flying schedule to help make that possible, until we’re confident that extra support is no longer needed.

“Qantas’ operations are largely back to the standards people expect, and JetStar’s performance has improved significantly in the past few weeks and will keep getting better with the extra investments we’re making."

Image: Qantas 

How organic wine sales can be boosted in Australia

Australians love their wine - and the idea of sustainability - but many are not prepared to pay premium for organic or biodynamic wines, analysis of an international study reveals.

But there are ways and means to encourage Australians to drink more organic wine, a Macquarie University researcher believes.

Dr Rezwanul Rana is a teetotal health economist but when a colleague asked him to do some statistical analysis on data collected in 2019-2020 from around 2500 wine drinkers in Australia, Chile, France, Italy, the Netherlands, South Africa and the United States, he was intrigued.

Like organic food, organic wine is relatively expensive to produce. So, the survey’s primary focus was on how much of a premium consumers would pay for it.

“A little under half of those surveyed said they would only pay US$1-$5 more for a bottle of wine that was organic,” Dr Rana says. “If they are willing to buy it at all, most consumers in all the countries surveyed would only pay slightly more for organic wine.”

It wasn’t older wine drinkers, presumably more affluent and health conscious than their younger counterparts, who were willing to pay extra for wine grown without chemicals, pesticides, fungicides and herbicides and free from sulphur dioxide-based preservatives.

“In countries, such as Australia, it’s younger people, especially ones who live in urban areas, who are keenest on organic wine and they are most likely to drink it in social situations,” Dr Rana says.

“That’s presumably because they are more adventurous, more concerned with the environment and more likely to have eaten organic food. That noted, those who eat organic food didn’t show the predisposition to drinking organic wine that might be expected.

"Consumers view organic food and organic wine quite differently.

“In the 1970s and 1980s, organic winemakers were making it up as they went along and the results were often suboptimal.

“The quality of organic wines has improved dramatically, but one reason many older wine drinkers are wary of them could be bad past experiences.”

Dr Rana has four suggestions for those who would like to see Australians drink more organic wine.

First, get the positioning right.

“Think about how organic food is positioned in supermarkets,” Dr Rana says. “Organic fruits and vegetables are prominently displayed in the fruit and vegetable section, making it easy for shoppers to notice then buy them. If you go into a bottle shop, the organic wines will often be ‘ghettoized’ in an obscure corner of the shop.”

Second, get the labelling right.

“Europeans, who grow up in cultures that have been producing wine for centuries, are confident about buying wine,” Dr Rana says.

“Australians pay much more attention to labels. They want to be reassured by the information displayed on the label that they are buying the ‘right’ wine. Organic winemakers have shot themselves in the foot with their failure to devise and universally embrace a logo that makes it clear their wine is chemical free.”

Third, get the brand associations right.

“Some of the world’s most prestigious winemakers now make organic wines and these wines have won many awards,” Dr Rana says.

“Yet many Australians believe organic wine is still the product of a hippie cottage industry. It needs to be made clear to them that the organic wine of 2022 is far superior to that of 1972.”

Fourth, go after the hipsters first.

“The most bang for marketing buck will come from targeting young, inner-city professionals,” Dr Rana says.

“These are the consumers who want to signal that they are discerning and environmentally conscious by ordering a glass of organic wine at a restaurant. Or taking a bottle of organic wine to a friend’s barbeque. You can mock hipsters as much as you like, but they are often tastemakers for the broader population.”

Image: Andreas Steidlinger, scop.io 

Meet the Big 4 who control over a third of Australian wine sales

Four major companies control well over a third of the Australian wine business, research by Savvy has revealed. 

The four major producers are led by Treasury Wine Estates Ltd with a market share of 13.5%. They produce some of Australia’s best-known premium brands including Penfolds, Wolf Blass, Lindemans, Seppelt, Wynn's Coonawarra Estate, 19 Crimes and Rosemount Estate.

Accolade Wines was in second position in terms of 2020 total wine production. Its brands include Hardys, Grant Burge, St Hallett, Petaluma and House of Arras. 

Casella Wines Pty. Ltd., in third position as of 2020 in terms of total wine production. It has a share of  7.7% of the market with wines including Yellow Tail. 

Pernod Ricard Pacific Holdings has a 7% market share and is the subsidiary of French luxury spirits and wine group Pernod Ricard SA. It owns Jacob’s Creek and St Hugo.

Underneath the Big 4 are medium-sized wine companies including Australian Vintage Limited (4% share), Kingston Wine Estates and De Bortoli Wines. 

Bill Tsouvalas, finance expert and founder of Savvy, says: “While the fundamentals of the wine business remain good, the industry has really been impacted by first the China trade tariffs and now the ongoing pandemic. 

"This has been reflected in the decline in business equipment lending we've seen in that sector, compared, say, to the craft beer market, where producers are increasing in number and expanding production capacity.

"But this may have as much to do with the comparative maturity of the industry - Australian wine producers have been established much longer and probably now have excess production capacity."

Wine Australia says that in the year ended December 2021, Australian exporters shipped wine to 112 markets, compared with 114 the year before. 

Red wine production leads the way in the Australian wine industry, comprising 59.5% of all products, followed by white wine on 32.2%. 

IBISWorld says the Australian wine industry is worth $6.9 billion, taking in $409.8 million in profits as of the final quarter of 2021. This represents a 5.9% profit margin for producers and wineries.

Here is the full Savvy report: https://www.savvy.com.au/wine-in-australia-still-the-taste-of-the-world/

# Savvy is one of Australia’s largest online financial brokers.

French toast a record year for wine and spirit sales

French wine and spirits exports hit a new record high in value in 2021, the Federation of French Wine and Spirits Exporters (FEVS) said. 

Sales were boosted by the lifting of US tariffs and by the start of an economic recovery after the pandemic 

Overseas sales of wine and spirits - France’s second-biggest export after the aerospace sector - reached €15.5 billion in 2021, up 28% on 2020 and 11% above 2019, FEVS reported. 

“The growth in value is almost three times the rate of growth in volume, showing the increasing added value of wine and spirits exports,” FEVS President Cesar Giron said.

Wine shipments to the US, France’s largest export market in value, jumped 34% last year to €4.1 billion, Reuters reported. 

The bad news is that French wine exports this year and next could be hurt by lower volumes after spring frosts hit vineyards, Giron said.

The Beaujolais region harvested only half of its average volume while Bordeaux fell by a quarter. 

Image: Emanuele Lattarulo, Scop.io

How sustainability can help wine producers prosper

Australian grape growers and winemakers are being urged to embrace sustainability to give them a market edge.

Australian Grape & Wine, The Australian Wine Research Institute and Wine Australia have called on wine industry figures to become members of Australia’s national sustainability program, Sustainable Winegrowing Australia.

The Sustainable Winegrowing Australia program helps its members to measure, monitor and report their vineyard or winery’s environmental, economic and social initiatives each year.

This not only allows them to demonstrate their sustainability credentials, but puts them on the path to continually improve their practices.

The demand for products that can demonstrate they are produced sustainably continues to grow around the world. Sustainability is now a core element sought by consumers and retailers.

Tony Battaglene, chief executive of Australian Grape & Wine, said: ‘’Our three organisations have formed a collective vision for the Australian wine community at a time when the industry is facing significant challenges from a changing market that is placing increased emphasis on sustainability.

“There has been an acceleration around the world of consumer sentiment towards sustainability and it is taking the global wine sector with it. 

:Consumers, retailers and governments are all paying attention – there has never been a more important time we paid attention too.”

Sustainable Winegrowing Australia is the national program for grape growers and winemakers using sustainability practices in their vineyards and wineries.

The voluntary program is currently supported by over 700 grape growers and winemakers from around the country. The program is administered by the Australian Wine Research Institute (AWRI) with governance, endorsement and active support from Australian Grape & Wine and Wine Australia.