Austrian wine industry a runaway success story

 

The Austrian wine industry continues to boom across international markets.

In 2022, the value of Austrian exports reached a new record level of Є231 million.

White wines and Sekt (sparkling wines) saw the greatest growth in value and Austrian wine was in particularly high demand in Canada, the US and northern Europe.


Statistics Austria figures show Austria exported 67.7 million litres of wine in 2022, equivalent to Є231.3 million euros in value.

Although volume was slightly lower than the previous year (-3.5%), value rose by 6.4%.

“Success in the export markets, and especially the record average price, is very important for our wine industry," said Chris Yorke, CEO of Austrian Wine (the Austrian Wine Marketing Board).

"The current wave of inflation is hitting our winegrowers hard, which is why we need to focus on growing their added value."

Austria’s white Qualitätswein was in particularly high demand (+7.9% in value).

“We have noticed that our white wines are really hitting the spot with international consumers and demand is continually growing,” says Yorke. Demand for Sekt also continued to rise (+19.3%) from a lower base.


Exports to Canada showed a 46.7% increase in value and over the last five years, the value of exports to the Canadian market has grown more than sevenfold.

The US was also on the upswing, recording an 11.2% rise in value.

The UK was on a downward trajectory in 2022, dropping 38% in value - largely due to complications caused by the idiocy known as Brexit.

Investors still willing to splash out on fine wines

The secondary fine wine market appears “immune” from economic turmoil across the globe, fine wine sales platform Liv-ex has reported. 

A new quarterly report from Liv-ex shows that “2022 has picked up where 2021 left off". 

It follows a very strong performance on the secondary fine wine market last year, which saw an unbroken 18-month run of gains in both the Liv-ex Fine Wine 100 and Fine Wine 1000, Drinks Business reported.

The Liv-ex 100 and the Liv-ex 1000 indices were up by 1.9% and 3.5% respectively in the first three months of 2022. 

There were particularly impressive gains in prices for for Burgundy and Champagne in the Liv-ex 1000 (which is the broadest measure of the secondary market). Those regions prices were up 14.6% and 9.6% respectively.

A star performer among the Liv-ex 1000’s component wines over the last three months was Domaine Leflaive 2012. 

The Puligny-Montrachet-based wine estate (above) has seen prices rise 76% in just three months. 

The report comes as a surprise given economic challenges associated with Russia’s invasion of Ukraine, with rising inflation and interest rates, soaring prices in crude oil and other commodities and the rising cost of living.

“As an alternative asset it retains certain advantages over mainstream financials in difficult times, especially as it is both a diminishing asset and one where time invested in holding on to stock is often necessary and generally encouraged," the report said. "Thus, its volatility is extremely low.”