AUSTRALIAN EXPORTS LOSE VALUE
For the first time in 15 years, Australian wine exports have decreased in value as a direct result of the grape glut and falling prices. The Australian Wine and Brandy Corp released information showing that while export volumes have increased 7% for the year to September 30, the average price per liter fell by 7% during the same time period, resulting in an overall 0.6% decline in the value of exports.
It’s the first time the Australian wine industry has experienced a downward slide in export value since the corporation began keeping records in 1991, but was not entirely unexpected given the current wine surplus. The average price of wine currently ranks at $3.77 per liter and is the lowest since March 1997.
Last week, Constellation Brands looked to the Australian wine glut and its resulting low prices as the main reason for the intense competition in Britain. British retailers like Tesco and Safeway have been accused of taking advantage of the wine surplus, and buying bulk wine to sell under their own in-house labels, making it hard for other wine companies to compete.
Britain remains Australia's largest wine export market despite a 2% decline in volumes and a 3% fall in value to $946 million. Higher bulk shipments to the US drove an 8% increase in volume, but the value of exports was down 2% as average selling prices slumped by 10%.
It’s the first time the Australian wine industry has experienced a downward slide in export value since the corporation began keeping records in 1991, but was not entirely unexpected given the current wine surplus. The average price of wine currently ranks at $3.77 per liter and is the lowest since March 1997.
Last week, Constellation Brands looked to the Australian wine glut and its resulting low prices as the main reason for the intense competition in Britain. British retailers like Tesco and Safeway have been accused of taking advantage of the wine surplus, and buying bulk wine to sell under their own in-house labels, making it hard for other wine companies to compete.
Britain remains Australia's largest wine export market despite a 2% decline in volumes and a 3% fall in value to $946 million. Higher bulk shipments to the US drove an 8% increase in volume, but the value of exports was down 2% as average selling prices slumped by 10%.
posted at 12:32 PM
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