AUSTRALIAN EXPORTS REACH RECORD VOLUMES
The volume of Australian wine exports has reached a record 749 million liters this year, up 8% according to the Australian Wine and Brand Corporation. In the latest wine export approval report, the value of wine has increased slightly by 0.2%, which is the first positive result in months.
"Traditionally the Australian wine industry ships a lot of wine overseas to meet the Christmas needs and also wine has matured over the last season around this time," said Lawrie Stanford from the Australian Wine and Brandy Corporation.
Although the increase in overall value gives the Australian wine industry a little reason for celebration, the average price per liter has fallen by 7% to just under $4 a liter.
This is bad news for domestic growers as wine companies continue blending foreign wines (mainly from Australia) with wines from California and other U.S. states under the American Appellation. The California Association Wine Grape Growers (CAWG) believes California wineries may be bending a law that states 25% of one appellation can be blended with 75% of another, maintaining that the law only applies to domestic appellations.
“No other country allows blending of foreign wine with domestic wine,” said Karen Ross, president of CAWG.
“We are definitely looking into the blending of foreign wine with California wine and calling it American wine, but are not sure what actions we will ultimately take,” she said.
By the end of the year, burgeoning wine imports are expected to account for 30% of the U.S. market.
California’s wine industry, however, is the fourth-largest wine producer in the world after France, Italy and Spain, and contributes around $103 billion to the United State’s economy each year, according to a report released by The Wine Institute and CAWG.
"Traditionally the Australian wine industry ships a lot of wine overseas to meet the Christmas needs and also wine has matured over the last season around this time," said Lawrie Stanford from the Australian Wine and Brandy Corporation.
Although the increase in overall value gives the Australian wine industry a little reason for celebration, the average price per liter has fallen by 7% to just under $4 a liter.
This is bad news for domestic growers as wine companies continue blending foreign wines (mainly from Australia) with wines from California and other U.S. states under the American Appellation. The California Association Wine Grape Growers (CAWG) believes California wineries may be bending a law that states 25% of one appellation can be blended with 75% of another, maintaining that the law only applies to domestic appellations.
“No other country allows blending of foreign wine with domestic wine,” said Karen Ross, president of CAWG.
“We are definitely looking into the blending of foreign wine with California wine and calling it American wine, but are not sure what actions we will ultimately take,” she said.
By the end of the year, burgeoning wine imports are expected to account for 30% of the U.S. market.
California’s wine industry, however, is the fourth-largest wine producer in the world after France, Italy and Spain, and contributes around $103 billion to the United State’s economy each year, according to a report released by The Wine Institute and CAWG.
posted at 1:30 PM
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