Foodsectornews.com - The Rise And Rise Of Australian Wine In The US

The Rise And Rise Of Australian Wine In The US

Tuesday, 19 June 2007

The news in the Australian wine industry has been optimistic as US is supporting the industry in a big way. The growing awareness of wine’s benefits to health and rising incomes has boosted the growth considerably.

After nearly three years, US has been identified as the most profitable market for Australian wine. The 12-month period, according to the Australian Wine & Brandy Corporation, sets new records for volume and value of wine exports. Volume-wise, there has been an increase of 10% to 788 Million liters and value-wise, a 4% rise to $2.91 Billion, as reported by The Australian Business news.

The last five years have seen Australian wine exports to the United States undergo a dramatic rise. Most of the credit for this change goes to the speed of expansion of the Yellowtail brand. It has been estimated that over 10 Million cases of the brand are bound for the US market in 2007. The figures exceed that of France’s sales to the US market. Thanks to Yellowtail, Australia has ascended to the position of number one among wine exporters, boasting of over 28% of the imported wine category in the United States.

The scenario in the United States characterized by soaring economic growth and rising income, together with evolving consumer inclinations, has witnessed a sharp rise in the demand for wine. It also helps that wine, particularly red wine, in moderate consumption has associations with positive health benefits. This has resulted in renewed increase in overall wine consumption. At the same time, the younger generation of consumers, which is earning more and leading an affluent life, is increasingly showing an interest in wine.

The combination of these factors, the growing wine supplies, solid foreign demand, aggressive market promotion, recovering international economies, and greater variety of choices in high quality wines have spelt good tidings for US wine exports.

Another factor facilitating the growth of wine exports in the United States is the greater visibility of brands, coupled with increasing commitment of industry resources to generic marketing.

The conclusion of a research analyst at RNCOS is that there has been a significant growth in wine exports from Australia to the United States in the last five years and at present, it stands at 28$ of the entire US wine imports. The growth in Australian exports to the United States over the next five years is forecasted at an annual average rate of 7%, thanks mainly to soaring incomes and wine consumption per person.