Australian wines are in midst of massive growth, thanks to a growing demand from abroad with the US assuming a prominent role in boosting sales in Australian wines.

The Australian Wine & Brandy Corporation of the government stated that the rise in the value of the country’s wine exports exceeded volume growth in 2007, reported Fin24.

At 3% up from 2006, Australian wine exports of 785 Million Liters accounted for the smallest annual growth since 1997. But at the same time, growth in the value of wine sales was 6% to A$ 3 Billion, the highest YOY increase since 2004. Behind the powerful value growth was the 3% rise in average price to A$3.83 per liter, owing to the rising share of the comparatively higher priced bottled wine exports, as claimed by the government authority. In 2007, 74% of all wine exports comprised of bottled wine.

The UK remained unchallenged in terms of both market value and volume with 290 Million Liters calculated at $985 Million. The US, with 204 Million Liters at $917 Million, was at second place while Canada was next with 49 Million Liters at $282 Million.

Wine demand in the US and the UK has shot up, thanks to income and economic growth along with changing consumer tastes. Also contributing to the growth in overall wine consumption in the two countries was the media hype surrounding the healthy attributes of moderate wine consumption, especially red wine. Also, youngsters are increasingly developing a taste for wine. As brand awareness increases, wine exports to the US, UK and other countries will benefit. The focus on generic marketing by industry resources will also prove favorable.

The fact that the US has assumed a key role in boosting wine sales is indicative of the advantages provided by new alliances and joint ventures forged by Australian wine producers with leading US consumers in addition to the brand image, competitiveness, quality and value of Australian wine in the US market.

Timely sales of excess supply of wine, bulk purchase by retailers to sell them under in-house labels and cost effectiveness of bottling Australian brands abroad have spurred growth in bulk shipments of wine.

A RNCOS Research Analyst opines, “Australia produces some of the finest wines in the world selling them to over 100 countries. The future looks promising for Australian wine exports with greater supplies, massive demand abroad, marketing initiatives, recovering international economies and long list of top quality wines.”