Hon Ken Baston MLC

Hon Ken Baston MLC

Former Minister for Agriculture and Food; Fisheries

    Strong growth in WA premium wine exports

    23/03/2016 5:00 AM
     
    • International marketing plan reaps rewards
    • Margaret River wine accounts for 66% of bottled wine exports during 2015
    • China, UK and Singapore are strong markets for WA wines 

    Western Australia is exporting more bottled wine than ever, with China, the United Kingdom and Singapore emerging as the key markets.

     

    Agriculture and Food Minister Ken Baston said the State Government had partnered with the wine industry on an international marketing campaign, resulting in a significant increase in WA's bottled wine exports in 2015, particularly in premium wines.

     

    The value of bottled wine exports grew 20 per cent to $40.8 million over the last 12 months, with premium wines comprising 57 per cent of exports at an average value of $15.15 per litre.

     

    "The strongest export growth markets were China, which increased 23 per cent to a value of $9.2 million; the United Kingdom which increased 19 per cent to $6.5 million; and Singapore which increased 28 per cent to $3.75 million," Mr Baston said.

     

    The export value of premium wines grew in all top markets, and was strongest in Singapore, growing 47 per cent to $3.3 million; USA which had 36 per cent growth to $2.4 million; and the UK which increased 23 per cent to $2.8 million.

     

    Margaret River remains WA's main exporting wine region, accounting for 66 per cent of bottled wine exports and 84 per cent of the State's premium wine exports.  A bottle of Margaret River wine attracted an average export price of $11.52 per litre, up five per cent on the previous year and the second highest price from Australia's 65 wine regions, behind the Barossa Valley at $16.08 per litre.

     

    The Minister welcomed recent news from Asia's largest carrier, China Southern Airlines, that premium Margaret River wines, Fermoy Estate's Class White and Vasse Felix' Sauvignon Blanc Semillon would be poured on-board all return direct flights between China and Australia/New Zealand.

     

    "The wine industry generates substantial benefits for regional economies and the State's wine and food tourism sector," he said.

     

    Fact File

    • The value of the State's wine industry in 2013-14 was $720 million
    • WA's main wine-producing areas are Margaret River, Great Southern, Swan Valley, Pemberton and Geographe
    • Since 2012, the Department of Agriculture and Food WA has partnered with the wine industry on an international marketing program to build awareness and profile the State's fine regional wines in key markets
    • Premium wine is valued at more than $10 per litre 

    Minister's office - 6552 5400

     

    Background

    • The fine wine segment includes super-premium wines valued at more than $10 per litre, ultra-premium which encompass $20 to $50 per litre wines, and icon wines with export values of more than $50 per litre.
    • The increase in average value of eight per cent per litre across all markets raised the average value of bottled wine to Singapore to $13.36, Canada to $12.72 and Hong Kong to $11.96.
    • Premium wines account for an even higher proportion of WA's export value to Singapore (88 per cent), Canada (83 per cent) and USA (69 per cent).
    • WA's small, medium and large wine businesses all contribute to export.  For example, in Margaret River the volume share of exports of the 94 small, 38 medium and nine large wine exporters is 24 per cent, 40 per cent and 36 per cent respectively.
    • The strength of the Western Australian wine industry is in the premium market, alongside wines from the great wine-producing regions of the world, such as Bordeaux and Burgundy in France, the Napa Valley in USA and Marlborough in New Zealand.