Victims of the global financial crisis are clearly not drowning their sorrows in Australian wine according to the latest figures from the Australian Wine & Brandy Corporation (AWBC). Wine exports fell 11 percent by volume and 18 percent by value to $2.47 million in 2008, the lowest revenue in 15 years.
Peter Bailey, senior analyst at AWBC, attributed the reduction in demand to the financial crisis, competition from other wine-producing countries, and the volatile exchange rate. “In the first half of the year, the strong Australian dollar placed enormous pressure on Australia’s price competitiveness in our major wine markets, where there is already intense pressure from lower-priced competitors,” he said.
In Britain, one of Australia’s biggest wine markets, an increase in excise duties saw demand drop 10 percent by volume and 18 percent by value. In the US, another big market, export value declined by 26.5 percent. However, sales to China have risen 32 percent compared with 2007 figures, although it was not enough to cover losses in the UK and US.
