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A Beginners Guide to Importing Wine from Australia in 2018

By June 23, 2018 No Comments
Beginners Guice to Importing Australian Wine (Infographic)

Australian wine is well known globally as being of exceptional quality, with wineries such as Treasury Wine Estate, Constellation Wines Australia, Pernot Ricard, Cassella and McGuigan being our top exporters according to Australia Top.

 Australia’s Wine Export Market at a glance:

top-5-countries-for-wine-exports

 

Our Top 5 export markets for Wine as at December 2017 were:

  • Mainland China (33%)
  • United States of America (18%)
  • United Kingdom (14%)
  • Canada (7%)
  • Hong Kong (5%)

Wine exports grew by 15% to $2.56 Billion in 2017 with 811 million litres exported. This trend is set to continue as China continues to develop its wine market and India is an emerging wine export market – (source Wine Australia)

Export Price of Australian Wine – How much does the best wine in the world cost?

We constantly gest asked to supply Australian wine for $1 or $1.50 USD ($1.30 – $2.00 AUD) per bottle. Our experience is that these are not realistic expectations for prices. This may have been achievable years ago when there was a glut or oversupply of wine and grapes, but today, with a healthy Domestic market and a growing Export market, wine prices will continue to increase.

Low prices wine is available in Australia with major retailers such as Aldi and Dan Murphys selling Cleanskins and Own Brand wines for low prices and we export many wines at Entry Level prices, however, these wines generally have cheaper bottles with thinner glass and flat bottom (no Punt or Kick Up)

According to the Wine Australia report ,  wine priced from  $2.50 AUD to $4.99 AUD per litre is the largest segment $830 million AUD (+5%), wine priced under $2.50 per litre grew by 18% ($511 million AUD) with higher priced wines $20 – $200+ AUD experiencing the biggest percentage growth, driven by Chinas developing wine drinkers moving up from Entry Level wines.

australian-wine-exports-by-price

Australian Wine – All wines are not created equal

The old saying is “You get what you pay for” and this is particularly true with wines. Whilst there have been some examples of Entry Level wines winning awards, the reality is that most Australians pay $15 – $20 for decent wine at a bottle shop.

As evidenced in the graphs above, while entry level wines are greatest in terms of Litres exported, the highest growth in sales percentage has come from Mid-level and Premium wine segments. This is due to the evolving tastes of consumers who are appreciating higher quality wines as they experiment and improve their wine tastes.

That’s not to say that Entry-level wines are inferior, but they likely wont taste as good as wines that you can import at a slightly higher price. We offer Entry-level, Mid-level and Premium wines for export, and we find that the greatest demand is for Entry-level and Mid-priced wines.

 Exporting Wine from Australia – What are the rules?

To export wine from Australia, you must have a Wine Export Licence (which we have) and follow the processes set out by Australian Government.

Brand owners can export their wines, in fact, any licensed wine exporter is also able to export other brand owners wines (Parallel Import), as long as they are genuine and legitimately purchased. Importers, however, have to check with their own countries import laws relating to Parallel Importing of famous brands. Hong Kong and Singapore for example, are countries where we export famous brands. Other countries such as China and South Korea, require the permission of brand owners to allow for import. We export our own wine brands to these markets.

Supply Chain and Logistics – They don’t call it The Wide Brown Land for no reason

Australia is massive! On a 9-hour flight to China, half the time is taken flying over Australia and there are wine growing regions in every state. The famous wine growing regions are in South Australia (Barossa Valley and McLarenvale) Western Australia (Margaret River), New South Wales (Hunter Valley) and Victoria (Yarra Valley), however, there are many more fantastic wine growing areas including Tasmania, Queensland and Norther Territory.

Sending Full Container Loads (FCL) is no problems, with China only 18-21 days by ship and sending LCL is no problems also. Australia does have limits however on sending Premium Wines (Corked wine) in smaller quantities as there is currently no Refrigerated Container service that can do LCL. This means that Premium/High Value wines must travel either by Air or in their own RFD container.

  Wine from Australia

Sourcing Wine from Australia – not as easy as you may think

We will declare an interest here – we hope you choose us to source your wines to export to your country. We have a Wine Export Licence, experience in exporting wine and the ability to source all wines including brands that we own and other famous brands.

There are many options to sourcing wine from Australia, including:

  • Direct from Winery – sounds easy, but large wineries have distribution agreements in place, either with their own operation, or distributors and agents. Smaller Boutique wineries often have wines that are above the $5.00 AUD price point that importers seek.
  • Australian Buying Agents – wine exporters who source wines either from distributors/wholesalers or direct from Wineries.
  • Brand Owners – companies (like us) that have our own labels produced at Wineries
  • Overseas Agents – Famous Australian wines are often exported in bulk to Europe and other markets, this stock often is traded around the world. Yellowtail for example has been cheaper to buy from Europe than from Australia.

 

Wine-from-Australia

 

Importing Requirements – you bought your Top Drop; now how do you get it into your country?

Once you have purchased your Australian Wine, you will have to ensure that you have the required Licences and Certificates for your country of Import.

Some countries require a Wine or Alcohol Licence to import, or the Wine has to be stored in a Customs approved Bonded Warehouse.

You must also ensure that you have the correct documents from Australia and you should consult with your Freight Agent as these vary by country.

What to do next…

If you are a Wine Importer and you want to start selling Australian wine or expand your existing range to include wines from Australia, please consider us, PATAZA Pty Ltd (Australis Food Group) as your solution provider and supplier of quality Wines from Australia. We offer a wide range of wines, value for money price and superior service. Contact us today!

 

(Data Source: Wine Australia)