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The Australian Wine Industry
The Australian wine industry is characterised by a commitment to technical excellence and innovation. In this regard the Australian Government assists by matching monies raised for research and development (up to 0.5% of GVP). The industry also owns and runs the Australian Wine Research Institute, a dedicated wine research centre.
The result of this commitment is that Australia is able to produce value for money wines at all price points. This has helped Australia grow its wine exports substantially over the last decade.
Apart from the quality of Australian wines export success is also attributable to two other factors. Firstly, there has been considerable consolidation of wine companies over the last 15 years. This has resulted in at least four companies being large enough to compete in global marketplaces, particularly by being able to produce wine in the quantities being asked for by the large supermarket chains.
Further, the Australian wine industry has over many years funded generic international promotion of Australian wine. This promotion is funded via another levy on industry and is delivered through the Australian Wine Export Council, a committee of the Australian Wine and Brandy Corporation (AWBC). The AWBC is a statutory body set-up under Commonwealth legislation. While Australian wine today enjoys about 20% of UK off-licence wine sales, Australian promotional efforts began in that market in the early 1980s. In time it is anticipated that similar long-term strategies will bring gains in other key markets.
It should be noted that in 2001-2002 the domestic industry produced over 96% of all wine sold in Australia. While this was a little higher than in previous years and may have been the result of a low $A it does highlight the commitment of consumers to the local wine industry.