Australian wine industry shows signs of stock adjustment

Published Dec 11, 2024

Tridge summary

Australian wine sales surpassed production for the second year in a row, with total sales reaching 1.08 billion liters and production at 1.09 billion liters in the 2023-24 financial year. The report highlights an 8% increase in production, the second smallest in 17 years, and a 1% decrease in sales volume, with both domestic and export markets experiencing a slight decline. The shift towards white wine production, with a 20% increase compared to a 2% decrease in red wine, is attributed to efforts to combat red wine oversupply. The removal of import tariffs on Australian wine in China led to a fivefold increase in exports, primarily of red wine, which is believed to be a stock adjustment rather than a reflection of retail sales. The stock-to-sales ratio fell by 14%, indicating that production and sales are more aligned, but challenges such as declining global wine consumption and increased competition pose threats to the growth of Australian wine sales in the future.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Total sales of Australian wine exceeded production for the second year in a row, following successive small vintages, according to the Australian Wine Production, Sales and Inventory Report 2024 released by Wine Australia. Wine production was just over one billion litres (116 million 9-litre case equivalents), an eight percent increase compared with 2022-23 but still the second-smallest reported production in 17 years, and 16 percent below the 10-year average of 1.24 billion litres. Peter Bailey, manager, Market Insights at Wine Australia, said that the below-average production from the small 2024 vintage was the result of a combination of seasonal factors and economic and market conditions. “This was another difficult season in many regions, with heavy rainfall and flooding, widespread windy conditions affecting flowering, and dry spring weather leading to cold nights and the potential for frost damage,” Mr Bailey said. “However, the result has also stemmed from deliberate ...

Source: Wbmonline