Exports of bulk Australian wine have depressed export returns for the Australian wine industry, as the large overseas owners move to do their bottling and packaging offshore. The trend has increased the proportion of bulk wine shipments from 37% of the total in 2009, to 48% in the trade year just ended.
Two of Australia’s largest exporters, Accolade Wines, owned by New York based Constellation Brands, and French Pernod Ricard, are shipping their high profile Australian wine brands offshore for bottling. While this reduces bottling costs and shipping costs within destination markets, it also reduces added value processing within Australia.
Accolade exports Nottage Hill, Crest, and Stamp brands in bulk for bottling in Europe, as does Pernod Ricard for its Jacob’s Creek label, apparently the largest selling Australian wine brand in Europe.
The increased portion of bulk wine in total Australian shipments for the latest year contributed to further decline in the average value of Australian wine exports. In total, volume was down 7% and value by 8%.
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