Australia and New Zealand trade tasting shines a light down under

Australia and New Zealand Trade tastings reveal mixed fortunes in wine trade performance.

Australia has been hit by historic oversupplies, decreasing consumption and exports and lingering cost inflation. While New Zealand trade looks healthy, with improved exports due to a Free Trade Agreement with the UK already in effect and the EU soon to take effect.

New Zealand's biggest export market is the UK where it saw impressive growth in 2023, New Zealand wines increased by value in the UK by 7.7% compared to 2.2% for the still wine category.

But Australia's fortunes may soon change. Rising shipments to Hong Kong were a bright point with Treasury Wine Estates are reportedly filling inventories in Hong Kong and Macau ready for potential re-opening of trade, according to just-drinks.

Not all are excited that the trade barriers put in place by China and may soon be dropped will solve Australia problems. Mark Lewis, founder of Cape Landing in Margaret River, says Once bitten, twice shy. I think the big lesson for Australia is don’t have your eggs too tied up in the Chinese egg market because they’ve shown they can be unpredictable.

Meanwhile Accolade Wines, Australia's second-largest producer, has been taken over by a consortium of US investors led by Bain & Co. Accolade owns brands such as Hardys Wines and Banrock Station.