Brits get taste for a better drop
And there was strong growth for more expensive wines, even as Britain splutters along in a protracted economic downturn, with sales of wines priced above £7 increasing by 16 per cent in volume terms.
The improved performance at the upper price points should comfort the larger winemakers such as Treasury Wine Estates, which has focused on its premium stable of wine brands.
The surge of Australian wine in Britain comes despite local winemakers decrying the high value of the dollar which they say hit margins as their brands are priced out of the market by new-world producers such as Chile as well as old-world centres such as Spain.
Some family-owned wineries, such as Brown Brothers, d'Arenberg and Casella, have blamed the high dollar for crunching their profitability, particularly in the crucial markets of North America and Britain.
New figures from Nielsen released on Tuesday tell a slightly different story. Australia remained in the top spot last year as Britain's largest source of wine, and in recent months extended its lead over Italy, to break through the £1 billion sales mark.
According to Nielsen, France and the US were in third and fourth place with sales of £765 million and £686 million respectively.
Spain was the fastest-growing wine exporter to Britain, with value sales up 17 per cent to £538 million for the period.
Britain's tax system helped, with taxes and duties on wine up 50 per cent in the past five years. Local retailers argue consumers are willing to pay an extra £1 or £2 a bottle to jump a few rungs in wine quality.
A recent report from Wine Australia confirmed Britain as the sector's biggest market, importing 250 million litres for the year ended March. Europe is the No.1 region for Australian exports, accounting for half total volume.
Frequently Asked Questions about this Article…
Australian wine sales to Britain have broken the £1 billion (about $1.55 billion) barrier, according to Nielsen. That makes Australia Britain’s largest source of imported wine and shows strong demand for Australian labels — a useful market signal for investors tracking wine exporters and premium-brand performance.
Nielsen data show Australia in first place, Italy in second, with France and the US in third and fourth (France £765 million and the US £686 million). Spain is also notable as the fastest-growing exporter to Britain.
Yes. Sales of wines priced above £7 increased by 16% in volume, indicating British consumers are trading up into higher-priced bottles — a trend that benefits producers focused on premium ranges.
The stronger performance at upper price points should comfort larger producers such as Treasury Wine Estates, which has a strategy built around premium wine brands and stands to gain from consumers buying more higher-priced bottles.
Yes. Some family-owned wineries including Brown Brothers, d'Arenberg and Casella have blamed the high dollar for squeezing profitability, especially in key export markets such as North America and Britain. However, Nielsen’s sales figures show Australia still performing strongly in Britain despite those concerns.
Taxes and duties on wine in Britain have risen about 50% in the past five years. Retailers say many consumers are prepared to pay an extra £1–£2 per bottle to move up a few rungs in perceived quality, which supports growth in value sales.
Wine Australia confirmed Britain is the sector’s biggest market, importing 250 million litres in the year ended March. Europe is the number one region for Australian exports, accounting for about half of total export volume, while Nielsen’s country-level sales show Australia leading the UK market.
Spain was the fastest-growing wine exporter to Britain, with value sales up 17% to £538 million for the period covered by Nielsen’s data.
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