Australian wine wallowing at the bottom of the price chart

Chart toppers

The chart below of average UK and USA retail prices has been compiled using Nielsen figures. The UK figures are for the year to 31 December 2016, and the American figures for the 52 weeks to 25 February. Both apply to off premise only.

Country of origin UK average £ US average US$ Converted to A$
Australia 5.15 4.84 UK 8.28 / US 6.40
Italy 4.95 9.24 UK 7.96 / US 12.22
US 5.45 NA UK 8.77 / US NA
France 6.66 12.71 UK 10.71 / US 16.82
South Africa 4.78 9.51 UK 7.69 / US 12.58
Chile 5.32 5.79 UK 8.56 / US 7.66
Spain 5.20 6.64 UK 8.36 / US 8.79
New Zealand 7.12 11.41 UK 11.45 / US 15.09
Argentina 5.76 7.15 UK 9.26 / US 9.46
Germany 4.51 8.73 UK 7.25 / US 11.55

Australia is the largest supplier of imported wine to the UK, and according to the US Nielsen figures the largest supplier to the US also. We have recorded slight declines in volume and value in both countries. Per 75cl bottle Australian wine is the second cheapest wine in the UK, and the cheapest in the US.

Converting average prices into Australian dollars makes interesting reading. All but two of the above sell for more in the US than they do in the UK. The difference between UK and US prices ranges from 20 cents to $6.11.

Maybe the US market is harder work than the UK, but if most other nation’s wines are getting higher prices is it not worth some extra effort to boost Australia in the US market? Accolade Wines have been shocking in regard to the US and not much better with China. Maybe it’s due to their vast UK exposure and they are getting that extra margin without the extra promotional cost. Australian Vintage made some noise about the US a couple of years back but it seems to little avail.

Only Australian and Chilean wine fetch more in the UK than they do in the US:

  • Australian: $1.88 more in the UK
  • Chilean: $0.90 more in the UK

Never mind the rhetoric offered up by the collective Australian industry, Treasury Wine Estates and Wine Australia about the forward and upward drive of premium wine. The figures clearly show Australia has become firmly embedded in the lowest price category.


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