The United Kingdom surpassed China as the top buyer of expensive Australian wine Business and economics news

Australian wine sales to China have changed in the wake of the ongoing conflict between them.

By Bloomberg

When it comes to drinking Australian wine, the British began to opt for higher priced options. This is important because sales in China have declined in the wake of Beijing’s trade retaliation.

Wine Australia, once seen as a major market for cheap products, has now overtaken China to become the top destination for high-quality Australian wine, according to a report from Wine Australia. In the year ended September 30, the value of exports in the country increased by 7% to $ 460 million ($ 341 million), even though shipments decreased by 2% by volume.

Nevertheless, the overall value of Australian wine exports fell by 2%% to $ 2. It has come down to billions of dollars as the industry is booming with global shipping delays.

The huge market loss in China in the context of Beijing’s banned tariffs depends on the outlook, as exports to the mainland fell 77% to $ 274 million. Industries are still lagging behind after the imposition of more than 200% tariffs on Australian wine late last year after deteriorating relations between the countries.

The move has dealt a major blow to the sector, removing demand from the industry’s most valued customers. This raises many questions about the future of premium brands, including Treasury Wine Estates Limited, which previously accounted for about 30% of its total earnings in China.

The report shows that these tariffs are having a huge impact, as the number of exporters of goods to mainland China dropped from 2,241 to 750 12 months ago.

Despite tariffs on mainland China, bumper shipments continue to reach buyers in Hong Kong, where the value of wine exports rose 135% to $ 207 million, according to the report.

Aussie wine exports to Hong Kong have increased after China’s tariff hit

Wine Australia says its exporters are now looking to boost sales in the UK, with market ups and downs through the coronavirus epidemic and Brexit change also helping boost demand for Australian products.

“Over the past 18 months, exports to the UK have increased significantly, solidifying its position as Australia’s number one destination by market volume,” said Rachel Triggs, General Manager of Corporate Affairs and Control at Wine Australia.

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