The South Australian Wine Story

Influence Global footprint The South Australian Wine Story 11 SA wine destination export markets (value) SA share of Australian export value in Asian markets Source: Wine Australia Market Insights, SA Exports 2018 Source: Wine Australia Market Insights, SA Bottled Exports 2018 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Singapore Malaysia Hong Kong China Sth Korea Thailand Japan India South Australia has a dominant influence as the pre-eminent origin of Australian wine and wine exports – especially high- value exports. South Australia produces 42% of Australian wine grapes but 78% of Australia’s highest quality grapes. Accordingly, South Australian wine brands are over- represented in the roll call of the most acclaimed Australian wine brands. SouthAustralia has succeeded in establishing a strong presence in export markets, with sales of $1800 million, representing a 62% share of Australian exports. Individual regions that make the largest contribution to South Australian bottled wine export value performance are, in descending order: Barossa / Barossa Valley McLaren Vale Coonawarra Clare Valley Langhorne Creek Adelaide Hills. Asian markets are the primary driver of recent South Australian wine sales growth, stimulated by an expanding Asian middle class, recent Free Trade Agreements, and the clean and green reputation of Australian wine. The disproportionate influence of South Australian wine in Asian markets is demonstrated by their sales performance. In 2018, the state’s wineries accounted for 61% of Australian wine sales to China, 63% to Hong Kong, 47% to South Korea, 67% to Singapore, 63% to Malaysia and 42% to Thailand. Mainland China and Hong Kong combined account for 60% of all South Australian export sales. Sales to these markets increased by 27% to $641 million during 2018. Throughout Asia and the world, South Australian sales outperform those of Australian wine generally, particularly at higher price points. South Australia makes 27% of sales at AU$10/litre (FOB) and above, compared to 11% for Australia overall. Just as importantly, South Australia is heavily involved with increasing wine knowledge and expertise in Asia, particularly in China. Chinese winemakers and wine scientists are regular visitors to local wineries or to research centres such as the Australian Wine Research Institute (AWRI), while the University of Adelaide offers undergraduate and postgraduate courses in viticulture, winemaking and wine business. The University’s wine research and teaching collaborative global network includes: University of California, Davis; Burgundy School of Business, Dijon France; Wine and Spirits Academy KEDGE Business School, Bordeaux France; University of Strasbourg, France; Stellenbosch University, South Africa; University of Talca, Chile; Northwest A&F University, Yangling, China. The University of South Australia adds further strength to Adelaide’s wine expertise through its research and teaching with a particular focus on wine consumer behaviour. The University’s Ehrenberg Bass Institute for Marketing Science has undertaken a suite of world- class wine market research projects in China and the US. Wine industry icon Wolf Blass certainly likes what the Institute is doing. He recently funded a 10-year program of research scholarships to ensure a continued focus on wine marketing and industry innovation. In addition, more than 1000 people in China and Hong Kong have participated in the unique Barossa Wine School classes, which are delivered in English, Cantonese and Mandarin in collaboration with local education partners. Level 3 of the program, leading to qualification as a Barossa Master, is delivered in Barossa as a 5-6 day fully immersive visit, spending time in vineyards, wineries and meeting the Barossa grape growers and winemakers. China 54.4% I3% Other 5.6% Singapore 2.9% New Zealand 8% UK 4.6% Canada 6.I% Hong Kong 5.4% USA