Understanding the Australian Invasion: Inside Insight into Wine Australia and the US Market.
The US market has seen a welcomed succession of exciting Australian labels show up in retail stores across the country. Whether it’s a new Grenache out of McLaren Vale or a classic Shiraz from Barossa, Australian wine is gaining momentum and consumers are expressing their interest in the compelling stories coming from wineries down under.
Why are importers taking a new interest in Australian wine?
BTN interviews Angela Slade, Wine Australia’s Regional Director for North America, on the surging state of Australian wine in the US wine market and asks about the best entry strategy for wineries to look for:
- What would you say is responsible for the recent growth in Australian Wines in the US Market and how did you come to notice the change?
I can break the reasons for our recent growth down into three broad categories — economic recovery, consumer trends, and the Australian wine community in the US.
i. We’ve seen the recent boost come on the backend of the US economic recession, as well as a slightly lower Australian exchange rate. These two factors are uncontrollable, but they played favorably to the needs of Australian wineries in the US Market and gave them a fresh breath of life.
ii. The development of consumer trends we have seen in the last few years is towards premiumisation, craft, and boutique wines. These are not passing trends, we are seeing them become part of the upcoming millennial generation’s psyche as well as that of the overall US consumer psyche. These trends work in the Australian category’s favour because they are in line with Australia’s diverse premium offerings of today.
iii. Lastly, and it has been critical, is the Australian wine community that exists in the US. Their cohesive and enthusiastic voice has given the industry the extra support it was in need of. The importers and distributors who represent Australian wine have been working collaboratively and creatively to deliver consistent messages about premium offerings, the evolution of Australian Shiraz and our regional and historical diversity. Their ongoing storytelling and excellent value offerings across all price points has really bolstered consumer interest in the last few years.
How did we see the recent shift in Australian popularity? It was by reviewing our own data and surveying US importers. By looking at our export figures and comparing them to our IRI sales data, we noticed a decline in volume and value at the entry point in 2011, but there was an interesting anomaly in the data that showed an increase in $15-$20 (retail price) category. We wrote up a survey and asked US importers for some feedback on their demand and sales figures. Almost all of the feedback we were getting was positive. It was kind of like finding a needle in a haystack, but we were able to identify the premium and regional trend and we’ve been developing it ever since.
Read more about Understanding the Australian Invasion
