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Markets for Tropical Fruit Wine Products

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Markets for Tropical Fruit Wine Products Markets for Tropical Fruit Wine Products RIRDC Publication No. 09/033 RIRDCInnovation for rural Australia Markets for Tropical Fruit Wine Products By Judy Noller and Brian Wilson November 2009 RIRDC Publication No 09/033 RIRDC Project No. PRJ-000608 (DAQ-331A) © 2009 Rural Industries Research and Development Corporation All rights reserved. ISBN 1 74151 837 7 ISSN 1440-6845 Markets for Tropical Fruit Wine Products Publication No.09/033 Project No. PRJ-000608 (DAQ-331A) The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances. While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication. The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors. The Commonwealth of Australia does not necessarily endorse the views in this publication. This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the RIRDC Publications Manager on phone 02 6271 4165. Researcher Contact Details Ms Judy Noller Mr Brian Wilson Trade and Business Officer Wine Solutions Consultancy Pty Ltd Department of Primary Industries and Fisheries 60 Greenvale Drive 21 Redden Street GISBORNE VIC 3437 PORTSMITH QLD 4870 Phone: 07 4044 1617 Phone: 03 5428 8808 Fax: 07 4035 5474 Fax: 03 5428 8426 Email: [email protected] Email: [email protected] In submitting this report, the researchers have agreed to RIRDC publishing this material in its edited form. RIRDC Contact Details Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au Electronically published by RIRDC in November 2009 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313 ii Foreword A small fruit wine industry is emerging in major tropical fruit-growing regions of northern Australia, using a wide range of tropical, exotic and Australian native fruits. The industry has potential to emulate Australia’s very large and successful grape wine industry in tropical regions. This report seeks to identify and describe potential markets and marketing strategies to guide producers on market development. As fruit wine is consumed widely in many countries, popular with international visitors to Australia, and readily exportable, the research has focussed on both domestic and international markets. This report finds that that there are small, under-developed Australian markets of domestic and international tourists visiting tropical fruit wine-producing regions and people buying from local wineries, favourable demand trends and identifiable potential segments in the Australian mass market, potential segments in the Japanese market, and minor opportunities in a number of other countries. These markets are highly competitive and increasingly quality and price-conscious, so the tropical fruit wine industry will need strategies to develop and maintain quality standards and to position its products as quality and value for money. RIRDC urges anyone looking to make use of the information within this report to encourage a responsible approach to the marketing and consumption of alcohol. This project was funded from RIRDC Core Funds which are provided by the Australian Government through the New Plant Products R&D Program, and by the Queensland Government and members of the Association of Tropical North Queensland Wineries. This report, an addition to RIRDC’s diverse range of over 1900 research publications, forms part of our New Plant Products R&D program, which aims to facilitate the development of new industries based on plants or plant products that have commercial potential for Australia. Most of RIRDC’s publications are available for viewing, free downloading or purchasing online at www.rirdc.gov.au. Purchases can also be made by phoning 1300 634 313. Peter O’Brien Managing Director Rural Industries Research and Development Corporation iii Acknowledgments Ms Yumi Ozaki, Queensland Government Trade and Investment Office, Japan. Ms Alexandra Rochetau-Hasan, Queensland Government Trade and Investment Office, United Kingdom. Abbreviations FOB: Free on board – the value of the wine when it placed on the international carrier at the port of departure. It includes production and other costs, but not insurance or freight CIF: Cost, insurance and freight VAT: Valued added tax on the value contributed at each stage of the production of a product. EU: European Union WTO: World Trade Organisation – an agreement where countries seek to trade with each other on a most-favoured nation basis Measurements and terms commonly used for wine (these are not necessarily used in this report, but often used in tariff databases and elsewhere) Cl: Centilitre —100th of a litre, or 10ml Hl: Hectolitre – 100 litres v Alc % /v: Percentage alcohol by volume, also expressed as per cent vol w Alc % /w: Percentage alcohol by weight Vpl: Value per litre LPA: Litre of pure alcohol Case: Nine litres of wine, equating to a carton of one dozen 750 ml bottles of wine, weight approximately 15 kg 1 tonne of packaged wine: 66.6 cases or 600 litres. Bottle size: Assume to be 750 ml unless otherwise states Assumptions It was not possible to measure the size of most national fruit wine markets due to the lack of specific and consistent statistics for fruit wine. To enable comparison, the country profiles provide a rough estimate of market size, assuming up to 10 million litres a year for a small market, 10 to 50 million litres for a medium market and 50 million litres and over for a large market. International research relies on international harmonised tariff codes to identify imports and exports (see Appendix D for list). Unfortunately, the relevant Harmonised System (HS) Code HS 2206, groups fruit wine with all other fermented drinks other than wine from grapes only. Some countries have their own domestic code extension for major drinks categories, such as cider, perry, mead and sake but rarely for fruit wine or wine from specific fruits. However, these extended codes vary between countries, and between imports and exports. Therefore, HS 2206 data is likely to include substantial quantities of products other than fruit wine, such as rice wine and flavoured grape wine and, at best, provides an indication of the whole category of fermented drinks from bases other than grapes. iv A few media and industry reports provide estimates of fruit wine consumption and/or production but statistical databases combine fruit wine and drinks such as grape wine, sake or flavoured spirits. Currency conversion The exchange rates for Japanese wine prices obtained during the market visit to Japan in July 2007 were converted at the average daily rate for the week of the visit (A$0.00953 to ¥1). Elsewhere prices have been converted to Australian dollars at the average exchange rate for the relevant year. Guide to references Most references are compiled at the end of the country profile, but references that are common to a number of countries are provided in the general References section at the end of the report. v Contents Foreword............................................................................................................................................... iii Acknowledgments................................................................................................................................. iv Abbreviations ..................................................................................................................................... iv Assumptions....................................................................................................................................... iv Currency conversion............................................................................................................................ v Guide to references.............................................................................................................................. v Contents................................................................................................................................................. vi Tables................................................................................................................................................... viii Figures................................................................................................................................................... ix Executive summary ..............................................................................................................................
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