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The Australia Wine Market Landscape Report August 2016

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The Australia Wine Market Landscape Report August 2016 THE AUSTRALIA WINE MARKET LANDSCAPE REPORT AUGUST 2016 Australia © Wine Intelligence 2016 Landscapes 1 Copyright © Wine Intelligence 2016 . All rights reserved. No part of this publication may be reproduced in any form (including photocopying or storing it in any medium by electronic means) without the permission of the copyright owners. Application for permission should be addressed to Wine Intelligence. The source of all information in this publication is Wine Intelligence unless otherwise stated. Wine Intelligence shall not be liable for any damages (including without limitation, damages for loss of business or loss of profits) arising in contract, tort or otherwise from this publication or any information contained in it, or from any action or decision taken as a result of reading this publication. Please refer to the Wine Intelligence Terms and Conditions for Syndicated Research Reports for details about the licensing of this report, and the use to which it can be put by licensees. Wine Intelligence Ltd: 109 Maltings Place, 169 Tower Bridge Road, London SE1 3LJ Tel: 020 7378 1277. E-mail: [email protected]. Registered in England as a limited company number: 4375306 Australia Landscapes 2 Intro to the Australia Landscapes 2016 Report Deliverables Insights to help your business flourish The Australian Landscapes 2016 report includes: • Report with the latest information regarding the • User-friendly data table with all the measures from Vinitrac Australian wine market, supported by: showing significances, cross tabbed with: • Wine Intelligence Vinitrac • All Australian regular wine drinkers in 2016 • Wine Intelligence market experience • Gender groups • Secondary sources • Age groups • Australian regions • Tracking data vs. 2015 and 2012 Australia Landscapes 3 Click on logo in corner on any slide to return Contents to contents page Click on links to navigate to relevant sections . Introduction p. 6 . Wine involvement and attitude p. 56 . Management summary p. 9 . Wine attitude . Wine involvement . Australian wine market overview p. 18 . Attitudes towards closures . Imported vs. domestic wine market share . Per capita consumption of still light wine . Brand health p. 61 . Brand power . Australian wine consumers p. 23 . Brand awareness . Overview of the Australian wine market . Brand purchase . Demographics of Australian regular wine drinkers . Brand affinity . Wine consumption frequency . Brand recommendation . Beverage repertoire p. 27 . Future Consumers p. 70 . Alcoholic beverage repertoire . Generations overview . Varietal consumption . Future consumption . Country of origin awareness and consumption . Region of origin awareness and purchase . Methodology p. 81 . Region of origin awareness tracking . Region of origin purchase tracking . Wine buying behaviour p. 38 . Channel usage . Retailer usage . Choice cues . Wine consumption in the off-premise and in the on-premise p. 48 . Off-premise consumption frequency by occasion . Off-premise spend by occasion . On-premise consumption frequency by occasion . On-premise spend by occasion . Threats to wine consumption Australia Landscapes 4 Contents . Introduction p. 6 . Wine involvement and attitude p. 56 . Management summary p. 9 . Wine attitude . Wine involvement . Australian wine market overview p. 18 . Attitudes towards closures . Imported vs. domestic wine market share . Per capita consumption of still light wine . Brand health p. 61 . Brand power . Australian wine consumers p. 23 . Brand awareness . Overview of the Australian wine market . Brand purchase . Demographics of Australian regular wine drinkers . Brand affinity . Wine consumption frequency . Brand recommendation . Beverage repertoire p. 27 . Future consumers p. 70 . Alcoholic beverage repertoire . Generations overview . Varietal consumption . Future consumption . Country of origin consumption . Region of origin awareness . Wine drinker profiling p. 81 . Region of origin purchase . Profiling summary . Region of origin conversion . 18-24 . 25-34 . Wine buying behaviour p. 38 . 35-44 . Channel usage . 45-54 . Retailer usage . Choice cues . Methodology p. 87 . Wine consumption in the off-premise and in the on-premise p. 48 . Off-premise consumption frequency by occasion . Off-premise spend by occasion . On-premise consumption frequency by occasion . On-premise spend by occasion . Threats to wine consumption Australia Landscapes 5 Introduction The 10th largest wine country in the world, and ranked as the 12th most attractive in our recently released Compass 2016-17 report, Australia continues to display all the hallmarks of an established wine nation. Wine may be embedded in the culture of the country, however per capita consumption continues to fall (26.08 litres/per head/per annum in 2015 compared to 26.49 in 2014 – according to IWSR data). Yet, when they do choose to enjoy a glass, Australians are opting for a wider selection of wines than ever before. This diversification can be tracked across the spectrum of the most important choice cues. Australian wine drinkers are still indicating that brand awareness and grape varietal are the most important choice cues, however since 2012 we can see that region and country of origin are becoming more of an influence when consumers are buying wine. Continuing on from this, varietals like Sangiovese and Malbec have shown growth, another indicator that more Australians are starting to look further afield than our own backyard. Australians are buying more wine from New Zealand, France and Italy then ever before, but at the expense of Australian wine, which has seen a long-term decline in purchase penetration. Understandably, region of origin awareness is also expanding. Although the Barossa Valley remains the premier region in terms of both awareness and purchase, Champagne and Rioja have increased. It’s no surprise, then, that IWSR data demonstrates that the volume of imported wine (still light and sparkling) into Australia has increased since 2011, whilst their domestic equivalents have fallen. If we needed one category to encapsulate all of the above, we need only look towards sparkling wine. We have witnessed long-term growth across the category, to include Prosecco, rose/pink Champagne and Cava. Champagne remains steady as the fourth favourite alcoholic drink in the Australian beverage repertoire. Our Sparkling Wine in the Australian Market report, due out later this year, is sure to hold some interesting category-specific insights. Australia Landscapes 6 Introduction It’s not all doom and gloom for domestic wines however. They still make up a very dominant 83% of the Australian wine market volumes and the increase in importance and awareness of regionality can be applied in a domestic context. Australia offers an incredibly diverse wine producing landscape, so there is ample opportunity to continue to emphasise the USP of each region. Australians also bring their adventurous spirit to wine; the majority enjoy trying new and different styles on a regular basis, a long- term trend which is showing no sign of fading to a more unadventurous alternative. Without forgetting that consumer spend per bottle, especially for a relaxing drink at the end of the day at home (the most frequent off-premise occasion), is on the increase. To accompany our in-depth look at the Australian wine landscape in 2016, we’ve fast-forwarded through the years in this report and included a series of projections on the future Australian consumer. For a small nation, Australians are some of the most involved in the world in the wine category, with the younger generations looking to spend more per capita than their older counterparts in the next 10 years. Liz Lee Country Manager Australia and New Zealand August 2016 Australia Landscapes 7 Contents . Introduction p. 6 . Wine involvement and attitude p. 56 . Management summary p. 9 . Wine attitude . Wine involvement . Australian wine market overview p. 18 . Attitudes towards closures . Imported vs. domestic wine market share . Per capita consumption of still light wine . Brand health p. 61 . Brand power . Australian wine consumers p. 23 . Brand awareness . Overview of the Australian wine market . Brand purchase . Demographics of Australian regular wine drinkers . Brand affinity . Wine consumption frequency . Brand recommendation . Beverage repertoire p. 27 . Future consumers p. 70 . Alcoholic beverage repertoire . Generations overview . Varietal consumption . Future consumption . Country of origin consumption . Region of origin awareness . Methodology p. 81 . Region of origin purchase . Region of origin conversion . Wine buying behaviour p. 38 . Channel usage . Retailer usage . Choice cues . Wine consumption in the off-premise and in the on-premise p. 48 . Off-premise consumption frequency by occasion . Off-premise spend by occasion . On-premise consumption frequency by occasion . On-premise spend by occasion . Threats to wine consumption Australia Landscapes 8 Management Summary Overview of the Australian wine market Whilst Australia is still a market dominated by domestically produced wine, imported wine (from further afield than New Zealand) is starting to gain Market classification: momentum. More Australian wine drinkers are trading up and paying a little bit more for their wine, however levels of consumption have plateaued. Established WINE MARKET SUMMARY: Wine volume growth rates: Share of imported wine: 10th largest wine market 2.0% Total wine consumption: 51,720 '000 9l cases of still light wine 1.5% 17% long-term trend 2011-15: 0.17%
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