KEY DRIVERS IN THE AUSTRALIAN WINE INDUSTRY
VINFO TASMANIA 2017
MAYUR KAIRAMKONDA, OCTOBER 2017
© Euromonitor International
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About Euromonitor International
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 14 offices - 1200+ analysts in 100 countries
 Cross-country comparable data and analysis
 5 year forecasts with matching trend analysis
 All retail channels covered
 Subscription services, reports and consulting
MEGATRENDS
GLOBAL TRENDS IN WINE
AUSTRALIAN WINE
KEY TAKEAWAYS
© Euromonitor International
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C
H
E
P
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Connected consumer
Healthy living
Experience more
Premiumisation
Megatrends shaping global alcoholic drinks
MEGATRENDS
© Euromonitor International
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Connectivity is the new normal
Innovate the way you connect to your consumer
Growth in online wine sales
Connected consumer
MEGATRENDS
© Euromonitor International
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Aspire to live longer
Build a brand identity by helping the consumer to achieve their wellbeing goals
Generate a sense of community
Healthy living
MEGATRENDS
© Euromonitor International
8
Holistic approach towards customer experience
Inspire your consumer
Exclusivity and customisation
Experience more
MEGATRENDS
© Euromonitor International
9
Spending more on things that matter the most
Value for money: Premium = Trust
Today’s premium is tomorrow’s commodity
Premiumisation
MEGATRENDS
Source Vincent Brown - Flickr
MEGATRENDS
GLOBAL TRENDS IN WINE
AUSTRALIAN WINE
KEY TAKEAWAYS
© Euromonitor International
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Global snapshot of wine: Strong and relatively stable
GLOBAL TRENDS IN WINE
Wine: Evolution of global markets
2011-2021
Wine: Absolute growth by region
© Euromonitor International
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From grape stories to great stories Ethical, unpretentious, exotic and casual
Peak somm
Three key trends – Becoming the new normal
GLOBAL TRENDS IN WINE
MEGATRENDS
GLOBAL TRENDS IN WINE
AUSTRALIAN WINE
KEY TAKEAWAYS
© Euromonitor International
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Australia: Alcoholic drinks snapshot 2016
AUSTRALIAN WINE
Alcoholic Drinks
2.86 billion litres
AUD 37.2billion
Wine
575 million litres
AUD 9.2 billion
Beer
1.87 billion litres
AUD 18 billion
Spirits
0.04 million litres
AUD 5.7 billion
RTD’s
0.24 million litres
AUD 3.1billion
Cider
0.11 million litres
AUD 1.2 billion
© Euromonitor International
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From 2016-2021, Sparkling Wine will
grow by 1.5 billion AUD
Champagne to record the strongest growth
in value and volume with 22.2% CAGR
value and 16.9% CAGR volume terms
Other Sparkling Wine remains stable in
both value and volume growth
Domestic Sparkling Wine saw the strong
growth of premium products
Champagne will dominate with strongest growth in wine category
AUSTRALIAN WINE
47.6
68.2
57.4
31.8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2021
Sparking Wine – Total Value
Champagne Sparkling
1.6 billion 3.1 billion
© Euromonitor International
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Champagne getting more casual
Moët Hennessy Australia's Mini Moët,
released in September 2016
Drinking less but drinking better has
triggered growth in other sparkling wine
 Off and on trade volume (80/20)
Drinking less but drinking better
AUSTRALIAN WINE
Other Sparkling Pricing Categories
AUD 8.01 to AUD 13.5 28.0
AUD 13.51 to AUD 20 30.0
AUD 20.01 to AUD 40 26.1
Source: https://www.flickr.com/photos/gaelx/1402999241/in/photolist-cZJcWU-38YJN6
© Euromonitor International
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52 53
47 46
1 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2021
Still White Wine – Total Value
Red White Rose
7.2 billion 9.7 billion From 2016-2021, Still Light Grape Wine
will grow by 2.5 billion AUD
Red and White wine dominates in value
and volume terms
But Rosé will record the strongest growth
of 10.8% CAGR
Almost 90% of Rosé is distributed through
off-trade channel
Red and White maintains (80/20) channel
split in volume.
Red and white wine dominates
AUSTRALIAN WINE
© Euromonitor International
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Growing popularity of pale dry varietals
Shifted from Sauvignon Blanc to Rosé, due to its authenticity and
its ability to complement a variety of foods
Moscato in Rosé and Sauvignon Blanc in white leads the pack,
which is driven by female consumers
Its all about Rosé
AUSTRALIAN WINE
Price Red White
AUD 6.01 to AUD 9.5 17.1 19.3
AUD 9.51 to AUD 13.5 24.9 20.8
AUD 13.51 to AUD 20 18.2 17.4
Price Rosé
AUD 6.51 to AUD 10.5 27.5
AUD 10.51 to AUD 16 29.9
AUD 16.01 to AUD 22.5 24.0
Source:
https://www.flickr.com/photos/pb
vmedia/17992008120/in/photolist
-uVLboM-tpTKby
© Euromonitor International
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3735.5
3,387.30
85.00
795.10 877.00
6.7 5.7
10.8
22.2
2.8
0
5
10
15
20
25
0
500
1000
1500
2000
2500
3000
3500
4000
Still Light Red Still Light White Still Light Rosé Champagne Other Sparkling Wine
Wine – Category Breakout – Total Value
2016 AUD Million CAGR %2016-2021
Opportunities for growth
AUSTRALIAN WINE
© Euromonitor International
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Growth of online channel
AUSTRALIAN WINE
Australian Wine Distribution in 2016
MEGATRENDS
GLOBAL TRENDS IN WINE
AUSTRALIAN WINE
KEY TAKEAWAYS
© Euromonitor International
22
Key takeaways
KEY TAKEAWAYS
CHEP
Keep it simple
Look beyond wine
Online sales opportunity
THANK YOU FOR LISTENING
Mayur Kairamkonda
mayur.kairamkonda@euromonitor.com
https://www.linkedin.com/in/mayur-kairamkonda-12461a15

Key Drivers in the Australian Wine Industry

  • 1.
    KEY DRIVERS INTHE AUSTRALIAN WINE INDUSTRY VINFO TASMANIA 2017 MAYUR KAIRAMKONDA, OCTOBER 2017
  • 2.
    © Euromonitor International 2 AboutEuromonitor International EUROMONITOR INTERNATIONAL London Singapore Shanghai Dubai Vilnius Cape Town Santiago Tokyo Sydney Chicago Bangalore London Chicago Singapore Shanghai Dubai Vilnius Cape Town Santiago Tokyo Sydney Bangalore Sao Paulo  Global provider of strategic market intelligence  14 offices - 1200+ analysts in 100 countries  Cross-country comparable data and analysis  5 year forecasts with matching trend analysis  All retail channels covered  Subscription services, reports and consulting
  • 3.
    MEGATRENDS GLOBAL TRENDS INWINE AUSTRALIAN WINE KEY TAKEAWAYS
  • 4.
  • 5.
    © Euromonitor International 5 Connectedconsumer Healthy living Experience more Premiumisation Megatrends shaping global alcoholic drinks MEGATRENDS
  • 6.
    © Euromonitor International 6 Connectivityis the new normal Innovate the way you connect to your consumer Growth in online wine sales Connected consumer MEGATRENDS
  • 7.
    © Euromonitor International 7 Aspireto live longer Build a brand identity by helping the consumer to achieve their wellbeing goals Generate a sense of community Healthy living MEGATRENDS
  • 8.
    © Euromonitor International 8 Holisticapproach towards customer experience Inspire your consumer Exclusivity and customisation Experience more MEGATRENDS
  • 9.
    © Euromonitor International 9 Spendingmore on things that matter the most Value for money: Premium = Trust Today’s premium is tomorrow’s commodity Premiumisation MEGATRENDS Source Vincent Brown - Flickr
  • 10.
    MEGATRENDS GLOBAL TRENDS INWINE AUSTRALIAN WINE KEY TAKEAWAYS
  • 11.
    © Euromonitor International 11 Globalsnapshot of wine: Strong and relatively stable GLOBAL TRENDS IN WINE Wine: Evolution of global markets 2011-2021 Wine: Absolute growth by region
  • 12.
    © Euromonitor International 12 Fromgrape stories to great stories Ethical, unpretentious, exotic and casual Peak somm Three key trends – Becoming the new normal GLOBAL TRENDS IN WINE
  • 13.
    MEGATRENDS GLOBAL TRENDS INWINE AUSTRALIAN WINE KEY TAKEAWAYS
  • 14.
    © Euromonitor International 14 Australia:Alcoholic drinks snapshot 2016 AUSTRALIAN WINE Alcoholic Drinks 2.86 billion litres AUD 37.2billion Wine 575 million litres AUD 9.2 billion Beer 1.87 billion litres AUD 18 billion Spirits 0.04 million litres AUD 5.7 billion RTD’s 0.24 million litres AUD 3.1billion Cider 0.11 million litres AUD 1.2 billion
  • 15.
    © Euromonitor International 15 From2016-2021, Sparkling Wine will grow by 1.5 billion AUD Champagne to record the strongest growth in value and volume with 22.2% CAGR value and 16.9% CAGR volume terms Other Sparkling Wine remains stable in both value and volume growth Domestic Sparkling Wine saw the strong growth of premium products Champagne will dominate with strongest growth in wine category AUSTRALIAN WINE 47.6 68.2 57.4 31.8 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2021 Sparking Wine – Total Value Champagne Sparkling 1.6 billion 3.1 billion
  • 16.
    © Euromonitor International 16 Champagnegetting more casual Moët Hennessy Australia's Mini Moët, released in September 2016 Drinking less but drinking better has triggered growth in other sparkling wine  Off and on trade volume (80/20) Drinking less but drinking better AUSTRALIAN WINE Other Sparkling Pricing Categories AUD 8.01 to AUD 13.5 28.0 AUD 13.51 to AUD 20 30.0 AUD 20.01 to AUD 40 26.1 Source: https://www.flickr.com/photos/gaelx/1402999241/in/photolist-cZJcWU-38YJN6
  • 17.
    © Euromonitor International 17 5253 47 46 1 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2021 Still White Wine – Total Value Red White Rose 7.2 billion 9.7 billion From 2016-2021, Still Light Grape Wine will grow by 2.5 billion AUD Red and White wine dominates in value and volume terms But Rosé will record the strongest growth of 10.8% CAGR Almost 90% of Rosé is distributed through off-trade channel Red and White maintains (80/20) channel split in volume. Red and white wine dominates AUSTRALIAN WINE
  • 18.
    © Euromonitor International 18 Growingpopularity of pale dry varietals Shifted from Sauvignon Blanc to Rosé, due to its authenticity and its ability to complement a variety of foods Moscato in Rosé and Sauvignon Blanc in white leads the pack, which is driven by female consumers Its all about Rosé AUSTRALIAN WINE Price Red White AUD 6.01 to AUD 9.5 17.1 19.3 AUD 9.51 to AUD 13.5 24.9 20.8 AUD 13.51 to AUD 20 18.2 17.4 Price Rosé AUD 6.51 to AUD 10.5 27.5 AUD 10.51 to AUD 16 29.9 AUD 16.01 to AUD 22.5 24.0 Source: https://www.flickr.com/photos/pb vmedia/17992008120/in/photolist -uVLboM-tpTKby
  • 19.
    © Euromonitor International 19 3735.5 3,387.30 85.00 795.10877.00 6.7 5.7 10.8 22.2 2.8 0 5 10 15 20 25 0 500 1000 1500 2000 2500 3000 3500 4000 Still Light Red Still Light White Still Light Rosé Champagne Other Sparkling Wine Wine – Category Breakout – Total Value 2016 AUD Million CAGR %2016-2021 Opportunities for growth AUSTRALIAN WINE
  • 20.
    © Euromonitor International 20 Growthof online channel AUSTRALIAN WINE Australian Wine Distribution in 2016
  • 21.
    MEGATRENDS GLOBAL TRENDS INWINE AUSTRALIAN WINE KEY TAKEAWAYS
  • 22.
    © Euromonitor International 22 Keytakeaways KEY TAKEAWAYS CHEP Keep it simple Look beyond wine Online sales opportunity
  • 23.
    THANK YOU FORLISTENING Mayur Kairamkonda mayur.kairamkonda@euromonitor.com https://www.linkedin.com/in/mayur-kairamkonda-12461a15