Australia on the Global Stage

Global Market Trends and Austral ian Wine

Mike VesethThe Wine Economist

WineEconomis t . com

All the World’s a Stage

And We Are All Players

There Is A Tide ….

There is a tide in the affairs of men,Which, taken at the flood, leads on to fortune …

On such a full sea are we now afloat,And we must take the current when it serves / Or lose our ventures.

O Brave New World!

The Age of Wine Extremes

The Race to the TopChina and the BRICSExchange Rate Wild

Card

Key Global Wine Trends

U.S. Race to the Top

Largest Categories1. USD 3-5.992. USD 9-11.993. USD 6-8.994. USD 12-14.99

Overall market = +5.4%

Leading Categories1. USD 9-11.99 (+12.8%)2. USD 12-14.99 (+9.4%)3. USD 20+ (8.0%)4. USD 15-19.99 (7.2%)

Lagging Categories USD 3-5.99 (3.5%) USD 6-8.99 (-2.9%)

Source: Nielsen

Britain’s Rising Tide

UK Market Trends

Rising average prices

£2 duty tax impact

Hot Spots: £5-6 & £ 8-10

Cold Zone: £ <5

China and the BRICS

China Market Boom

44% growth red wine 2010-2012

105% growth red wine RMB 50-90

China could be Australia’s #1 Export Market by 2018+

BRIC market potential

Exchange Rate Tempest

The Wild CardAustralia’s Rollercoaster A Perfectly Good Storm?Moving to Higher Ground

Australia on the Global Stage

Striking a BalanceThink Local, Sell GlobalCultivating Sweet SpotsPerception and Reality

Faces & PlacesWine & Food

Not Exactly Shakespeare …

Globalization’s CurseMarketing MiraclesTerroirists’ Revenge

Australia’s Wine Wars

All’s Well That Ends Well?

Rising TideGlobal Competition

Economic Wild CardsAustralia’s Advantages

Happy Ending?

Australia on the Global Stage

Mike VesethThe Wine Economist

Spec ia l thanks to Savour Aus t ra l i a , Pe te r Ba i l ey and Kym

Anderson

Apo log ies to Wi l l i am Shakespea re