Australia's bulk wine shipments increasing

AUSTRALIA'S wine exports leapt 9 per cent by volume last year as thrifty drinkers overseas took advantage of oversupply problems to snap up bulk wine at fire-sale prices.

Figures from the federal government's Australian Wine and Brandy Corporation showed exports reached 764 million litres, up from 698 million litres in 2008. But in bad news for winemakers, the gains were all at the bottom end of the market, with exports of bulk wine increasing by 119 million litres while higher-value bottled wine shipments declined by 53 million litres.

Bulk wine made up 39 per cent of Australia's exports last year, up from 26 per cent in 2008.

The AWBC said the shift to lower-priced wine was caused by excess supply among Australian winemakers as well as the strength of the dollar, which was undermining the competitiveness of our wines overseas.