Wine exports UK
Wine exports to UK witnessed a decline of 10% in value to $347m and by 9% in volume to 219 million this year. Credit: chuttersnap on Unsplash.

Wine Australia has reported a drop in wine exports to the UK in terms of both value and volume amid the coronavirus (Covid-19) pandemic outbreak.

According to the latest data by the authority, wine exports to the UK witnessed a decline of 10% in value to $347m and by 9% in volume to 219 million up to 31 March this year.

The average value declined by 1% to $1.59 per litre free on board (FOB) at the same period. The report also suggests that the quarterly performance was slightly better than the year ended figures, with value declining by 6% for the quarter ending in March this year.

Globally, Australian wine exports continued to surge in the previous 12 months up to 31 March 2020. Over the last 12 months, the value of exports increased by 3% to $2.87bn driven by a record average value for bottled exports of $7.12 per litre (FOB).

However total export volume dipped by 11% to 728 million litres over the same period because of less wine being available as result of reduced vintages in 2018 and 2019.

Australia’s unpackaged wine exports witnessed an increase by 5% to $1.26 per litre in the average value. This level has not been noted since late 2005, the report said.

However, the authority noted that the full effect of the pandemic is yet to be felt by the industry.

Wine Australia CEO Andreas Clark said: “Sales data from the UK and the US suggests that while cafes and restaurants have closed and sales have been lost, it’s been offset by people buying more wine for at-home consumption.”

“The UK and Australia went through similar surges and then calmed down. It remains to be seen if wine sales through off-licence and online balance out the decline in on-premise sales.”