Australian wine

The Australian wine industry is the world's fifth largest exporter of wine with approximately 780 million litres a year to the international export market with only about 40% of production consumed domestically.[1] The wine industry is a significant contributor to the Australian economy through production, employment, export and tourism.[2][3][4][5][6][7][8]

There is a $2.8 billion domestic market for Australian wines, with Australians consuming over 530 million litres annually with a per capita consumption of about 30 litres – 50% white table wine, 35% red table wine.[9] Norfolk Islanders are the second biggest per capita wine consumers in the world with 54 litres.[10] Only 16.6% of wine sold domestically is imported.[1]

Wine is produced in every state, with more than 60 designated wine regions totalling approximately 160,000 hectares; however Australia's wine regions are mainly in the southern, cooler parts of the country, with vineyards located in South Australia, New South Wales, Victoria, Western Australia, Tasmania and Queensland. The wine regions in each of these states produce different wine varieties and styles that take advantage of the particular Terroir such as: climatic differences, topography and soil types. The major varieties are predominantly Shiraz, Cabernet Sauvignon, Chardonnay, Merlot, Semillon, Pinot noir, Riesling, and Sauvignon blanc . Wines are often labelled with the name of their grape variety, which must constitute at least 85 percent of the wine.


Vine cuttings from the Cape of Good Hope were brought to the penal colony of New South Wales by Governor Phillip on the First Fleet (1788).[11] An attempt at wine making from these first vines failed, but with perseverance, other settlers managed to successfully cultivate vines for winemaking, and Australian made wine was available for sale domestically by the 1820s.[12] In 1822 Gregory Blaxland became the first person to export Australian wine, and was the first winemaker to win an overseas award.[13] In 1830 vineyards were established in the Hunter Valley.[11] In 1833 James Busby returned from France and Spain with a serious selection of grape varieties including most classic French grapes and a good selection of grapes for fortified wine production.[11] Wine from the Adelaide Hills was sent to Queen Victoria in 1844, but there is no evidence that she placed an order as a result. The production and quality of Australian wine was much improved by the arrival of free settlers from various parts of Europe, who used their skills and knowledge to establish some of Australia's premier wine regions. For example, emigrants from Prussia in the mid-1850s were important in establishing South Australia's Barossa Valley as a winemaking region. In smaller scale, winemakers from Switzerland also helped in establishing Geelong wine region in Victoria in 1842.

Early Australian winemakers faced many difficulties, particularly due to the unfamiliar Australian climate. But because it is also warm, dry, and Mediterranean overall, making Australia ideal for wine production, they eventually achieved considerable success. "At the 1873 Vienna Exhibition the French judges, tasting blind, praised some wines from Victoria, but withdrew in protest when the provenance of the wine was revealed, on the grounds that wines of that quality must clearly be French."[14] Australian wines continued to win high honours in French competitions. A Victorian Syrah (also called Shiraz) competing in the 1878 Paris Exhibition was likened to Château Margaux and "its taste completed its trinity of perfection."[14] One Australian wine won a gold medal "first class" at the 1882 Bordeaux International Exhibition and another won a gold medal "against the world" at the 1889 Paris International Exhibition.[14] That was all before the destructive effects on the industry of the phylloxera epidemic.

Australia has rapidly become a world leader in both the quantity and quality of wines it produces. For example, Australian wine exports to the US rose from 578,000 cases in 1990 to 20,000,000 cases in 2004 and in 2000 it exported more wine than France to the UK for the first time in history.

The industry has at times suffered from its own productivity. In the late 1980s, governments sponsored growers to pull out their vines to overcome a glut of winegrapes. Low grape prices in 2005 and 2006 have led to calls for another sponsored vine pull.[15] Cleanskin wines were introduced into Australia during the 1960s as a means to combat oversupply and poor sales.

In recent years organic and biodynamic wines have been increasing in popularity, following a worldwide trend. In 2004 Australia hosted the First International Biodynamic Wine Forum in Beechworth, Victoria which brought together biodynamic wine producers from around the globe. Despite the overproduction of grapes many organic and biodynamic growers have enjoyed continuing demand thanks to the premium prices winemakers can charge for their organic and biodynamic products, particularly in the European market.

Grape varieties

Major grape varieties are Shiraz, Cabernet Sauvignon,[16] Merlot, Chardonnay,[16] Sauvignon blanc, Sémillon, and Riesling. The country has no native grapes, and Vitis vinifera varieties were introduced from Europe and South Africa in the late 18th and early 19th centuries. Some varieties have been bred by Australian viticulturists, for example Cienna and Tarrango.

Although Syrah was originally called Shiraz in Australia and Syrah elsewhere, its dramatic commercial success has led many Syrah producers around the world to label their wine "Shiraz".

About 130 different grape varieties are used by commercial winemakers in Australia. Over recent years many winemakers have begun exploring so called "alternative varieties" other than those listed above. Many varieties from France, Italy and Spain for example Petit Verdot, Pinot grigio, Pinot noir, Sangiovese, Tempranillo and Viognier are becoming more common. Wines from many other varieties are being produced.

Australian winemaking results have been impressive and it has established benchmarks for a number of varietals, such as Chardonnay and Shiraz. Moreover, Australians have innovated in canopy management and other viticultural and in wine-making techniques, and they have a general attitude toward their work that sets them apart from producers in Europe. Australian wine-makers travel the wine world as highly skilled seasonal workers, relocating to the northern hemisphere during the off-season at home. They are an important resource in the globalisation of wine and wine critic Matt Kramer notes that "the most powerful influence in wine today" comes from Australia.

Red grapes planted
Grape Area Ha (04)[17] Area Ha (05)[17] Area Ha (06)[18] Area Ha (07)[17] Area Ha (08)[17]
Shiraz 39,182 40,508 41,115 43,417 43,977
Cabernet Sauvignon 29,313 28,621 28,103 27,909 27,553
Merlot 10,804 10,816 10,593 10,790 10,764
Pinot noir 4,424 4,231 4,254 4,393 4,490
Grenache 2,292 2,097 2,025 2,011 2,011
Mourvedre 1,040 963 875 794 785
Other Red 11,235 10,797 7,002 11,309 10,902
White grapes planted
Grape Area Ha (04)[17] Area Ha (05)[17] Area Ha (06)[18] Area Ha (07)[17] Area Ha (08)[17]
Chardonnay 28,008 30,507 31,219 32,151 31,564
Sémillon 6,278 6,282 6,236 6,752 6,716
Sauvignon blanc 3,425 4,152 4,661 5,545 6,404
Riesling 4,255 4,326 4,400 4,432 4,400
Other White 23,925 23,365 17,683 24,303 23,109

GSM blends

GSM is a name commonly used for a red wine consisting of a blend of Grenache, Shiraz (Syrah), and Mourvèdre.[19] Blends where Shiraz is the main component are sometimes referred to instead as SGM.[20]

This blend originated from those used in some Southern Rhône wines, including Châteauneuf-du-Pape, though it is also found in South Australia, California (particularly Paso Robles, originating with Tablas Creek Vineyard), and Washington (Columbia Valley); smaller production exists in Argentina and South Africa. A very similar blend is traditional to Priorat (in Catalonia, Spain), still based on Granacha (Grenache), but adding Mazuelo (Carignan), Syrah, and Merlot (same GS, different M's).[21]

Grenache is the lightest of the three grapes, producing a pale red juice with soft berry scents and a bit of spiciness. As a blending component, it contributes alcohol, warmth and fruitiness without added tannins. Shiraz can contribute full-bodied, fleshy flavours of black fruits and pepper. It adds color, backbone and tannins and provides the sense of balance such blends require. Mourvèdre contributes elegance, structure and acidity to the blend, producing flavours of sweet plums, roasted game and hints of tobacco.[22]


Australia's most famous wine is Penfolds Grange. The great 1955 vintage was submitted to competitions beginning in 1962 and over the years has won more than 50 gold medals. The vintage of 1971 won first prize in Syrah/Shiraz at the Wine Olympics in Paris. The 1990 vintage was named 'Red Wine of the Year' by the Wine Spectator magazine in 1995, which later rated the 1998 vintage 99 points out of a possible 100. Wine critic Hugh Johnson has called Grange the only First Growth of the Southern Hemisphere. The influential wine critic Robert Parker, who is well known for his love of Bordeaux wines, has written that Grange "has replaced Bordeaux's Pétrus as the world's most exotic and concentrated wine".[23] Other red wines to garner international attention include Henschke Hill of Grace,[24][25][26] Clarendon Hills Astralis,[24][25][26] D'Arenberg Dead Arm,[24][25][26] Torbreck Run Rig[24][25][26] and other high-end Penfolds wines such as St Henri shiraz.[24][25][26]

Australia has almost 2000 wine producers, most of whom are small winery operations. The market is dominated by a small number of major wine companies. The largest wineries are the Casella winery in Yenda, NSW (YellowTail wines) and the Berri Estates winery in Glossop, SA. The ownership of wineries varies but their location has largely been the same since the introduction of stainless steel tanks in the 1990s, there was a major change in the wine industry in the 1980s when local winegrower cooperatives ceased operations or were privatised. Most wineries slavishly follow American trends and fashions regardless of whether they are suitable for local production or markets citation needed. The majority of grapes are grown in the arid Murray-Darling basin region.

Major wine regions

The information included on wine labels is strictly regulated. One aspect of this is that the label must not make any false or misleading statements about the source of the grapes. Many names (called geographic indications) are protected. These are divided into "South Eastern Australia", the state names, zones (shown in the map), regions, and subregions.[27] The largest volume of wine is produced from grapes grown in the warm climate Murray-Darling Basin zones of Lower Murray, North Western Victoria and Big Rivers. In general, the higher-value premium wines are made from smaller and cooler-climate regions.

The South Australian wine industry is responsible for most of the production of wine in Australia.[28] In recent years, the Tasmanian wine industry has emerged as a producer of high quality wines. In particular, the Tamar Valley has developed a reputation for its Chardonnay and Pinot noir, which are well suited to the cooler Tasmanian climate. Queensland is also developing a wine industry with over 100 vineyards registered in the state. Some notable wines are produced in the high-altitude Granite Belt region in the state's extreme south, production is centred on the towns of Stanthorpe and Ballandean.

Some well-known wine-producing regions include:

South Australia wine regions
Victoria wine regions
New South Wales wine regions
Western Australia wine regions[29]

Greater Perth:

  • Perth Hills
  • Peel
  • Swan Valley

South Western Australia:

Tasmania wine regions[30]
  • Tamar Valley
  • Derwent Valley
  • Huon Valley / Channel
  • Coal River
  • Pipers River
  • East Coast
  • North West
Queensland wine

Export markets

The monthly value of Australian alcoholic beverage exports since 1988 (A$millions)
The quarterly value of wine imports since 2000 (A$thousands)

The Australian Wine export market was worth 2.8 billion Australian dollars (A$) a year in June 2007, having grown at 9%pa.[31] Of this about A$2 billion is accounted for by North America and the UK, and in this key latter market Australia is now the largest supplier of still wines. 2007 statistics for the North American market show that Australian wine accounted for a 17% share of the total value of US imported wine, behind France with 31% and Italy with 28%.[32]

New marketing strategies developed for the key UK market encouraged customers to explore premium Australian brands, while maintaining sales of the lower-margin high-volume brands, following research that indicated a celebratory dinner was more likely to be accompanied by an inferior French wine than a premium Australian wine.[33] This is partly due to exchange rate fluctuations, making Australian wines appear much cheaper than French wines in the UK and hence perceived as being of poorer quality. While this situation may be somewhat mitigated by the continued rise in the Australian dollar during 2010, the stronger currency threatens to weaken Australian exports to the crucial US market.

Australian wine accounts for a very large imported wine market share in South Asian countries and is the second largest imported wine in India with a market share of 16%.[34] Australia is China's largest supplier of imported wine, a standing achieved in part by free-trade agreements established between the two countries.[35]

Canada is the fourth largest export market for Australian wines with the major exporting provinces being British Columbia, Ontario and Quebec. With the restrictions on sale of Australian wine being removed in British Columbia, Australian wine will be on more shelves in the province with lower tariffs.[36]

Government spending

Australian wine research and production is supported by the government through partnerships with the publicly funded CSIRO and Wine Australia worth $18 million.[37][38]. In an average year, alcohol production in Australia is estimated to produce between $3.3 and $5.5 billion in taxable income but cost $15 to $55 billion a year due to loss of life (around 6000 deaths per year), injury, disability, domestic violence and other causes.[39][40]

See also



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  2. International Organization of Wine and Vine (24 June 2002). "Situation of the world viticultural sector in 2006". Archived from the original on 18 August 2010. Retrieved 6 September 2010.
  3. "Australian Wine Industry Statistics". Retrieved 22 October 2010.
  4. Ed, McCarthy; Ewing-Mulligan, Mary (2006). Wine For Dummies. For Dummies. ISBN 0-470-04579-5.
  5. Stevenson, Tom (2005), The Sotheby's Wine Encyclopedia (4th ed.), Dorling Kindersley, ISBN 0-7566-1324-8
  6. "Wine Australia". Archived from the original on 23 October 2010. Retrieved 22 October 2010.
  7. Johnson, Hugh; Robinson, Jancis (2007). The World Atlas of Wine (6th ed.). Mitchell Beazley. ISBN 978-1-84533-414-7.
  8. Clarke, Oz (2002). Oz Clarke's New Wine Atlas: Wines and Wine Regions of the World (6th ed.). Harcourt. ISBN 978-0151009138.
  9. "4307.0.55.001 – Apparent Consumption of Alcohol, Australia, 2010–11". Australian Bureau of Statistics. 3 May 2012. Retrieved 20 May 2012.
  10. "Per Capita Wine Consumption by Country – Ranked by Per Capita Consumption 2007–2010" (PDF). Table 7.1. The Wine Institute – Trade Data And Analysis. Retrieved 22 May 2012.
  11. Clark, Oz (2004). Australian Wine Companion. Time Warner Book Group UK. p. s.12. ISBN 0-316-72874-8.
  12. Hartley, Clive, The Australian Wine Guide, Hospitality Books, NSW 2002
  13. Walsh, Gerald (1979). "The Wine Industry of Australia 1788 1979". Wine Talk. [A.N.U. Canberra]. Archived from the original on 28 August 2006. Retrieved 8 September 2006.
  14. Phillips, Roderick (2000). A short history of wine. London: Allen Lane. p. 265. ISBN 0-7139-9432-0.
  15. Haxton, Nance (5 June 2006). "Grape glut: call for subsidised vine pull". PM. Australian Broadcasting Corporation. Retrieved 27 August 2006.
  16. Walton, Stuart (2005). Cook's Encyclopedia of Wine. Anness Publishing Limited 2002, 2005. pp. s.232, 233. ISBN 0-7607-4220-0.
  17. Halliday, James. Australian Wine Companion (2010 ed.). ISBN 978-1-74066-754-8.
  18. Halliday, James (2008). Australian Wine Companion. Hardie Grant Books. p. 45. ISBN 978-1-74066-515-5.
  19. J. Robinson (ed) "The Oxford Companion to Wine" Third Edition pg 297–298, 333–334 Oxford University Press 2006 ISBN 0-19-860990-6
  20. Wine Enthusiast, G-S-M
  21. Wine Folly, Time to Try ‘GSM’ The Côtes du Rhône Blend, Madeline Puckette, December 4, 2013
  22. Robinson, Jancis Vines, Grapes & Wines Mitchell Beazley 1986 ISBN 1-85732-999-6
  23. The Economist (16 December 1999 ). The globe in a glass
  24. "news - Langton's Fine Wines". Retrieved 5 October 2018.
  25. "Langton's Classification of Australian Wine IV - Articles". Archived from the original on 4 July 2014. Retrieved 5 October 2018.
  26. "Langton's Australian Wine Classification IV - Appellation Australia". Retrieved 5 October 2018.
  27. "Register of Protected Names (includes textual descriptions of Australia's GIs)". Australian Wine and Brandy Corporation. 2003. Archived from the original on 19 August 2006. Retrieved 5 September 2006.
  28. "South Australia". Wine Australia. Archived from the original on 9 April 2011. Retrieved 24 June 2011.
  29. "Western Australia's Wine Regions". Wine Australia. Archived from the original on 13 July 2014. Retrieved 25 November 2010.
  30. "Wine Trails - Wine Tasmania - Welcome to the world of Tasmanian wine". Retrieved 5 October 2018.
  31. The Australian Wine and Brandy Corporation Wine Export Approval Report Excerpts Archived 21 April 2012 at the Wayback Machine
  32. U.S. Department of Commerce "U.S. Wine Industry – 2008" (PDF). Archived from the original (PDF) on 3 March 2016. Retrieved 11 December 2008. (37.8 KB)
  33. Winemakers' Federation of Australia Strategy (May 2007), "Wine Australia: Directions to 2025" (PDF). Archived from the original (PDF) on 29 August 2007. (355 KB)
  34. "Wine Industry India".
  35. Worobiec, MaryAnn (March 2018). "Chinese Wine Titan Invests in Australia". Wine Spectator: 16.
  36. "Here's cheers to Aussie winemakers after trade win against Canada".
  37. Newman, Saul J. (23 March 2019). "End government support for pro-alcohol research". The Lancet. 393 (10177): 1200. doi:10.1016/S0140-6736(18)32412-7. ISSN 0140-6736. PMID 30910297.
  38. CSIRO. "Wine Australia and CSIRO sign $37 million investment agreement". Retrieved 23 March 2019.
  39. Manning, Matthew; Smith, Christine; Mazerolle, Paul (April 2013). "The societal costs of alcohol misuse in Australia". Trends and Issues in Crime and Criminal Justice (454): 1.
  40. Collins, David J.; Lapsley, Helen M. (2008). "The costs of tobacco, alcohol and illicit drug abuse to Australian society in 2004/05" (PDF). Australian Government: Department of Health. Retrieved 23 March 2019.


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  • Simon, André Louis (1966). The Wines Vineyards and Vignerons of Australia. London: Paul Hamlyn. OCLC 52512515.
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  • Zraly, Kevin. Windows of the World Complete Wine Course. NY: Sterling, 2005.
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