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Australian trade shrinks after Chinese tariffs

  • Secondary market activity for Australian wine has shrunk as a result of Chinese tariffs.
  • Australia remains a leading country on the secondary market in the ‘Rest of the World’ category.
  • The 2016 Penfolds Grange was the most traded Australian wine by value in 2021, while the 2007 vintage led price performance.

The impact of Chinese tariffs

After Australia’s record-breaking trade year in 2020, China’s introduction of tariffs ranging from 180% to 200% on Australian wine imports hit trading activity hard.

The secondary market for Australian wine shrank in 2021 and the number of different wines traded (LWIN11s) declined 32.2% year-on-year.

Meanwhile, Australia’s trade share of the total market by value dipped from 1.6% in 2020 to 1.1% in 2021.

Furthermore, Australia’s leading label, Penfolds Grange, dropped in the Power 100 rankings, from fifth to 45th place this year.

Leading the Rest of the World pack

Despite reduced trade, Australia remains the leading ‘Rest of the World’ (RoW) country on the secondary market.

In 2021, it accounted for 36.2% of RoW’s trade by value versus Spain’s 26.1%, Germany’s 16.5% and the UK’s 7.8%.

However, as more new countries enter the secondary market, Australia will face even stronger competition within the RoW category.

Penfolds Grange 2016 leads Australian wine trade in 2021

The most traded Australian wine by value in 2021 was Penfolds Grange 2016, which has a current Market Price of £4,140 per 12×75.

The 2007 vintage was the best price performer from the brand, up 17.1%.

Penfolds Grange 2016 trades on Liv-ex

And while Penfolds led trade, Torbreck, Clarendon Hills and Henschke (driven by demand for Hill of Grace) all rose in the 2021 Power 100 rankings thanks to increased activity.

Last November it was noted how Hill of Grace’s trade activity had picked up in the second half of the year to make it the country’s second most-traded label

Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 560+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £90m of bids and offers across 16,000 wines. Independent data, direct from the market.

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