​Beverage News from India & the World

​Australian wine exports increased in value by 17 per cent to $2.2 billion in 2023–24, the highest level since the 12 months ended September 2021, and volume remained relatively steady at 619 million litres according to Wine Australia’s Export Report released today.
The growth in value was due to a surge in exports to mainland China in the last three months of the financial year, as Australian wine re-stocked supply pipelines following the removal of the duties on Australian bottled wine in late March 2024.
Wine Australia Manager, Market Insights, Peter Bailey said that the rise in exports to mainland China is still a small fraction of the historical peaks achieved to the market.
“The surge in exports to mainland China towards the end of the financial year saw volume rise from 1 million litres to 33 million litres and value grow by $392 million to $400 million compared to last financial year,” Mr Bailey said.
“While the figures are very positive, they represent the re–stocking of Australian wine in the pipeline of a major market after a long absence and do not necessarily equate to retail sales. It will take some time before there is a clearer picture of how Chinese consumers are responding to the increased availability of Australian wine in-market.
“Consumption of both domestic and imported wines in mainland China is less than a third of what it was six years ago and thus it is very unlikely that Australian wine exports will return to those previous peaks in the short to medium term.”

There were 574 companies exporting to mainland China in 2023–24, up from 115 in 2022–23. Prior to the imposition of duties, there were more than 2,000 companies exporting to mainland China. In 2023–24, the top ten exporters by value to the market accounted for three-quarters of the total value and 39 per cent of the volume of exports.
Exports of wine priced at $20 or more per litre FOB, which roughly translates to 300 RMB per bottle retail, were the main driver of the value growth to mainland China, accounting for 84 per cent of the growth.
“The growth in value has seen mainland China return to the top export market by value,” Mr Bailey said. “However, the volume of exports at 33 million litres, is relatively small, equating to less than five per cent of Australia’s winegrape harvest in 2024 and so is unlikely to make a significant impact on the current oversupply of red winegrapes, particularly in the big volume-producing warm inland regions.”
Exports to the rest of the world (excluding mainland China) declined by 4 per cent ($68 million) to $1.8 billion and volume decreased by 5 per cent (33 million litres) to 587 million litres. This is the lowest volume exported to the rest of the world in a financial year since 2003–04. The decline in volume was most significant in unpackaged exports priced under $1.50 per litre to the United States (US) and Canada (down a combined 20 million litres).
“Global trading conditions remain very challenging with wine consumption continuing to fall in many markets around the world due to moderation trends and cost of living pressures. There are also enduring problems in shipping, with a shortage of ships globally and freight and charter rates on the rise,” Mr Bailey said.
Australia is not the only country negatively impacted by these factors. Wine exports have also declined from other major wine producing countries. For example, in the 12 months ended April 2024, the volume of wine exported from Spain fell by 2 per cent, France by 7 per cent, Chile by 7 per cent, South Africa by 12 per cent, Germany by 5 per cent and New Zealand by 14 per cent.
Among varieties exported from Australia, still red wine was the main beneficiary of the growth in exports to mainland China, with total volume of red wine up 3 per cent to 330 million litres and value up 27 per cent to $1.5 billion compared to 2022–23. Cabernet Sauvignon grew in value by 41 per cent to $469 million and volume by 12 per cent to 70 million litres, with the US also contributing to the increase in exports of this variety.
For white wine, Chardonnay remained the number one variety and while volumes declined by 6 per cent to 158 million litres, value was up marginally to $307 million. The top performer for still white wine was Pinot Gris/Grigio, up 15 per cent in volume to 51 million litres and 16 per cent in value to $101 million, a record financial year result for the variety. The US was the main driver of the growth in Pinot Gris/Grigio exports.
The top five destinations by value were:

• Mainland China (up $392 million to $400 million)
• US (down $2 million to $357 million)
• UK (down $11 million to $353 million)
• Hong Kong (up $55 million to $275 million), and
• Canada (down $17 million to $146 million).

The top five destinations by volume were:

• UK (down 3 million litres to 217 million litres)
• US (down 11 million litres to 124 million litres)
• Canada (down 8 million litres to 68 million litres)
• Mainland China (up 31 million litres to 33 million litres), and
• New Zealand (down 3 million litres to 28 million litres).

(Excerpt from a release)

24 Jul 2024, London: Mexican beer brand Corona Extra (brand value up 40% to USD10.4 billion) has reclaimed the title of the world’s most valuable beer brand, according to a new report by Brand Finance, the world’s leading brand valuation consultancy. Heineken (brand value up 18% to USD9 billion) and Budweiser (brand value up 11% to USD7.4 billion) claim second and third spot. 
Following a 3.9-point increase in its Brand Strength Index (BSI) score to 85.9 out of 100, Corona has also recorded a noteworthy uptick in brand strength, securing the position as the third strongest beer brand globally. According to research conducted by Brand Finance, consideration, familiarity, overall reputation, and usage metrics have shown a global uptick year-on-year. 
Corona's strategic initiatives have bolstered its brand recognition and reputation beyond its consumer appeal. Earlier this year, the announcement of Corona Cero as the official sponsor of the Paris 2024 Olympics marked a historic moment, as it became the first beer brand to sponsor the event. 
Corona Extra is also the world’s fastest growing beer brand, followed by Spain’s Estrella Damm (brand value up 37% to USD1.4 billion) and Singapore’s Tiger (brand value up 30% to USD1.5 billion).Henry Farr, Director, Brand Finance, commented:  “Corona has once again reclaimed the title of the world’s most valuable beer brand, a position it previously held for four consecutive years between 2019-2022. This reaffirms the brand's leadership and mirrors evolving consumer preferences for premium and quality offerings. It also offers insights into the broader landscape of the beer industry, where brands committed to quality and innovation are redefining market standards.”  
China’s Tsingtao (brand value up 21% to USD 2.6 billion) is the world's strongest beer brand, with a BSI score of 87.0 out of 100. Tsingtao maintains a robust presence at home and abroad, with its products now available in over 100 countries worldwide. Through strategic partnerships with distribution channels, Tsingtao continues to fortify its position in key markets, ensuring its widespread accessibility and market growth. Recently, the brand unveiled a new non-alcoholic alternative, showcasing its dedication to adapting to changing consumer preferences. 
Tsingtao is not alone in its pursuit of international markets. For years, Asian beer brands have been expanding into Western territories. Notably, Japan's Asahi Group Holdings and Kirin (brand value down 1% to USD 3.1 billion), have made significant inroads into Western markets through strategic acquisitions and partnerships, demonstrating a longstanding trend of globalisation in the beer industry.
(excerpt from a release)

24 Jul 2024, London – Elite baijiu brand Moutai (brand value up 1% to USD50.1 billion) extends its reign as the world's most valuable spirits brand for the ninth consecutive year, according to a new report by Brand Finance, the world’s leading brand valuation consultancy. Wuliangye (brand value down 15% to USD25.9 billion) and Luzhou Laojiao (brand value up 6% to USD8.2 billion) sit in second and third.   
Wuliangye is now the world's strongest spirits brand, with a Brand Strength Index (BSI) score of 90.7 of 100, earning an impressive AAA+ rating. Moutai, with a BSI of 89.9 of 100, also scores the top tier AAA+ brand strength rating.  
American bourbon whiskey brand, Jim Beam (brand value up 83% to USD539 million) is the world’s fastest growing spirits brand. The brand’s massive surge in brand value has seen it jump 24 spots to 42nd. Germany’s Jägermeister (brand value up 38% to USD914 million) and Italy’s Martini (brand value up 23% to USD586 million) have also recorded solid brand value growth.
Henry Farr, Director, Brand Finance, commented: “The strategic manoeuvres of Moutai, Wuliangye, and Luzhou Laojiao exemplify why they lead the global spirits industry. Whether it’s Moutai’s younger audience-targeted campaigns, Wuliangye’s e-commerce advancements, or Luzhou Laojiao’s prestigious sponsorships, these brands are not just maintaining their positions —they are revolutionising the market."
Brand Finance also utilises its Global Brand Equity Monitor (GBEM) research to compile a Sustainability Perceptions Index. The study determines the role of sustainability in driving brand consideration across sectors and offers insight into which brands global consumers believe to be most committed to sustainability.
For individual brands, the Index displays the proportion of brand value attributable to sustainability perceptions. This Sustainability Perceptions Value is the financial value contingent on a brand’s reputation for acting sustainably. From here, Brand Finance’s perceptual research is analysed alongside CSRHub’s environmental, social and governance performance data to determine a brand’s ‘gap value’. This is the value at risk or to be gained, based on the difference between sustainability perceptions and actual performance.
The 2024 Sustainability Perceptions Index finds that in the spirits sector, Moutai leads with the highest Sustainability Perceptions Value of USD5.9 billion.
(excerpt from a release)