European wines travel even better on a strong dollar
Tim Elliott
June 4, 2011

Imported wine sales have grown by 2.2%, or 12.7 million litres, in the March quarter.

Imported wine sales have grown by 2.2%, or 12.7 million litres, in the March quarter.

THEY are coming by the thousand, by boat and plane, from Spain, Italy, France and Germany, flooding the market and putting the locals to shame. They are wines, they are European and, unfortunately for Australian vintners, local drinkers love them.

''It's amazing,'' said Ian Cook, the owner of Five Way Cellars in Paddington. ''Our imported sales have gone nuts, which can't be good for the Australian industry.''

Data from the Bureau of Statistics for the March quarter shows the fastest annual fall in domestic wine sales in more than 20 years, while imported sales grew by 2.2 per cent to 12.7 million litres. In just one decade the sale of imported wine has risen from 3 to 15 per cent of the market, $85.1 million having been spent on imported wines in the March quarter alone. ''One reason is the strong Aussie dollar,'' Mr Cook said.
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''Prices of European wines have dropped 20 per cent in the past two years. But there are also a whole lot of new savvy young importers out there bringing in more interesting wine varieties that we don't even grow here, much cheaper than ever before.''

Take the Italian white Villa Matilde Falerno Falanghina. ''Falanghina is a grape variety from near Naples that I don't think anyone is growing in Australia,'' Mr Cook said.

''It used to sell in the mid-$40s range, and now it's selling for $36 and $33 by the case, which makes Australian wine look expensive. And because of slow sales in America and England, there is more good European wine making its way here.''

Franck Moreau, the sommelier for Merivale Group, says most top-end European wines have become more ''accessible''.

''A chablis from Burgundy that used to be, say, $120 is now $70. Not only that but the quality that is coming from Spain, France and Italy is better than we have seen out here before, and that is growing the market.''

The 30-year ascendancy of Australian wines, here and overseas, has been driven by their lighter profiles and ''drink any time'' quality. ''Australian wines have been fruit forward and full of sunshine,'' said David Burkitt, of the importer Vintage and Vine. ''European wines were traditionally more savoury and structured, with more tannin and acid, because they were designed to go with food.''

But, Mr Burkitt said, the Old World had ''woken up. They have realised that 98 per cent of wine is drunk within 24 hours, and that they have to have wines that are more friendly and that you can enjoy on release.''

Read more: http://www.smh.com.au/executive-style/top-drop/european-wines-travel-even-better-on-a-strong-dollar-20110603-1fl2f.html#ixzz1OGHkF2je