American retail promotion sees sales of SA wine lift by 25%

The SA Government says that its retail promotion running across American supermarket chain H-E-B's 400 stores has led to a 25 per cent increase in sales of South Australian wine since it launched in January.

With stores throughout Texas and Mexico, H-E-B's in-store promotion is supported with prominent displays of premium South Australian wines and in-store tastings.

H-E-B stores already stock Mollydooker, 3 Rings, Shoofly and Penfolds but SA's Minister for Trade and Investment, Nick Champion, said:

"We want to see more businesses get their products on international shelves. This is another example of how we are looking at new ways to achieve export growth and boost one of the state's largest commodities."

The US is the second-largest destination market for South Australian wine exports, surging by 43 per cent to $184.9 million in 2022 and representing 14 per cent of all the state’s wine exports. Latest ABS data shows about 45 per cent of Australia’s wine exports to the US came from SA.

The campaign is the latest Department for Trade and Investment initiative aimed at boosting the state’s wine exports in new and growing markets, following wine tastings held in the UK, Germany, Netherlands and Canada. 

Wine Australia Regional General Manager Americas, Aaron Ridgway, said, "We are encouraged to see US consumers embracing premium wines from both classic and lesser-known regions within South Australia.
 
"It is critically important that resources are shared and aligned as we develop and maximise the opportunity in the US, the world’s largest and highest-value wine market. The collaboration between Wine Australia, the Department for Trade and Investment and H-E-B serves as a great example."

Canada

The SA Government has also been running the Explore Canada program for new and emerging winemakers this past month.

Twenty SA wineries are participating in the inaugural program that aims to help winemakers secure initial orders and connect with Canadian buyers and retailers. The program comprises briefings and presentations from key buyers and importers on the Canadian market, ways to navigate it and how to identify export opportunities.

Member for Mawson, Leon Bignell, visited Canada last year and learned from Canada's Head of the Liquor Control Board of Ontario, George Soleas, that Australian wine sales had fallen by 15 per cent.
 
Bignell said, "Because the provincial governments of Canada own and control the distribution it is very important that they see our government working alongside our winemakers to get more wine into their markets."

Canada is the fourth-largest destination market for South Australian wine exports, increasing by 17 per cent to $139.9 million to December 2022 and representing 10 per cent of the state’s total wine exports.

Living Roots Winery co-owner Colleen Hardy said, "Exporting can be intimidating, but this program makes it more approachable by providing background information on the market, legal requirements and other key considerations for entering the market. We look forward to continuing with the Explore Canada Program and finding partner agents."