‘Important to strike while the iron was hot.’ SA Minister reflects on $1.85m China package

Last week, South Australia’s State Government hosted a number of prominent Chinese wine buyers as part of its $1.85 million China Re-Engagement Support Package.

During the visit, the Chinese buyers connected with representatives of more than 70 wineries from eight different wine regions, offering the chance for some to “re-establish relationships” with the delegation and for others to showcase their wines to potential buyers.

Joe Szakacs, South Australia’s Trade and Investment Minister, believes the Support Package has directly contributed to South Australia’s strong market rebound following the lifting of tariffs on Australian wine exports into China on 29 March.

“Anticipating the lifting of tariffs, it was important to strike while the iron was hot, and that’s why we invested heavily into our reengagement package, supporting our exporters to get back into market as soon as possible,” he said.

“From a total cessation of wine exports to China, as a result of effort and dedication from wine producers and government alike, the return has been very pleasing.”

Additionally, Szakacs says last week's China South Australian Wine familiarisation tour - which was funded as part of the Support Package’s $600,000 Two-way market activation and immersion component - forms “a critical part of our wine export reengagement strategy.

“There’s no equivalent to being on the ground, speaking to winemakers and experiencing the essence of our unique landscape,” he continued.

"Armed with this experience, the buyers will leave our shores equipped with business connections and a tangible understanding of premium South Australian wine.”

In the twelve months to October, South Australian exporters sold $558 million of wine into China, more than 99% of which came from sales occurring in the seven months after tariffs were lifted.

Over the same period, South Australian wine contributed to two-thirds of the nation’s $2.5 billion total wine exports, reflecting the importance of strong state-specific policy for the region.

“What is encouraging from the latest import figures into the market is that Australia is taking market share,” Taylors’ Managing Director Mitchell Taylor told Drinks Trade.

“It's already at number two, just behind France, but we've even got a higher value per litre, so that's very encouraging. [Also], we're taking market share off the very cheap Chilean wines, which is good, because I don't think there is a great appetite for those.”

Included in the China Re-Engagement Support Package are five strategic pillars: the $600,000 Two-way market activation and immersion; $500,000 Promotional marketing and communication campaigns; $400,000 Wine export advisory; $250,000 Technical cooperation; and $100,000 Exporter capability building.

According to Matthew Deller, CEO of Wirra Wirra, the Re-Engagement Support Package “collaboration between industry and government has been instrumental in ensuring we can seize this opportunity and continue building sustainable growth across global markets.

“For Wirra Wirra, it’s an opportunity to re-establish relationships and introduce McLaren Vale’s premium wines to a dynamic and growing audience,” he added.

The China Re-Engagement Support Package was one of several State Government wine export programs following the lifting of tariffs on imports into China. One of the reasons these programs have proved so important is due to the notable changes to the consumption habits and the export landscape of China.

“It's changed quite a bit, the channels are very dynamic,” Mitchell Taylor told Drinks Trade.

“There is a large oversupply of ‘not authentically branded’ wine, and there's areas of clean skins and wines you've never even heard of in Australia. I don't think some of those wines will have long term success in the market… The premium is really working well, but they are a little cautious compared to what they were three years ago.”

In a separate interview, Duxton Vineyards’ General Manager Wayne Ellis told Drinks Trade that he sees opportunity for alternative packaging formats in China.

“Bagnum and can inside of China seems to be something that's new and there's definitely interest, and we're hoping to have it in Hong Kong before Christmas.”

Delivered by the Department of State Development and Primary Industries and Regions South Australia in partnership with the South Australian Wine Industry Association, the China Re-Engagement Support Package will run up until June 2026, with next year’s activities to be posted to its dedicated webpage soon.

“Our Government is committed to supporting our producers to sell their world-renowned South Australian wine across the globe,” said Joe Szakacs.

“We’ll continue to work closely with the Albanese Government and Ministers Farrell and Wong, who have worked tirelessly to stabilise China-Australia relations and provide tangible outcomes for the country’s wine and barley producers.”

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