Strong growth for small winemakers in 2016

Australia's small winemakers saw strong growth in 2016, with an average increase of 12% in wine sales and overall revenue of $1billion.

The results were released by Wine Australia in the Small Winemaker Production and Sales Survey 2016.

Only wineries with an estimated production of 350,000 litres or less (40,000 cases) were included in the survey, which showed that on average, production was up 7%, with the highest average growth in wineries that produce 70,001–170,000 litres (8000–20,000 cases) (up 11%). 
Wineries that produce 35,001–70,000 litres (approximately 4000–8000 cases) saw the highest average revenue growth (up 16 per cent).

While retailers and wholesalers generated 47% of income, cellar doors have become increasingly important sales channels, accounting for 27% of revenue.

The rise in food and wine tourism also saw many small wineries attracting consumers to their region via on-site restaurants, cafes, tours and boutique accommodation, in addition to the traditional cellar door.

Key insights from the report include:

>> Small winemakers sell an estimated $1billion in wine – 88% in the domestic market.

>> Main sales channels are retailers (47%) and cellar door (29%).

>> Average production growth was 7% and average revenue growth was 12% in 2015–16.

>> Cellar door and mail order sales saw the strongest revenue growth (both up 7%).

>> Small winemakers directly employ on average 5.1 people.

>> Nearly half (48%) of the wineries surveyed make all of their wine in their own facilities.

>> On average, two-thirds of grapes used by small wineries were grown in their own vineyards.

Wine Australia surveyed Australian small wine businesses with an estimated crush of up to 500 tonnes. The 223 responses from this survey will feed into the annual Production, Sales and Inventory Survey currently underway that will provide an overall state of play on Australian supply and demand. These results will be published in early 2017.