Aussie vineyards toast China's rising thirst for wine

CHINA'S growing thirst for Australian wines may be a golden ticket for now, but whether demand will last remains unknown even as vintages from Down Under gain new fans amid a surge of growth in broader Asia.

Australian bottled wine exports to China soared by 15 percent year on year in 2012, according to official data, bolstered by a sales push targeting the country's wealthy drinkers and making Australia the top overseas market for wines priced at more than A$7.50 (US$7.90) a liter.

Overall, exports gained 3 percent globally, with declines in bottled wine exports to some countries offset by increases in bulk wine sales.

"In South Australia, it's going to be a fantastic year," said Damian Torresan, a winemaker at Koppamura Wines in South Australia. "China has been a bit of a golden ticket for a lot of places sitting on bulk wine for the last few years."

Though China was by far ahead, bottled wine exports were good across the board in Asia, with those to Japan up 11 percent and exports to Thailand up 7 percent.

In many nations, the changes reflected an increase in wealth and status, with wine the means of showcasing both.

"In terms of Thailand, what we're hearing is there's an increase in wealth and increasing wine awareness so people are experimenting and buying more," said Louisa Aherne, a spokeswoman for Wine Australia, a government agency that supports the wine sector.

"It's a social status associated with drinking wine so it's a similar story to that of China, to a lesser degree obviously."

To a certain extent, the current success is due to luck. There has been good Australian production in the face of a poor US season in 2011 and low volumes in Europe in 2012.

While growers were pleased with their gains, they remained wary, noting that while China is an area of massive potential growth, some of the gains may well have been due to short-term conditions.

China's vast population means there is plenty of market to share, Torresan added, but it's still far too early to make any predictions for next year.

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