Australia's international wine exports continue to surge, with the latest export figures hitting the highest growth in 15 years.
New data from Wine Australia shows the overall value of exports rocketed 20 per cent in the 2017–18 year to reach $2.76 billion.
The volume of Australian exports also increased 10 per cent to 852 million litres in the same timeframe, with China again making the largest strides.
Federal Assistant Agriculture Minister, Senator Anne Ruston, said Australia's push to produce higher value drops was paying off.
"It takes us back to the halcyon days of the 90s and early 2000s when the wine industry could do no wrong," Senator Ruston said.
"I think it is a recognition that at last the Australian wine industry has turned a corner, and they are focusing very much on the quality of our product."
"We were selling wine too cheaply in Australia recently, and it certainly did not reflect the cost of production."
President of the Coonawarra Vignerons Association, Peter Balnaves, said the consumer preference for premium wine had restored confidence in the local industry, with more growers now choosing to re-plant more grapes.
"It is a very positive thing to see happen, and arguably it has been a long time coming," Mr Balnaves said.
"Certainly the focus on premium products and the demand for premium fruit and wine has been very strong."
With around 21.8 million glasses of Australian wine consumed overseas each day, the majority of success continues to be driven by the Chinese wine boom.
CEO of Wine Australia, Andreas Clark, said despite selling over $1 billion worth of wine to China in the 2017–18 year, the industry could not relax.
"It is a great story, but like all these things, past success does not guarantee anything into the future," he said.
"We need to continue to work hard to cultivate and nurture the opportunities that sit in China as well."
US declines as other major markets grow
While the latest export data is a strong showing for the Aussie industry, one of the country's largest markets has continued to go through a period of decline.
According to the data, both the value and volume of wine exports to the United States fell by 8 per cent and 11 per cent respectively.
CEO of Wine Australia, Andreas Clark, said the industry needed to adjust to a growing trend of premiumisation.
"Clearly, the US is the major challenge for us," he said.
"The big volume commercial market priced below $8US per bottle is in decline, and that is where a lot of our exports go."
"The key challenge for us is to take more market share of those premium price points."
According to Wine Australia, the body is ramping up marketing and tourism campaigns in North America as part of the Federal Government's recent $50 million export and regional wine support package.
Mr Clark said the decline in the USA was less about the industry push into China, and more about dealing with economic "headwinds" such as a high exchange rate and the global financial crisis.
"A number of exporters did leave the market, and at that time, China was rising and they have taken advantage of the opportunities that present themselves," Mr Clark said.
"The US is still our second largest market by value and third by volume, so we have kept our eye on the game here."
