WINE INDUSTRY IN AUSTRALIA
STUDY ON INVESTMENTS IN INDIA AND CHINA BY AUSTRALIAN COMPANY
INTRODUCTION OF WINE MARKET
China with population of 1.3 billion has emerged as the second largest economy and has established itself as playing an important and influential role in the global economy context. The reforms were started in 1978 and the focus of the economy shifted from a centrally planned to a market based economy thereby experiencing sustained economic and social development. Within the economy the industry scenario for Wine market has also seen tremendous change and projected as booming industry. It is worthwhile to mention here that Yinchuan which is capital of China’s north western Ningxia Hui Autonomous province has become country’s wine capital. There have been huge foreign and domestic investments that flow in this region. Foreign investors from France will have locally produced sparkling wine on Chinese shelves. Media reports from the BBC China claim that the country is globally eighth largest producer of wine with Chinese consumers drinking more than 1.6 billion bottles of wine in a year (UPI, 2013).
The studies in Chins have indicated that Chinese adult population consume per year 1.4 litters of wine on the average and the country continues to have fastest growth in wine consumption (Jun, 2013). Just like India where the largest wine imports are from France, China’s largest wine imports are also from France but followed by Australia with financial figures available as bottled wine exports from Australia reached level of USD 87 million in 2009 as against USD6 Million in 2004. China imports huge volumes of wine from Australia. In view of the above, Australia has become largest supplier of bottled wine led by France. The top four suppliers i.e. Southcorp, Beringer Blass, BRL Hardy and Orlando Wyndham have shown improvement in the past five years. There is continued success
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