The number of wineries in Australia has fallen for the second consecutive year, reversing three decades of growth.
According to the 34rd edition of The Australian and New Zealand Wine Industry Directory (WID), the number of wine producers decreased to 2,468 in 2016, down by 13 since 2015, and 105 fewer than the all-time peak of 2,573 in 2014.
However wine exports were stronger, rising by 7.8 per cent to almost $2 billion, led in terms of volume by Accolade Wines which was boosted significantly by its acquisition of Grant Burge Wines. Treasury Wine Estate remains on top of the list for value of wine exports.
WID editor Elizabeth Bouzoudis said the number of wine producers was on a downward trend after three decades of booming growth, although winegrape intake increased marginally to 1,669,564 tonnes.
“We have to go back to 1987 to find the last time the number of wineries decreased for two consecutive years. We are seeing now the results of low profitability across the industry, and we believe there will be more exits from the list over the next year through closures and mergers,” Bouzoudis said.
“While that will mean difficult decisions for many producers, consolidation of winery numbers will ultimately lead to a stronger and more profitable industry.”
