Australian winemakers eye Korea

Australian Trade Commission senior trade commissioner Brett Cooper, second from right, attends the Australian Grand Wine Tasting 2015 at the JW Marriott Dongdaemun in Seoul, Friday. Wine Australia general manager market development Stuart Barclay, far left, Australian Trade Commission business development manager Kim Myung-jin, second from left, and Wine Australia regional manager Asia Hiro Tejima were also present. / Courtesy of Australian Trade Commission

By Rachel Lee

Australian wine producers plan to increase their presence in Korea, thanks to the Korea-Australia Free Trade Agreement (FTA), which has made them more competitive.

The agreement, which took effect last December, eliminated a 15 percent import tax on Australian wines, according to the Australian Trade Commission. This has triggered a 33.6 percent rise in the value of Australian wine exports to Korea in the first six months this year from the same period last year.

“Since the FTA, there is more interest from Korean consumers in Australian wine and there is also more interest in the Korean market from Australian wine producers,” said Australian Trade Commission senior trade commissioner Brett Cooper at the Australian Grand Wine Tasting 2015 at the JW Marriott Dongdaemun in Seoul on Sept. 4.

The tasting, which the trade commission and Wine Australia co-hosted, featured products from 33 wineries, of which 15 producers — including Australian Vintage, Brokenwood, Casella Wines, Nova Vita Wines and Wirra Wirra — have not yet entered Korea. Wines that are already available in Korea such as Andrew Peace Wines, Chadon, Robert Oatley and Two Hands Wines were also present.

Visitors to the Australian Grand Wine Tasting 2015 try Australian wines. / Courtesy of Australian Trade Commission

More than 350 guests — including local importers, retail buyers, media and sommeliers — attended the tasting.

Australian wines had 4.5 percent market share in Korea in the first six months of last year. France led the way with 30.5 percent followed by Chile, Italy and the U.S. with 20.8, 16.6 and 11.8 percent, respectively.

“Australia is one of the oldest, one of the largest and one of the most diverse wine-producing countries in the world,” Cooper said. “So we’re not just competing on price. In terms of how we are positioning in the market, we are a premium brand,”

Nicolas Hereriguian, Asia general manager of award-winning Australian Vintage, was looking for importers. The company introduced its four labels — McGuian Wines, Nepenthe, Tempus Two and Passion Pop — which it aims to position as a “fashionable brand with elegance.”

“Australian wines aren’t well known in Korea, which we regard as an important market for us because it’s the fourth strongest in Asia in terms of volume,” Hereriguian said.

“Thanks to the FTA, which has given us an opportunity to be price competitive, now we can compete with those produced in Chile and the U.S. Hopefully more Koreans will learn more about us.”

Mark Koxned, owner of premium brand Nova Vita based in the Adelaide Hills, said the Korean market, dominated by people in middle class, was attractive because it was more mature and knew more about wine than people in other Asian countries.

“Koreans are very sophisticated, which means it’s harder to enter the market,” Koxned said.

According to the Korea International Trade Association, the value of imported wine during the first half this year reached $94.43 million and accounted for 24.9 per cent of imported alcoholic beverages, overtaking whiskey and brandy.

Cooper said, “It’s a market that has a long history with wine, but more importantly, to us, Korea is the third-largest market globally, so we want to make sure that wine is part of this.”