Britons Are Guzzling the Australian Wine That Didn’t Go to China

(Bloomberg) -- Australia ramped up wine sales to Europe to a 10-year high, led by a surge to the U.K., which helped the country overcome crippling Chinese tariffs that effectively shut access to its most prized market.

The value of exports to Europe climbed 22% last year, according to data from Wine Australia. The standout performer was the U.K. where shipments jumped 29% over the full year after demand increased at the start of the coronavirus pandemic and was boosted in the months leading up to Brexit.

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The higher sales countered a steep slump to China in the final two months of the year. Overall in 2020, wine exports fell just 1% in value even after Beijing imposed tariffs of over 200% on Australian wine in November, wiping out demand from the industry's most valuable customer and pushing prices lower.

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The U.K. extended its lead last year as the biggest destination for Australian wine exports by volume.

Other points from Wine Australia:

• Wine exports dropped 1% in value to A$2.89 billion ($2.2 billion) last year, and increased 0.5% in volume to 747 million liters.
• Despite the Covid-19 pandemic, exports hit a record value of A$3.1 billion in the 12 months ended October.
• Exports to mainland China immediately fell following the tariffs in November. Overall value for 2020 declined 14% to A$1.01 billion and volume shrank 29% to 96 million liters.
• Exports to Europe climbed 22% to A$704 million, including A$456 million to U.K.; North America was up 4% to A$628 million

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