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continued - Grape and Wine Research and Development Corporation

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Australian wine has gained momentum in the “high-end”<br />

<strong>and</strong> “premium” segments of China’s wine market<br />

The penetration of Australian wine among China’s wine pricing points<br />

Imported wine sales volume from all origins in China at defined retail pricing points<br />

Source: Rabobank estimation, IWSR, UN Comtrade, 2009<br />

Cumulative ratio for<br />

Australian wine sales (%)<br />

100<br />

75<br />

50<br />

25<br />

Size of bubble indicative of market size at respective price points<br />

% indicated market share by volume of AUS wine in respective price points<br />

= 300,000 9L cases<br />

2009 Import bottled wine volume (9L cases)<br />

Total China: 10.1 million<br />

Total from Australia: 2 million (20.5%)<br />

11%<br />

15%<br />

Retail price point (RMB per 750 mL bottle)<br />

Below 30 30-50 50-100 100-150 150-200 200-300 300-400 Over 400<br />

Low-end<br />

Entry-level<br />

Mid-range<br />

High-end Premium Icon<br />

� Australian wine has already built a strong presence at the “high-end” retail pricing point in China, between RMB 200-300 per<br />

750 mL bottle, where Australian wine accounts for 20% of imported wine volume<br />

� For “premium” wine, which retails from RMB 300-400, Australia has a dominant position, selling 40% more than French wine<br />

� For the “icon” price segment (>RMB 400), Australian wines typically top out between RMB 500-800, while French wines are<br />

often wide ranging from RMB 1,000 to upwards of RMB 10,000 per 750 mL bottle<br />

7%<br />

10

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