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The Australian wine industry is the 6th largest in the world, exporting over 400,000,000 litres a year to a large international export market that includes “old world” wine-producing countries such as France, Italy and Germany. There is also a significant domestic market for Australian wines, with Australians consuming over 400,000,000 litres of wine per year. The wine industry is a significant contributor to the Australian economy through production, employment, export and tourism.

Grape varieties

Major grape varieties are Shiraz, Cabernet Sauvignon, Chardonnay, Sauvignon Blanc, Semillon, and Riesling. The country has no native grapes, and Vitis vinifera varieties were introduced from Europe and South Africa in the late 18th and early 19th centuries. Some varieties have been bred by Australian viticulturalists, for example Cienna and Tarrango.

Although Syrah was originally called Shiraz in Australia and Syrah elsewhere, its dramatic commercial success has led many Syrah producers around the world to label their wine “Shiraz”. About 130 different grape varieties are used by commercial winemakers in Australia. Over recent years many winemakers have begun exploring so called “alternative varieties” other than those listed above. Many varieties from France, Italy and Spain for example Petit Verdot, Pinot Grigio, Sangiovese, Tempranillo and Viognier are becoming more common. Wines from many other varieties are being produced.

Australian winemaking results have been impressive and it has established benchmarks for a number of varietals, such as Chardonnay and Shiraz. Moreover, Australians have innovated in canopy management and other viticultural techniques and in wine-making, and they have a general attitude toward their work that sets them apart from producers in Europe. Australian wine-makers travel the wine world as highly skilled seasonal workers, relocating to the northern hemisphere during the off-season at home.” They are an important resource in the globalization of wine and wine critic Matt Kramer notes that “the most powerful influence in wine today” comes from Australia (Kramer).

Major Labels

Australia’s most famous wine is Penfolds Grange. The great 1955 vintage was submitted to competitions beginning in 1962 and over the years has won more than 50 gold medals. The vintage of 1971 won first prize in Syrah/Shiraz at the Wine Olympics in Paris, just three years after the Paris tasting showed that New World wines could beat France’s best in blind tastings. The 1990 vintage was named ‘Red Wine of the Year’ by the Wine Spectator magazine in 1995, which later rated the 1998 vintage 99 points out of a possible 100. Wine critic Hugh Johnson has called Grange the only First Growth of the Southern Hemisphere. The influential wine critic Robert M. Parker, Jr., who is well known for his love of Bordeaux wines, has written that Grange “has replaced Bordeaux’s Petrus as the worlds most exotic and concentrated wine”.

Other red wines to garner international attention include Henschke Hill of Grace, Clarendon Hills Astralis, D’Arenberg Dead Arm, Torbreck Run Rig and other high-end Penfolds wines such as St Henri shiraz.

Australia has almost 2000 wine producers, most of whom are small winery operations. However, the market is dominated by a small number of major wine companies. After several phases of consolidation, the largest Australian wine company is now Foster’s Group. The world’s biggest wine company, Constellation Brands’ Hardy Wine Company also has a large presence in Australia. A list of the major wine companies in Australia and their associated wineries can be found below.

  • Foster’s Wine Estates
    • Wolf Blass
    • Penfolds
    • Rosemount
    • Lindemans
  • Constellation Brands
    • Hardy Wine Company
    • Houghton Wine Company
  • Pernod Ricard Pacific
    • Orlando Wines
    • Richmond Grove Wines
    • Wyndham Estate
  • Casella Wines
  • McGuigan Simeon Wines
  • De Bortoli Wines
  • The Yalumba Wine Company
  • Lion Nathan

Major wine regions

The information included on wine labels is strictly regulated. One aspect of this is that the label must not make any false or misleading statements about the source of the grapes. Many names (called geographic indications) are protected. These are divided into “South Eastern Australia”, the state names, zones (shown in the map), regions, and subregions. The largest volume of wine is produced from grapes grown in the warm climate Murray-Darling Basin zones of Lower Murray, North Western Victoria and Big Rivers. In general, the higher-value premium wines are made from smaller and cooler-climate regions. Some well-known regions are listed below:

South Australia

  • Adelaide Hills
  • Barossa Valley
  • Clare Valley
  • Coonawarra
  • McLaren Vale
  • Padthaway
  • Riverland

Victoria

  • Goulburn Valley
  • Grampians
  • Mornington Peninsula
  • Pyrenees
  • Rutherglen
  • Yarra Valley

New South Wales

  • Hunter Valley
  • Mudgee
  • Riverina

Western Australia

  • Margaret River
  • Swan Valley
  • Great Southern

In recent years, the Tasmanian wine industry has emerged as a producer of high quality wines. In particular, the Tamar Valley has developed a reputation for its Chardonnay and Pinot Noir, which are well suited to the cooler Tasmanian climate.

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