Wine Australia faces funding cut

01 September, 2009

Wine Australia’s budget has been cut following a fall in exports.

The federal government-funded agency is financed in proportion to Australia’s international sales, which fell by 9% to $2.4 billion in the most recent figures.

Paul Henry, Wine Australia’s general manager of marketing, admitted “the funding structure is currently strained” due to the economic conditions.

He told the Sydney Morning Herald that efforts were being made to target restaurants, online retailers and independents in markets like the UK where there was a consolidation of major retailers.

Australia is hoping to highlight its diversity in mature markets and to open up new markets across Asia.

Australian wine sales to China rose 51% to $97 million last year, compared to  $741 million to the USA and $723 million to the UK.

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