Pernod Ricard, the world’s second biggest drinks group and owner of Jacob’s Creek has warned that wine sales to China have been flat since the Lunar New Year because of that country’s austerity drive and crackdown on luxury goods. The Australian wine industry which is already dealing with a strong Australian dollar and downturns in traditional markets in Europe and North America may have to wait until 2015 to see a return to growth in the Chinese wine market. China quickly eclipsed the U.S. and the UK to become Australia’s fastest growing wine market, however Australian wine exports to China dropped by 7% to 33 million liters in 2013 after Beijing imposed an anti-corruption and austerity program which has seriously hit demand for luxury goods such as premium wine imports.
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