Background
Duxton Vineyards is a series of 5 vineyard aggregations located across the Murray Darling Region in New South Wales. The vineyards have 2,463ha under vine, representing approximately 6% of Australia’s total wine grape production. Following acquisition of a winery and an investment in a distribution and marketing company, Duxton Vineyards is a fully vertically integrated wine enterprise with control of product through the nursery, vineyard, winery and onto the shelf. This shift towards vertical integration has been a substantial driver for returns as it allowed the group to move up the value chain towards higher-margin and lucrative product streams including bulk and bottled wine. In 2021 Duxton Vineyards achieved certification under the Freshcare Australian Wine Industry Standard of Sustainable Practice in Viticulture, making it the largest sustainably certified vineyard business in Australia.
Fundamental Drivers of Value
Growing Global Demand: Global wine consumption volume is forecast to be 23.7 billion litres in 2021.² The value of the global wine market is expected to have a CAGR of 6.4% from 2021 to 2028.³
Access to International Markets: Australian wine producers are well positioned to take advantage of the free trade agreements with countries such as India, Indonesia, Vietnam, South Korea and Japan. The Trans-Pacific Partnership Agreement and the Regional Comprehensive Economic Partnership are expected to further increase the exposure of Australian wines to some of the fastest growing wine consumers in the world.
Falling Plantings of Wine Grapes: With the increase in demand for other horticulture commodities such as almonds, avocados and cherries over the past few years, there has been a shift in focus away from wine grape production with a fall in global area under production from 7.8 million ha in 2001 to 7.3 million ha in 2020.⁴
2 Wine Australia, 2021, Market Bulletin, Issue 246, August
3 Grand View Research, Wine market size, share & trends analysis report by product, by distribution channel, by region, and segment forecasts 2021 - 2028
4 International Organisation of Vine and Wine Intergovernmental Organisation (OIV) 2020, State of the world vitivinicultural Sector in 2020, OIV
