10 January 2025
Australian Wine Exports to China Surge After Tariff Removal
Australian wine exports to China have experienced a dramatic rebound following the removal of high tariffs on bottled wine in March 2024. Over the past year, exports reached AU$611.5 million, marking an extraordinary 8,320% increase from the previous year. South Australian wines dominated this recovery, accounting for 85% of exports, while red wine remained the preferred variety, making up over 90% of the volume. Despite this growth, exports remain below the pre-tariff peak of AU$1.26 billion annually.
Securing Trade Mark Protection in China
For Australian wineries exporting to China, safeguarding their trade marks is crucial. As China operates under a “first-to-file” system, the first entity to register a trade mark typically gains ownership, regardless of prior use. This underscores the importance of registering trade marks early to avoid disputes with counterfeiters or trade mark squatters.
The Penfolds case illustrates the risks, where a trade mark squatter registered the Chinese transliteration of the Penfolds brand, leading to prolonged legal battles. To avoid such issues, wineries should conduct freedom-to-use searches and consider registering both English trade marks and Chinese transliterations to appeal to local consumers while minimising the risk of imitation.
Key Takeaways:
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Rapid Export Growth: Australian wine exports to China surged to AU$611.5 million, with South Australian wine leading the charge.
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Red Wine Dominance: Still red wine remains the top choice, making up over 90% of the exported volume.
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Pre-Tariff Comparison: Export values remain below the 2020 peak of AU$1.26 billion.
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Trade Mark Early Registration: Filing trade marks in China early is essential to prevent disputes under the “first-to-file” system.
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Register Chinese Transliterations: Protect both English trade marks and their Chinese transliterations to deter counterfeiters and connect with local consumers.
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Conduct Market Searches: Pre-launch freedom-to-use searches help identify potential conflicts and ensure smooth market entry.
Taking these proactive measures will help Australian wine brands secure their position and capitalise on opportunities in the revitalised Chinese market.
