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Fourth Wave Wine lauds FTA for UK growth

Published:  23 August, 2023

Australian wine company, Fourth Wave Wine, has reported that since launching into the UK market in August 2022, it has made significant strides with UK retail customers and consumers alike, by surpassing more than 500,000 sold.

The business is growing the world over, producing close to one million cases of wine each year for its Australian and global markets. However, its growth in the UK could be attributed to the May 2023 free trade agreement (FTA) between the UK and Australia.

Brendan Edmonds, UK sales director of Fourth Wave Wine said: “The tariff of A$1 for every six-pack of wine unlocks benefits for Aussie wine, UK retailers and consumers alike. The A-UK FTA couldn’t have come at a better time for the industry.

“Since our initial launch in the UK, Austrade has assisted us with market intelligence, access and introductions to other major customers, supporting the opportunity to further build our UK market presence. We are delighted to report that we’ve been welcomed by the UK market with open arms and diverse palates ready to be excited by our dynamic portfolio.”

Founded in 2009 by Nicholas Crampton, Fourth Wave Wine has developed several brands that have captured the UK consumers’ imagination – as Crampton puts it, “being on-trend, with good quality and good value in a good package”.

Crampton said: “We are thrilled that Elephant In The Room and Little Giant are outperforming their competitive set in the UK market on a sales per store per week basis and that customers are proving to be very loyal to these brands. 

“We’ve brought wines to the UK that we feel will genuinely tap into consumers' needs and that align with their life choices. We’ve brought on-trend, high-quality wines with a focus on both better for you and the planet to this market and have been blown away by how quickly each brand has grown in popularity. We have several new brands waiting in the wings which we are very excited to introduce to the Brits later in the year”.

According to the UK government, the FTA will increase bilateral trade with Australia by 53% and with New Zealand by 59% in the long term. This is likely to be a windfall for the former, which lost around 97% of its value wine exports to China between 2019 and 2021, plummeting from $1bn to just $13m. 

Both trade deals have removed tariffs on all UK goods exports from Australia and New Zealand, potentially driving economic growth, cutting red tape for digital trade and making it easier for UK professionals to live and work in Australia and New Zealand.

However, all imports from Australia and New Zealand will be subject to the new alcohol duty regime imposed by the UK government, which will discriminate against wines produced in hotter climates which naturally produce higher abv, such as in Australia.