We act for E&J GaNo Winery. 2. cheque in the amount of $200.00. · Australian wine market. In Year 1, the total sales of "BAREFOOT" brand. wine (including wine directly imported from

17 February, 2014

Australian Competition and Consumer CommissionGPO Box 520Melbourne Vie 3001

RMD:2014015

Exclusive Deal'ngs Notifications - E & J Gallo Winery

Our Ref:

Re:

Dear Sirs,

We act for E&J GaNo Winery.

Please find *enclosed the foilowing documents for your attention.

1. Two Exclusive Dealing Notifications by our client pursuant toSection 93(1) of the Competition and Consumer Act 2010(Cth) ("the Act");

2. cheque in the amount of $200.00.

As you will see, these notifications are iodged in respect of conduct whichmay constitute exclusive deaiing under sections 47(6) and 47(7) of theAct.

In general terms, our client is proposing to concentrate the distribution ofits "BAREFOOT" brand range of wines in Australia through one distributorbeing Robert Oatley Vineyards. The wine to be distributed will be in partsupplied to Robert Oatley Vineyards direct from Gallo and in part by winegrown or procured and bottled and labelled by Australian VintageLimited. The wine bottled by Australian Vintage Limited will be requiredby Gallo to be supplied exclusively to Robert Oatley Vineyards.

The conduct giving rise to the notifications is as follows:

1. The obligation on Australian Vintage Limited to supply all ofthe BAREFOOT brand wine bottled by it to Robert OatleyVineyards for further distribution; and

2. The obligation on Australian Vintage Limited to acquire bottles,cartons, labels, caps, shrink film, pallets, stretch wrap,shipping cartons and all other packaging materials required topackage wine labelled with the BAREFOOT trade mark fromsuppliers designated by Gallo.

DAVIES COLLISON CAVE

Davies Collison Cave Law Pty LtdIntellectual Property1 Nicholson Street

Melbourne Victoria 3000

Australia

GPO Box 4387

Melbourne Victoria 3001Australia

T +61392542888F +61392542880E [email protected] www.davies.com.au

AusdocDX 30817ABN 94 117 510 031

In association with:

Davies Collison Cave

Patent and Trade Mark Attorneys

1 8 FEB 2014

- 2 - 17 February, 2014

Please contact us if you have any queries or require any further information.

With kind regards,

^

RODNEY DE BOOSDAVIES COLLISON CAVE LAW

* Att

421543 IOOC 17/2/14

Form G

Commonwealth of Australia

Competition and Consumer Act 2010 - subsection 93 (1)NOTIFICATION OF EXCLUSIVE DEALING

To the Australian Competition and Consumer Commission:

Notice is hereby given, in accordance with subsection 93 (1) of the Competition andConsumer Act 2010, of particulars of conduct or of proposed conduct of a kindreferred to subsections 47 (2), (3), (4), (5), (6), (7), (8) or (9) of that Act in which theperson giving notice engages or proposes to engage.

PLEASE FOLLOW DIRECTIONS ON BACK OF THIS FORM

1. Applicant

(a) Name of person giving notice:(Refer to direction 2)

E. & J. Gallo Winery of 600 Yosemite Blvd, Modesto, CA 95354 USA("Gallo").

(b) Short description of business carried on by that person:(Refer to direction 3)

Gallo produces and sells wine and other alcoholic beverages.

(c) Address in Australia for service of documents on that person:

C/- Davies Collison Cave Law of Level 15, 1 Nicholson Street, Melbourne,Victoria, Australia 3000

Attention: Rodney De Boos

2. Notified arrangement

(a) Description of the goods or services in relation to the supply or acquisitionof which this notice relates:

Distribution Services

(b) Description of the conduct or proposed conduct:

Gallo is proposing to enter into a Trade Mark Licence Agreement withAustralian Vintage Limited ("AVL") to label wine with the Gallo"BAREFOOT" trade mark on condition that AVL sells such wine only toRobert Oatley Vineyards for the distribution of that wine.

(Refer to direction 4)

18 FEB 20U

Page 1 of 19

kglov

Typewritten Text

N97246

3. Persons, or classes of persons, affected or likely to be affected by thenotified conduct

(a) Class or classes of persons to which the conduct relates:(Refer to direction 5)

Persons who supply distribution services for wine and other alcoholicbeverages.

(b) Number of those persons :

(i) At present time:

Gallo does not have a current bottler or distributor of its"BAREFOOT" brand wines in Australia.

(ii) Estimated within the next year:(Refer to direction 6)

1

(c) Where number of persons stated in item 3 (b) (i) is less than 50, their namesand addresses:

4. Public benefit claims

(a) Arguments in support of notification:(Refer to direction 7)

Provide details of those public benefits claimed to result or to be likely toresult from the proposed conduct including quantification of those benefitswhere possible.

Gallo wishes to use a single distributor in Australia (Robert OatleyVineyards), for all its "Barefoot" branded wines, whether they are producedin the US or in Australia. This arrangement gives Robert Oatley Vineyardsan incentive to sell and promote "Barefoot" brand wine to its customers,provides for efficiency in presentation and promotion of the brand toretailers, and gives retailers who wish to stock the brand a single point ofcontact for orders, price information, and brand promotions. Gallo believesthat this is the best way to make the "Barefoot" brand available toconsumers in the largest number of retail outlets.

(b) Facts and evidence relied upon in support of these claims:

The volume of "BAREFOOT" brand wine expected to be sold in Australiais relatively small in a highly competitive market characterised by a largenumber of brands (see paragraph 6(b) below). In order to focus thenecessary attention and energy in the distribution of a relatively smallvolume brand in such a market, a distributor needs to be selected as beingappropriate for the brand and then be given a sufficient incentive to devotethe necessary attention and energy required to successfully penetrate themarket.

Page 2 of 19

5. Market definition

Provide a description of the market(s) in which the goods or servicesdescribed at 2 (a) are supplied or acquired and other affected marketsincluding: significant suppliers and acquirers; substitutes available for therelevant goods or services; any restriction on the supply or acquisition ofthe relevant goods or services (for example geographic or legal restrictions):(Refer to direction 8)

The wholesale distribution of alcoholic beverages in Australia.

6. Public detriments

(a) Detriments to the public resulting or likely to result from the notification, inparticular the likely effect of the notified conduct on the prices of the goodsor services described at 2 (a) above and the prices of goods or services inother affected markets:


Gallo does not consider that the notified conduct will result in or is likely toresult in any public detriment.

(b) Facts and evidence relevant to these detriments:

The relevant markets are highly competitive. There are large numbers ofwine growers and bottlers in Australia and a large number of potentialdistributors. In some cases, wine growers or bottlers will distribute theirwines direct to retail outlets. Gallo estimates that the sales of"BAREFOOT" brand wine will make up a very small part of the overallAustralian wine market. In Year 1, the total sales of "BAREFOOT" brandwine (including wine directly imported from Gallo by Robert OatleyVineyards) at the retail level are estimated to be 24,000 cases. In 2012,total wine sales in Australia were 60 million cases . [See *attached tablesfrom Wine Biz and the Australian Bureau of Statistics. The figure of 536.9litres for total wine sales in 2012 is the equivalent of nearly 60M 9 litrecases].

The relevant markets are comprised of a large number of suppliers ofdistribution services and a large number of persons seeking those services.The barriers to entry are not high and Gallo considers that the foreclosure ofthe insignificant volume of "BAREFOOT" brand wine from other potentialdistributors will have no adverse effect on competition and therefore willnot constitute a detriment to the public.

Finally, Gallo does not hold substantial market power in the market and theagreement with Australian Vintage Limited is being freely entered into andwithout any coercion. The opportunity being offered by Gallo is a packageof rights and obligations which Australian Vintage could reject if it saw nocommercial advantage in it.

Page 3 of 19

7. Further information

(a) Name, postal address and contact telephone details of the person authorisedto provide additional information in relation to this notification:

Name: Rodney De Boos

Address: Davies Collison Cave Law, Level 15, 1 Nicholson Street,Melbourne VIC 3000, Australia

Telephone: (03) 9254 2888

Dated: 17 February, 2014

Signed by/on behalf of the applicant

(Signature)

Rodney De Boos(Full Name)

Davies Collison Cave Law

(Organisation)

Consultant

(Position in Organisation)1 8 FEB m

Page 4 of 19

DIRECTIONS

1. In lodging this form, applicants must include all information, including supportingevidence that they wish the Commission to take into account in assessing theirnotification.

Where there is insufficient space on this form to furnish the required information,the information is to be shown on separate sheets, numbered consecutively andsigned by or on behalf of the applicant.

2. If the notice is given by or on behalf of a corporation, the name of the corporationis to be inserted in item 1 (a), not the name of the person signing the notice, andthe notice is to be signed by a person authorised by the corporation to do so.

3. Describe that part of the business of the person giving the notice in the course ofthe which the conduct is engaged in.

4. If particulars of a condition or of a reason of the type referred to in section 47 ofthe Competition and Consumer Act 2010 have been reduced in whole or in part towriting, a copy of the writing is to be provided with the notice.

5. Describe the business or consumers likely to be affected by the conduct.

6. State an estimate of the highest number of persons with whom the entity givingthe notice is likely to deal in the course of engaging in the conduct at any timeduring the next year.

Provide details of those public benefits claimed to result or to be likely to resultfrom the proposed conduct including quantification of those benefits wherepossible.

Provide details of the market(s) likely to be affected by the notified conduct, inparticular having regard to goods or services that may be substitutes for the goodor service that is the subject matter of the notification.

Provide details of the detriments to the public which may result from the proposedconduct including quantification of those detriments where possible.

7.

8.

9.

Page 5 of 19

Winebiz | Wine Industry Statistics Page 1 of 4

biz.com.au

AUSTRALASIA'S WINE INDUSTRY POflTAL BY WlNETfTLES

Ciirrciil Is-sue Back

Issiicii Sitbscribc

Adverlisc Ediloi-inlGrEincE.rowcr &.

Current IssueSubscribeAdverti;

Wine &Viticulture

Journal

BackIssuesAboutWIJ

WineIndusTrvDireclorv

WIDOnline

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Links Booksioi

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Wine Industry Statistics

VilicullLii-f . Vintage . Domcslic Sales . exports Wine Stdcks . Wine ProdLiclion . Wine CuinpaniesWorld Compiirisons - Geotiraplnc IndiCiiliuns - Orfidjiisa^Lions . Information Sources . Slraic^v 2U25

Aiistraiian Domestic Wine Sales

. ALisit'tilidt) doinesiic bcvcr.ife \viiie Siiics and ininurts. bv ivpc* Doinc'ilic Siilcs oi'Auslruliiin table wine, by container tvne* Wine impons bv couiilf'v ol'oritiin

Auslrdlian dcmc-ilic beverage wine SEiles and imports, by type

2008 2009 2010 2011 2012 .^ ",."""" ,"" ^,, % of totalM'F Ml" ML" M]'.' ML" % <:han8e from 2011 bev'sate^'

Domestic sales ol'Auslralian wine

1'imillccl 17.2 16.3 16.3 17.5 15.7 -Kl.'l 2.9

Table 362 .183.2395.9392.3386.5-1.5 72.0

While 206.8212.'1219.5219.2214.8-2.0 40.0

Kcd/rosc 155.2170.7176.4173.1171.7-0.8 32.0

Sparkling 36.6 36.5 40.1 35.4 35.1 -0.9 6.5

Olhcr 11.7 13.8 18.5 18.6 17.1 -7.8 3.2

Tulal .127.54.iy.8.17(1.8.163.7.15.1.3-2.0 8^.6

htlp://www. winebiz.com.au/statistics/domestictablel 2.asp 14/02/2014

Page 6 of 19

Winebiz | Wine Industry Statistics Page 2 of" 4

Wine imporls

While Table <2L 27.9 32.0 32.3 34.1 40.9 20.1

Kud 'I able <2I. 7.9 8.8 8.9 10.3 12.4 19.4

Spiuklinji 8.3 9.6 8..1 9,0 IB.'I 15.9

TO'IAI. 53.3 62.2 6-1.3 67.0 82.5 23.2

Tolal Sales .179.7512.0535.1 530.7536.9 1.2

Source: Aiislralhin Bureau of'Slalislics. Cat No. 8504.0

7.6

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/ Enhanced Radar

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And more...

htlp://www.winebiz.com.au/statistics/domestictablel2.asp 4/02/2014

Page 7 of 19

Winebiz Wine Industry Statistics Page 3 of~4

evOAK0409 200 737

2014 Wine Industry Directorypre-purchase special price

IIIKI (. IOKV

Immediate accessto WID Online search

functions via

sF. INDUSTR.YR.ECTORY

hllp://www winebiz.com.au/statistics/domestictablel2.asp 14/02/2014

Page 8 of 19

Winebi/. | Wine Industry Statistics Page 4 ol'4

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Copyright 0 l()95-20]'l Winelillcs Ply Lid (Division of Provincial Press Group). All Rights Reserved.

http://www.winebiz.com.au/statistics/domestictablel2.asp 14/02/2014

Page 9 of 19

Page! of 10

8504.0 - Shipments of Wine and Brandy in Australia byAustralian Winemakers and Importers, Sep 2013Latest ISSUE Released at 11:30 AM (CANBERRA TjME) 21/11/2013

Summary

Main Features

NOTES

FORTHCOMING ISSUES

ISSUE (QUARTER) Release DateDecember 2013 20 February 2014March 2014 22 May 2014

DATA NOTES

There have been recent changes to the Harmonised Tariff Item Statistical Codes(HTISC) as of 1 January 2012. As a result of these changes the amount of dataavailable for imports has decreased. For more information about the HTISCchanges affecting this publication see Chapter 22 - Beverages, spirits andvinegar in the Combined Australian Customs Tariff Nomenclature and StatisticalClassification available at the Australian Customs and Boarder Protective Servicewebsite:http://www.customs.gov.au, or refer to Information paper: Changes toAHECC and Customs Tariff, 2012 (cat. no. 5368.0.55.017).

A significant change was observed in the reporting of bulk wine saies betweenthe June 2009 quarter and September 2009 quarter; however, the total impact isunquantifiable. Users should view quarterly movements during this period withcaution.

From the September quarter 2009, data relating to the export of Australianproduced wine is no longer included in this publication. Information regardingexport data can be obtained by contacting the National Information and ReferralService on 1300 135070.

Due to the seasonal nature of the data, quarterly movements are no longerincluded in commentary.

Further information on domestic sales and imports data is available bydownloading the time-series (original) spreadsheets:

. 1. Domestic Sales of Australian Wine, by container type

http://www.abs.gov.au/ausstats/[email protected]/PrintAllPreparePage? 14/02/2014

Page 10 of 19

Page 2 of 10

2. Domestic Sales of Australian Wine and Brandy by Winemakers3. Domestic Sales of Australian Fortified Wine by Winemakers4. Imports Cleared, by Wine Type5. Total Wine Imports (Excluding Brandy) Cleared, by Selected Countries

ROUNDING

Where figures have been rounded, discrepancies may occur between sums ofthe component items and totals.

INQUIRIES

For further information about these and related statistics, contact the NationalInformation and Referral Service on 1300 135 070.

SUMMARY COMMENTARY

AUSTRALIAN TABLE WINE SALES

Total White and Red/Rose Table Wine

The September 2013 quarter estimate for white table wine was 53.6 million litres,which was 3.4% higher than the September 2012 quarter estimate, The estimatefor red/rose table wine in the September 2013 quarter was 46.8 million litres,which was 5.1% !ower than the September 2012 quarter estimate.

Table Wine, Glass Containers Less Than 2 Litres

The September 2013 quarter estimate for white table wine in glass containersless than 2 litres was 29.0 million litres, which was 6.3% higher than theSeptember 2012 quarter estimate. The September 2013 quarter estimate forred/rose table wine in glass containers less than 2 litres was 31.8 million litres,which was 2.9% lower than the September 2012 quarter estimate.

Table Wine, Soft Pack Containers

The September 2013 quarter estimate for white wine in soft pack containers was21.7 million litres, which was 8.7% higher than the September 2012 quarter salesestimate. The estimate of red/rose table wine in soft packs for the September2013 quarter was 11.3 million litres, which was 1.0% lower than the September2012 quarter estimate.

Table 1. DOMESTIC SALES OF AUSTRALIAN WINE, by wine containers

RED AND ROSE TABLEWHITE TABLE WINE WINE

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Page 11 of 19

Page 3 of 10

2010-11

2011-12

2012-13

2012SeptemberQuarterDecemberQuarter

2013

March Quarter

June Quarter

SeptemberQuarter

Glass Soft Total(a)less packsthan

2 litres

Glass Soft Total(a)less packsthan

2 litres

Total Total Totaltable otherwine wine wine

'000 L '000 L '000 L '000 L '000 L '000 L '000 L TOOL

108253 98230219217 105484 49282173074 392291 71434

'000L

463724

109541 93440215533 108786 45994173209 388742 68558 ^113555 79356209901 119023 40253174877 384777 68320 ^

27243 19969 51803 32748 11365 49279 101082 16024

32339 20212 55798 31175 9715 43784 99581 22496

28141 18359 52269 23719 8340 35748 88017 14157

25832 20816 50031 31381 10833 46066 96097 15643

28967 21697 53579 31787 11254 46762 100341 16005

117106122077

102174111740116346

(a) Components do not add to total. The difference between components and totals is wine in'Other containers' (see Glossary).

Table 2. DOMESTIC SALES OF WINE AND BRANDY BY WINEMAKERS

Table Fortified Sparkling - Sparkling -Carbonated Other Brandy

'000 L

Bottle Bulkfermentationfermentation

'000 L(a)

'000 L(a)

'000 L

wine (b)products

'000 L '000 L '000 Lal

2010-112011-122012-132012

SeptemberQuarterDecemberQuarter

2013March QuarterJune QuarterSeptemberQuarter

392 291388 742384 777

101 082

99581

8801796097

100341

175021574814719

4238

3958

28273696

3899

196651836917688

3884

6836

36543314

4261

157111733718153

4041

6407

33694336

3650

136031239912395

2683

3884

33792449

495347105361

1 178

1409

9271 847

3038 1157

416388364

96

125

7173

94

(a) Spritzig table wines are included in table wine(b) Quantities on which excise duty was paid

Table 3. DOMESTIC SALES OF FORTIFIED WINE BY WINEIVIAKERS

Cream, Vintage, ruby Othercrusted/crusting and tawny fortified in

fortified in glass <2Land solera glass <2Lfortified in

Soft Otherpacks containers

Totalfortified

wine

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Page 12 of 19

glass <2L'000 L .OOOL .OOOL '000 L

2010-112011-122012-132012


2013MarchQuarterJuneQuarterSeptemberQuarter

1 657513429

np

np

np

np

np

444332993281

938

1 027

523

793

853

674377398

119

130

50

99

80

683869136531

np

np

np

np

"p

'000 L

389336473081

930

857

621

673

780

Page 4 of 10

.OOOL

175021574814719

4238

3958

2827

3696

3899

np not available for publication but included in totals where applicable, unless othenwise indicated

IMPORTS

Wine Imports (Excluding Brandy) Cleared for Home Consumption

In the September 2013 quarter, 20.6 million litres of wine were imported, valuedat $158.9 million. This represents a decrease of 9.0% in quantity and an increaseof 15.4% in value from the September 2012 quarter estimate. The average valueof wine cleared for home consumption in the September 2013 quarter was $7.70per litre, up from $6.25 in the September 2012 quarter.

Table 4. IMPORTS CLEARED, quantity by wine type

2010-112011-122012-132012



Whitetable wine

<2L(a)'000 L

340814092840112

10325

12993

81118682

9879

Red/Rosetable wine

<2L.OOOL

103461234115352

3975

4685

32643428

4002

Sparkling

TOOL

89791040212287

2615

4586

27082378

2994

Total wine Brandy(excludingbrandy)(b)

'000 L '000 L al

670088251084331

22679

28456

1671316484

20631

465469470

122

197

8467

75

(a) White wine <2L includes carbonated wine(b) Total wine (excluding brandy) includes grape wine and grape wine product

Table 5. IMPORTS CLEARED, customs value by wine type

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Page 13 of 19

Page 5 of 10

2010-112011-122012-132012



Whitetable wine

<2L(a)$'000

227 308252 321259 886

64127

85815

51 68158262

67775

Red/Rosetable wine

<2L$.000

7792491503

106613

29254

28977

1958328800

35093

Sparkling

$'000

134 502144 450165 906

34102

72611

3062528567

42420


$.000 $'000

470781 15861529838 16443576672 12973

141 842

202 782

110033122015

3666

4952

23801 975

158922 2898


Table 6. TOTAL WINE IMPORTS CLEARED, by selected countries(a)

New ItalyPortugalSpainFranceGermany Chile SouthZealand

2010-112011-122012-132012


2013MarchQuarterJune QuarterSeptemberQuarter

45 445 6 688546547 17051 0758885

14 1941 931

173822886

95492 190

9 950 1 878

131951 749

Quantity ('000 L)

637 1 303 8 638 587 751516166711147 5883763658228213991 908 989

120 564 3416 164 232

200 710 4927 257 351

162 567 2888 229 265

176 441 2760 258 141

155 699 3655 170 180

Value (Customs Value) ($'000)

2010-11

2011-12

2012-13

2012SeptemberQuarterDecember

Quarter2013

March

Quarter

262 353

299 274

302251

3218034

67742

041

24187781

23188728

321711

516

146208162377190432

77 463 9 248

100686

58199

12786

10054

June Quarter 659039953

473306944595

844349176923

889 2 664 32 707

1 011229236207

31813203

3 2764 528

52223945

917 997

1 4031241

14451134

1 457 573

Total Total allAfrica othercountries

countries

14301 1353447

1 522

1 178

411

336

247

4394

3 125

5425

2015

2029

468

913

1 531 67 0091869 825112 095 84 332

535

565

452

543

582

22679

28456

16713

16484

20631

9065 470781

11535 529839

12625 576672

3066 141842

3380 202782

2473 110033

3706 122015

hllp://www.abs.gov.au/ausstats/[email protected]/PrintAIIPreparePage? 14/02/2014

Page 14 of 19

Page 6 of 10

SeptemberQuarter 82885 10

350 621369755625 851 642 746 3505 158922

(a) Total wine (excluding brandy) includes grape wine and grape wine product

About this Release

Presents information on the quantity of Australian produced wine (classified bytype - fortified, table, sparkling, etc) and brandy sales. Sales of table wine areclassified by container type for both white and red/rose table wine. Sales offortified wine are further classified by container type, with glass containers lessthan 2 litres split into cream, crusted/crusting and solera fortified; vintage, rubyand tawny fortified; and other. Includes original series for total domestic winesales; total white and red/rose table wine; white and red/rose table wine in glasscontainers less than 2 litres; and soft pack white and red/rose table wine. Alsoincludes imports cleared for home consumption.

Explanatory Notes

Explanatory Notes

EXPLANATORY NOTES

INTRODUCTION

1 The information shown in this publication for the domestic sales of Australianproduced wine is obtained directly from winemakers by means of a mailcollection. The brandy sales figures shown represent quantities on which exciseduty was paid, i.e. the quantity of brandy released for sale in litres of alcohol.Statistics relating to import clearances are based on information provided to theAustralian Customs Service by importers and their agents.

SCOPE AND COVERAGE

2 The information on domestic sales of Australian produced wine is obtainedfrom 120 winemaking enterprises with sales of 250,000 litres or more in either ofthe previous two financial years. These account for approximately 97% of totalwine sales. All sales data are collected on an Austraiia-wide basis only and statefigures are therefore not available.

IMPORTS

3 Figures relating to international trade in wine and brandy provide a basis forassessing the overall wine market. ABS procedures are designed to ensure thatsufficient editing is undertaken to guarantee the quality and integrity of tradestatistics to the ten-digit Harmonized Tariff Item Statistical Code level.

4 Imports cleared for home consumption comprise those goods entered for home

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Page 15 of 19

Page 7 of 10

consumption, together with goods cleared from Customs warehouses.

5 In order to retain stability in the time-series of data, the selection of countriesfor which imports data has been presented has been based upon the level ofannual imports from the previous financial year.

6 The value of imports is the Australian customs value. Goods are valued at thepoint of containerisation (in most cases) or the port of shipment, or at thecustoms frontier of the exporting country, whichever comes first.

7 The definition of Grape Wine has been taken from the Combined AustralianCustoms Tariff Nomenclature and Statistical Classification effective from January1, 2012, produced by the Australian Customs and Border Protection Service. Asper Chapter 22 - Beverages, spirits and vinegar - Additional Note 3 "grape wine"is a beverage that:(a) has an alcoholic strength by volume exceeding 1.15% vol but not exceeding22% vol; and(b) is the product of the complete or partial fermentation of fresh grapes orproducts derived solely from fresh grapes.A beverage does not cease to be the product of the complete or partialfermentation of fresh grapes or products derived solely from fresh grapes merelybecause grape spirit, brandy, or both grape spirit and brandy, have been addedto it.

8 The definition of Grape Wine Product has been taken from the CombinedAustralian Customs Tariff Nomenclature and Statistical Classification effectivefrom January 1, 2012, produced by the Australian Customs and BorderProtection Service. As per Chapter 22 - Beverages, spirits and vinegar -Additional Note 4 "grape wine product" is a beverage that:(a) has not had added to it, at any time, the flavour of any alcoholic beverage(other than wine) (whether the flavour is natural or artificial); and(b) if the beverage has had added to it ethyl alcohol used in preparing vegetableextracts, as mentioned in subparagraph (b)(ii) of Additional Note 4B - complieswith the following requirements:(i) the ethyl alcohol must only be used to extract flavours from vegetable matter'(ii) the ethyl alcohol must be essential to the extraction process;(iii) the ethyl alcohol must not add more than one percentage point to thealcoholic strength by volume of the beverage.

9 For detailed information on the Harmonised Tariff Item Statistical Codes and

Classifications refer to http://www.customs.gov.au

ACKNOWLEDGMENT

10 ABS publications draw extensively on information provided freely byindividuals, businesses, governments and other organisations. Their continuedcooperation is very much appreciated: without it, the wide range of statisticspublished by the ABS would not be available. Information received by the ABS istreated in strict confidence as required by the Census and Statistics Act 1905.

RELATED PUBLICATIONS

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Page Sof 10

11 Another ABS publication which may be of interest is the Australian Wine andGrape Industry (cat. no. 1329.0). This is a statistical compendium of Australia'swine and grape industries containing information on: area of vines and productionof grapes by state; wine production and grapes crushed by state; structure of thewine manufacturing industries; stocks of wine held by winemakers at 30 June;domestic wine sales; exports and imports of wine and consumption of wine.

12 Current publications and other products by the ABS are listed on the ABS website. The ABS also issues a daily Release Advice on the web site which detailsproducts to be released in the week ahead.

Glossary

GLOSSARY

Carbonated wine

Wine which has dissolved carbon dioxide and the carbon dioxide is addedartificially to the wine.

Cream, crusted/crusting and solera fortified

This item was known as Sherry previous to the release of September 2011 data.The name change is the result of a change to the Wine Australia Corporation Act1980.

Domestic sales

All sales of Australian produced wine by winemakers within the scope of thesurvey whether they be wholesale or retail sales. Excluded are inter-winery sales,bulk sales to other wineries, sales to ships' stores and the volume of importedwine blended with Australian wine and sold domestically.

Fortified wine

Wine to which grape spirit, brandy or both has been added, thereby addingalcoholic strength and precluding further fermentation. Fortified wine mustcontain at least 150 millilitres/litre and not more than 200 millilitres/litre ofethanol

at 20° Centigrade.

Grape spirit

Spirit obtained from the distillation of wine or by-products ofwinemaking or thefermented liquor of a mash of dried grapes and contains methanol in a proportionnot exceeding 3 grams per litre at 20° Centigrade of the ethanol content.

Grape wine

Refer to paragraph 7 of the Explanatory Notes.

Grape wine product

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Page 9 of 10


Imports cleared for home consumption

Imported goods brought into the country for consumption or further processing,but excluding goods imported with the reasonable expectation of re-export withina limited time.

Other containers

All other wine packaging except glass containers less than 2 litres and softpacks. Included in this category are glass containers 2 litres or more, cans andbulk wine in tankers or other such containers.

Other wine products

Products such as vermouth, flavoured wine, cocktails, marsala, aperitif and tonicwines. De-alcoholised, low and reduced alcohol wines are also included.

Soft packs

A container type including all collapsible packs whether plastic or of othermaterial.

Sparkling

A product consisting of wine that by complete or partial fermentation of containedsugars has become surcharged with carbon dioxide.

Spritzig

A product consisting of wine that by fermentation contains a trace of carbondioxide. Spritzig wines contain significantly lower levels of carbon dioxide ascompared to sparkling wines.

Table wine

Table wine excludes; fortified, sparkling, brandy and other wine products.

Vintage, ruby and tawny fortified

This item was known as Port previous to the release of September 2011 data.The name change is the result of a change to the Wine Australia Corporation Act1980.

Abbreviations

ABBREVIATIONSABS Australian Bureau of Statisticscat. no. Catalogue numberHTISC Harmonized Tariff Item Statistical Classification

liltp://vvww.abs.gov.au/ausstats/[email protected]/PrintAllPreparePage? 14/02/2014

Page 18 of 19

Page 10 of 10

LLalML

litrelitres of alcoholmegalitre

© Commonwealth of Australia 2010

(ec)'Unless otherwise noted, content on this website is licensed under a Creative Commons Attribution 2.5 Australia Licence together with anyterms, conditions and exclusions as set out in the website Copyright notice. For permission to do anything beyond Ihe scope or this licc-nccand copyright terms contact us.

http ://www. abs. go v. au/ausstats/abs@. nsf/PrintA] IPreparePage? 14/02/2014

Page 19 of 19

Form GCommonwealth of Australia

Competition and Consumer Act 2010 - subsection 93 (1)NOTIFICATION OF EXCLUSIVE DEALING

To the Australian Competition and Consumer Commission:

Notice is hereby given, in accordance with subsection 93 (1) of the Competition andConsumer Act 2010, of particulars of conduct or of proposed conduct of a kindreferred to subsections 47 (2), (3), (4), (5), (6), (7), (8) or (9) of that Act in which theperson giving notice engages or proposes to engage.

PLEASE FOLLOW DIRECTIONS ON BACK OF THIS FORM

1. Applicant

(a) Name of person giving notice:(Refer to direction 2)

E. & J. Gallo Winery of 600 Yosemite Blvd, Modesto, CA 95354 USA("Gallo").

(b) Short description of business carried on by that person:(Refer to direction 3)

Gallo produces and sells wine and other alcoholic beverages.

(c) Address in Australia for service of documents on that person:

C/- Davies Collison Cave Law of Level 15, 1 Nicholson Street, Melbourne,Victoria, Australia 3000

Attention: Rodney De Boos

2. Notified arrangement

(a) Description of the goods or services in relation to the supply or acquisitionof which this notice relates:

Packaging and labelling materials for wine.

(b) Description of the conduct or proposed conduct:

Gallo is proposing to enter into a Trade Mark Licence Agreement withAustralian Vintage Limited ("AVL") to label wine with the Gallo"BAREFOOT" trade mark on condition that AVL acquires packagingmaterials (including bottles, cartons, labels, caps, shrink film, pallets,stretch wrap and shipping cartons) from suppliers designated in writing byGallo.


1 8 FEB 2014

Page 1 of 19

kglov

Typewritten Text

N97247

3. Persons, or classes of persons, affected or likely to be affected by thenotified conduct

(a) Class or classes of persons to which the conduct relates:(Refer to direction 5)

Persons who supply packaging and labelling materials for wine.

(b) Number of those persons :

(i) At present time:

Gallo does not have a current agreement with any person supplyingpackaging and labelling materials in Australia.

(ii) Estimated within the next year:(Refer to direction 6)

Gallo anticipates that once it enters into arrangements for the bottling,labelling and distribution of its "BAREFOOT" brand wines inAustralia that it will have arrangements with one or more suppliers ofpackaging and labelling materials for wine in Australia.

(c) Where number of persons stated in item 3 (b) (i) is less than 50, their namesand addresses:

4. Public benefit claims

(a) Arguments in support of notification:(Refer to direction 7)

Provide details of those public benefits claimed to result or to be likely toresult from the proposed conduct including quantification of those benefitswhere possible.

Our client's strategy is to present a unified brand image for its"BAREFOOT" brand wine to the Australian public. Our client plans to sellwine produced in California by Gallo and wine produced in Australia byAVL under the "BAREFOOT" brand. Our client believes that unifiedbranding is a cost efficient and effective way of defining the brand andcreating customer awareness for the product. The strategy entails ensuringthat all elements of the brand presentation and product packaging andlabelling are consistent so as to create a single customer experienceinvolving consistent quality and appearance. By specifying the suppliers ofthe various elements of the packaging for its "BAREFOOT" brandedproducts, our client is better able to ensure that its strategy is properlyimplemented and that the products meet the strict specifications and qualitystandards also imposed by our client in relation to its "BAREFOOT"branded products, whether produced in California or Australia.

Page 2 of 19

(b) Facts and evidence relied upon in support of these claims:

Unified branding and the specification of the suppliers for essentialelements of products to be labelled with a trade mark is not uncommon.Further, it is arguable that if Section 51(3)(c) of the Competition andConsumer Act 2010 was still effective, the proposed requirement would beexcepted from Section 47(6) of that Act because "...it relates to the kinds,qualities or standards of goods bearing the mark that may be produced orsupplied."

5. Market definition

Provide a description of the market(s) in which the goods or servicesdescribed at 2 (a) are supplied or acquired and other affected marketsincluding: significant suppliers and acquirers; substitutes available for therelevant goods or services; any restriction on the supply or acquisition ofthe relevant goods or services (for example geographic or legal restrictions):(Refer to direction 8)

The provision of packaging and labelling materials for wine in Australia.

6. Public detriments

(a) Detriments to the public resulting or likely to result from the notification, inparticular the likely effect of the notified conduct on the prices of the goodsor services described at 2 (a) above and the prices of goods or services inother affected markets:


Gallo does not consider that the notified conduct will result in or is likely toresult in any public detriment.

(b) Facts and evidence relevant to these detriments:

The relevant markets are highly competitive. There are a large number ofsuppliers of packaging and labelling materials in Australia and a relativelylarge number of customers for those materials. Furthermore, the estimatedproduction of 24,000 cases of BAREFOOT brand wine when compared tototal wine sales in Australia in 2012 of some 60 million cases is aninsignificant proportion. [See *attached tables from Wine Biz and theAustralian Bureau of Statistics. The figure of 536.9 litres for total wine salesin 2012 is the equivalent of nearly 60M 9 litre cases.].

No potential suppliers of packaging materials will be foreclosed from themarket by reason of the proposed provision.

Page 3 of 19

7. Further information

(a) Name, postal address and contact telephone details of the person authorisedto provide additional information in relation to this notification:

Name: Rodney De Boos

Address: Davies Collison Cave Law, Level 15, 1 Nicholson Street,Melbourne VIC 3000, Australia

Telephone: (03) 9254 2888

Dated: 17 February, 2014

Signed by/on behalf of the applicant

(Signature)

Rodney De Boos(Full Name)

Davies Collison Cave Law

(Organisation)

Consultant

(Position in Organisation)

Page 4 of 19

DIRECTIONS

1. In lodging this form, applicants must include all information, including supportingevidence that they wish the Commission to take into account in assessing theirnotification.

Where there is insufficient space on this form to furnish the required information,the information is to be shown on separate sheets, numbered consecutively andsigned by or on behalf of the applicant.

2. If the notice is given by or on behalf of a corporation, the name of the corporationis to be inserted in item 1 (a), not the name of the person signing the notice, andthe notice is to be signed by a person authorised by the corporation to do so.

3. Describe that part of the business of the person giving the notice in the course ofthe which the conduct is engaged in.

4. If particulars of a condition or of a reason of the type referred to in section 47 ofthe Competition and Consumer Act 2010 have been reduced in whole or in part towriting, a copy of the writing is to be provided with the notice.

5. Describe the business or consumers likely to be affected by the conduct.

6. State an estimate of the highest number of persons with whom the entity givingthe notice is likely to deal in the course of engaging in the conduct at any timeduring the next year.

7. Provide details of those public benefits claimed to result or to be likely to resultfrom the proposed conduct including quantification of those benefits wherepossible.

8. Provide details of the market(s) likely to be affected by the notified conduct, inparticular having regard to goods or services that may be substitutes for the goodor service that is the subject matter of the notification.

9. Provide details of the detriments to the public which may result from the proposedconduct including quantification of those detriments where possible.

421542

Page 5 of 19


biz.com.au

AUSTRALASIA'SWINE fNOUSTRY PORTAL BY WtNETfTLES

Current Issue Rack

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Winciitiiker

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Viliculluri; . Vinlaee . llomcslic Sales [;xpons Wine Stocks . Wine I'rnduclion Wini: CuinnaniesWorld Cumoarisons Geeerapliic liidiciiliuns . Oreanisalions Intormalion Soiirces Sl^!]lce^ 2025

Australian Domestic Wine Sales

* Ai.istnilitin domL-siic btjs'crdt.'e wiiic s;iics and impons, bv ivpc. pomeslic sules ol'Au.stniliiii^tablc wine. bv containef type* Wine impons by couiiliy ol'oj-iy.m

Auslralian doincslic beverage wine sales and imports, by type

2008 2009 2010 2011 2012 ^ ^^ ^ ^, , % of totalM'F Ml" ML" Ml'.' ML" %cha"6e from 2U11 bevsaies'

Domestic sales ol'Aii.slralian wine

lurlilicd 17.2 16.3 16.3 17.5 15.7 -10.4 2.9

labli: 362 383.23V5.9392.3386.5-1.5 72.0

While 206.8212.4219.5219.2214.8-2.0 40.0

Kcd/rose 155.2170.7176.4173.1171.7-0.8 32.0

Sparkline 36.6 36.5 40.1 35.-1 35,1 -0.9 6.5

Olhcr 11.7 13.8 18.5 IS.6 17.1 -7.8 3.2

lulal .127.54.ty.ii.l70.ii.l63.7.15.1.3-2.U 84.6


Page 6 of 19


Wine imports

While Table <2L 27.9 32.0 32.3 34.1 40.9 20.1

Red Table <21. 7.9 8.8 8.9 10.3 12.4 19.4

Spiuklinj; 8.3 9.6 8.4 9.0 10.4 15.9

TOTAI. 53.3 62.2 64.3 67.0 82.5 23.2

I'oliilSules 479.7512.1)535.1530,7536.91.2

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Page 7 of 19

Winebiz Wine Industry Statistics Page 3 of 4

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I 2014 Wine Industry Directory] pre-purchase special price

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INDUSTR.YEC TORY

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[w]winetitlesContact U'i I Advertise With Us I Abopt Winebjz I Privacy | Policies) Career Opportunities | SjtsnBU)Copyright 8 ] 995-201 4 Winetilles Ply Ltd (Division of Provincial Press Group). All Rights Reserved.

http://www.winebiz.com.au/statistics/domestictablel2.asp 14/02/2014

Page 9 of 19

Page 1 of 10

8504.0 - Shipments of Wine and Brandy in Australia byAustralian Winemakers and Importers, Sep 2013Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 2^

Summary

Main Features

NOTES

FORTHCOMING ISSUES

ISSUE(QUARTER)December 2013March 2014

Release Date20 February 201422 May 2014

DATA NOTES

There have been recent changes to the Harmonised Tariff Item Statistical Codes(HTISC) as of 1 January 2012. As a result of these changes the amount of dataavailable for imports has decreased. For more information about the HTISCchanges affecting this publication see Chapter 22 - Beverages, spirits andvinegar in the Combined Australian Customs Tariff Nomenclature and StatisticalClassification available at the Australian Customs and Boarder Protective Service

website:http://www.customs.gov.au, or refer to Information paper: Changes toAHECC and Customs Tariff, 2012 (cat. no. 5368.0.55.017).

A significant change was observed in the reporting of bulk wine sales betweenthe June 2009 quarter and September 2009 quarter; however, the total impact isunquantifiable. Users should view quarterly movements during this period withcaution.

From the September quarter 2009, data relating to the export of Australianproduced wine is no longer included in this publication. Information regardingexport data can be obtained by contacting the National Information and ReferralService on 1300 135070.

Due to the seasonal nature of the data, quarterly movements are no longerincluded in commentary.

Further information on domestic sales and imports data is available bydownloading the time-series (original) spreadsheets:

« 1. Domestic Sales of Australian Wine, by container type


Page 10 of 19

Page 2 of 10

2. Domestic Sales of Australian Wine and Brandy by Winemakers3. Domestic Sales of Australian Fortified Wine by Winemakers4. Imports Cleared, by Wine Type5. Total Wine Imports (Excluding Brandy) Cleared, by Selected Countries

ROUNDING

Where figures have been rounded, discrepancies may occur between sums ofthe component items and totals.

INQUIRIES

For further information about these and related statistics, contact the NationalInformation and Referral Service on 1300 135 070.

SUMMARY COIVIMENTARY

AUSTRALIAN TABLE WINE SALES

Total White and Red/Rose Table Wine

The September 2013 quarter estimate for white table wine was 53.6 million litres,which was 3.4% higher than the September 2012 quarter estimate, The estimatefor red/rose table wine in the September 2013 quarter was 46.8 million litres,which was 5.1% lower than the September 2012 quarter estimate.

Table Wine, Glass Containers Less Than 2 Litres

The September 2013 quarter estimate for white table wine in glass containersless than 2 litres was 29.0 million litres, which was 6.3% higher than theSeptember 2012 quarter estimate. The September 2013 quarter estimate forred/rose table wine in glass containers less than 2 litres was 31.8 million litres,which was 2.9% lower than the September 2012 quarter estimate.

Table Wine, Soft Pack Containers

The September 2013 quarter estimate for white wine in soft pack containers was21.7 million litres, which was 8.7% higher than the September 2012 quarter satesestimate. The estimate of red/rose table wine in soft packs for the September2013 quarter was 11.3 million litres, which was 1.0% lower than the September2012 quarter estimate.

Table 1. DOMESTIC SALES OF AUSTRALIAN WINE, by wine containers

WHITE TABLE WINERED AND ROSE TABLE

WINE

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Page 3 of 10

Glass SoftTotal(a) Glass SoftTotal(a) Total Total Totalless packs less packs table otherthan than wine wine wine

2 litres 2 litres

'000 L TOOL '000 L '000 L TOOL '000 L '000 L WO L.ooo

2010-11

2011-12

2012-13


2013

463108253 98230219217 105484 49282173074 392291 71434 ^

457109541 93440215533 108786 45994173209 388742 68558 ^

453113555 79356209901 119023 40253174877 384777 68320 ^

11727243 19969 51803 32748 11365 49279 101082 16024 .jgg

12232339 20212 55798 31175 9715 43784 99581 22496 g^

102March Quarter 28141 18359 52269 23719 8340 35748 88017 14157 ^

111June Quarter 25832 20816 50031 31381 10833 46066 96097 15643 ^6SeptemberQuarter

11628967 21697 53579 31787 11254 46762 100341 16005 345

(a) Components do not add to total. The difference between components and totals is wine in'Other containers' (see Glossary).

Table 2. DOMESTIC SALES OF WINE AND BRANDY BY WINEMAKERS

Table Fortified Sparkling- Sparkling-Carbonated Other BrandyBottle Bulk

fermentationfermentation

2010-112011-122012-132012


2013March QuarterJune Quarter

SeptemberQuarter

'000 L

392291388 742384 777

101 082

99581

8801796097

100341

'000 L

175021574814719

4238

3958

28273696

3899

(a)'000 L

196651836917688

3884

6836

36543314

4261

(a)TOOL

157111733718153

4041

6407

33694336

3650

wine (b)products

.OOOL '000 L '000 Lal

136031239912395

2683

3884

33792449

495347105361

1 178

1 409

9271 847

3038 1157

416388364

96

125

7173

94

(a) Spritzig table wines are included in table wine(b) Quantities on which excise duty was paid

Table 3. DOMESTIC SALES OF FORTIFIED WINE BY WINEMAKERS

Cream, Vintage, ruby Othercrusted/crusting and tawny fortified in

fortified in glass <2Land solera glass <2Lfortified in

Soft Otherpacks containers

Totalfortified

wine

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glass <2L'000 L '000 L '000 L TOOL

2010-112011-122012-132012


2013MarchQuarterJuneQuarter

SeptemberQuarter

1 657513429

np

np

np

np

np

444332993281

938

1 027

523

793

853

674377398

119

130

50

99

80

683869136531

np

np

np

np

np

'000 L

389336473081

930

857

621

673

780

Page 4 of 10

'000 L

175021574814719

4238

3958

2827

3696

3899

np not available for publication but included in totals where applicable, unless otherwise indicated

IMPORTS

Wine Imports (Excluding Brandy) Cleared for Home Consumption

In the September 2013 quarter, 20.6 million litres of wine were imported, valuedat $158.9 million. This represents a decrease of 9.0% in quantity and an increaseof 15.4% in value from the September 2012 quarter estimate. The average valueof wine cleared for home consumption in the September 2013 quarter was $7.70per litre, up from $6.25 in the September 2012 quarter.

Table 4. IMPORTS CLEARED, quantity by wine type

2010-112011-122012-132012



Whitetable wine

<2L(a).OOOL

340814092840112

10325

12993

81118682

9879

Red/Rosetable wine

<2L'000 L

103461234115352

3975

4685

32643428

4002

Sparkling

'000 L

89791040212287

2615

4586

27082378

2994


TOOL '000 Lal

670088251084 331

22679

28456

1671316484

20631


Table 5. IMPORTS CLEARED, customs value by wine type

465469470

122

197

8467

75

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Page 5 of 10

2010-112011-122012-132012



Whitetable wine

<2L(a)yooo

227 308252 321259 886

64127

85815

5168158262

67775

Red/Rosetable wine

<2L$.000

7792491 503

106613

29254

28977

1958328800

35093

Sparkling

$'000

134 502144 450165 906

34102

72611

3062528567

42420


$'000 $'000

470781 15861529838 16443576672 12973

141842 3666

202 782 4 952

110033122015

23801 975

158922 2898


Table 6. TOTAL WINE IMPORTS CLEARED, by selected countries(a)

New ItalyPortugalSpainFranceGermany Chile South Total Total allZealand Africa othercountries

countries

2010-112011-122012-132012


2013MarchQuarterJune QuarterSeptemberQuarter

454456688546547 17051 0758885

14 1941 931

173822886

95492 190

9 9501 878

131951 749

2010-11

2011-12

2012-13


2013March

QuarterJune Quarter

262 353

299 274

302251

3218034

67742

041

77 463 9 248

100686 12786

10054

65 903 9 953

58199

Quantity ('000 L)

637 1 303 8 638 587 7515161 66711 147 5883763658228213991 908 989

120 564 3416

200 710 4927

164 232

257 351

162 567 2888 229 265

176 441 2760 258 141

155 699 3655 170 180

Value (Customs Value) ($'000)

24187781 \w 31813203

23188728 ^ 327645283217 6\6 ^2° 52223945

473306944595 917 997

844349176923 14031241

889 2 664 32 707

1 011229236207

1 4451134

1 457 573

1 430 1 531 67 0091 135 1 869 825113 447 2 095 84 332

1 522

1 178

535 22 679

565 28 456

411 452 16713

336 543 16484

247 582 20 631

4394 9065 470781

3 125 11 535 529839

5425 12625 576672

2015 3066 141842

2029 3380 202782

468 2473 110033

913 3706 122015

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Page 6 of 10

^Sber 82885 3^ S21 3 597 55 625 851 G42 746 3505 158922(a) Total wine (excluding brandy) includes grape wine and grape wine product

About this Release

Presents information on the quantity of Australian produced wine (classified bytype - fortified, table, sparkling, etc) and brandy sales. Sales of table wine are'classified by container type for both white and red/rose table wine. Sales offortified wine are further classified by container type, with glass containers lessthan 2 litres split into cream, crusted/crusting and solera fortified; vintage, rubyand tawny fortified; and other. Includes original series for total domestic winesales; total white and red/rose table wine; white and red/rose table wine in glasscontainers less than 2 litres; and soft pack white and red/rose table wine. Alsoincludes imports cleared for home consumption.

Explanatory Notes

Explanatory Notes

EXPLANATORY NOTES

INTRODUCTION

1 The information shown in this publication for the domestic sales of Australianproduced wine is obtained directly from winemakers by means of a mailcollection. The brandy sales figures shown represent quantities on which exciseduty was paid, i.e. the quantity of brandy released for sale in litres of alcohol.Statistics relating to import clearances are based on information provided to theAustralian Customs Service by importers and their agents.

SCOPE AND COVERAGE

2 The information on domestic sales of Australian produced wine is obtainedfrom 120 winemaking enterprises with sales of 250,000 litres or more in either ofthe previous two financial years. These account for approximately 97% of totalwine sales. All saies data are collected on an Australia-wide basis only and statefigures are therefore not available.

IMPORTS

3 Figures relating to international trade in wine and brandy provide a basis forassessing the overall wine market. ABS procedures are designed to ensure thatsufficient editing is undertaken to guarantee the quality and integrity of tradestatistics to the ten-digit Harmonized Tariff Item Statistical Code level.

4 Imports cleared for home consumption comprise those goods entered for home

http://www.abs.gov.aii/ausstats/[email protected]/PrintAllPreparePage? 14/02/2014

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Page 7 of 10

consumption, together with goods cleared from Customs warehouses.

5 In order to retain stability in the time-series of data, the selection of countriesfor which imports data has been presented has been based upon the level ofannual imports from the previous financial year.

6 The value of imports is the Australian customs value. Goods are valued at thepoint of containerisation (in most cases) or the port of shipment, or at thecustoms frontier of the exporting country, whichever comes first.

7 The definition of Grape Wine has been taken from the Combined AustralianCustoms Tariff Nomenclature and Statistical Classification effective from January1, 2012, produced by the Australian Customs and Border Protection Service. Asper Chapter 22 - Beverages, spirits and vinegar - Additional Note 3 "grape wine"is a beverage that:(a) has an alcoholic strength by volume exceeding 1.15% vol but not exceeding22% vol; and(b) is the product of the complete or partial fermentation of fresh grapes orproducts derived solely from fresh grapes.A beverage does not cease to be the product of the complete or partialfermentation of fresh grapes or products derived solely from fresh grapes merelybecause grape spirit, brandy, or both grape spirit and brandy, have been addedto it.

8 The definition of Grape Wine Product has been taken from the CombinedAustralian Customs Tariff Nomenclature and Statistical Classification effective

from January 1, 2012, produced by the Australian Customs and BorderProtection Service. As per Chapter 22 - Beverages, spirits and vinegar -Additional Note 4 "grape wine product" is a beverage that:(a) has not had added to it, at any time, the flavour of any alcoholic beverage(other than wine) (whether the flavour is natural or artificial); and(b) if the beverage has had added to it ethyl alcohol used in preparing vegetableextracts, as mentioned in subparagraph (b)(ii) of Additional Note 4B - complieswith the following requirements:(i) the ethyl alcohol must only be used to extract flavours from vegetable matter'(ii) the ethyl alcohol must be essential to the extraction process;(iii) the ethyl alcohol must not add more than one percentage point to thealcoholic strength by volume of the beverage.

9 For detailed information on the Harmonised Tariff Item Statistical Codes andClassifications refer to http://www.customs.gov.au

ACKNOWLEDGMENT

10 ABS publications draw extensively on information provided freely byindividuals, businesses, governments and other organisations. Their continuedcooperation is very much appreciated: without it, the wide range of statisticspublished by the ABS would not be available. Information received by the ABS istreated in strict confidence as required by the Census and Statistics Act 1905.

RELATED PUBLICATIONS

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11 Another ABS publication which may be of interest is the Australian Wine andGrape Industry (cat. no. 1329.0). This is a statistical compendium of Australia'swine and grape industries containing information on: area of vines and productionof grapes by state; wine production and grapes crushed by state; structure of thewine manufacturing industries; stocks of wine held by winemakers at 30 June;domestic wine sales; exports and imports of wine and consumption of wine.

12 Current publications and other products by the ABS are listed on the ABS website. The ABS also issues a daily Release Advice on the web site which detailsproducts to be released in the week ahead.

Glossary

GLOSSARY

Carbonated wine

Wine which has dissolved carbon dioxide and the carbon dioxide is added

artificially to the wine.

Cream, crusted/crusting and solera fortified

This item was known as Sherry previous to the release of September 2011 data.The name change is the result of a change to the Wine Australia Corporation Act1980.

Domestic sales

All sales of Australian produced wine by winemakers within the scope of thesurvey whether they be wholesale or retail sales. Excluded are inter-winery sales,bulk sales to other wineries, sales to ships' stores and the volume of importedwine blended with Australian wine and sold domestically.

Fortified wine

Wine to which grape spirit, brandy or both has been added, thereby addingalcoholic strength and precluding further fermentation. Fortified wine mustcontain at least 150 millilitres/litre and not more than 200 millilitres/litre ofethanol

at 20° Centigrade.

Grape spirit

Spirit obtained from the distillation of wine or by-products ofwinemaking or thefermented liquor of a mash of dried grapes and contains methanol in a proportionnot exceeding 3 grams per litre at 20° Centigrade of the ethanol content.

Grape wine


Grape wine product


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Imports cleared for home consumption

Imported goods brought into the country for consumption or further processingbut excluding goods imported with the reasonable expectation of re-export withina limited time,

Other containers

All other wine packaging except glass containers less than 2 litres and softpacks. Included in this category are glass containers 2 litres or more, cans andbulk wine in tankers or other such containers.

Other wine products

Products such as vermouth, flavoured wine, cocktails, marsala, aperitif and tonicwines. De-alcoholised, low and reduced alcohol wines are also included.

Soft packs

A container type including all collapsible packs whether plastic or of othermaterial.

Sparkling

A product consisting of wine that by complete or partial fermentation of containedsugars has become surcharged with carbon dioxide.

Spritzig

A product consisting of wine that by fermentation contains a trace of carbondioxide. Spritzig wines contain significantly lower levels of carbon dioxide ascompared to sparkling wines.

Table wine

Table wine excludes; fortified, sparkling, brandy and other wine products.

Vintage, ruby and tawny fortified

This item was known as Port previous to the release of September 2011 data.The name change is the result of a change to the Wine Australia Corporation Act1980.

Abbreviations

ABBREVIATIONSABS Australian Bureau of Statisticscat. no. Catalogue numberHTISC Harmonized Tariff Item Statistical Classification

lillp://\.vww.abs.gov.au/ausstats/[email protected]/PrintAIIPreparePage? 14/02/2014

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Documents

We act for E&J GaNo Winery. 2. cheque in the amount of $200.00. · Australian wine market. In Year 1, the total sales of "BAREFOOT" brand. wine (including wine directly imported from