Australian wine exports slumped by more than 100 million litres, or 13%, in the past financial year.
Figures from the Australian Wine and Brandy Corporation show the total volume of sales dropped from about 806 million litres to almost 704 million.
It represents a drop in export value of about $A460 million.
The ABC reports the decline is blamed on a smaller harvest, the stronger Australian dollar and a sluggish economy in the United States, where sales fell by almost 25%.
The United Kingdom is still Australia's top wine export destination despite a nine per cent drop in sales.
Sales are increasing to Denmark, The Netherlands, China and Hong Kong.