Wines of Western Australia Annual Report 2022-23

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

2022 - 23 ANNUAL REPORT

WINE INDUSTRY ASSOCIATION OF WA (INC.) 28 November 2023

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

Contents Introduction

3

2022 - 23 Strategic Priorities

4

Independent Chair’s Report

5

Treasurer’s Report

7

Chief Executive Officer’s Report

8

Membership and APC Collection Report

11

Industry Production Report

12

Member Benefits

13

RD&E Report

14

Market Development

16

2022 - 23 Board of Directors Report

17

Appendices 2022 - 23 APC Budget 2022 - 23 Audited Financial Report 2022-23 APC State Production Data 2021 - 26 WA Wine RD&E Strategic Priorities Plan 2014 – 24 WA Wine Industry Strategic Plan Summary 2022 - 23 Wine Australia Regional Program Report 2022 - 23 WA Wines to the World Program Reports

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Introduction The Wine industry Association of Western Australia (Inc.) (Wines of Western Australia), established in 1987, is the State’s representative organisation for wine producers.

It is our mission to provide a unified, strategically influential voice that creates opportunities for the fine wine regions and producers of Western Australia.

Industry Overview

Wines of Western Australia Charter The strategic plan mandates that Wines of Western Australia should, “provide stewardship of the industry” to create opportunities for producers and the fine wine regions of WA.

From an operational point of view, this service is provided through: •

Advocacy and Representation to ensure government, at all levels, understands our industry – the benefits we provide to the state economy, particularly in regional WA and the assistance and resourcing we require to further develop our industry. We work to ensure our social license to operate is retained and strengthened. We continue to build strong partnerships with tourism, developing complimentary market development programs. We work raise the stature of our industry so that West Australians are truly proud of our wine industry.

•

Administration of technical and marketing program funding to provide Regional Associations and producers opportunities to improve business practises and market access.

•

Communication to ensure wine industry participants are aware of the issues that affect their businesses, enabling them to make informed decisions on the direction of the industry and their individual businesses.

Wine is a major value adding industry with significant regional economic and employment benefits. In 2022 - 23 the total value of the WA wine industry was estimated at over $900 million with a farm gate grape value of $97 million. Regarding market channels, 48% of total value was sold in WA, 44% in eastern Australia and 8% in exports.

The Western Australian wine industry produces about 40 million litres of wine annually representing 4% of the volume of Australia’s wine production but 8.5% of the value.

WA Wine Industry Vision As outlined in the WA Wine industry Strategic Plan 2014 – 24, WA producers have a shared vision of: “a Western Australian wine industry that grows sustainably and profitably, built on the reputation of its great fine wine regions” The pathway to this vision is a unified and strategical influential industry focused on regional fine wines of provenance and authenticity. Producers and Regional Associations are the custodians of their Regional brand.

We look forward to working with Producers and Regional Associations in 2023 – 24 on developing a sustainable and profitable future for the WA wine industry.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

Strategic Priorities 2022 - 23

Priority

INDUSTRY STRUCTURE AND DEVELOPMENT Build a culture of collaboration with an expectation of success

MARKET DEVELOPMENT Strategic regional collaboration driven by energised producers

SUSTAINABILTY, INNOVATION, RDE&A AND BIOSECURITY All of industry best practise across the value chain

ADVOCACY AND REPRESENTATION Lean, proactive, unified and Influential

Priority Issues

10 Year Industry Plan Support industry development through partnerships and collaboration.

Activities and Progress

Approved funding, process and consultant for 10 year industry plan 2024 - 34 Managed grants on behalf of industry.

Provide administrative and governance resourcing for partnerships and collaborative projects.

Managed/facilitated Committees and working groups.

Manage Export Market Development funding and resources in collaboration with RAs and producers

Managed compliance and administration of Export Growth Partnership including Industry Steering Committee.

Build partnerships (government, value chain, allied sectors) to support Regional brand development and increase national and international consumer demand

Worked with Wine Australia, Austrade/TradeStart, Department of Primary Industries, Tourism WA, Development Commissions, local government and allied sectors to implement EGP

Facilitated RDE partnership discussion between industry, Wine Australia and DPIRD

Terms of Agreement signed to progress partnership

Smoke taint

Supported Regions and producers to manage prescribed burns programs. Built stronger relationships with DBCA and OBRM

Provide administrative and compliance support for Wine Australia funded Regional Program

In partnership with Department of Primary Industries, Technical Committee implemented programs to address identified challenges through the Wine Australia Regional Program

Ensure industry biosecurity regulations protect assets and facilitate innovation

Supported DPIRD and industry in two biosecurity incidents: Red Blotch Virus detection and Queensland Fruit Fly incursion in Swan Valley

Ensure taxation regime offers best operational environment for WA fine wine producers.

Continued to share industry ratified position for further taxation reform with other regions/states.

Ensure legislation and regulation offers best operational environment for WA fine wine producers.

Ensure an enduring social licence for WA wine producers.

Managed relationships with state government agencies, Wine Australia, Australian Grape and Wine

Advocated for further amendments to Liquor Control Act; support national advocacy on Container Deposit Scheme proposals in all states, including WA Worked with Australian Grape and Wine and other state associations to ensure aligned and strong communications/advocacy.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

Independent Chair’s Report As incoming Independent Chair from the second half of 2023, and from outside the wine industry, I am on a steep learning curve about the challenges facing our members. So I offer the following observations about the 2022-23 financial year as an avid consumer of fine wine. From my perspective, Western Australia continues to do what it does best: producing some of the best examples of varietal wines in the world. We are truly fortunate to live in a place with climate and terroir that affords our industry the ability to grow grapes and make fine wines that are fast becoming the envy of the world.

Commercially and practically, most winemakers manage a long value chain. It starts with growing grapes and ends with selling a value-added product, often directly to the end consumer (DTC). In the middle of this, fine wine is transformed in-region through advanced manufacturing processes. While undoubtedly there is an art to it, and we can be proud of our artisans, we shouldn’t undersell the fact that wine production is a regionally based, advanced manufacturing process. Secondly, selling fine wine is complex requiring sophisticated story-telling and adept management of multiple relationships. To do this well requires a clarity of focus on each part of the value chain. Like most things done well, it appears to be achieved effortlessly. Like that effortless goal or catch in sport, it belies the thought, care and persistent hard work that preceded such achievements.

In the wine industry, in any year, the vagaries of growing grapes involve agricultural risks and uncertainty most would be unwilling to accept as a part of how they earn a living. In a year like FY 2022-23, those uncertainties were magnified by macro-economic factors still rolling along post COVID. Add to that a new government federally, a new Premier at state level and geo-political factors of significance, the challenges seem to be occurring across the entire value chain.

I see the role of Wines of Western Australia being to minimise the impact of such factors with a unified, strategically influential voice. Obviously, none of us (Wines of Western Australia included) can have an influence on many of the above. However, having a strategically influential voice is important. We work with Western Australian producers and regions to determine where to focus our limited resources. This

is determined through an industry agreed strategic plan that is reviewed regularly by industry. Our aim is to remove as many of the administrative and regulatory burdens as possible coming from external factors. We also aim to create opportunities for the fine wine producers and regions of Western Australia. Our activities throughout 2022-23 in support of these aims are outlined in this annual report. Some highlights of our endeavours include: -

Collaborative work with regions, other state associations and Australian Grape and Wine to continually build the strategically influential voice that is required at all levels to advocate the value of our industry in regional economies. If we are to maintain our social licence to operate, we must have the means to communicate our value as an industry and our sense of social responsibility. This is built over an extended and consistent process of engagement with governments and the broader community.

We won’t win every discussion, but continually building respect and credibility is essential.

-

Agreeing and establishing the framework to undertake a review of our 10-year industry plan. While the implementation of this process is currently well underway, the planning and allocation of resources was completed in 2022-23. A key component of this plan is aligning it with the national One Sector Plan to ensure Western Australia is embedded in that plan’s priorities and framework.

-

Providing governance and administration for the Wine Export Growth Program (EGP), a partnership between the Western Australian wine industry and the Department of Primary Industries and Regional Development (DPIRD). In one of the toughest export trading periods ever, the EGP has supported exporting producers and regions to build greater awareness of the fine wine regions of Western Australia in our key export markets. There is a full summary of the EGP in the appendices of this report.

-

Hosting an End of Vintage celebration in April, bringing together our government and value chain partners for the first time since COVID related restrictions were lifted. It took a year to get there but it was worth the wait.

An important part of the event was the launch of “The geology, soils and climate of Western Australia’s wine regions”, a publication developed by DPIRD. The publication brings together a significant body 5|Page

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 of work undertaken by DPIRD’s research team over an extended period of time. To summarise the outputs, the publication states that ‘the wine regions of south-west Western Australia are unique and special in many ways and believe that the combination of characteristics contribute to the southwest’s reputation for producing the grapes that make fine wines.’ The publication is available as an e-book here.

My thanks go to our hard-working CEO, Larry Jorgensen. Larry has made my start in this new role a smooth one. He is highly respected in the industry, in government and beyond, a testimony not only to his deep and longstanding knowledge but also to his calm and thoughtful approach.

I also wish to acknowledge the work of Trevor Whittington (the outgoing Independent Chair of Wines of Western Australia). On behalf of the Board I thank Trevor for his contribution and long service.

So, to conclude, we are truly fortunate to enjoy a unique terroir and a hard-working industry. The wine industry is worthy of celebration, and we recently did just that at the WA Good Food Guide Wine Awards, when its ‘breadth, diversity, talent and the downright deliciousness’ of its wines were acknowledged. I am optimistic as there exists a promising foundation for “a Western Australian wine industry that grows sustainably and profitably, built on the reputation of its great fine wine regions”.

I look forward to contributing to this growth through my role as Independent Chair of Wines of Western Australia.

Michael Hollingdale Independent Chair Wines of Western Australia

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Treasurer’s Report Operating in an unpredictable economic and political environment presents challenges, however Wines of Western Australia through the 2022.2023FY has managed to navigate the uncertain environment to successfully deliver on its core services of advocacy and strong representation. Concurrently Wines of Western Australia continues to oversee the Export Growth Partnership (the EGP – known as the WA Wines to the World Program) which continues to achieve pleasing results on its objectives.

The financials of both Wines of Western Australia and the EGP are reported on at each Wines of Western Australia Board meeting, with the reporting identifying any risk or financial implications that need to be addressed.

Overview The summary of the Association’s income and expenditure is as follows:

Overall operating expenditure increased by $48,000 from $247,000 in the prior year to $295,000 in the current year. The main contributors to this result were increases of $12,000 on employee benefits, $20,000 on the strategic plan and a $6000 increase to administration expenses associated with compliance reporting on various grants.

As a result, the net operating surplus of the association decreased from $62,000 to $11,000.

Grant activities Grant activities comprise income and expenditures that relate specifically to various grant programs and are therefore excluded from Operating activities.

Grant activity income is directly attributed to grant activity expenditure therefore producing a net grant income result of $nil, which mirrored the result of the prior year.

Deficit/Surplus for the year The surplus for the year amounted to $11,000, a decrease of $51,000 from the prior year result of $62,000 and the year-ending cash and equity positions remained strong at $784,000 and $178,000 respectively.

As I am stepping down from my position as Treasurer, I would like to thank Larry Jorgensen, Trevor Whittington, Michael Hollingdale and the rest of the Board for providing me with opportunity to assume the role. During my tenure there have been a number of interesting and challenging financial management issues to deal with, but it was made a lot easier having an informative team to lean on. It has been very interesting to learn and see the achievements that Wines of Western Australia and the EGP project, in particular, is delivering for the WA Wine Industry.

Melanie Tolich

Operating activities Revenue from operating activities totalled $306,000 for the year compared with $309,000 in the prior year, a decrease of $3,000. Most of this decrease related to reduced revenue from Wine Education activities. APC Producer Grant Funding, rose slightly from $262,000 to $266,000. In addition, the Association earned $24,000 from the administration of various grants during the year. Due to increased financial reporting expectations aligned with the EGP reporting the administration fee relating to the EGP project will increase by $10,000 in FY23.24.

Treasurer Wines of Western Australia

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

CEO Report As outlined in Strategic Priorities for 2022 - 23 our focus for the year prioritised: •

•

Assisting Regions to implement strategic plans and secure funding and resources to implement these.

Securing funding and resources to implement programs for international and domestic market development including wine tourism.

•

Ensuring legislation and regulation offers the best operational environment for WA fine wine producers and a secure, enduring social licence for WA wine producers.

•

Addressing RD&E priorities through the WA wine technical committee, leveraging federal and state government agencies funding and resources

in WA. •

Representation In 2022 - 23, Wines of Western Australia engaged the following government and industry bodies on the following issues: •

Minister for Agriculture and the Department of Primary Industries and Regional Development and Minister for Tourism and Tourism WA, advocating for increased alignment of funding for market development, wine tourism and industry development.

•

Department of Racing Gaming and Liquor to maintain direct communication links on issues affecting WA wine producers.

•

Maintained strong links with Australian Grape and Wine attending (AGW) State Association meetings, Small Winemaker Committee meetings and providing WA input to national advocacy processes.

•

Maintained strong links with Wine Australia aligning marketing and RDE resources to Western Australia’s strategic priorities.

•

Hosted an Industry Sundowner in April 2022, bringing together industry, government and value chain partners for the first time since COVID restrictions were lifted.

The key activities to achieve these aims were, Advocacy, Representation, Administration and Communication Advocacy In 2022 - 23, Wines of Western Australia advocated for the industry on the following issues: •

•

•

•

Continued engagement with the state government and Wine Australia to align Export Growth Partnership (EGP) resources to support export market development for WA wine producers. In 2022 - 23, a total of $694,000 of EGP funding and $130,800 of federal/state funding was leveraged with $647,908 WA producers’ funding. In total, an investment of $1.47 million to build strong and diverse export markets.

Submitted a response to the WA State Government’s proposal to include wine bottles in the state Container Deposit Scheme (CDS) and worked with AGW and other state associations to oppose implementation of CDS in other states.

Worked with all Regional Associations and the Department of Biodiversity Conservation and Attractions establishing late season burn-off protocols to ensure late harvested fruit was not affected by prescribed burning.

Worked with DPIRD and AGW to manage confirmation of Grape Vine Red Blotch Virus

Worked with DPIRD to manage detection of Queensland Fruit Fly in the Perth metropolitan area.

Administration In 2022 - 23, Wines of Western Australia administered the following projects on behalf of the WA wine industry: •

Worked with APC administration and Wine Producers’ Committee to refine collection process for FFS collection on the 2022 vintage.

•

Project management/compliance of the EGP with State Government, Wine Australia, Austrade and Regional Development Commissions.

•

Administration of the Wine Australia Regional Program in partnership with DPIRD. Page | 8

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 •

Management of the WA Wine Technical Committee

•

Negotiated terms for the WA wine industry service agreement with Australia Post

•

Negotiated terms for the WA wine industry co-membership arrangement with CCIWA

Communication In 2022 - 23, we continued our regular communications strategy including: •

A weekly e-newsletter which provides nontime sensitive information.

•

Regular updates

•

For urgent, critical information, members receive an email, text message or phone call directly from me

•

Eye to eye on a regular basis to share a coffee or a glass wine, depending on the time of day, discussing what you feel are the key issues affecting your business and region

Maintain www.winewa.asn.au as a highly ranked landing site for consumers and tourists and a resource for WA wine producers via assets listed below: •

the localista searchable database was linked directly to the Australian Tourism Data Warehouse which feeds into Australia.com, Tourism Australia’s consumer facing platform

•

the Wine Adventurer guide to the fine wine regions of WA

•

the Wine Exportal, a one stop information shop for WA producers

Human Resources Wines of Western Australia has two employees and also uses contracted professional services and formalised working groups, to deliver value to WA wine producers through the APC fee for service model.

Employees are: Larry Jorgensen – Chief Executive Officer Caroline Taylor – Administration and Communications Officer

In 2022-23 we used the following contracted service providers: •

Trevor Whittington as Independent Chair

•

Hydra Consulting as Project Manager of the EGP

•

Melanie Tolich as Treasurer

•

Debbie Bell as bookkeeper/financial administration

We currently have the following Industry Working Groups: •

Wines of Western Australia Technical Committee which provides oversight of the Wine Australia Regional Program other RDE&A activities and biosecurity issues for WA producers

•

Liquor Licence Act Working Group which developed a submission to the Agency on further reforms to the Act to support WA wine producers

•

RDE Working Group which is developing a business case for further support and resourcing from Wine Australia and DPIRD to address RDE strategic priorities

•

Export Growth Partnership Industry Steering Committee. Comprised of the Wines of Western Australia CEO, industry representatives and DPIRD, this working oversees and approves the EGP program developed by Hydra Consulting

•

Financial Review Committee (FRC) Comprised of the Wines of Western Australia Executive Committee and Board members, the FRC provides oversight of Wines of Western Australia’ grant funding financial commitments

National Representation It is important that WA continues to provide energised and capable people at a national representative level to ensure our state issues are understood and addressed. In 2022 - 23, Wines of Western Australia facilitated the following input at national level.

Australian Grape and Wine Western Australian Board representatives were:

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

• • •

Penny Dickeson, Cape Mentelle (Small Winery Membership Committee) Retired February 2023 Cameron Rhodes, Fermoy Estate (Small Winery Membership Committee) Appointed June 2023 Larry Jorgensen Wines of Western Australia (Small Winery Membership Committee)

Wine Australia Cath Oates continued as a Board member of Wine Australia in 2022 - 23 and is its Deputy Chair.

In addition to these formalised positions, Wines of Western Australia has continued to strengthen our relationships with other State and Regional organisations. We communicate and collaborate with our inter-state partners to advocate collectively where common interests exist.

In closing, I wish to acknowledge the contribution and support of the following people: •

Regional Association Committees who have provided input to the development of policies and programs to support industry development.

•

Producers who have provided input to the development of policies and programs to support industry development.

•

The Wines of Western Australia Technical Committee, and specifically, Chair Lee Hasselgrove, Jim Campbell-Clause, David Botting, Steve Partridge Richard Fennessy and Andrew Taylor.

•

The Wines of Western Australia Board of Directors, and specifically, Independent Chair, Trevor Whittington who completed his term this financial year.

•

Treasurer Mel Tolich who took over from David Bowyer in January 2023. She has further refined reporting protocols for the EGP and has provided valuable industry organisation insights from her experience with WA Farmers. We note her resignation from the role subsequent to end of financial year and thank her for her contribution to Wines of Western Australia.

Larry Jorgensen Chief Executive Officer Wines of Western Australia November 28, 2023 Page | 10

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

APC Collection Report The WA wine industry again utilised the fee for service APC funding model for the 2022 - 23 financial year. The fees were affected against the 2022 vintage. A fee per tonne was collected from the owner of the fruit at crush and distributed to Wines of Western Australia to provide state-based services and to Regional Associations based on the GI origin of the fruit to provide regionally based services.

The aggregated budgeted revenue from APC collections for 2022 - 23 was $740,000 based on a projected 56,000 tonne vintage. The final reported amounts at 30 June 2021 were $680,140 and 53,000 tonnes. This represents 91% of budgeted revenue and 96% of projected volume. Wines of Western Australia APC income was budgeted to be $293,700 with $266,000 collected. See APC Budget and the audited financial report in appendices.

Margaret River produces 58% of state volume and Great Southern 23%. The remaining 19% is comprised of Swan Valley (7%), Southern Forests (5%), Geographe (5%) Blackwood Valley (2%), Perth Hills (1%) and Peel (.1%).

In total, 310 producers provided return forms for payment with a further 75 lodging “nil” returns. Nil returns are attributable to the impact of smoke-taint events, weather events and other factors which impact vineyards, annual production decisions to balance inventory and the variety of business models that exist. The number of producers skews towards under 150 tonnes at 81%. The share of aggregated production skews toward over 500 tonnes at 65%.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Industry Production Data A significant benefit arising from the APC collection is resulting production data. Information collected via the process includes GI origin of fruit by variety. This provides an accurate snapshot of production capacity and will be invaluable to producers in determining how to structure their business to best meet market demand. State level summary data follows.

Average production over the five-year period from 2017 – 21 is 56,000, noting 2019 and 2020 vintages were weather affected resulting in sub 50,000 tonne vintages. The 2017 vintage can be considered an outlier also at 69,000 tonnes.

Vineyard area of 11,700 hectares was confirmed via satellite scan and subsequent ground truthing in 2016. This will be updated in 2024 Production is skewed towards white production at 56% of production.

In 2022, the top five white varieties in order of volume were, Sauvignon Blanc, Chardonnay, Semillon, Chenin Blanc and Riesling.

The top five red varieties were Cabernet Sauvignon, Shiraz, Merlot, Pinot Noir and Malbec, noting Tempranillo and Grenache are similar in volume to Malbec.

2022 red varieties Grenache 428

Shiraz 10035

Cabernet Sauvignon 8652

The full report by region is available in the appendices.

Merlot 2003

Pinot Noir 911

Malbec 557

2022 white varieties Semillom

Verdelho Chardo…

Chenin Blanc Sauvignon Blanc

Riesling

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Member Benefits Advocacy and support The primary role of Wines of Western Australia is to represent and advocate for the interests of WA wine producers.

Access to Export Growth Partnership All FFS paying producers can participate in EGP programs.

Weekly Industry Update Wines of Western Australia provides access to essential information for WA wine producers through weekly emails.

Australia Post Membership entitles access to the Wines of Western Australia alliance with Australia Post whereby members can take advantage of specialised wine handling and delivery services at significantly reduced prices in both the domestic and overseas markets.

Chamber of Commerce and Industry, WA (CCIWA) Membership permits access to the dual Wines of Western Australia / CCI membership agreement.

This provides members with access to the full range of CCI member benefits including: advice and assistance on industrial relations, workplace agreements, worker’s compensation, occupational safety and health, industry training, trade, environmental compliance and more.

Localista listing on Wines of Western Australia website All FFS paying producers are listed for free on the Wines of Western Australia website Localista searchable data base. The list is searchable by a number of criteria and is a useful online tool for wine tourists visiting the fine wine regions of WA. Affiliate Membership Benefits Affiliate members receive the following benefits: •

• •

Receive regular issues of the Wines of Western Australia E-newsletter and keeping up to date with all the latest wine industry news Access and notification to networking events and workshops with Wines of Western Australia wine producers and growers Access to WA wine industry Australia Post parcel rates,

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Research Development and Extension RD&E 5 Year Strategic Plan In July 2021, the Wines of Western Australia facilitated a strategic planning session to identify the RD&E strategic priorities over the next 5 years. The 2021 – 26 WA Wine industry RD&E Strategic Priorities Plan (RDESP) is included in the appendices and is available on the Wines of Western Australia website in the Technical Section.

The process included a one-day workshop attended

by WA producers, regions, DPIRD, Wine Australia and other stakeholders.

The RDESP is the guiding document in determining what issues are addressed by industry through research and extension in partnership with state and federal government agencies. The priorities identified were: 1. Understanding the intricacies of provenance and the fine wine regions of WA

Committee Members for 2022 - 23 were: Lee Hasselgrove – Mure Viticulture (Chair) Jim Campbell-Clause – AHA Viticulture Dave Botting – Burch Family Wines Con Simos – AWRI Andrew Taylor - DPIRD Jeremy Galbreath - Curtin University Richard Fennessy – DPIRD Michael Considine – UWA Larry Jorgensen – WoWA (Secretariat) DPIRD Wine R&D activities Understanding the intricacies of provenance in Western Australian wine regions • •

•

2. Rapid access to new genetic plant material 3. Supporting WA producers to adopt Sustainable Winegrowing Australia (SWA)

•

4. Supporting WA producers to adopt on-farm biosecurity practises 5. Declining vineyard yields 6. Low adoption rate of RDE in WA A summary of outputs and strategic priorities is included in the appendices.

• •

• •

Technical Committee The Wines of Western Australia Technical Committee oversees the development and implementation of the Wine Australia Regional Program for WA. The Program provides grantsbased funding for R&D projects with specific regional relevance.

Digitalisation project - Shoestring •

The team is working with Howard Park, Vasse Felix, Leeuwin and Stella Bella to install digital solutions before the start of vintage.

Clonal evaluations

The Committee also reviews:

•

biosecurity water security resource management biosecurity issues

•

• • • •

Sensory analysis and chemical profiling complete on 2022 samples 2023 wines bottled – 19 x Margaret River Chardonnay (plus composite), 19 x Margaret River Cabernet (plus composite), 12 x Great Southern Riesling (plus composite) and 8 x Great Southern Shiraz (plus composite) 2023 sensory sessions scheduled for Margaret River 13 Nov and Great Southern 21 Nov, wines will be sent to AWRI for chemical profiling to coincide with these activities.

Half of the Margaret River sites have had their soil characterised, the remaining to be completed by October. Great Southern sites most likely to be undertaken next year.

Plan to conduct some engagement activities before vintage 2024.

Supporting the adoption of biodegradable mulch technology in vegetable and perennial fruit enterprises Currently finalising the data analysis Planning a presentation with vegetable growers in Wanneroo in October.

Projected to begin evaluations at the two Pinot Noir clonal evaluation blocks in the Southern Forests region for the 2024-25 growing season via the Regional Program.

Malbec clonal evaluation site to complete establishment by end of 2024.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 National trunk disease project • •

•

Three-year project with sites in WA, SA and Tas. Andrew leading the WA activity, objective to identify spore release and timing via a spore trap, secondly to identify wound susceptibility post pruning to Botryosphaeria.

Currently conducting weekly inoculations at pruning trial in Margaret River, finishes end of Oct.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

Market Development Export Growth Partnership The Export Growth Partnership (EGP), with the customer facing project name, “WA Wines to the World” continued in 2022 - 23. The EGP is a fiveyear partnership between Wines of Western Australia (for the WA wine industry) and the WA State government. Each partner will contribute $3 million dollars to support export market development and growth activities.

The aims are: -

to double the value of wine exported from WA to over $100 million;

WA producers were late in getting back into market and in organising in-bound trade and media visits to WA. The EGP provided support to WA producers and regions in 2022 - 23: -

Regionally focused tastings in Japan, UK, USA, Canada and Hong Kong.

-

Support for WA producers to participate in the Wine Australia USA market entry program.

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Support for WA producer and regions to Vine Expo in Singapore and ProWein in Dussledorf Germany.

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Support for an in-bound trade and media visit to WA in October 2022 to Margaret River and the Great Southern

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increase the average price per litre to over $12;

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increase the number of WA producers who are successfully and profitably exporting and;

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Support for producers to implement trade and retail promotions in US, UK, Hong Kong and Singapore.

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Align investment and resources in international wine marketing, promotion, media and wine tourism to maximize profile and sales outcomes for WA fine wines.

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The program has built strong collaboration networks in region with Regions and producers working with Regional Development Commissions, and Austrade to deliver the program.

Pre-program work completed in 2020-21 identified target markets, priority activities and strengthening relationships with key partners including Austrade, Wine Australia and WA State government overseas trade offices.

A full review of program activities and outcomes for 2022 - 23 is included in the appendices of this report.

The key markets currently are UK, USA, Singapore, Japan, Hong Kong, and South Korea. As the program evolves, the focus has changed through an industry led strategic review with countries in SE Asia now included as emerging opportunities.

While 2022 – 23 was not directly impacted by COVID restrictions, the ability to plan out 12 to 18 months in advance was difficult given WA state borders only fully opened in May 2022. International travel remained uncertain until mid 2022.

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

Wines of Western Australia Board of Directors 2022 - 23

Board Position Skills Based - Independent Chair Trevor Whittington

Producer Under 150 Tonnes Liz Maiorana – South by South-West Wines Producer 151-1000 Tonnes - Cameron Rhodes – Fermoy Estate Producer Over 1000 Tonnes Franklin Tate – Franklin Tate Estates Regionally Appointed Perth Hills/Peel/Swan Valley (note one vote for this shared position)

Josh Davenport – Myattslfield Vineyard Garth Cliff – Vino Volta

Regionally Appointed Geographe Ryan Gibbs – Aylesbury Estate

Regionally Appointed Margaret River (note one vote for each regionally appointed position) Tom Hill – Juniper Estate Amanda Whiteland - Margaret River Wine Association

Regionally Appointed Blackwood Valley/Southern Forests (note one vote for this shared position)

Andrew Mountford – Mountford Wines Craig Nield – Beulah Wines

Regionally Appointed Great Southern

Peter Cooke – Great Southern Wine Producers

Skills Based – Treasurer

David Bowyer (Retired January 2023) Melanie Tolich (appointed February 2023)

Skills Based Open

Executive - Chief Executive Officer Larry Jorgensen – Wines of Western Australia

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WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23 __________________________________________________________________________________

Wines of Western Australia Board of Directors 2022 - 23 Schedule of Meeting Attendance and Summary of Terms

Board Position Skills Based - Independent Chair Trevor Whittington Producer Under 150 Tonnes Livia Maiorana – South by South West Cameron Rhodes – Fermoy Estate Producer Over 1000 Tonnes Franklin Tate – Tate Family Vineyards Perth Hills/Peel/Swan Valley Josh Davenport - Myattsfield Garth Cliff – Vino Volta Geographe Ryan Gibbs – Ayelsbury Estate Margaret River Tom Hill – Juniper Estate Amanda Whiteland - Margaret River Wine Association Blackwood Valley/Southern Forests Andrew Mountford – Mountford Estate Craig Nield – Beulah Great Southern Tom Wisdom Peter Cooke – Great Southern Wine Producers Skills Based Mike Calneggia – Calneggia Family Vineyards Skills Based Treasurer David Bowyer - Fenrgrove Melanie Tolich Executive Chief Executive Officer Larry Jorgensen – Wines of WA

Appointment/ Retirement Date

Aug

Sept

Oct

Nov

Dec

Feb

Apr

May

Re-appointed December 2020

P

P

P

P

P

P

P

P

Appointed to 1st Term December 2021

A

P

A

P

A

P

P

A

Appointed to first term April 2021

P

P

P

P

P

P

P

P

Appointed to 1 term December 2021

A

P

A

A

P

A

P

A

Retired 30 June 2023

P

P

P

P

A

P

P

A

Appointed to 1 term October 2020

P

P

P

P

P

A

P

P

Appointed to 1st term October 2020

A

A

A

P

P

P

A

P

Appointed to 1st term November 2022

N/A

N/A

N/A

N/A

P

P

A

P

Appointed to 1st term October 2019

P

A

P

A

P

P

P

P

Appointed to 1 term November 2022

A

A

P

A

A

A

A

P

Appointed to 1st term November 2020

P

A

P

P

P N/A

P N/A

P N/A

A N/A

N/A N/A

P N/A

P N/A

P N/A

N/A

N/A

N/A

st

st

st

Retired November 2022

P

P

A

P

Appointed to 1st term January 2023

N/A

N/A

N/A

N/A

P

A

A

A

Retired December 2022

P

P

A

P

N/A

Appointed January 2023

N/A

N/A

N/A

N/A

N/A

P

P

A

Originally appointed May 2013 Contract re-confirmed March 2021

P

P

P

P

P

P

P

P

Meeting Notes

18 | P a g e

WINES OF WESTERN AUSTRALIA ANNUAL REPORT 2022 - 23

2022 - 23 Wines of Western Australia APC Budget

Page | 19

Wine Industry Association of Western Australia Inc. ABN 23 095 700 543

Special Purpose Financial Report - 30 June 2023

Wine Industry Association of Western Australia Inc. Contents 30 June 2023 Committee's declaration ................................................................................................................................................ 2 Committee's report ........................................................................................................................................................ 3 Auditor's independence declaration .............................................................................................................................. 4 Independent auditor's report to the members of Wine Industry Association of Western Australia Inc. ...................... 5 Statement of profit or loss and other comprehensive income ...................................................................................... 8 Statement of financial position ...................................................................................................................................... 9 Statement of changes in equity .................................................................................................................................... 10 Statement of cash flows ............................................................................................................................................... 11 Notes to the financial statements ................................................................................................................................ 12

General information The financial statements cover Wine Industry Association of Western Australia Inc. as an individual entity. The financial statements are presented in Australian dollars, which is Wine Industry Association of Western Australia Inc.'s functional and presentation currency.

Wine Industry Association of Western Australia Inc. is a not-for-profit incorporated association, incorporated and domiciled in Australia. Its registered office and principal place of business is: Unit 2, 14 Brodie Hall Drive Bentley 6102 A description of the nature of the incorporated association's operations and its principal activities are included in the Committee's report, which is not part of the financial statements.

The financial statements were authorised for issue on _____October 2023.

1

Wine Industry Association of Western Australia Inc. Committee's declaration 30 June 2023 In the sole Committee's opinion: ●

the incorporated association is not a reporting entity because there are no users dependent on general purpose financial statements. Accordingly, as described in note 1 to the financial statements, the attached special purpose financial statements have been prepared for the purposes of complying with the Western Australian legislation the Associations Incorporation Act 2015 and associated regulations;

●

the attached financial statements and notes comply with the Accounting Standards as described in note 1 to the financial statements;

●

the attached financial statements and notes give a true and fair view of the incorporated association's financial position as at 30 June 2023 and of its performance for the financial year ended on that date; and

●

there are reasonable grounds to believe that the incorporated association will be able to pay its debts as and when they become due and payable.

___________________________ Name: Position:

___________________________ Name: Position:

_____October 2023

2

Wine Industry Association of Western Australia Inc. Committee's report 30 June 2023 The sole Committee presents his report, together with the financial statements, on the incorporated association for the year ended 30 June 2023.

Committee members

The following persons were committee members of the incorporated association during the whole of the financial year and up to the date of this report, unless otherwise stated: Trevor Whittington - Independent Chair - Re-appointed December 2020 Melanie Tolich - Treasurer - Appointed February 2023 Cameron Rhodes - Appointed to first term April 2021 Amanda Whiteland - Appointed to 1st term October 2019 Livia Maiorana - Appointed to 1st Term December 2021 Tom Wisdom - Appointed to 2nd term October 2020 Ryan Gibbs - Appointed to 1st term October 2020 Franklin Tate - Appointed to 1st term December 2021 Garth Cliff - Appointed to 1st term October 2020 Josh Davenport - Appointed to 1st term November 2020 Craig Nield - Appointed to 1st term November 2020 Andrew Mountford- Appointed to 1st term November 2021 Tom Hill - Appointed to 1st term November 2022 Larry Jorgensen - CEO - Originally appointed May 2013 (Contract re-confirmed March 2021)

Principal activities

During the financial year the principal continuing activities of the incorporated association consisted of: ● ● ●

Advocacy to confirm government, at all levels, understands the wine industry and also ensure the value of the wine industry is clearly understood by government, the community and other complimentary industry sectors.

Administration of technical and marketing program funding to provide Regional Associations and producers access to opportunities to improve business practices and market access.

Communication to ensure wine industry participants are aware of the issues that may affect their businesses.

Operating Result

The net surplus of Wine Industry Association of Western Australia Inc. for the financial year ended 30 June 2023 amounted to $11,225 (2022: $62,396)

___________________________ Name: Position:

___________________________ Name: Position:

_____October 2023

3

Wine Industry Association of Western Australia Inc. Auditor's independence declaration 30 June 2023

4

Wine Industry Association of Western Australia Inc. Independent auditor's report to the members of Wine Industry Association of Western Australia Inc.

[This page has intentionally been left blank for the insertion of page one of the independent auditor's report]

5

Wine Industry Association of Western Australia Inc. Independent auditor's report to the members of Wine Industry Association of Western Australia Inc.

[This page has intentionally been left blank for the insertion of page two of the independent auditor's report]

6

Wine Industry Association of Western Australia Inc. Independent auditor's report to the members of Wine Industry Association of Western Australia Inc.

[This page has intentionally been left blank for the insertion of page three of the independent auditor's report]

7

Wine Industry Association of Western Australia Inc. Statement of profit or loss and other comprehensive income For the year ended 30 June 2023 Note

2023 $

2022 $

3

1,041,149 266,000 11,809 442 1,404 971 1,670 1,323,445

648,489 262,000 12,485 10 3,520 10,227 936,731

Grant Expenses Employee Benefit Accounting Fee Depreciation and amortisation expense Insurance WOWA Strategic planning Memberships Representation and Consultants Computer Maintenance and Supplies Communication and PR Occupancy Administration MV Allowance Travel and Accommodation Venue Hire and Meeting WEC Expense Other expenses Finance costs Total expenses

4 5

(1,017,145) (165,364) (18,205) (1,745) (3,823) (20,000) (17,242) (25,487) (427) (3,423) (6,800) (10,103) (6,226) (4,695) (4,529) (615) (5,381) (1,010) (1,312,220)

(623,489) (143,015) (23,340) (2,407) (16,809) (27,178) (733) (2,200) (5,665) (4,072) (6,000) (4,880) (1,843) (6,451) (4,786) (1,467) (874,335)

Surplus for the year

14

11,225

62,396

-

-

11,225

62,396

Revenue

Grant and Project Income APC Producer Grant Funding Membership Fee Interest Income Other income Wine Education Centre Regional contribution Total revenue

Expenses

Other comprehensive income for the year

Total comprehensive income for the year

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 8

Wine Industry Association of Western Australia Inc. Statement of financial position As at 30 June 2023 Note

2023 $

2022 $

6 7

783,577 34,806 818,383

776,698 38,191 814,889

8 9

1,189 2 1,191

1,832 2 1,834

819,574

816,723

86,560 511,449 1,340 42,435 641,784

54,578 554,625 6,660 34,295 650,158

Total liabilities

641,784

650,158

Net assets

177,790

166,565

177,790

166,565

177,790

166,565

Assets Current assets

Cash and cash equivalents Trade and other receivables Total current assets

Non-current assets

Property, plant and equipment Intangibles Total non-current assets

Total assets Liabilities Current liabilities

Trade and other payables Contract liabilities Borrowings Provisions Total current liabilities

Equity

Retained surpluses

Total equity

10 11 12 13

14

The above statement of financial position should be read in conjunction with the accompanying notes 9

Wine Industry Association of Western Australia Inc. Statement of changes in equity For the year ended 30 June 2023 Retained surplus $

Total equity $

Balance at 1 July 2021

104,169

104,169

Surplus for the year Other comprehensive income for the year

62,396 -

62,396 -

Total comprehensive income for the year

62,396

62,396

Balance at 30 June 2022

166,565

166,565

Retained surplus $

Total equity $

Balance at 1 July 2022

166,565

166,565

Surplus for the year Other comprehensive income for the year

11,225 -

11,225 -

Total comprehensive income for the year

11,225

11,225

Balance at 30 June 2023

177,790

177,790

The above statement of changes in equity should be read in conjunction with the accompanying notes 10

Wine Industry Association of Western Australia Inc. Statement of cash flows For the year ended 30 June 2023 Note

2023 $

2022 $

1,283,212 (1,270,355) 442

1,295,488 (804,361) 10

16

13,299

491,137

8 9

(1,102) 2

-

(1,100)

-

Repayment of borrowings

(5,320)

-

Net cash used in financing activities

(5,320)

-

Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year

6,879 776,698

491,137 285,561

783,577

776,698

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Net cash from operating activities

Cash flows from investing activities

Payments for property, plant and equipment Payments for intangibles Net cash used in investing activities

Cash flows from financing activities

Cash and cash equivalents at the end of the financial year

6

The above statement of cash flows should be read in conjunction with the accompanying notes 11

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The incorporated association has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Basis of preparation

In the sole Committee's opinion, the incorporated association is not a reporting entity because there are no users dependent on general purpose financial statements.

These are special purpose financial statements that have been prepared for the purposes of complying with the Western Australian legislation the Associations Incorporation Act 2015 and associated regulations. The Committees have determined that the accounting policies adopted are appropriate to meet the needs of the members of Wine Industry Association of Western Australia Inc..

These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the disclosure requirements of AASB 101 'Presentation of Financial Statements', AASB 107 'Statement of Cash Flows', AASB 108 'Accounting Policies, Changes in Accounting Estimates and Errors', AASB 1048 'Interpretation of Standards' and AASB 1054 'Australian Additional Disclosures', as appropriate for not-for profit oriented entities.

Historical cost convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the incorporated association's accounting policies.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Revenue recognition

The incorporated association recognises revenue as follows: Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the incorporated association is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the incorporated association: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

12

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 1. Significant accounting policies (continued) Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events.

Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

Membership Fee Revenue from the membership fee is recognised on receipt basis.

Rendering of services Revenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate.

Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenue Other revenue is recognised when it is received or when the right to receive payment is established.

Income tax

As the incorporated association is a tax exempt institution in terms of subsection 50-10 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax.

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the incorporated association's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the incorporated association's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

13

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 1. Significant accounting policies (continued) Finance costs

Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred.

Goods and Services Tax ('GST') and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the incorporated association for the annual reporting period ended 30 June 2023. The incorporated association has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

Note 2. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Allowance for expected credit losses The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.

Impairment of non-financial assets other than goodwill and other indefinite life intangible assets The incorporated association assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the incorporated association and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

Employee benefits provision As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

14

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 3. Grant and Project Income

AGWA Regional program Export Growth Partnership Project admin fees - WOWA

2023 $

2022 $

36,500 980,645 24,004

17,098 631,391 -

1,041,149

648,489

2023 $

2022 $

36,500 980,645

12,098 611,391

1,017,145

623,489

2023 $

2022 $

141,488 3,519 4,621 15,736

126,377 2,096 1,442 13,100

165,364

143,015

2023 $

2022 $

783,577

776,698

Note 4. Grant Expenses

AGWA Regional Program Export Growth

Note 5. Employee Benefit

Wages & Salaries Expenses LSL Expense Annual Leave Provision Superannuation

Note 6. Cash and cash equivalents

Current assets Cash at bank

Accounting policy for cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

15

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 7. Trade and other receivables 2023 $ Current assets Trade receivables APC Provisional debtor Prepaid Expenses

2022 $

15,995 17,500 33,495

34,968 1,500 36,468

1,311

1,723

34,806

38,191

Accounting policy for trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The incorporated association has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Note 8. Property, plant and equipment 2023 $ Non-current assets Office equipment - at cost Less: Accumulated depreciation

2022 $

2,934 (1,745)

1,832 -

1,189

1,832

Accounting policy for property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Buildings Leasehold improvements Plant and equipment

40 years 3-10 years 3-7 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

16

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 8. Property, plant and equipment (continued) An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the incorporated association. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

Note 9. Intangibles

Non-current assets Prepaid APC Establishment Less: Written down Expense on Prepaid APC Establishment Wines of WA Brand Less: Accumulated amortisation

2023 $

2022 $

37,427 (37,426) 1

37,427 (37,426) 1

19,477 (19,476) 1

19,477 (19,476) 1

2

2

Note 10. Trade and other payables 2023 $ Current liabilities Trade payables PAYG Withholding Payable Superannuation Liability Accrued Expenses GST Paid

2022 $

37,488 2,816 2,343 28,613 15,300

26,021 2,268 3,855 7,780 14,654

86,560

54,578

Accounting policy for trade and other payables These amounts represent liabilities for goods and services provided to the incorporated association prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Note 11. Contract liabilities

Current liabilities AGWA Regional Program Export Growth Partnership EMDG

17

2023 $

2022 $

52,345 369,104 90,000

76,074 388,551 90,000

511,449

554,625

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 11. Contract liabilities (continued) Accounting policy for contract liabilities Contract liabilities represent the incorporated association's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the incorporated association recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the incorporated association has transferred the goods or services to the customer.

Note 12. Borrowings 2023 $ Current liabilities Credit Card Other payroll Liabilities Salary Package - Novated Lease

2022 $

1,340 -

6,660 23,168 (23,168)

1,340

6,660

Accounting policy for borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.

They are subsequently measured at amortised cost using the effective interest method.

Note 13. Provisions 2023 $ Current liabilities Annual leave Long service leave

2022 $

20,499 21,936

15,878 18,417

42,435

34,295

Accounting policy for employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

18

Wine Industry Association of Western Australia Inc. Notes to the financial statements 30 June 2023 Note 14. Retained surpluses 2023 $

2022 $

Retained surpluses at the beginning of the financial year Surplus for the year

166,565 11,225

104,169 62,396

Retained surpluses at the end of the financial year

177,790

166,565

Note 15. Constitutional Requirements Under the Constitution, if the Association is wound up, any property of the Association that remains after satisfaction of the debts and liabilities of the Council and the costs, charges and expenses of that winding up, that property shall be distributed to another incorporated association having similar objects to those of Association for charitable or benevolent purposes .At the date of this report it would appear that there is no intent to have the Association wound up.

Note 16. Reconciliation of surplus/(deficit) to net cash generated / (used in) from operating activities 2023 $

2022 $

Surplus for the year

11,225

62,396

Adjustments for: Depreciation and amortisation

1,745

-

Change in operating assets and liabilities: Decrease in trade and other receivables Increase/(Decrease) in trade and other receivables Increase/(Decrease) in trade and other payables Increase/(Decrease) in contract liabilities Increase in other provisions Increase/(Decrease) in borrowings Increase/(Decrease) in benefits

3,385 31,980 (43,176) 8,140 -

38,116 49,652 333,710 3,725 3,538

Net cash from operating activities

13,299

491,137

19

Wine Producers’ Committee Annual Snapshot 2022 - 23

Wine Producers’ Committee: Vintage 2022 Snapshot

Wines of WA Executive Summary The Annual vintage snapshot provides WA wine producers with a comprehensive set of production data by region and variety. The collection is retrospective by one year meaning comprehensive data is available for the previous vintage in this case, 2022. However, as this is the sixth year of APC fee for service collection there are consistent trends apparent.

-

Average state production is 55,000 tonnes annually comprised of 55% white varieties and 45% red varieties.

Top three white varieties by volume are Sauvignon Blanc, Chardonnay and Semillon and comprise 84% of total white production.

Top three red varieties by volume are Shiraz, Cabernet Sauvignon and Merlot and comprise 86% of total white production.

A strength of WA is our diversity of climate/terroir across regions. There are no directly competing varietal heroes across our regions. This is an important aspect of the fine wine regions of WA story.

These data show that regions have identified their regional varietal heroes based on both suitability to climate and available product to sell.

There is further detail below which outlines the demographic profile of the WA wine industry. While all WA producers are small/medium by national parameters, our industry is skewed towards small in total numbers.

-

80% of producers are processing less than 200 tonnes annually and account for 20% of total production.

13% of producers are processing between 200 – 500 tonnes annually and account for 15% of total production.

7% of producers are processing over 500 tonnes annually and account for 65% of total production.

In addition to production data, the APC fee for service collection provides comprehensive contact information for all producers across all regions. This ensures Wines of WA and Regional Associations can communicate effectively on important issues.

The information gathered via the collection is a valuable resource for WA wine producers. Wines of WA is working with the APC to further utilise this resource and make it available to producers to assist in their medium to long term business planning.

Larry Jorgensen

Chief Executive Officer Wines of WA

2

Wine Producers’ Committee: Vintage 2022 Snapshot

Vintage 2022 Total Reported Production 70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Vintage 2018

Vintage 2019 Red

•

•

• •

•

Vintage 2020 White

Vintage 2021

Vintage 2022

5 year Average Tonnes

The production for the 2022 vintage was down slightly against the prior year with a 1.6% drop in overall reported production [2022: 53,274 tonnes; 2021: 54,116 tonnes]. Overall vintage 2022 production performed favorably against the five-year average [average: 52,999 tonnes].

Driving this softening was a 6.8% decrease in reported white variety production [2022: 29,300 tonnes; 2021: 31,542 tonnes] – a reversal of last years’ substantial white variety tonnage growth.

The drop in white variety tonnage was largely offset by a 5.8% increase in red production [2022: 23,975 tonnes; 2021:22,664 tonnes] The smallest regions experienced the highest overall growth rates in production for the 2022 vintage, with strong growth in the Perth Hills (75%), Peel (53%) and Blackwood (10%) regions. All other regions either held steady or saw a decline in overall production.

The greatest increases by volume came from Perth Hills (248 tonnes) and Blackwood (120 tonnes) regions. Notably, Margaret River and Southern Forests production contracted by 677 tonnes and 223 tonnes respectively.

3

Wine Producers’ Committee: Vintage 2022 Snapshot

2022 Region Summary (tonnes) PEEL

PERTH HILLS

BLACKWOOD

WINE INDUSTRY SOUTHERN FORESTS

GEOGRAPHE

SWAN DISTRICTS

GREAT SOUTHERN

MARGARET RIVER 0

2,000

4,000

6,000

Vintage 2022 White

8,000

10,000

12,000

14,000

16,000

18,000

Vintage 2022 Red

Margaret River Great Southern Swan Valley Geographe Southern Forests Blackwood Perth Hills Peel

Red 2021 2022 12,459.68 13,225.26 6,497.61 6,801.90 1,035.49 1,016.58 1,409.69 1,461.06 552.33 433.42 435.12 569.94 262.07 435.64 12.92 31.10

White 2021 2022 19,192.73 17,749.54 5,771.31 5,332.50 2,545.16 2,356.61 1,084.85 1,051.20 1,984.61 1,879.78 790.72 776.14 67.68 142.13 15.04 11.75

Total 2021 2022 31,652.40 30,974.80 12,268.92 12,134.40 3,580.65 3,373.19 2,494.54 2,512.26 2,536.93 2,313.20 1,225.84 1,346.08 329.75 577.77 27.96 42.85

Total

22664.90

31452.09

54116.99

23974.90

29299.64

53274.54

4

Wine Producers’ Committee: Vintage 2022 Snapshot

State Varietal Trends: Snapshot Whites

State Varietal Trends (White) 12,000

10,000

8,000

6,000

4,000

2,000

0

•

• •

Vintage 2018

Vintage 2019

Vintage 2020

SAUVIGNON BLANC

CHARDONNAY

SEMILLON

RIESLING

VERDELHO

PINOT GRIS

Vintage 2021

Vintage 2022 CHENIN BLANC

Of the major white varieties, most performed saw a drop in production, with sauvignon blanc 9.8% lower than the prior vintage [2022: 9,199 tonnes; 2021: 10,203 tonnes], chardonnay 6.7% lower than the prior vintage [2022: 7,873 tonnes; 2021: 8,442 tonnes] and semillon 1.1% lower than the prior vintage [2022: 6,947 tonnes; 2021: 7,025 tonnes].

Chenin blanc is the only one of the major white varieties which bucked trend, showing an increase in production of 1.6%.

Of the lesser produced varieties, there was substantial drops in verdelho (24%) riesling (15%) and viognier (24%).

5

Wine Producers’ Committee: Vintage 2022 Snapshot

6

Wine Producers’ Committee: Vintage 2022 Snapshot

Reds

Varietal Trends (Red) 12,000

10,000

8,000

6,000

4,000

2,000

0

Vintage 2018

Vintage 2019

Vintage 2020

Vintage 2021

CABERNET SAUVIGNON

SHIRAZ

MERLOT

PINOT NOIR

MALBEC

TEMPRANILLO

Vintage 2022

GRENACHE

•

• • •

Whilst there was an overall increase in tonnage for red varieties, growth was largely driven by strong performance of shiraz, merlot and tempranillo – with results largely mixed for other varieties.

Following an increase in production of 19.7% [2022:10,035 tonnes; 2021:8,652 tonnes], for the first time in five years, production of shiraz outstripped cabernet sauvignon.

Merlot and tempranillo were the only other major red varieties with an increase in production [Merlot: 10.4%; Tempranillo: 9.5%].

Of the lesser produced varieties, sangiovese continued its year-on-year growth, with production levels now 190% higher than vintage 2018.

7

Wine Producers’ Committee: Vintage 2022 Snapshot

8

Wine Producers’ Committee: Vintage 2022 Snapshot State Varietal Trends: Dataset White Variety SAUVIGNON BLANC CHARDONNAY SEMILLON CHENIN BLANC RIESLING VERDELHO PINOT GRIS MUSCADELLE SAVIGNIN BLANC OTHER VIOGNIER PROSECCO VERMINTINO GEWURTZTRAMINER MUSCAT BLANC A PETITS GRAINS FIANO VERDEJO ARNEIS GRUNER VELTLINER TREBBIANO PEDRO XIMENEZ SCHEUREBE ROUSSANNE TRAMINER HARSLEVELU ALBARINO WHITE (TOTAL)

Vintage 2018 Vintage 2019 Vintage 2020 Vintage 2021 Vintage 2022 vs prior year 10926.29 8997 7552.3517 10203.2 9198.7 -9.8% 8910.54 8014 6979.344 8442.3 7872.8 -6.7% 8880.30 6194 5946.925 7025.2 6946.6 -1.1% 2304.96 2186 2132.926 2156.1 2195.0 1.8% 1350.63 1102 889.77 1398.1 1193.2 -14.7% 799.22 705 603.211 645.7 490.2 -24.1% 159.61 237 321.302 469.4 419.7 -10.6% 189.97 179 199.721 181.7 200.1 10.1% 370.41 354 450.334 164.8 30.9 -81.2% 213.57 235 83.603 161.4 274.5 70.1% 126.24 82 88.593 119.8 91.0 -24.0% 14.89 14 55.532 103.9 42.6 -59.0% 76.21 61 55.426 101.6 83.3 -18.0% 51.61 18 40.228 83.1 73.0 -12.1% 47.43 111 98.318 80.5 69.5 -13.7% 43.15 28 36.565 50.6 68.2 34.9% 29.86 29 9.06 17.1 7.5 -56.3% 12.99 15 19.444 14.9 15.7 5.4% 2 5.718 12.0 4.3 -64.5% 4.00 5 4.118 9.2 10.9 17.9% 14.31 8 7.573 4.6 6.3 37.0% 6.42 4 3.605 3.1 -100.0% 1.37 1 1.349 2.0 1.4 -30.7% 8.40 2.14 2.0 2.2 10.7% 1 2.0 34,542.37

28,581.41

25,588.16

31,452.14

29,299.64

-6.8%

9

Wine Producers’ Committee: Vintage 2022 Snapshot

Red Variety CABERNET SAUVIGNON SHIRAZ MERLOT PINOT NOIR

Vintage 2018 Vintage 2019 Vintage 2020 Vintage 2021 Vintage 2022 vs prior year 10755.1 10414.9 2710.3 812.2 839.9

8930.4 7748.0 2123.9 621.2 515.9

8397.3 7591.6 1616.9 695.4

9220.6 8381.7 1814.4 910.8

8652.2 10035.1 2003.3 841.5

-6.2% 19.7% 10.4% -7.6%

487.0

303.4

507.6

572.5

556.7

-2.8%

424.1

409.6

484.5

530.5

9.5%

GRENACHE

279.9

317.2

462.9

428.6

-7.4%

OTHER

164.9 232.8

109.6 150.7

253.4

197.4

158.2

-19.8%

230.8

167.5

212.5

171.2

176.3

2.9%

67.1

48.0

149.4

143.1

150.9

5.4%

62.8

49.4

52.7

84.8

194.4

129.2%

57.0

23.0

47.6

48.2

82.7

71.7%

34.1

27.0

41.6

42.7

49.5

15.8%

14.3

11.3

26.7

34.4

27.5

-20.0%

DURIF

20.6

14.0

GRACIANO

3.7 0.8

9.9

6.0 1.9 3.6 0.4

8.7 3.8 3.7 0.5

1.9

1.8

MALBEC TEMPRANILLO

CABERNET FRANC PETIT VERDOT SANGIOVESE ZINFANDEL MOUVEDRE NEBBIOLO BARBERA

PINOT MEUNIER NERO D'AVOLA GAMAY DOLCETTO MONTEPULCIANO SAPERAVI LAGREIN CHAMBOURCIN BRACHETTO TANNAT MEUNIER AGLIANICONE GRACIANO RED (TOTAL)

1.8

9.7

23.5

19.8

-15.6%

16.4

15.5

15.1

-2.8%

9.4

11.5

7.4

-35.9%

3.0 8.3 3.9 4.5

10.6 9.1 8.8 4.3

6.9 9.3 12.6 5.0

-34.8% 1.8% 43.3% 17.2%

0.5

2.8

5.2

87.4%

1.9

2.4

1.2

-48.0%

1.4

0.1

1.0 5.8 0.7

1.6 1.0 0.6

1.2 1.0 0.2 0.1

2.3 2.2 1.4 0.7

27210.9

21300.9

20379.8

22664.1

1.3 0.7 1.9 1.0 23974.9

-41.8% -68.6% 31.3% -100.0% 5.8%

10

Wine Producers’ Committee: Vintage 2022 Snapshot

WA Industry Profile Vintage 2022: Industry Profile Number of Producers

80 70 60 50 40 30 20 10 0

Vintage 2021 Tonnage Range

Industry Profile Trends 80 70 60 50 40 30 20 10 0

Vintage 2019 Up to 2 300-499

• • • •

Over 2-5 500-749

Vintage 2020 Over 5-10 750-999

11-29 1000-1999

Vintage 2021 30-49 2000-3999

50-99 4000-5999

Vintage 2022 100-199 6000-9999

200-299

There were 305 producers who paid FFS for the 2022 vintage, a slight decrease on the prior year [2021: 315].

There was an increase in the number of large producers (>1000 tonnes).

50% of producers report volumes of less than 30 tonnes, down from 54% in the prior year.

In a continuation of trend, the highest number of producers reporting in the 11-29 tonne range.

11

Wine Producers’ Committee: Vintage 2022 Snapshot

Regional Snapshots Blackwood Region

Vintage Trends 1,600

Blackwood region continued its growth trend with a four-year high of 1,346 tonnes. This represented a 10% increase (120 tonnes) over the 2021 vintage.

1,400

Tonnes

1,200 1,000 800

The 2022 growth was driven by an increase in red varieties of 31% [2022: 570 tonnes; 2021: 435 tonnes].

600 400 200 -

Vintage Vintage Vintage Vintage 2019 2020 2021 2022

Vintage 2022 Red Varieties

Vintage 2022 White Varieties

2%

14%

16%

50%

52% 34%

28%

SHIRAZ

CABERNET SAUVIGNON

MERLOT

MALBEC

TEMPRANILLO

GRENACHE

SAUVIGNON BLANC

SEMILLON

CHARDONNAY

VERMINTINO

VIOGNIER

OTHER

PETIT VERDOT

At 385 tonnes, sauvignon blanc remains the highest produced variety for the region, however in 2022, increases in shiraz production saw it overtake semillon as the second largest variety [shiraz 2022: 295 tonnes; 2021: 201 tonnes; semillon 2022: 279 tonnes; 2021 261 tonnes].

Consistent with the statewide trend, there was an overall reduction of Blackwood region whites of 1.8%, with the growth in semillon (18%) only partially offsetting reductions in semillon (-17%) and chardonnay (-29%).

12

Wine Producers’ Committee: Vintage 2022 Snapshot

Geographe Region

Vintage Trends 3,000

The 2022 vintage was steady against the prior vintage, with a marginal growth of 0.7% [2022: 2512 tonnes; 2021: 2,495 tonnes].

2,500

Tonnes

2,000

The growth was driven by red varieties (3.6%) which offset an overall easing of white production by 3.1% (-37 tonnes).

1,500 1,000 500 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (>20 tonne)

Geographe continues to be one of the more diverse regions, with vintage 2022 production spanning 22 red varieties and 12 white varieties.

Vintage 2022 White Varieties (>20 tonne) 3%2%

3%3% 8%

37%

27% 46%

11%

25%

•

• • •

31%

SHIRAZ

CABERNET SAUVIGNON

MERLOT

TEMPRANILLO

GRENACHE

MALBEC

ZINFANDEL

SANGIOVESE

CHARDONNAY

SAUVIGNON BLANC

SEMILLON

CHENIN BLANC

OTHER

As the variety with highest production volume, the 16.5% increase in shiraz volume [2022:642 tonnes; 2021: 551 tonnes] offset reductions in most other major red varieties to support an overall increase in reds of 3.6% (51 tonnes).

Tempranillo was the only other major red variety to see an increase, with vintage 2022 recording 117 tonnes [2021: 103 tonnes].

In whites, volumes compared favourably against the state-wide trend, with a decrease of 3.1% against a statewide drop of 6.8%.

Increases in semillon [2022: 267 tonnes; 2021: 226 tonnes] and chenin blanc [2022: 33 tonnes; 2021: 21 tonnes] helped offset reductions in chardonnay [2022: 367 tonnes; 2021: 399 tonnes] sauvignon blanc [2022: 311 tonnes; 2021: 324 tonnes], and riesling [2022: 17 tonnes; 2021: 50 tonnes].

13

Wine Producers’ Committee: Vintage 2022 Snapshot

Great Southern Region

Vintage Trend The 2022 vintage saw Great Southern region maintaining most of the high growth seen in the prior year, with a marginal overall volume reduction at 12,134 tonnes [2021: 12,269 tonnes; 2020: 8,198 tonnes].

14,000 12,000 10,000 8,000

At -7.6%, the region’s reduction in production volumes for whites was higher than the statewide trend of – 6.8%.

6,000 4,000 2,000 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (>20 tonnes)

Vintage 2022 White Varieties (>20 tonnes) 3%

7%

3%

18%

31%

53% 29%

19% 26%

•

•

•

SHIRAZ

CABERNET SAUVIGNON

PINOT NOIR

MERLOT

SAUVIGNON BLANC

CHARDONNAY

MALBEC

TEMPRANILLO

SEMILLON

RIESLING

SANGIOVESE

GRENACHE

PINOT GRIS

GEWURTZTRAMINER

CABERNET FRANC

MOUVEDRE

OTHER

FIANO

Shiraz (3605.7 tonnes) and cabernet sauvignon (1,957 tonnes) accounted for 81% of total reported red production. Shiraz performed strongly, with 2022 increasing by 11% (367 tonnes) to offset the lower production volumes for all other major red varieties in the region.

Of the less common red varieties, there was substantial growth in sangiovese [2022: 100 tonnes; 2021: 18.2 tonnes], grenache [2022: 81 tonnes; 2021: 61 tonnes] and mouvedre [2022: 30 tonnes; 2021:20 tonnes].

There were volume reductions for every one of the top six white varieties for the region.

The biggest reductions were seen in chardonnay [2022: 1,367 tonnes; 2021: 1,536 tonnes], riesling [2022: 970 tonnes; 2021: 1,114 tonnes] and semillon [2022: 1,015 tonnes; 2021: 1085 tonnes].

14

Wine Producers’ Committee: Vintage 2022 Snapshot

Margaret River Region

Vintage Trend

Whilst overall, vintage 2022 was softer than the prior year [2022: 30,975 tonnes; 2021: 31,652 tonnes] total volumes remained exceeded the rolling four-year average of 30,827 tonnes.

35,000 30,000 25,000 20,000

The growth of reds against the prior year was driven predominately by strong production numbers for shiraz and merlot (+964 tonnes and +245 tonnes respectively).

15,000 10,000 5,000 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022 Red Varieties

Vintage 2022

The moderate increase in red production was not enough to offset an overall drop of 7.5% in whites.

Vintage 2022 White Varieties (>20 tonnes)

(>20 tonnes)

5% 11%

33% 45%

29%

36% 30%

CABERNET SAUVIGNON

SHIRAZ

MERLOT

MALBEC

TEMPRANILLO

PINOT NOIR

CABERNET FRANC

PETIT VERDOT

GRENACHE

SANGIOVESE

OTHER

ZINFANDEL

•

•

SAUVIGNON BLANC SEMILLON CHARDONNAY CHENIN BLANC RIESLING PINOT GRIS

Cabernet Sauvignon and shiraz remained the most common red varieties, however the 2021 vintage saw a substantial drop in cabernet sauvignon [2022: 5,950 tonnes;2021: 6,414 tonnes].

Sauvignon blanc, chardonnay and Semillon continue to account for 91% of overall white production. Across these three varieties there was a total decrease of 1,344 tonnes (7.7%), mostly driven by drops in sauvignon blanc [2022: 5870 tonnes, 2021: 6886 tonnes].

15

Wine Producers’ Committee: Vintage 2022 Snapshot

Peel Region

Vintage Trend 45

With overall production of 43 tonnes, Peel reported the strongest producing year of the last five years. Vintage 2022 for the Peel region saw an overall increase of 75% [2021: 28 tonnes], which was well ahead of the four-year trend of 32 tonnes per annum.

40 35 30 25 20 15

The growth was attributable to strong production of reds, partially offset by a 3-tonne reduction in whites.

10 5 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (> 1 tonne)

6%

Vintage 2022 White Varieties (>1 tonne)

4% 3%

11%

7%

39%

35% 21%

10%

15% 16%

• •

33%

SHIRAZ

CABERNET SAUVIGNON

SEMILLON

CHARDONNAY

SANGIOVESE

ZINFANDEL

CABERNET FRANC

PINOT NOIR

SAUVIGNON BLANC

FIANO

TEMPRANILLO

OTHER

Shiraz returned to top spot as the largest variety of red produced at 11.7 tonnes (against 4.8 tonnes of cabernet sauvignon). This is an increase of 6.7 tonnes on the prior vintage.

A drop in chardonnay tonnage [2022: 3 tonnes; 2021: 6 tonnes] meant that semillon was the most common white variety at 3.4 tonnes.

16

Wine Producers’ Committee: Vintage 2022 Snapshot

Perth Hills Region

Vintage Trend

Being heavily dominated by red varieties allowed Perth hills to buck the statewide trend and record an increase in overall tonnage of 248 tonnes – some 75% higher than the prior year vintage.

700 600 500 400

Perth hills is the only regions to have also seen an increase in white production, with 142 tonnes produced against vintage 2021 production of 68 tonnes.

300 200 100 0

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (>5 tonne)

4%

4%

Despite being one of the smallest regions by production volume, the Perth Hills remains a diverse region with some 26 different varieties reported.

Vintage 2022 White Varieties (>5 tonne)

5%

3% 3%

4%

8%

31%

4% 10%

5% 59%

13%

16%

29%

•

•

SHIRAZ

CABERNET SAUVIGNON

MERLOT

PETIT VERDOT

CHARDONNAY

ZINFANDEL

GRENACHE

VERMINTINO

VIOGNIER

VERDELHO

OTHER

TEMPRANILLO

OTHER

PINOT NOIR

DURIF

CHENIN BLANC

SEMILLON

The growth in reds was driven by shiraz [2022: 246 tonnes; 2021; 140 tonnes], cabernet sauvignon [2022: 66 tonnes; 2021: 30 tonnes], petit verdot [2022: 18 tonnes; 2021: 2 tonnes], and zinfandel [2022: 16 tonnes; 2021: 2 tonnes].

Vintage 2022 saw production of white varieties more than double, with increase in almost every white variety. The highest gains were in chenin blanc [2022: 40 tonnes; 2021: Nil] and chardonnay [2022: 43 tonnes; 2021: 28 tonnes].

17

Wine Producers’ Committee: Vintage 2022 Snapshot

Swan Valley Region

Vintage Trend 4,500

The Swan Valley region saw a drop in overall production for the 2022 vintage of 5.8% (207 tonnes), a softer result than the statewide contraction of 1.6% [2022: 3,373 tonnes; 2021: 3,580 tonnes]. Production was 6.6% lower than the five-year average of 3,612 tonnes.

4,000 3,500 3,000 2,500 2,000 1,500

Despite lower production in 2022, white varieties continued to dominate, with 2,357 tonnes produced against 1,017 tonnes of red.

1,000 500 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (>10 tonne)

4%

5%

4%

8% 46%

15%

SHIRAZ

GRENACHE

CABERNET SAUVIGNON

OTHER

MERLOT

TEMPRANILLO

PETIT VERDOT

52%

13%

16%

23%

•

(>10 tonne)

3%

8%

•

Vintage 2022 White Varieties

CHENIN BLANC CHARDONNAY OTHER FIANO TREBBIANO

VERDELHO MUSCADELLE SEMILLON VERMINTINO GEWURTZTRAMINER

The overall drop in production is substantially attributable to the 33% reduction in Verdelho [2022: 375 tonnes; 2021: 562 tonnes].

Production of chenin blanc continued to dominate, with 36% (1,203 tonnes) of the total regional production being attributable to the variety.

18

Wine Producers’ Committee: Vintage 2022 Snapshot

Southern Forests Region

Vintage Trend 3,500

The Southern Forests region saw the biggest rate of contraction in overall production rates for the 2022 vintage of any Western Australian region. Vintage 2022 overall production was down 8.8% (223 tonnes) as compared to the statewide contraction of 1.6%. Production was 10.4% lower than the five-year average of 2,852 tonnes.

3,000 2,500 2,000 1,500 1,000 500 -

Vintage 2019

Vintage 2020

Vintage 2021

Vintage 2022

Vintage 2022 Red Varieties (>5 tonne)

Vintage 2022 White Varieties (>5 tonne)

8%

6%

3%2%

16% 52%

55% 33% 20%

PINOT NOIR

SHIRAZ

MERLOT

CABERNET SAUVIGNON

CABERNET FRANC

• •

SAUVIGNON BLANC

CHARDONNAY

PINOT GRIS

SEMILLON

OTHER

PROSECCO

RIESLING

GEWURTZTRAMINER

81% of total production was attributable to white varieties [whites: 1,880 tonnes; reds: 433 tonnes].

The biggest reductions in white varieties came from prosecco [2022: 38 tonnes; 2021: 101 tonnes.

19

Wine Producers’ Committee: Vintage 2022 Snapshot ANNEXURE 1: VINTAGE 2022 VARIETAL DATASET BY REGION

APC Wine Producers' Committee Blackwood Valley Vintage 2022 Variety

Tonnage

Variety

Tonnage

SHIRAZ CABERNET SAUVIGNON

294.7 161.0

SAUVIGNON BLANC SEMILLON

385.3 261.1

MERLOT MALBEC TEMPRANILLO GRENACHE PETIT VERDOT RED TOTAL

90.3 13.2 8.8 1.4 0.5 570

CHARDONNAY VERMINTINO VIOGNIER OTHER

113.6 13.1 2.0 1.0

WHITE TOTAL

776

APC Wine Producers' Committee Geographe Vintage 2022 Variety SHIRAZ CABERNET SAUVIGNON MERLOT TEMPRANILLO GRENACHE MALBEC ZINFANDEL SANGIOVESE BARBERA OTHER GAMAY MOUVEDRE DOLCETTO PETIT VERDOT NEBBIOLO CABERNET FRANC NERO D'AVOLA PINOT NOIR GRACIANO MONTEPULCIANO GRACIANO DURIF RED - TOTAL

Tonnage 641.7 339.6 158.7 116.7 40.5 35.9 30.8 21.0 18.1 17.7 11.3 6.7 5.0 3.5 3.3 2.9 2.2 2.1 1.0 0.9 0.8 0.7 1461.1

Variety CHARDONNAY SAUVIGNON BLANC SEMILLON CHENIN BLANC OTHER RIESLING MUSCAT BLANC A PETITS GRAINS VERMINTINO ARNEIS VIOGNIER VERDELHO FIANO

WHITE TOTAL

Tonnage 366.4 310.5 266.8 32.9 21.3 16.7 10.4 9.0 6.9 4.2 3.6 2.5

1051.2

20

Wine Producers’ Committee: Vintage 2022 Snapshot

APC Wine Producers Committee Great Southern Vintage 2022 Variety SHIRAZ CABERNET SAUVIGNON PINOT NOIR MERLOT MALBEC TEMPRANILLO SANGIOVESE GRENACHE CABERNET FRANC MOUVEDRE OTHER PETIT VERDOT NEBBIOLO PINOT MEUNIER RED TOTAL

Tonnage

3605.7 1957.0 451.2 198.6 156.4 135.7 100.0 80.9 37.1 30.1 17.7 13.0 11.8 6.9 6801.9

Variety SAUVIGNON BLANC CHARDONNAY SEMILLON RIESLING PINOT GRIS GEWURTZTRAMINER OTHER FIANO VIOGNIER VERMINTINO SAVIGNIN BLANC VERDELHO ARNEIS GRUNER VELTLINER TRAMINER WHITE TOTAL

Tonnage 1653.9 1367.2 1015.4 969.6 164.6 38.6 28.3 24.9 18.8 15.2 12.8 11.7 7.0 3.9 0.6 5332.5

APC Wine Producers Committee Margaret River Vintage 2022 Variety CABERNET SAUVIGNON SHIRAZ MERLOT MALBEC TEMPRANILLO PINOT NOIR CABERNET FRANC PETIT VERDOT GRENACHE SANGIOVESE OTHER ZINFANDEL MOUVEDRE NEBBIOLO GRACIANO

Tonnage 5950.0 4702.8 1425.1 339.2 221.2 152.6 128.1 101.0 63.0 60.3 31.7 28.0 8.8 7.8 3.5

Variety SAUVIGNON BLANC SEMILLON CHARDONNAY CHENIN BLANC RIESLING PINOT GRIS VERDELHO OTHER MUSCAT BLANC A PETITS GRAINS VIOGNIER VERMINTINO FIANO GEWURTZTRAMINER VERDEJO SAVIGNIN BLANC

GAMAY

1.3

PROSECCO

TANNAT

0.7

MUSCADELLE ALBARINO ROUSSANNE WHITE TOTAL

RED TOTAL

13225.3

Tonnage 5870.4 5258.3 5067.8 918.2 188.5 129.3 88.8 55.8 49.6 44.8 25.2 19.5 8.0 7.5 5.1 4.8 4.5 2.0 1.4 17749.5

21

Wine Producers’ Committee: Vintage 2022 Snapshot

APC Wine Producers Committee Peel Vintage 2022 Variety SHIRAZ CABERNET SAUVIGNON SANGIOVESE ZINFANDEL CABERNET FRANC PINOT NOIR TEMPRANILLO OTHER MERLOT PETIT VERDOT TOTAL

Tonnage 11.7 4.8 4.4 2.8 2.1 1.8 1.3 1.0 0.9 0.3 31.1

Variety SEMILLON CHARDONNAY SAUVIGNON BLANC FIANO CHENIN BLANC VERMINTINO MUSCAT BLANC A PETITS GRAINS

Tonnage 3.4 3.3 2.1 1.1 0.8 0.7 0.4

TOTAL

11.8

APC Wine Producers' Committee Perth Hills Vintage 2022 Variety SHIRAZ CABERNET SAUVIGNON MERLOT PETIT VERDOT ZINFANDEL GRENACHE TEMPRANILLO OTHER PINOT NOIR DURIF MOUVEDRE MALBEC MONTEPULCIANO NERO D'AVOLA BARBERA SANGIOVESE BRACHETTO RED TOTAL

Tonnage 246.4 66.4 21.8 17.7 16.1 15.3 14.3 10.3 5.2 5.0 3.7 3.2 3.1 2.6 1.7 1.6 1.1 435.6

Variety

Tonnage

CHARDONNAY CHENIN BLANC VERMINTINO VIOGNIER VERDELHO OTHER SEMILLON FIANO GEWURTZTRAMINER

42.7 40.4 17.6 14.4 11.4 6.6 6.1 1.5 1.5

WHITE TOTAL

142.1

22

Wine Producers’ Committee: Vintage 2022 Snapshot

APC Wine Producers' Committee Swan Valley Vintage 2022 Variety SHIRAZ GRENACHE CABERNET SAUVIGNON OTHER MERLOT TEMPRANILLO PETIT VERDOT DURIF SANGIOVESE MALBEC NERO D'AVOLA GRACIANO ZINFANDEL MONTEPULCIANO SAPERAVI CABERNET FRANC PINOT NOIR MOUVEDRE RED TOTAL

Tonnage 447.8 227.6 141.6 79.8 42.0 32.1 10.5 9.4 7.1 4.7 4.5 3.1 2.9 1.2 1.0 0.9 0.3 0.2 1016.6

Variety CHENIN BLANC VERDELHO CHARDONNAY MUSCADELLE OTHER SEMILLON FIANO VERMINTINO TREBBIANO GEWURTZTRAMINER MUSCAT BLANC A PETITS GRAINS VIOGNIER PEDRO XIMENEZ PINOT GRIS SAUVIGNON BLANC TRAMINER

WHITE TOTAL

Tonnage 1202.7 374.7 297.4 195.6 121.3 81.9 18.7 14.5 10.9 10.4 9.1 6.6 6.3 2.7 2.2 1.6

2356.6

APC Wine Producers' Committee Wine Industry Southern Forest (Manjimup/Pemberton) Vintage 2021 Variety PINOT NOIR SHIRAZ MERLOT CABERNET SAUVIGNON CABERNET FRANC NEBBIOLO PETIT VERDOT MALBEC ZINFANDEL MEUNIER TEMPRANILLO SAPERAVI BRACHETTO LAGREIN RED TOTAL

Tonnage 228.5 84.2 65.8 31.7 5.1 4.6 4.4 4.2 2.2 1.9 0.4 0.2 0.2 0.1 433.42

Variety SAUVIGNON BLANC CHARDONNAY PINOT GRIS SEMILLON OTHER PROSECCO RIESLING GEWURTZTRAMINER ARNEIS GRUNER VELTLINER VIOGNIER FIANO

Tonnage 974.4 614.5 123.1 53.4 41.2 37.8 18.4 14.5 1.7 0.4 0.2 0.1

WHITE TOTAL

1879.775

23

WA Wine Industry RDE Strategic Review 27 July 2021

Department of Primary Industries and Regional Development Verschuer Drive, Bunbury SUMMARY AND OUPUTS The purpose of the meeting was to explore the key challenges faced by WA wine producers and then develop a strategic framework to address these. The outputs confirm: 1.

2.

3.

4.

What are the challenges?

How can these be overcome?

Who can assist WA producers to do so?

When can the programs be implemented?

These outputs will be used to guide RD&E the resources allocated by WA wine producers in partnership with the WA state government, Wine Australia and the relevant research service providers.

Members of the Wines of WA Technical Committee, representatives from all WA wine regions, WoWA Board members and WA based RDE researchers/service providers and key DPIRD personnel participated in the meeting.

The group first reviewed the 2014-24 WA Wine Industry Strategic Plan and 2017 RD&E Strategic Review Outputs. It was agreed that the broad themes regarding RD&E outlined in these documents remain relevant. Confirming the industry’s strategic direction has been consistent and focused on the medium/long-term challenges and opportunities that will enable innovation and sustainable growth.

Input from Australian Grape and Wine (AGW) and Wine Australia (AGWA) confirmed the need for a strategic national approach in allocating resources and funding from federal levies and research & development corporations (RDCs). Additionally, the federal government has requested that all agricultural RDCs collaborate to ensure cross-sector projects, further leverage levy funding. The RDC’s focus going forward will move towards facilitating adoption and commercialisation to drive innovation and sustainable growth.

For wine industry levies specifically, it was noted that there will be less allocated to Strategic Partnership Agreements (SPAs), with more competitive grants for state/region specific projects. It should be noted, the amount of federal levies available will decrease over coming years, increasing the need for an over-arching national strategic framework that guides the allocation of levies.

AGW and AGWA have been consulting broadly with state/regional bodies, a draft discussion paper has been circulated to encourage a national approach to RDE priorities.

WA Wine Industry RDE Strategic Review 27 July 2021

Department of Primary Industries and Regional Development Verschuer Drive, Bunbury SUMMARY AND OUPUTS

RDE Strategic Focus Areas 1. Understanding the intricacies of provenance and the fine wine regions of WA. Wines of WA Strategic Plan 2014-24 is focused on improving our fine wine quality, and the distinctive qualities of our fine wine regions. Understanding what makes a wine region unique is important to both producers and consumers, particularly those regions producing iconic wines. A greater understanding of the interaction of climatic and geophysical aspects on wine composition and sensory attributes is essential in verifying provenance, guiding future vineyard developments, improving quality and our competitive advantage in the market. This information will become a powerful tool to communicate throughout our value chain/s the uniqueness and value of WA provincial wines from a scientific basis.

Funding and resourcing for this project has been confirmed under the Export Growth Partnership with the WA government. The project will be delivered by DPIRD in partnership with Margaret River and Great Southern wine regions initially and other regions subsequently 2. Supporting WA producers to adopt Sustainable Winegrowing Australia (SWA) - Why: WoWA is of the view that the WA wine industry can be world leaders in sustainability. Supporting an evidence-based approach to sustainability will improve the viability of our grape and wine businesses and enhance our competitive advantage, as well as addressing our social license to operate. It’s for these reasons that the Wine of WA Strategic Plan supports the SWA certification of all grape growers and wine makers by 2030.

- What: SWA is the national program for grape growers and winemakers to demonstrate and continuously improve the sustainability of vineyards and wineries through the environmental, social, and economic aspects of their businesses - How: An Industry Development Officer (IDO) to support growers/producers to adopt SWA and implement it into their business practises - Who: A partnership between WA wine industry, AGWA and DPIRD to support an IDO, with direct links to the national SWA program.

- When: Immediate start - Success: 100% members and 60% certified in 5 years 3. Supporting WA producers to adopt on-farm biosecurity practises - Why: A key component of our unique value proposition or competitive advantage is our freedom from many pests and diseases. Less pests and diseases leads to reduced inputs and improves the quality of our fine wines. Protecting this important competitive advantage is critical. WoWA identified this as one of their top 5 priorities in the WoWA Strategic Plan 2014-24.

- What: To protect our competitive advantage and build on it its was recognised that that we needed to increase the awareness and application of best practise biosecurity at the farm level.

WA Wine Industry RDE Strategic Review 27 July 2021

Department of Primary Industries and Regional Development Verschuer Drive, Bunbury SUMMARY AND OUPUTS -

How: An Industry Development Officer (IDO) to support and drive the implementation of on-farm biosecurity best practise.

Who: A partnership between WA wine industry, AGWA and DPIRD to fund/resource an IDO, with direct links to the national SWA program.

When: Immediate start Success: Within 5 years 80% of vineyards and winemakers have implemented the industry agreed on-farm best practice biosecurity functions.

4. Why are vineyard yields declining in WA? - Why: As a result of broad industry consultation and feedback it is acknowledged that many vineyards in WA are declining in yield. In most wine growing areas in the world plantings are replaced every 20 to 25yrs through rotational establishment programs. In WA most vineyards were established 20 to 25 years ago. This has the WA industry confronted with a unique situation. The issue being when to replace the vines. A diagnostic approach to addressing the decline in yield would help determine the priority areas for replacement. As well as how best to manage the remaining vines to obtain optimum production from them for the remainder of their lives.

- What: Vineyard yield is declining across most regions. A program to determine why and how to address this is required. As well as a strategy to replace the vines in the best sequence to optimise production and returns.

- How: Case studies at farm level across regions to investigate the cause of yield decline. Agronomist to review economics of various mitigation strategies to address issue effectively.

- Who: DPIRD/industry - When: immediate start - Success: In 5 years, 50% of grape growers are applying the knowledge to effectively address the factors contributing to yield decline in vines. They know how to determine when vines need to be replaced, and how to optimise the yield of existing vines waiting to be replaced. This is supported by economic modelling, and decision support tools that growers interact with to determine the critical intervention points. Every year at least 20% of the total area to vines is replanted to new root stock.

5. Why is the adoption of RD&E so low by WA Wine industry?

- Why: RD&E conducted for an industry that is not adopted is of little value to that industry. The WA Wine industry wants to grow and be sustainable into the future, however it recognises that the adaption and implementation rate of many of the technologies developed by the RDCs is low amongst the WA levy payers.

- What: Often there are very logical reasons while growers are not applying these technologies. Identifying these constraints and barriers will enable the industry to be more innovative and productive going forward.

- How: PhD project looking at why current technologies are not be adopted by growers. It will focus on the perceived barriers and constraints to the adoption of the key technologies, and how these can best be overcome.

- A second PhD project will look at who are the influential people in the industry across a range of key topics and map the these out. This study will also look at how growers want to be supported to take on new technologies. As well as what

WA Wine Industry RDE Strategic Review 27 July 2021

Department of Primary Industries and Regional Development Verschuer Drive, Bunbury SUMMARY AND OUPUTS publications they read to understand the new technologies available and how to assess if they worth employing. review current adoption strategies and examples of best practise models in other regions (Napa, NZ) and industries. An IDO to oversee and implement recommendations.

- Who: Murdoch, UWA, WA wine industry, AGWA/AWRI, ASVO and DPIRD - When: Immediate start - Success: In 5 years (50% of growers) widespread implementation on-farm of at least three key technologies that are not currently widely adopted across the industry. This could include on-farm biosecurity, sustainability certification and strategies to address vineyard yield declines.

6. Rapid access to new genetic plant material - Why: Access to large volumes of new genetic material at comparable costs to the eastern states is essential to ensuring the WA industry is able to response rapidly to emerging consumer trends, and take on disease resistant, and improved quality/yielding lines/varieties. An inability to access this material will result in reduced plantings, greater risk with new plantings not having resistance and/or yield and quality improvements. This would result in the WA industry losing its competitive advantage and/or market share over time, with the industry becoming unviable in the medium term.

- It is well recognised and acknowledged that protecting the WA industry from additional pests and diseases is critical. That is why it’s imperative that access to new genetic plant material doesn’t compromise this position, but it’s cost effective, and the risks have been effectively mitigated ensuring our pristine environment is not compromised.

- What: WA growers do not have the same access to enough quality plant material compared to other state and countries. This has limited innovation, renewal, and growth of vineyards.

- How: Advocate for policy change to allow direct importation of quality plant material from certified national and international providers - Who: WoWA and DPIRD - When: Immediately - Success: Within 12 months, producers have rapid access to the required plant material. A process is in place to enable large volumes and range of varieties/lines of pest and disease free material to enter the state in a timely manner at reasonable cost to the growers.

2021 WA Wine Industry Forum Key Messages Great progress to date on implementing 2014-24 WA Wine Industry Strategic Plan

by WoWA and Regional Associations We can now build on this foundation to leverage our natural assets and competitive advantage.

There is room to grow the industry, profitably and sustainably over the next 3 years of the strategic plan.

We need: -

Funding/Partnerships providing ample resources to further drive industry growth

-

Efficient, better resourced associations

-

Biosecurity and access to better plant material are key focus areas for projects going forward

-

100% of WA producers are SWA certified

Strategic Pillars

Success Looks Like

INDUSTRY STRUCTURE AND DEVELOPMENT Build a culture of collaboration with an expectation of success

ADVOCACY AND REPRESENTATION Lean, proactive, unified and Influential

MARKET DEVELOPMENT

1.

Strategic regional collaboration driven 2. by energised producers

INNOVATION, RDE&A AND BIOSECURITY

1.

Secure funding through partnership and collaboration.

- Supported by a highly engaged industry willing to co-invest - Industry has clearly articulated pathway to success with resources to implement strategies

2.

Efficient, nimble industry communicating seamlessly

3.

Transparent simple industry structure

1.

Clear understanding of industry needs/direction.

2.

Effective working relationships with leaders in government

3.

Government recognises that industry is cohesive, credible and low risk with a proven track record.

Collaborative strategy that drives profitable growth across market channels.

Ample resources to drive growth (research, collaboration, implementation)

1.

A biosecurity regime that better supports industry growth, innovation and protects industry assets. Rapid access to new plant material from accredited suppliers.

2.

100% of WA producers are SWA certified

Regional Program

REPORTING TEMPLATE 2022–23 ANNUAL OPERATING PLAN

REGIONAL PROGRAM PARTNER DETAILS Regional zone

Western Australia

Administrative organisation

Wines of Western Australia

Administrative primary contact

Larry Jorgensen

Phone

08 9284 3355

Mobile

0448 884 161

Address

PO Box 2091, Claremont North WA 6010

Email

ceo@winewa.asn.au

Start Date

1 July 2022

End Date

30 June 2023

Please note: Regional Program guidelines are accessible from Research | Wine Australia When complete, please send this form to research@wineaustralia.com.

1

ACTIVITY REPORT Please copy and complete the table below for the number of activities you pursued in 2022-23.

Activities should correspond to those detailed in the 2022-23 AOP, subject to subsequent variations. Please complete the budget overview at the end of the document.

ACTIVITY 1 SOIL COMPACTION DEMONSTRATION AND WORKSHOP Was the activity achieved and, in the timeframe, expected? (250 words)

The demonstration component of this activity was undertaken on 27 June 2022 where three vineyards in Margaret River that had incurred mid-row deep ripping at various periods had soil compaction measurements taken within the treated rows and those untreated for comparison.

The workshop was held on 20 January 2023, 28 attendees in person, five online.

The program consisted of: • • •

• •

Overview of soil compaction: What it is, the causes/mechanics, the potential problems, and how it can be measured or assessed (Dr Tony Proffitt) Overview of vine roots: Structure, function and more (Dr Megan Shelden) Management options to reduce or remove compaction: Deep ripping experiences in Frankland River, the machinery options, how and when this should be done (Lee Haselgrove) Margaret River case study of three different vineyards (Dr Tony Proffitt) Compaction management experiences (John Fogarty)

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. Aimed for 40 attendees, achieved 33.

2. Surveyed attendees, results as follow; 'This workshop has been a good use of Wine Australia Regional Program funds' 64% strongly agree and 36% agree. 'Attending todays workshop has improved your knowledge on the topics presented' 53% agree and 47% strongly agree. 'You will consider implementing new practices based on what you have learnt today' 42% agree, 42% strongly agree and 18% neutral.

What were the three key learnings of this activity for your region?

1. Soil compaction will limit vine roots growth accessing nutrients and soil water.

2. Ripping can alleviate soil compaction but considerations to depth and lateral impact must be made in addition to understanding recompact from consequent machinery traffic.

3. It is a potential tool to refresh/reinvigorate mature vineyards and further work to quantify the full impact would be beneficial.

2

What final products were generated by this activity, if any?

Video recording of the workshop on the Wines of WA YouTube channel.

An article summarising the demonstration component of this activity was published in 2023 March edition (710) Aust & NZ Grapegrower and Winemaker ‘Understanding, measuring and ameliorating soil compaction in vineyards’.

Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

Funds were expended as planned.

Wine Australia funding sought

Item Administration

Cash cocontribution

In-kind contribution

$575

Soil penetrometer

$3,000

Speakers fees

$1,000

Collecting soil compaction data

$2,600

Vehicle hire

$2,000

$600

Access to vineyard sites

$8,000

Venue hire

$250

Catering

$800 TOTAL

$5,825

$13,000

Comments: please provide any further comments about this activity No further comments.

ACTIVITY 2 REGIONAL WINEMAKERS TRIAL FORUM Was the activity achieved and, in the timeframe, expected? (250 words)

In September 2022, a tasting forum was held in Margaret River focusing on the theme of alternative fermentation and maturation vessels , 18 producers attended .

In July 2023 a tasting forum was held in the Swan Valley , the theme was focused on Cabernet Sauvignon clones with 12 producers in attendance.

3

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. Aimed for 40 attendees, achieved 30, 100% of attendees found this event as either valuable or very valuable use of Regional Program funds.

2. Eight producers shared their knowledge by means of their own trials (11 in total).

3. 100% of attendees were found to agree or strongly agree the event improved their knowledge on a particular theme.

What were the three key learnings of this activity for your region?

1. In terms of alternative vessels, they offer a great deal by adding complexity and pairing to a desired wine style. The initial purchase price is high but can last if care is taken during times of handling. Practicalities of handling, moving and cleaning can be challenging so care must be taken. It appears knowing the degree of oxygen ingress of the vessel’s material is important and worth considering if using as a fermentation or maturation vessel.

2. Clonal selection of Cabernet Sauvignon can impact wine style and sensory characteristics in particular palate weight and tannin profile. Newer French clones were shown to suit a more approachable youthful style of Cabernet whereas the local clones suit a style built for cellaring.

3. Regional engagement to provide guidance on tasting themes and have participants contribute is challenging.

What final products were generated by this activity, if any?

The Margaret River tasting forum was summarised in the September 2022 Wine Industry Newsletter.

Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

Funds were expended as planned.

Wine Australia funding sought

Item

Transport Venue hire

Cash cocontribution

In-kind contribution

$1,000 $800

Tasting supplies

$2,500

Planning and facilitation

$3,000

Administration

$3,000

$500 TOTAL

$5,300

$5,500

Comments: No further comments

4

ACTIVITY 3 DEMONSTRATING THE INFLUENCE OF CLONAL SELECTION ON MARGARET RIVER CABERNET SAUVIGNON WINE QUALITY Was the activity achieved and, in the timeframe, expected? (250 words)

A third season of collecting viticultural observations and small -lot winemaking of the 14 clones/selections of Cabernet Sauvignon was completed. An industry tasting workshop was held in Margaret River in January 2023 . During the workshop observation including dates of key phenological stages, yield, bunch weight, bunch numbers, berry weight and pruning weights were presented.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. Survey results - 'This workshop has been a good use of Wine Australia Regional Program funds' 67% strongly agree and 33% agree. 'Attending todays workshop has improved your knowledge on the different Cab clones available in WA' 12% agree and 78% strongly agree.

'If you were to review a new Cab planting, you'd be inclined to consider multiple clones' 33% agree, 56% strongly agree and 11% neutral.

What were the three key learnings of this activity for your region?

1. Genetic diversity in varietal plantings can be beneficial in terms of blending options for a ‘house style’ and offsetting seasonal climatic variation.

2. The wines presented showed significant differences in palate weight, tannin profile and flavour spectrum.

What final products were generated by this activity, if any?

The Margaret River tasting workshop was summarised in the February 2023 Wine Industry Newsletter.

Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

Funds were expended as planned.

Item

Wine Australia funding sought

Cash cocontribution

In-kind contribution

Ground travel

$1,550

Winemaking

$7,450

$6,550

$900

$600

In-field observations Article

$200

Workshop venue hire

$500

Administration

$1,100 5

TOTAL

$11,000

$7,850

Comments: please provide any further comments about this activity A Great Southern tasting will be conducted in the near future, the activity will be profiled at the 2024 Australian Cabernet Symposium which include a tasting of a selection of the trial wines across the Margaret River and Coonawarra venues.

ACTIVITY 4 DEMONSTRATING THE TIMING OF POWDERY MILDEW AND BOTRYSPHAERIA SPORE RELEASE TO ASSIST IN EFFECTIVE DISEASE MANAGEMENT Was the activity achieved and, in the timeframe, expected? (250 words)

Due to the installation of a specific spore trap for Botryosphaeria spores in Margaret River as part of the national trunk disease project, only the powdery mildew spore trapping was assessed. In Oct 2022, two weather stations were installed in the Margare t River and Great Southern regions, respectively. Rotor rod spore traps were constructed and installed within vineyard blocks at the same time, with growers instructed on how to change over the rods weekly. Another spore trap was placed in a research viney ard in Manjimup to act as a positive control, due to it being known as a high powdery mildew pressure site.

It was a high bird pressure season across most of the WA growing regions, meaning bird netting was required, so a decision was made to remove the spore traps out in late December to prevent any issues associated with the nets. DNA was extracted from the spore trap rods and sent to Dr Walt Mahaffee’s (USDA) lab in America who kindly processed them for both the presence of spores and fungicide re sistance.

The results found only one of the four commercial vineyards had a small number of powdery spores before t he traps were removed. At the Manjimup site, an exponential growth in the number of spores was detected before trap removal and the presence of QoI resistant mutation was found for the first time. Further refinement is required to be confident in the Guble r-Thomas powdery disease model for WA growing regions. Commercial vineyards are controlling early season powdery mildew adequately.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. Powdery mildew spore data collected from multiple sites throughout the growing season and phenological and climatic data collected.

6

What were the three key learnings of this activity for your region?

1. The rotor rod spore traps can adequately detect small amounts of powdery mildew spores but several of them are required and strategically placed to get meaningful results within a block.

2. To be confident in the calibration of disease models to WA regions and growing conditions, either unsprayed or check vines, need to be included in the blocks with spore traps as the management practices in commercial vineyards skew calibration data.

3. Spray programs for powdery mildew control are currently effective in minimising early season powdery mildew levels in vineyards.

What final products were generated by this activity, if any?

Rotor rod spore traps were produced based on the how to YouTube video from UCCE Napa viticulture and from Dr Mahaffee’s lab. These can easily be produced in Australia using products purchased from retail stores.

Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

Wine Australia funding sought

Item Administration

$1,900

Spore traps

$1,000

Diagnostic analysis

$15,000

Disease modelling subscription

Cash cocontribution

In-kind contribution

$680

Access to weather stations

$24,000

Travel

$1,000

Data collation

$1,915

In field observations

$2,915 $2,000

TOTAL

$21,495

$29,000

The budget for this activity was underspent due to a combination of not installing traps for Botryosphaeria spore detection and Dr Mahaffee’s lab not charging for analysis of the spore trap rods.

Approved funds were $21,495 Under the item ‘ Diagnostic analysis’ – only $3,065 was incurred for sample preparation and postage, therefore the activity was underspent by $11,935

Comments: please provide any further comments about this activity

7

The underspend funds will be reallocated and dispersed across multiple activities planned for 2023-24 as previously discussed with Wine Australia.

ACTIVITY 5 BUILDING RESILIENCE TO DROUGHT AND A WATER CONSTRAINED FUTURE Was the activity achieved and, in the timeframe, expected? (250 words)

This activity only held a single workshop in Margaret River as only one person registered to attend the Mt Barker workshop so arrangements were made for virtual attendance for those outside of Margaret River. The workshop was held on 12 May 2023.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. At least 40 growers will have been made aware of and trained in new water budgeting tool and scheduling resources produced by the AWRI for use in the 2022-23 growing season 2. Provide at least 40 growers with information on new technologies in water irrigation scheduling and management and to promote the adoption of more water-efficient sustainable production practices in vineyards 3. Further enhance at least 40 growers’ understanding of the ‘Climate Atlas’ and what implications it shows for WA wine regions Only around 20 people attended this event.

What were the three key learnings of this activity for your region?

1. There are tools available to assist understanding what climate change projections mean for Australia’s wine regions 2. AWRI offers support in this space and there are case studies available.

3. Climate change and drought mitigation are not priority concerns for local producers based on the low number of attendees.

What final products were generated by this activity, if any?

Presentations are available on request.

Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

8

Wine Australia funding sought

Item

Cash cocontribution

In-kind contribution

1. Administration

$1,200

-

$1,200

2. Presenter travel

$7,680

-

-

3. Presenter Fees (External

$3,200

-

$6,400

4. Workshop costs

$1,300

-

-

-

-

$34,210

$13,380

-

$41,810

5. Conversion of the water budgeting tool to an online web portal (with individual data retention and optimised for desktop and mobile devices)

TOTAL

Comments: please provide any further comments about this activity

This activity was underspent by $1,409.00 due to a number of the proposed interstate speakers unable to travel and provided a video recording instead of presenting in person. The underspend is the savings incurred under ‘Presenter travel’. These funds will be utilised in Activity 6 - CREATING AN ONLINE RESOURCE OF INFORMATION RELATING TO BIOSECURITY BEST PRACTICES IN WA AND OT TECHNICAL REFERENCES .

ACTIVITY 6 CREATING AN ONLINE RESOURCE OF INFORMATION RELATING TO BIOSECURITY BEST PRACTICES IN WA AND OTHER TECHNICAL REFERENCES Was the activity achieved and, in the timeframe, expected? (250 words)

AHA Viticulture has been appointed to conduct this activity and are delivering presentations as axillary to other planned events across regions. Prior learnings from past activities show that dedicated biosecurity workshops have low attendance hence this strategy.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP. 1. Increase industry engagement on biosecurity best practises through a co-design development process of the resource by consulting over 20 producers and stakeholders

9

2. Develop an online WA wine industry focused information resource that improves producers’ knowledge and understanding of biosecurity best practices applicable to WA conditions that has regular site visitation as measured through google analytics.

3.Increase adoption of on-farm biosecurity best practises as measured by a practice change survey showing 50% of Wines of WA members incorporating new practices.

What were the three key learnings of this activity for your region?

This activity was not implemented in the 2022-23 financial year and will be completed in 2023-24.

See above.

Workshops and online resources (ongoing) Budget: was funding expended as approved in the Regional Funding Agreement and 2021– 22 AOP? Please state approved funds and actual expenditure and detail any difference.

Wine Australia funding sought

Item Consultant to collate detail

$3,000

Conduct three regional workshops

$1,000

Consultants to develop content/portal Awareness campaign

$3,000

Administration

$1,000

Cash cocontribution

In-kind contribution $1,000

$2,000

$3,000 $1,000 $3,000

TOTAL

$8,000

$2,000

$8,000

Comments: please provide any further comments about this activity

Additional $1,409.00 allocated from the underspend in Activity 5.

10

OVERVIEW OF 2022–23 BUDGET Activity name

Approved Wine Australia budget 2022–23

Actual expenditure 1 July 2022 to 30 June 2023

Difference

1

SOIL COMPACTION DEMONSTRATION AND WORKSHOP

$5,825

$5,825

$0

2

REGIONAL WINEMAKERS’ TRIAL FORUM

$5,300

$5,300

$0

3

DEMONSTRATING THE INFLUENCE OF CLONAL SELECTION ON MARGARET RIVER CABERNET SAUVIGNON WINE QUALITY

$11,000

$11,000

$0

DEMONSTRATING THE TIMING OF POWDERY MILDEW AND BOTRYSPHAERIA SPORE RELEASE TO ASSIST IN EFFECTIVE DISEASE MANAGEMENT

$21,495

$9,560

$11,935

5

BUILDING RESILIENCE TO DROUGHT AND A WATER CONSTRAINED FUTURE

$13,380

$11,971

$1,409

6

CREATING AN ONLINE RESOURCE OF INFORMATION RELATING TO BIOSECURITY BEST PRACTICES IN WA AND OTHER TECHNICAL REFERENCES

$8,000

$9,409

-$1,409

TOTAL

$65,000

$53,065

$11,935

4

Please answer the questions below in relation to the entire 2022–23 Regional Program budget for your region.

Has the cash and/or in-kind funding been received and applied as approved in the Regional Funding Agreement?

Yes **Please note that any unspent funds from 2022-23 cannot be rolled over into the new 2023-28 Program and will need to be returned to Wine Australia.

When complete, please send this form to research@wineaustralia.com.

11

12 June 2023

WA Wines to the World PROGRAM UPDATE – 2022/23 GLOBAL ACTIVATIONS Activation:

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status: ONGOING across 12-month program: • www.winexportal.info (Password: GlobalGrowth).

• 2022-23 Program is live and has been communicated to producers and stakeholders.

ONGOING across 12-month program: • Japan CWO posted July 2022 for GRN (established distrib seeking WA wines).

• Japan CWO posted November 2022 for Hakurai Trading Co (new distrib seeking WA wines).

• Indonesia CWO posted November 2022 for WA Govt Office (approaching several established distrib’s).

• Embassies & South Pacific CWO posted March 2023 for ALM (export opp’s across all Embassies and South Pacific markets).

ONGOING across 12-month program: • Grants approved for MR – Media Kit and Wine Folly Regional Guide • Grants approved for GS – Mgmt Support, Media Kit, Food&Wine Event (Nov 22, Singapore), Vinexpo/On Tour Marketing Collateral, On Tour Program.

• No budget available for producer clusters.

New or Existing

Winexportal.info

New & Existing

Ongoing development and maintenance of WA Wines to the World website to ensure an effective communication and registration platform for industry users, plus access to relevant export resources and program assets.

Commercial Wine Opportunities

New

Communicate new distribution opportunities to industry, compile producer EOIs and present to buyer in a readable format for their action.

Grants to Regions & Clusters

New & Existing

Global Tradeshow ProWein Dusseldorf 2023

New & Existing

Proposals brought to the program from regions or producer clusters. These may include group stands at international trade fairs, tastings/masterclasses, collaborative sales promotions, engagement with Aust Wine Connect or other partnered initiatives, inbound visits for trade buyers and influencers, shared logistics platforms/services and/or development of assets. Based on an open call for proposals with clear guidelines that will identify program KPIs. Collaborative stand/presence at ProWein for WA regions, within the larger Wine Australia stand. Also providing opportunity for related activities such as masterclasses.

Wine Australia

COMPLETED March 2023: • See web post (with linked docs) • Committed to 1 x regional stand & masterclass for MR and 1 x masterclass only for GS, based on EOIs received.

•

Global Tradeshow Vinexpo Asia 2023

New & Existing

Wine Australia & TradeStart

Collaborative stand/presence at Vinexpo for WA producers and/or regions, within the larger Wine Australia stand. Also providing opportunity for related activities such as masterclasses.

Inbound Trade Visits

New & Existing

TradeStart

Target relevant international trade to visit WA wine regions, in conjunction with TradeStart.

Inbound Media Visits

New & Existing

Various cocontributors under IWTG plus TradeStart

Target relevant international media/influencers to visit WA wine regions, in conjunction with Tourism WA.

6 x WA producers with individual stands (unsubsidised); 6 x MR producers on regional stand (16 x SKUs); 6 x wines in each masterclass.

• Amanda Whiteland travelled to ProWein to oversee MR regional stand.

• Feedback generally positive although it was felt that numbers were down against pre-COVID shows – see Wine Australia report COMPLETED May 2023: • See web post (with linked docs) • Committed to 1 x WA regional stand & on-stand masterclass for GS (with Wine Australia).

• Also committed to one off-stand masterclass with TradeStart/SWDC (in Vinexpo’s ‘Wine Academy’) for MR. • 15 x WA producers with individual stands (subsidised); 8 x WA producers from 4 x regions on WA regional stand (20 x SKUs); 6 x wines in each masterclass.

• Liz Mencel travelled to Vinexpo to oversee WA regional stand.

• Initial feedback very positive – 95 scanned ‘engaged’ sales leads to WA regional stand, plus masterclasses almost fully subscribed. See Wines of WA Media Release COMPLETED October 2022: • TradeStart-led delegation of 9 x international wine buyers visited GS (during Wine Show of Western Australia) and MR (during Fine Vines Festival).

• Mainly Distributors from across Asia (NTM opportunities).

• See TradeStart’s final report to stakeholders with attachments COMPLETED October 2022: • Singapore Media visit, coordinated by MRWA in conjunction with Singapore PR agency (tied in with Fine Vines

Active Media Engagement

New & Existing

Robert Parker Wine Advocate & Vinous

Leverage producer subscriptions with key publications and platforms (starting with Wine Advocate and Vinous) to further promote WA wines/regions through those publications’ media platforms and events.

'New Voices' Content Development

New & Existing

Freelance Writers

Builds on 2021-22 program activity to create a body of WA wine storytelling content through ‘New Voices’ activation. Fees to be paid to freelance writers (emerging and established) for the development of unique content, via pitch campaign.

WA Education Assets

New & Existing

Builds on 2021-22 program activity to develop a set of assets for WA as a whole, covering all regions.

An important resource for trade/consumer education and media. Focus on further development of image/video library, educational tools and media kit.

Builds on 2021-22 program activity, with further 3months’ access to Wine Intelligence consumer data (extended subscription). Development of new reports to inform WA wine exporters re key markets and opportunities (also used to inform info sessions and webinars, refer below).

CAPABILITY DEVELOPMENT

Wine Intelligence Consumer Data

New & Existing

CAPABILITY DEVELOPMENT

Info Sessions & Webinars

New & Existing

Various Partners

Inform WA producers about specific practical topics of interest using guest presenters plus develop

Festival) – 3 x media plus 1 x agency representative.

• See Media Bios • See Schedule of Activities • See Media Outcomes Update • See Spirited Magazine’s ‘Favourite Travel Destination of the Year’ NO LONGER APPLICABLE: • Communications have taken place with target publications, Wine Advocate and Vinous.

• Originally looking to engage in an event around Vinexpo Asia with Wine Advocate, but eventually realised this would be too expensive.

• Further engagement on hold for 2022/23 given budget constraints. Hoping to pick up program again in 2023/24.

ONGOING across 12-month program: • See ‘New Voices’ Stories web page • Launch and communications to key stakeholders took place across July/August 2022.

• Focus now on applying to activations and identifying opportunities with target publications and apps.

• The Buyer (UK) has agreed to run with 4-5 stories.

ONGOING across 12-month program: • Language & image guide • See Digital Assets web page IN PROGRESS for June 2023 completion: • WA Regional Guide (media kit) ONGOING across 12-month program: • 3 reports completed covering UK, USA & Singapore Wine Consumer & Market.

• 1 further report underway (covering eCommerce trends), plus a case study on opportunities for MR Cab in Japan.

• See downloadable reports via web page ONGOING across 12-month program:

CAPABILITY DEVELOPMENT

targeted webinars to inform key NTM activities.

Details provided via dedicated Info Sessions web page on Winexportal.com.

•

• • •

Info/Q&A Sessions held late 2022 to introduce USA Distributor Incentives Support, and in March 2023 for Texas Retail Promotions.

US Market ‘Get Ready’ Webinar held 31/01/23.

Singapore Market ‘Get Ready’ Webinar held 10/03/23.

Info/Q&A Session planned for June 2023 to launch 2023-24 Program to producers/regions.

UNITED KINGDOM (UK) ACTIVATIONS Activation:

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status: COMMENCED 2022, continuing to end of FY: • See web post (with linked docs) • Round 1: 7 registered producers various GIs. • Round 2: 6 registered producers – various GIs. • Overarching digital campaign has not produced adequate ROI in terms of the metrics, so this has been put on hold for now whilst we look at alternatives.

COMMENCED 2022, continuing to end of FY: • See web post (with linked docs) • Round 1: 6 registered producers various GIs. • Round 2: 3 registered producers – all MR GI. 1 further MR/GS producer was submitted but was not approved owing to insufficient budget (possibly to run into 2023/24 program).

New or Existing

UK Retail Promotions Support Program

Existing

UK Distributors & Retailers, B/Markets (digital campaign)

Series of options for producers already established in the UK market to undertake retail promotions with their distribution and retail partners, under an overall banner of WA Wines. This will include an overarching digital campaign for WA Wines in the UK.

UK Distributor Incentives Support Program

Existing

UK Distributors

Direct support to producers undertaking new or expanded distributor incentives programs targeted at sales team performance in the UK. Activities could include monetary incentives, gift vouchers, consumer goods, travel or similar. Designed to increase commitment of distribution partners and their sales teams, increase new listings and overall sales, and promote WA category overall.

Wild, Windswept & World Class Media/Trade Tasting (Margaret River)

Existing

67 Pall Mall & Wine Australia

An intimate and exclusive live tasting event, presented to the ‘elite’ of UK wine media/influencers, held in London with live video streaming from MR. Showcasing current vintages and museum releases. Key objective to generate serious interest amongst leading UK wine journalists and KOLs, with a view to achieving significant publicity/editorial thus building brand

COMPLETED November 2022: • See web post • Tasting took place 14/11/22 – 16 x VIP media and trade attendees including Jancis Robinson MW, plus Wine Aust staff).

• See invitation • See tasting booklet

awareness and sales opportunities for MR and WA wines.

Explore UK

New

Wine Australia

Co-funding offered to participants in Wine Australia’s Explore UK program, designed to get wine producers ‘export ready’ for the UK market.

New

Wine Australia & TradeStart

Direct support to selected NTM producers that participated in Meet the Buyer UK program, to showcase their wines to potential buyers.

CAPABILITY DEVELOPMENT Australian Trade Tasting

• • •

See Erin Larkin video See JancisRobinson.com write-up Final report being compiled to bring together all known press outcomeand to include the video recording.

COMPLETED January 2023: • See Wine Australia overview – 2022/23 program (ran Nov 22 through Jan 23) • Provision for up to 6 x producers, 1 x producer signed up.

COMPLETED January 2023: • Tasting took place 25/01/23, support provided to 10 x WA NTM producers (20 x wines) – various GIs. • See guest list • See photographs • See Wine Australia media release and Harpers feature

UNITED STATES OF AMERICA (USA) ACTIVATIONS Activation:

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status:

Comprehensive support package aimed at incentivising Distributor sales teams and their accounts, specifically supporting new placements, with emphasis on high-volume/high-visibility promotions (BTG, end-caps/case stacks etc.). We will work closely with producers and their importers to promote/implement, and will also tap into Wine Australia’s Distributor Programming Support to further leverage and promote.

A deliberate sales-generating campaign in TX, with the objective to drive retail chain and distributor engagement to stimulate purchases of Margaret River Wines. Intended to expand program in 202324 and continue to run for several years, building ongoing brand loyalty and sales for Margaret River wines.

COMMENCED October 2022: • See web post (with linked docs) • Info/Q&A Sessions held Nov 2022 to introduce program.

• Round 1: 2 registered producers – Geographe & MR. • Expecting significantly more uptake for 2023/24 given program lead times.

New or Existing

USA Distributor Incentives Support

Existing (with Importers)

US Importers/Distribs & Wine Australia

Texas Retail Promotions

Existing (with Importers & Distribs)

US • Importers/Distribs & Retailers

COMMENCED November 2022: • See web post (with linked docs) • Info/Q&A Session held March 2023 to introduce program and launch comprehensive POS/in-store tasting/training package to support activation.

• See BREATHTAKING MARGARET RIVER flyer aimed at TX distributors (with linked support)

•

US Market Entry Program

2 registered producers for 2022/23; expecting significantly more uptake for 2023/24 given program lead times.

ONGOING across 12-month program: • 4 wineries signed up for 2022/23 program (various WA GIs).

• 2023/24 sign-ups now underway. See web post (with linked docs). Eligible EOIs from 4 new producers.

New

Wine Australia

12-month new to market entry program run by Wine Australia. Assists producers to navigate the difficult US market and supply chain options. Includes product/pricing review, strategic advice, samples facilitation, media introductions (Wine Enthusiast Importer Connection) and specific buyer introductions.

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status:

Wine Australia

Co-funding offered to participants in Wine Australia’s Explore Canada program, designed to get wine producers ‘export ready’ for the Canada market.

NO LONGER APPLICABLE: • See Wine Australia overview – 2023 program (ran Jan to Feb 23) • Original provision for up to 4 x producers, no WA producers signed up.

Delivery Partner(s):

Description/Purpose:

Progress/Status:

Existing

Singapore and Malaysia Distributors & Trade

For producers in the Singapore and Malaysian markets to undertake retail and on-trade promotions and brand launches. Regional and portfolio collaborations are encouraged.

COMMENCED 2022 (Singapore), continuing to end of FY: • See web post (with linked docs) • Round 1: 11 registered producers various GIs. • Round 2: Expanded and re-launched to include Malaysia and on-premise promotions. 9 registered producers – various GIs.

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status:

Wine Australia, Austrade and JTSI (WA Govt Office, Japan)

Provide support package to producers wishing to participate in this Austrade/Wine Australia initiative (an event they intent to hold annually)

COMPLETED October 2022: • See web post (with linked docs) • 21 registered producers (spanning 4 x WA GIs).

• See Wine Australia event report

CAPABILITY DEVELOPMENT

CANADA ACTIVATIONS Activation:

New or Existing

Explore Canada

New

CAPABILITY DEVELOPMENT

SOUTH-EAST ASIA ACTIVATIONS Activation:

Exporters: New or Existing

Singapore & Malaysia Promotions Support Program

JAPAN ACTIVATIONS Activation:

New or Existing

Australian Wine: Tokyo Trade Tasting

Existing

Austrade NTM Tasting

New

Austrade and JTSI (WA Govt Office, Japan)

Provide support package to producers wishing to participate in this Austrade NTM initiative.

Australian Wine Showcase - Osaka

Existing

Austrade and JTSI (WA Govt Office, Japan)

Provide support package to producers wishing to participate in this Austrade Osaka initiative.

Translation of WA Education Assets

New & Existing

Translate targeted Western Australian educational assets into Japanese to support above events.

CAPABILITY DEVELOPMENT

COMPLETED April 2023: • See web post (with linked docs) • Good interest shown from WA producers, 10 x WA producers approved

by Austrade (various WA GIs).

• WA wines performed extremely strongly across all 5 categories tasted, with first place achieved in 3 of these. See list of winning wines here • See Austrade report COMPLETED April 2023: • See web post (with linked docs) • 11 x WA producers attended from a total 52 Australian producers (mainly MR & GS GIs), represented by 20 importers.

• 120+ trade visitors reported – awaiting Austrade’s event report COMPLETED October 2022: • Regional Fact Sheets • Translation of WA Regional Guide (media kit) budgeted for 2023/24.

HONG KONG ACTIVATIONS Activation:

Exporters:

Delivery Partner(s):

Description/Purpose:

Progress/Status:

Focused masterclass targeting Hong Kong’s VIP trade, in the lead-up to the Mid-Autumn Festival. 2030 VIP trade including leading retail and hotel buyers will be guided through a traditional seated masterclass, hosted live by renowned international wine educator and judge Corinne Mui. Significant WA wine promotion with retail giant Watson’s Wine in Hong Kong, coinciding with the Mid-Autumn Festival. WA brands (and regions) will benefit from a dedicated 5-week campaign in-store and online through 25+ outlets in Hong Kong, as well as website, social media and EDMs.

COMPLETED August 2022: • See web post (with linked docs) • 12 producers participated spanning MR and GS GIs. • See Wine Australia report

New or Existing

VIP Trade Masterclass

Existing

Wine Australia

Watson’s Wine Retail Promotion

Existing (with Watsons)

Wine Australia

COMPLETED October 2022: • See web post (with linked docs) • See Watson’s Wine Catalogue – Wines of Western Australia • 8 producers participated spanning MR and GS GIs. • See Wine Australia report (sales volume up by 90% and sales value by 80%, over the same period LY).