2023-24 Annual Report final online

Page 1


26 November 2024

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

Wine is a major value adding industry with significant regional economic and employment benefits. In 2023 - 24 the total value of the WA wine industry was estimated at over $900 million with a farm gate grape value of $97 million. (DPIRD Situational Analysis of Horticulture in Western Australia)

Regarding market channels, 46% of total value was sold in WA, 44% in eastern Australia and 10% 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 2024 - 34, Western Australian wine producers have a shared vision that:

“The fine wine regions of Western Australia are celebrated the world over”

This will be achieved by:

“Working collaboratively to advocate and promote the growth of a sustainable and profitable Western Australian wine sector”

The measurable goals of the 10-year strategy focus on:

- increasing value and volume in our domestic and export markets and;

- to be recognised for our sustainability by becoming international leaders in sustainable wine production

Wines of Western Australia Charter

The strategic plan mandates that Wines of Western Australia should, “ensure the continued representation of the fine wine regions of Western Australia at a State and National level … and support regional leadership to ensure that the regions are well represented now and in the future.”

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

We look forward to working with Producers and Regional Associations in 2024 – 25 on developing a sustainable and profitable future for the WA wine industry

Priority

Strategic Priorities 2023 – 24

Priority Issues

INDUSTRY STRUCTURE AND DEVELOPMENT

Build a culture of collaboration with an expectation of success

10 Year Industry Plan

Support industry development through partnerships and collaboration.

Provide administrative and governance resourcing for partnerships and collaborative projects.

MARKET DEVELOPMENT

Strategic regional collaboration driven by energised producers

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

Activities and Progress

Completed plan. Ratified by industry. Distributed to industry and stakeholders. Initiated Implementation.

Managed grants on behalf of industry.

Managed/facilitated Committees and working groups. Implemented administrative support for Blackwood Valley and Geographe.

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

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

SUSTAINABILTY, INNOVATION, RDE&A AND BIOSECURITY

All of industry best practise across the value chain

Domestic market development

Lean, proactive, unified and Influential

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

Facilitated RDE partnership discussion between industry, Wine Australia and DPIRD

Smoke taint

Provide administrative and compliance support for Wine Australia funded Regional Program

Ensure industry biosecurity regulations protect assets and facilitate innovation

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

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

Ensure an enduring social licence for WA wine producers.

Developed framework including brand positioning strategy and trade event proposal for funding through Export Growth Partnership

Investigate domestic sales data solutions

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

Partnership agreement ratified and funding secured

Supported Regions and producers to manage prescribed burns programs

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

Supported DPIRD and industry in biosecurity incidents: Queensland Fruit Fly incursion in Swan Valley

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

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.

Independent Chair’s Report

As I reflect on my first full year as Independent Chair of Wines of Western Australia, I recognize it has been a steep learning curve. I am grateful to the CEO, Board members and many producers who have shared their insights on the challenges and opportunities facing our industry. My passion for the fine wines of WA has only increased as I have come to better appreciate the talent and hard work of our producers.

Economic Challenges

In the financial year 2023-24, wine producers faced significant economic challenges, including reduced consumer spending power and rising input costs. Additionally, increased compliance requirements have placed further pressure on the small and medium-sized businesses that make up most of our industry. Our major producers have not been immune from these challenges.

Strategic Review Insights

The strategic review process we conducted to develop our 10-year industry plan highlighted key issues: market development (both domestic and international) and compliance/social licence. These challenges also present significant opportunities if addressed effectively. It is important we consider what’s possible by transforming those challenges into catalysts for growth, learning and positive change.

According to the 2024-34 WA Wine Industry Strategic Plan [link], Wines of Western Australia aims to work collaboratively with producers and regions to advocate for and promote a sustainable and profitable Western Australian wine sector.

Key Activities and Highlights

Throughout 2023-24, we undertook several initiatives to support these goals:

·Collaboration and Advocacy: We worked closely with regional associations and Australian Grape and Wine to strengthen our collective voice. It is crucial to communicate our industry’s value and sense of social responsibility to maintain our social licence to operate. This requires ongoing engagement with governments and the broader community. While we may not win every discussion, building respect and credibility is essential.

·Completion of the 10-Year Strategic Plan: In April 2024, Wines of WA confirmed the ratification of our industry’s strategic plan and began its implementation. This plan focuses on these primary goals: domestic and international market development and sustainable fine wine production.

·Wine Export Growth Program (EGP): We provided governance and administration for the EGP, a partnership with the Department of Primary Industries and Regional Development (DPIRD). This included an additional $500,000 to support our reentry into the China market following the lifting of trade tariffs in April 2024. A full summary of the EGP can be found in the appendices.

·Domestic Market Development Program: We initiated this program with funding from the EGP, and an overview of our progress is included in the appendices.

·Sustainability Project: We developed a partnership with Wine Australia to implement the Sustainability Project, which will support the adoption, certification, and promotion of sustainable fine wine production among Western Australian producers. This project is set to launch in the 2024-25 financial year.

Conclusion

Having met many producers in my travels throughout the regions, I have been impressed by their passion, resilience and sense of what’s possible. We can harness that character and in doing so offer hope for the next generations who will carry on this important and exciting industry.

I sincerely thank the Board and CEO for their efforts and stewardship this year. I look forward to collaborating with them, and the regions and producers they represent, as we continue striving to realise the ambitious targets we have set in our industry plan.

Wines of Western Australia

CEO Report

As outlined in Strategic Priorities for 2023 - 24 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

The key activities to achieve these aims are Advocacy, Representation, Administration and Communication

Advocacy

In 2023 - 24, Wines of Western Australia advocated for the industry on the following issues:

• Continued partnership with the state government to align Export Growth Partnership (EGP) resources to support export market development for Western Australian wine producers In 2023 - 24, a total of $780,403 of EGP funds and $364,320 of federal funds were leveraged with $744,920 WA producer and regional association funds. In total, an investment of $1.9million to build strong and diverse export markets.

• Worked with AGW and other state associations to oppose implementation of Container Deposit Schemes (CDS) in Western Australia 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 to manage detection of Queensland Fruit Fly in the Perth metropolitan area.

Representation

In 2023 - 24, 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 November 2023, bringing together industry, government and value chain partners acknowledging the contributions to the Western Australian wine industry of John Tate who was awarded a Wines of Western Australia Life Membership.

Administration

In 2023 - 24, 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.

• Agreed terms for a funding partnership with Wine Australia to support producers to obtain Sustainable Winegrowing Australia certification.

• Management of the WA Wine Technical Committee including the Wine Australia Regional Program.

• 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 2023 - 24, we continued our regular communications strategy including:

• A weekly e-newsletter which provides nontime sensitive information.

• 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 2023 - 24 we used the following contracted service providers:

• Michael Hollingdale as Independent Chair

• Hydra Consulting as Project Manager of the EGP

• Debbie Bell as bookkeeper/financial administration

In 2023-24 we supported 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

• 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 2023 - 24, Wines of Western Australia facilitated the following input at national level.

Australian Grape and Wine

Western Australian Board representatives were:

• Nick James-Martin, Wines of Merritt (Small Winery Membership Committee Appointed

• Cameron Rhodes, Fermoy Estate (Small Winery Membership Committee) Appointed

• Larry Jorgensen Wines of Western Australia (Small Winery Membership Committee)

Wine Australia

Cath Oates continued as a Board member of Wine Australia in 2023 - 24 and is its Deputy Chair. It is noted that in September 2024, Cath’s tenure on the Wine Australia Board finished. I wish to acknowledge her commitment to the role during a difficult period for the Australian wine industry. Cath provided a strong Western Australian voice while maintaining a balanced national perspective. Through this, she assisted in elevating awareness of Western Australia at national level and helped us to appreciate the importance of approaching state advocacy with a sound understanding of national issues.

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.

Western Australian Wine Industry 10-year Strategic Plan

In January 2023, Wines of Western Australia began consultation with industry to develop a 10-year Strategic Plan to follow the 2014-24 plan.

ACIL Allen was engaged to facilitate workshops and further direct consultation with industry. Additionally, Wines of Western Australia worked with Australian Grape and Wine, Wine Australia, DPIRD and the Australian Wine Research Institute to ensure strategic priorities aligned with national resources.

The process was completed in April 2024 with ratification of the final draft by all Regional Associations. The plan was finalised in August 2024 following the release of the final draft of the national Grape and Wine One Sector Plan.

As noted in the introduction to this report, Western Australian wine producers have a shared vision that:

“The fine wine regions of Western Australia are celebrated the world over”

This will be achieved by:

“Working collaboratively to advocate and promote the growth of a sustainable and profitable Western Australian wine sector”

The measurable goals of the 10-year strategy focus on:

- increasing value and volume in our domestic and export markets and;

- to be recognised for our sustainability by becoming international leaders in sustainable wine production

An online copy of the plan is available here.

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 Haselgrove, Jim Campbell-Clause, David Botting, Steve Partridge Richard Fennessy and Andrew Taylor.

• The EGP Industry Steering Committee including Tom Wisdom (Plantagenet), Erin O’Neil (Vasse Felix), Tom Hill (Juniper Estate), Richard Burch (Howard Park Wines), Amanda Whiteland (MRWA), Mark Forrest (GSWPA), Leon Delpeche (DPIRD)

• The Wines of Western Australia Board of Directors, and specifically, Independent Chair, Michael Hollingdale who completed his first full year as Chair

• Treasurer Cameron Rhodes who assumed the role in January 2024 His patience in supporting me in all matters financial is greatly appreciated.

Wines of Western Australia November 26, 2024

APC Collection Report

The WA wine industry again utilised the fee for service APC funding model for the 2023 - 24 financial year The fees were affected against the 2023 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 2023 - 24 was $744,000 based on a projected 56,000 tonne vintage. The final reported amounts at 30 June 2024 were $711,135 and 56.600,000 tonnes. This represents 96% of budgeted revenue and 101% of projected volume Wines of Western Australia APC income was budgeted to be $293,700 with $269,400 collected. See APC Budget and the audited financial report in appendices

In total, 293 producers provided return forms The number of producers skews towards under 150 tonnes at 77%, with 15% in the 150-500 tonnes range and 8% over 500 tonnes The share of aggregated production skews toward over 500 tonnes at 68%, with 19% from producers in the 150500 tonnes range and 13% from producers in the under 150 tonne range.

Margaret River and the Great Southern produce 80% of state crush with Swan Districts, Southern Forests and Geographe combined producing a majority of the remaining 20%

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 six-year period from 2017 – 23 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 is being updated in 2024-25 using a satellite vineyard scan and further ground truthing.

Production is skewed towards white production at 57% of production.

Cabernet Sauvignon, Shiraz and Merlot represent 83% of red production while Sauvignon Blanc, Chardonnay and Semillon total 82% of white production.

Pinot Noir, Malbec, Grenache, Tempranillo, Cabernet Franc, Petit Verdot and Sangiovese round out the top 10 red varieties grown in Western Australia

Chenin Blanc, Riesling, Verdelho, Pinot Gris, Muscadelle, Savignin Blanc and Viognier round out the top 10 white varieties grown in Western Australia.

There are a total of 31 varieties of red grapes and 27 varieties of white grapes grown commercially in WA.

See the complete APC Production report in the appendices of this report.

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.

Bunnings

All Wines of Western Australia Members are eligible to obtain a Bunnings Power Pass card providing access to discounts on a wide range of items and simplified pay and check-out. Skips the queues and cruise out in minutes.

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

• All Wines of Western Australia Affiliate Members are eligible to obtain a Bunnings Power Pass card providing access to discounts on a wide range of items and simplified pay and check-out. Skips the queues and cruise out in minutes.

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

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.

The Committee also reviews:

• biosecurity

• water security

• resource management

• biosecurity issues

Committee Members for 2023 - 24 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

• Participating producers to the project in Margaret River and Great Southern were invited to taste through the 2022 and 2023 wines in Nov/Dec 2023. Aim to run again with an open invitation to all interested stakeholders.

• Sensory analysis and chemical profiling complete on 2023 samples by the AWRI.

• CRC partners are now focusing on statistical analysis of data rather than chemical analysis.

• Successfully completed the final harvest –19 x MR Chardonnay, 19 x MR Cabernet, 12 x GS Riesling and 7 x GS Shiraz (unable to harvest 2 sites due to frost damage and bird/kangaroo damage).

• GS sites to have soil characterised in spring.

Wine Australia Regional Program

Delivered in partnership with Wine Australia and DPIRD, the Regional Program utilises the RD&E 5year strategic plan to deliver extension and adoption activities to support Western Australian wine producers. In 2023-24, the following programs were delivered:

- Demonstrating the influence of clonal selection on Margaret River Cabernet wine quality

- Sparkling wine symposium

- National Cabernet Symposium

- Satellite Vineyard Scan

The annual report for the program is available in the appendices of this document.

Market Development

Export Growth Partnership

The Export Growth Partnership (EGP), with the customer facing project name, “WA Wines to the World” continued in 2023 - 24. 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 WA Wine Export Strategy aims to increase the profitability of the WA wine industry by:

- Growing the average value and volumes of WA wines exported

- Growing the number of WA wine producers successfully participating in export markets

- Aligning investment in international wine marketing, promotion, media and wine tourism to maximize profile and sales outcomes for WA fine wines

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.

The key markets currently are UK, USA, Singapore, Japan, Hong Kong, and Southeast Asia With the removal of trade tariffs on Australian wine exported to China lifted in April 2024, the EGP has also been extended to supported re-entry to that market.

In, 2023-24 with no travel restrictions and sufficient lead time to organise in-bound and out-bound activities the EGP was delivered at full capacity. It is worth noting that from the start of the EGP in June 2020, the challenges to implementing an internationally focused market program were significant.

While global macro-economic and geo-political factors continue to negatively impact export market development, there were positive signs of growth in the UK, Singapore, Hong Kong and Southeast Asia. The initial indications are that China will become a good market in the mix but will not return to preCOVID and trade tariff levels. The USA remains challenging

To provide further support for China re-entry, the WA state government extended funding through the program by $500,000.

The EGP provided the following support to WA producers and regions in 2023 - 24:

- Subsidised stand support at ProWein Dusseldorf 2024

- Subsidised stand support at Global Tradeshow - Vinexpo Asia Pacific 2024 (Hong Kong)

- In-bound trade visit October 2023

- In-bound trade visit May 2024

- Funding for regions and producer groups to implement collaborative market development

- Funding for producers to implement distributor and retailer promotional programs in UK, USA, North/South Asia including China

- Subsidised participation in Austrade new to market programs in the UK, USA and Japan

- Support for trade/media tastings/masterclasses in the UK, USA, Japan and South Korea

- Translation of education assets to support tastings/masterclasses in Japan

A full review of program activities and outcomes for 2023 - 24 is included in the appendices of this report.

Domestic Market Development

In March 2023, the Wines of Western Australia Board requested that a proportion of funding from the EGP should be allocated to domestic market development with a specific focus on eastern state trade markets. This was agreed with the state government in April 2024.

A steering committee was formed to provide industry input to the program. Progress to date includes a commitment to deliver a trade focused event in Sydney June 2025 and the development of a statebased brand positioning strategy to support the event and subsequent activities

A summary of progress to date is included in the appendices of this report.

Wines of Western Australia Board of Directors

2023 - 24

Board Position

Skills Based - Independent Chair

Michael Hollingdale

Producer Under 150 TonnesLiv Maiorana – South by South-West Wines

Producer 151-1000 Tonnes -

Cameron Rhodes – Fermoy Estate (Treasurer)

Producer Over 1000 Tonnes -

Franklin Tate – Franklin Tate Estates (Vice Chair)

Regionally Appointed Perth Hills/Peel/Swan Valley (note one vote for this shared position)

Marcus Giesler – Plume Estate

Garth Cliff – Vino Volta

Regionally Appointed Geographe -

Anita Robinson - Talisman

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)

Melissa Bell – Ampersand Estate

Craig Nield – Beulah Wines

Regionally Appointed Great Southern

Peter Cooke – Great Southern Wine Producers

Skills BasedOpen

Executive - Chief Executive Officer

Larry Jorgensen – Wines of Western Australia

Board Position

Skills Based - Independent Chair

Trevor Whittington

Skills Based - Independent Chair

Michael Hollingdale

Producer Under 150 Tonnes

Livia Maiorana – South by South West

Producer 150 – 500 Tonnes – Treasurer

Cameron Rhodes – Fermoy Estate

Producer Over 1000 Tonnes – Vice Chair

Franklin Tate – Tate Family Vineyards

Perth Hills/Peel/Swan Valley

Wines of Western Australia Board of Directors 2023 - 24

Schedule of Meeting Attendance and Summary of Terms

Appointment/ Retirement Date

Resigned July 2023

Appointed to 1st Term December 2021 Appointed to 2nd term November 2023

Appointed to first term April 2021

Appointed to 2nd term Nov 2025 – eligible until 2025 AGM

Appointed to 1st term December 2021 Appointed to 2nd term December 2023

Marcus Gieseler – Plume Estate Appointed to 1st term July 2023 – eligible until 2025 AGM

Garth Cliff – Vino Volta

Geographe

Ryan Gibbs – Ayelsbury Estate

Margaret River Tom Hill – Juniper Estate

Appointed to 1st term October 2020

Appointed to 2nd Term November 2022

Retired November 2023

2023 - 24 Wines of Western Australia APC Budget

Final Strategic Framework 2024–34

The fine wine regions of Western Australia are celebrated the world over.

Working collaboratively to advocate and promote the growth of a sustainable and profitable Western Australian wine sector.

Expand domestic and international markets – through growth in value, diversification of markets, and growth in premium wine sales targeting:

i. Sales to export markets comprise 15 per cent of total production

ii. Export sales average of $15 per bottle free on board (FOB)

iii. Increase the market share, value and volume of domestic fine wine sales in Australia by 2.0 per cent plus CPI per annum (wholesale and direct to consumer).

To be recognised for our sustainability – by becoming international leaders in sustainable wine production by targeting :

i. The highest share of growers and producers in Australia who are accredited sustainable producers to international standards

ii. Consumers recognise Western Australia as one of the top ten regions internationally for sustainable fine wine production.

Priorities

Strategic Initiatives

Unified leadership structure – enhance and strengthen the leadership role of Wines of Western Australia to ensure the continued representation of the fine wine regions of Western Australia at a State and National level. The fostering of regional leadership to ensure that the regions are well represented now and in the future.

Data strategy – develop a data strategy to improve and enhance the capture of data to guide the development of industry and the execution of the Strategic Plan for the Western Australian wine industry.

Industry promotion – promote the industry as a sustainable producer of fine wines as a significant component of brand value.

Wine and food tourism – align and build the activities of with Tourism WA and other regional, State and National bodies that promote Western Australia and Australia as a fine wine and food destination.

Promotion of fine wine – focus on the promotion of our fine wines regions while building on the promotion of premium wines.

Strengthen local markets – build relationships and partnerships with industry stakeholders that will increase the demand for fine wine produced by the regions of Western Australia.

Expand national markets – identify strategies to increase demand in other Australian markets by working with State and National partners to build knowledge of, and increased access to these markets. Build the capacity of Western Australian wine producers to capture these market opportunities.

Grow international markets – rebuild, grow and diversify the export market by working with State and National bodies to build knowledge of, and access to, overseas markets. Build the export readiness and capability of industry.

Industry Leadership Brand Market Opportunities Industry Sustainability Regulation & Policy

Business and workforce – develop the business resilience and skills of industry to ensure it can adapt and thrive. Develop skills and career pathways to ensure the industry is an employer of choice.

Research, development and adoption –identify and access R&D and new technology, and develop ways to adopt this knowledge to ensure the industry remains efficient and productive in a changing operating environment.

Biosecurity – develop industry’s ability to respond to biosecurity incursions through planning and innovation. Ensure the industry understands its roles and responsibilities and those of its consumers. Improve access to new genetic plant material.

Licence to operate – enhance the industry’s environmental, social and governance credentials to ensure its ongoing sustainability.

Regulatory and policy environment – work collaboratively with government and regulators to address current challenges for industry in relation to the current regulatory and policy environment to achieve the best outcomes for industry.

Regulation and policy preparedness –establish a regulatory and policy action plan to position the industry to respond quickly to future regulatory and policy requirements that impact the industry.

Annual Snapshot

2023 – 24 Financial Year (Vintage 2023)

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, 2023. However, as this is the seventh year of APC fee for service collection there are consistent trends apparent.

• Average state production is 55,000 tonnes annually noting 2023 was slightly higher at 57,000.

• Comprised of approximately 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. Other important white varieties include Chenin Blanc, Riesling and Verdelho.

• Top three red varieties by volume are Shiraz, Cabernet Sauvignon and Merlot and comprise 86% of total red production. Other important red varieties include Pinot Noir, Malbec, Tempranillo and Grenache.

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.

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

Beyond production data collation, the APC fee-for-service funds a comprehensive set of state and regional services to producers, delivered in partnership by Wines of Western Australia and Regional Wine associations. Services include: advancing a strong brand which enhances the reputation of Western Australian fine wine regions; expanding local, interstate and international market opportunities; supporting producers in research, development and education to build a sustainable industry and representing producers to positively influence regulation and policy matters

About this Report

In Western Australia, a range of industry development, market development, consumer promotion and other services for the benefit of winegrape producers are funded through an Agricultural Produce Commission annual fee-for-service. The fee-for-service collected in 2023/24 was based on the 2023 vintage. As part of the fee collection process, and to provide valuable market insight for fee-for-service payers, varietal data for the 2023 vintage was collected from wine producers who remitted during the 2023/24 financial year and the analysis of that data is presented in this report.

Producers may note that there are differences in the figures and trends reported when compared to the Wine Australia National Vintage Report for the same vintage. This is largely due to methodology and timing, with the National Vintage Report offering essential early insights based on a methodology relying on the voluntary survey, whereas the APC report is prepared based on historical actual production data reported for the vintage.

Disclaimer

This information has been made available to assist on the understanding that the Agricultural Produce Commission is not rendering professional advice. The Agricultural Produce Commission accepts no responsibility for the results of any actions taken based on the information contained in this report, nor for the accuracy, currency or completeness of any material contained in it. The Agricultural Produce Commission expressly disclaims all and any liability and responsibility to any person in respect of consequences of anything done in respect of reliance, whether wholly or in part, upon this report.

Vintage 2023: State Summary

Based on their national survey data, the Wine Austalia National Vintage Report 2023 anticipated the Australian winegrape crush would be the smallest in a generation, and 24 per cent below the 2022 vintage Despite the expectations of a substantial drop nationally, the Report envisaged that the vintage 2023 crush in Western Australia would be consistent with 2022. Pleasingly, the 2023 vintage saw Western Australia buck national trend estimates, and outperform early state estimates, seeing real production growth in both red and white varieties.

• Total reported production for the 2023 vintage was 56,963 tonnes. This is an increase of 3,688 tonnes (6.9%) over the prior vintage [2022: 53,274 tonnes] Overall vintage 2023 production levels were 9.5% higher than the five-year average [average: 52,041 tonnes].

• Statewide, both red and white variety tonnages were up by 2% and 11%, respectively.

• Tonnage growth was inconsistent across regions and varieties, however, with year-onyear reductions reported in four regions and against some of the major varieties.

Table: Vintage 2023 Reported Production by Region (tonnes)
Vintage 2023: Total Reported Production (tonnes)
Red White 5 year Average Tonnes

2023 Region Summary (tonnes)

PERTH HILLS PEEL

WINE INDUSTRY SOUTHERN FORESTS

GEOGRAPHE

SWAN DISTRICTS

GREAT SOUTHERN

MARGARET RIVER

BLACKWOOD
Vintage 2023 White Vintage 2023 Red

State Varietal Trends: Snapshot

Whites

Varietal Trends (Sauvignon Blanc, Chardonnay, Semillon)

2,000 4,000 6,000 8,000 10,000 12,000

Varietal Trends (Other Major Whites)

CHENIN BLANC RIESLING VERDELHO PINOT GRIS

• The 2023 vintage the highest reported production of chardonnay since 2017, at 9,318 tonnes. This is a turnaround of 18% against the prior vintage [2022: 7,872 tonnes]

• Sauvignon blanc and verdelho both bounced back after soft 2022 figures, with increases of 10% and 7%, respectively. Semillon has also seen steady growth.

• Of the lesser produced varieties, pinot gris gives an example of continued year-onyear growth, from 159 tonnes for vintage 2018 to a recent record high of 569 tonne for the 2023 vintage.

• Whilst white production improved overall for vintage 2023, chenin blanc and riesling were exceptions to the trend, with reported production decreasing by 1% and 7 %, respectively.

Margaret River Production Tonnage (main

Great Southern Production Tonnage (main white varieties)

Geographe Production Tonnage (main white varieties)

SAUVIGNON BLANC CHARDONNAY

SAUVIGNON BLANC CHARDONNAY

CHARDONNAY

SEMILLON

SAUVIGNON BLANC

• Whilst there was robust growth across most white varieties, region to region the results were less consistent.

• Margaret River region saw an impressive 3,718 tonne (21%) increase in white production [2023: 21,467; 2022: 17,749]. This growth was across the three main white varieties. Primarily, the 1,778 tonne (35%) increase in chardonnay was 23% higher than the four-year average for Margaret River chardonnay.

• The Swan Valley growth of 411 tonnes was almost exclusively in chenin blanc (up 179 tonnes to a total of 1,381 tonnes) and verdelho (up 229 tonnes to a total of 604 tonnes).

• By contrast, and more in line with national trends, the Great Southern region saw a reduction of 981 tonnes or 18% [2023: 4,351; 2022: 5,332]. This meant that production levels were closer to vintage 2020 levels.

• Geographe also saw a reduction in white production of 118 tonnes or 11%. This was heavily influenced by a 24% reduction in sauvignon blanc.

Varietal Trends (Shiraz and Cab Sav)

Varietal Trends (Other Major Red)

CABERNET SAUVIGNON SHIRAZ

MERLOT PINOT NOIR

MALBEC TEMPRANILLO

GRENACHE

• The strong performance of cabernet sauvignon (+1,355 tonnes / 16%), tempranillo (+362 tonnes / 68%), grenache (+117 tonnes / 27 %) and pinot noir (+107 tonnes / 13%) offset reductions in shiraz (-1,402 tonnes / -14%), merlot (-212 tonnes / -11%) and sangiovese (-56 tonnes / -29%) volumes The result is an overall increase in reported tonnage for reds of 2% for vintage 2023.

• The increase in production of cabernet sauvignon [2023: 10,008 tonnes; 2022: 8,652 tonnes] saw it return to the position of highest produced red variety. The level of cabernet sauvignon production is the highest since vintage 2018, and some 11% higher than the fiveyear average.

• Most of the lesser produced varieties saw year-on-year production increases, with nebbiolo, barbera, durif, graciano and gamay all hitting record levels of production since APC varietal reporting began in vintage 2018.

Margaret River Production Tonnage (main red varieties)

• Production variability in reds was experienced not only from variety to variety, but also between regions.

• Margaret River shiraz tonnage reversed the statewide trend of14%, with an increase in shiraz production of 282 tonnes (6%). The Swan Valley shiraz tonnage also bucked the trend, holding steady against the prior year at 449 tonnes.

• By contrast, the Great Southern region saw a 2,329 tonne (35%) drop in shiraz. Perth Hills followed with a drop of 177 tonnes (72%).

Great Southern Production Tonnage (main red varieties)

Swan Valley Production Tonnage (main red varieties)

SHIRAZ

CABERNET SAUVIGNON PINOT NOIR

Perth Hills Production Tonnage (main red varieties)

2021 2022 2023

SHIRAZ

CABERNET SAUVIGNON

• Similarly, not all regions saw the same elevated level of cabernet sauvignon production growth (Statewide 16%)

• Perth Hills (-43%), Great Southern (-22%), Peel (-3%) all saw tonnage reductions, partially offsetting the substantial gains seen in Margaret River (27%), Geographe (33%) and the Swan Valley (32%). 0.0

State Varietal Trends: Dataset

WA Industry Profile

• For the 2023 vintage, there were 295 wine producers who reported and remitted FFS on behalf of 518 growers. Despite the increase in tonnage, industry participation contracted slightly against the prior year vintage (305 wine producers supplied by 524 growers).

• Tonnage ranges that saw an increase in the number of wine producers are shown in the graph above in green, with decreases in participation are shown in navy blue

Vintage 2023 Tonnage Range
Vintage 2023: Industry Profile

Regional Snapshots

Blackwood Region

Blackwood region production held steady against the prior year vintage at 1,358 tonnes, consolidating the growth seen between 2020 and 2022.

The 2023 vintage saw an increase in both the number of growers [2023:21; 2022:16] and the number of wine producers reporting their use of Blackwood grapes [2023:23; 2022:20].

Vintage 2023 White Varieties (> 5 tonnes)

Vintage 2023 White Varieties (> 5 tonnes)

2023 White Varieties (> 5

2023 Red Varieties (> 5 tonnes)

• White varieties dominate production at 901 tonnes (against 458 tonnes of red).

• Vintage 2023 saw reported production of white varieties grow by 16% (124 tonnes). This is substantially driven by an increase in sauvignon blanc production both in terms of tonnage [2023: 540 tonnes; 2022:385 tonnes] and share of white production [2023: 60%; 2022: 50%]

• By contrast, there was a drop in reported red production of 20% (112 tonnes) driven by lower shiraz [2023: 225 tonnes; 2022: 295 tonnes] and merlot [2023: 31 tonnes; 2022: 90 tonnes].

SHIRAZ
CABERNET SAUVIGNON

Geographe Region

Trends

The 2023 vintage saw a 4% decline in reported production overall at 2,410 tonnes. Total tonnage was also marginally under the four-year average of 2,458 tonnes.

With red varieties holding steady with 1% growth [2023: 1,478 tonnes; 2022: 1,461 tonnes], the decline in regional production was driven by white varieties (down 11% to 932 tonnes). This drop is against the statewide trend (+ 11%) and represents the lowest level of reported white production in the region in four years.

Vintage 2023 Red Varieties (>20 tonne)

Vintage 2023 White Varieties (>20 tonne)

• Despite red production holding steady overall, there was a substantial year-on-year drop in shiraz (-24%) which exceeded the State trend (- 14%) [2023: 489 tonnes; 2022: 642 tonnes]

• The 152-tonne reduction in in shiraz was offset by 33% growth in cabernet sauvignon [2023: 450 tonnes; 2022: 340 tonnes] and tempranillo [2023: 146 tonnes; 2022: 117 tonnes].

• In whites, the softening was driven by a 107 tonne (35%) reduction in sauvignon blanc, which dropped below semillon in production volume for the first time in four years.

CHARDONNAY

Great Southern Region

Vintage Trend

The 2023 vintage saw Great Southern region reported production dropping the gains seen in 2021 and 2022, with a 2,769-tonne reduction (23%). The result was 7% under the five-year average for the region.

Going against State trends, tonnage reductions were seen across both reds (-26%) and whites (-18%).

• Like 2022, there were volume reductions for every one of the top six white varieties for the region. This included the four main varieties – sauvignon blanc (-22%), chardonnay (23%), semillon (-10%) and riesling (-10%).2,000 4,000 6,000 8,000

2023 also saw the lowest number of wine producers reporting use of grapes from Great Southern region, at 73 wine producers (2022: 81). Included in the net decrease were 6 who did not produce wines at all for V23 (nil return) and 8 producers who reported for 2023 with grapes from other regions (predominately MR)

• With 1,277 tonnes less (35%), shiraz hit a four-year low and lead the drop in reds. Material reductions were also seen in cab sav (-432 tonnes / 22%), merlot (-75 tonnes / 22%), and malbec (-34 tonnes/ 22%).

• The only material offset to the losses in the major reds was a near doubling of tempranillo at 264 tonnes.

Vintage 2020 Vintage 2021 Vintage 2022 Vintage 2023

Margaret River Region

Vintage Trend

Vintage 2023 Red Varieties

It was a record year for Margaret River since APC reporting began, with 36,997 tonnes reported. This represents an increase of 19% over the prior year, and 15% above the five-year average.

Margaret River saw the highest growth rate in whites in the state, with 21% (state trend: 11%). The growth of reds also outperformed the state trend at 17% against a trend of 2%. Given that Margaret River accounted for 54% of State red production for V23, this is no small achievement.

Production volume per industry participant grew, with the number of Margaret River growers (290) and number of wine producers reporting MR grapes (169) both lower for vintage 2023.

Vintage 2023 White Varieties (>50 tonnes)

SAUVIGNON BLANC SEMILLON CHARDONNAY CHENIN BLANC

RIESLING PINOT GRIS

VERDELHO

• Cabernet Sauvignon - the most produced red for the region - hit a record high of 7,569 tonnes. This is up from 5,950 for the previous vintage. For V23, the Margaret River region supplied 76% of the State’s cabernet sauvignon production.

• The Margaret River region also bucked the statewide trend to report a 282 tonne (6%) increase in shiraz.

• Sauvignon blanc, semillon and chardonnay continue to account for 92% of overall white production Chardonnay led the growth in whites with a substantial 35% (1,475 tonne) increase, leading it to reclaim the position as the second most produced white variety.

Vintage Trend

Vintage 2023 saw the Peel region return to a production level in line with the five-year average, recording 32 tonnes [2022: 43 tonnes].

The 10-tonne overall reduction came from red varieties [2023: 18 tonnes; 2022: 31 tonnes]

• Shiraz was the largest variety by production volume at 8.6 tonnes, followed by cabernet sauvignon at 4.7 tonnes.

• There was growth in the whites, with chardonnay the largest white variety by production volume at 3.9 tonne, only marginally ahead of sauvignon blanc (3.6 tonne).

• Despite the low number of regional growers (4 for vintage 2023), the region reported some 11 different varieties.

Perth Hills Region

After a record result driven by shiraz in 2022, the Perth Hills region saw a substantial contraction to its lowest production in five years. At 295 tonnes, production was down 49% against vintage 2022, and 22% on the five-year average.

Despite being one of the smallest regions by production volume, the Perth Hills remains a diverse region with some 31 different varieties reported.

With 28 growers for the region, and 28 wine producers, the overall industry participation is consistent with vintage 2019 levels.

• The sharp decline in reds by more than half was driven by shiraz [2023: 70 tonnes; 2022: 246 tonnes], cabernet sauvignon [2023: 38 tonnes; 2022: 66 tonnes], petit verdot [2023: 4 tonnes; 2022: 18 tonnes], and merlot [2023: 12 tonnes; 2022: 22 tonnes]

• Vintage 2023 also saw production of white varieties drop by 40% (57 tonnes). The most substantial reduction was in chenin blanc [2023: 1.5 tonnes; 2022: 40 tonnes].

Swan Valley Region

Vintage Trend

The Swan Valley region saw its highest level of production in the last five years at 3,974 tonnes. This was an increase against the 2022 vintage of 18% (601 tonnes), a stronger result than the statewide trends

There was growth in both reds (19%) and whites (17%), marking the region as having one of the highest levels of year-on-year growth for vintage 2023.

Vintage 2023 also saw growth in industry participation, with an increase both in the number of growers in the region as well as the number of wine producers reporting use of Swan Valley grapes.

• Red varieties were relatively stable across the board and underpinned by strong growth in grenache [2023: 270 tonnes; 2022: 228 tonnes]and cabernet sauvignon [2023: 187 tonnes; 2022: 142 tonnes.

• White production increased by 411 tonnes to 2,768 tonnes. A 229 tonne rise in verdelho production, and 178 tonnes increase in chenin blanc production drove these gains.

• Sixty-four percent of the State’s chenin blanc came from the Swan Valley region for vintage 2023.

Vintage 2020 Vintage 2021 Vintage 2022 Vintage 2023

Southern Forests Region

Vintage Trend

The Southern Forests region saw a 9.4% increase in production for vintage 2023 –rebounding somewhat from the softer 2022 vintage. At 2,531 tonnes, vintage 2023 is 4% above the five-year average [avg: 2,464 tonnes], however growth was softer than the State trends.

Industry participation was stable, with a slight increase in the number of growers in the region (29) and a consistent number of wine producers reporting use of Southern Forests Region grapes (34).

Vintage 2023 Red Varieties

(>5 tonne)

Vintage 2023 White Varieties

(>5 tonne)

PINOT NOIR SHIRAZ CABERNET SAUVIGNON MERLOT PETIT VERDOT

SAUVIGNON BLANC CHARDONNAY

PINOT GRIS PROSECCO

SEMILLON SAVIGNIN BLANC

OTHER RIESLING

GEWURTZTRAMINER ARNEIS

• Seventy-nine percent of total production was attributable to white varieties [whites: 1,997 tonnes; reds: 534 tonnes].

• There was increase in white production of 6% (118 tonnes). Prosecco contributed the largest tonnage gains, jumping from 38 tonnes in 2022 to 89 tonnes in 2023. This was followed by semillon [2023: 77 tonnes; 2022: 53 tonnes]

• The biggest increases in reds were attributable to growth in pinot noir from 228 tonnes for V22 to 311 tonnes for V23.

ANNEXURE 1: VINTAGE 2023 VARIETAL DATASET BY REGION

APC Wine Producers Committee Great Southern Vintage 2023

APC Wine Producers Committee Margaret River Vintage 2023

APC Wine Producers Committee Peel Vintage 2023

APC Wine Producers' Committee Perth Hills Vintage 2023

APC Wine Producers' Committee Swan Valley Vintage 2023

APC Wine Producers' Committee Wine Industry Southern Forest

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. What are the challenges?

2. How can these be overcome?

3. Who can assist WA producers to do so?

4. 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.

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

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.

Regional Program

2023-24 END OF FINANCIAL YEAR REPORT

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 2023

End Date 30 June 2024

Please note: Regional Program guidelines are accessible from Research | Wine Australia

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

ACTIVITY REPORT

Please copy and complete the table below for the number of activities you pursued in 2023-24 Activities should correspond to those detailed in the 2023-24 AOP, subject to subsequent variations. Please complete the budget overview at the end of the document.

ACTIVITY 1

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

Was the activity achieved and, in the timeframe, expected? (250 words)

This activity successfully collected viticultural performance data from 14 different clones/selections of Cabernet Sauvignon contributing to previous datasets gained from Regional Program activities.

Small-lot wines from the 14 clones/selections were made using a standardised procedure consistent with previous years.

Information and wines produced from this activity were featured in the Australian Cabernet symposium and at two regional workshops in Margaret River and Great Southern (July 2024). In all, over 138 people were presented with information and a tasting of the wines.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP.

1. By August 2024 up to 50 WA viticulturists and winemakers will have increased awareness and knowledge of clones of Cabernet Sauvignon available in WA and their unique attributes displayed in one year from a trial site in Margaret River – considering attendance of the regional workshops, Cabernet symposium and readership via wine industry newsletter, it is believed the number of producers with increased awareness and knowledge of this activity has been achieved.

2. Up to 90% of attendees of the tasting will understand the benefit of multi-clonal plantings compared to mono-clonal – a survey of participants was not conducted to address this objective but messaging provided throughout presentations made clear the benefit of multiclonal plantings.

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

1. The clones featured within the activity have shown clear differences in timing of harvest and key viticultural performance indicators such as yield, berry and bunch weight, bunches per vine and vegetative growth.

2. This activity offers a unique and valued opportunity for producers to gather insights into the performance of Cabernet clones with the influence of site variation and winemaking adequately addressed

3. Genetic diversity in varietal plantings can be beneficial in terms of blending options for a ‘house style’, offsetting seasonal climatic variation and alleviating vintage logistic pressures by staggered harvest dates

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

- Small -lot wines of the 14 clones/selections

- Cabernet symposium presentation is recorded and available to the public

- Regional workshop presentation is available on request .

- Wine industry newsletter article sho wcasing this activity published in March and September 2024.

Budget: was funding expended as approved in the Regional Funding Agreement and 2023–24 AOP? Please state approved funds and actual expenditure and detail any difference.

Funds were expended as budgeted.

Comments: please provide any further comments about this activity

This activity continues to build on a collection of knowledge and wines that are providing producers in WA and elsewhere with valuable information to assist in decision-making when considering new plantings or grafting over to Cabernet Sauvignon

ACTIVITY 2

SPARKLING WINE SYMPOSIUM

Was the activity achieved and, in the timeframe, expected? (250 words)

This activity was completed as intended within the projected timeframe. The full day program featured a video recording from Wine Australia on insights into the sparkling wine category followed by viticulture and winemaking sessions presented in person.

Nick Dry (Foundation Viticulture, SA) and Mick Griffith (Viticulture consultant, Vic) presented information on varieties & clones, site selection and vineyard management for sparkling wine production.

Nic Bowen (Howard Park Wines), Trina Smith (Pernod Ricard, SA), Yuri Berns (Sittella Wines), Mick Langridge (Idée Felix) and Kate Laurie (Deviation Rd, SA) featured in the winemaking session covering topics on sparkling winemaking methods, styles, influence of climate, packaging considerations and insights into in-house small-scale production.

The program also featured two wine tastings to compliment the presentations on production methods and styles.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP.

1. Promote the production of high quality sparkling wines across WA wine regions where growing conditions suit – this was the essence of the day through the topics presented by the expert speakers.

2 To improve over 50 grape growers and winemakers knowledge of technical elements of producing high quality sparkling wines – attendance to the event was slightly under expectation (38ppl) but it is expected with the recordings of the proceedings made publicly accessible, the impact will exceed 50 producers.

3. 80% of attendees will have improved their knowledge and skills in these techniques – only two attendees returned surveys, both confirmed their knowledge and skills of sparkling wine was improved from the Symposium

4. 80% of attendees will consider the workshop to be valuable or very valuable use of levy funds - only two attendees returned surveys, both agreed the symposium was a valuable use of levy funds.

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

1. Establishing vineyards for sparkling wine grape production need to meet specific criteria concerning temperature, soil type & fertility, water availability and that genetic diversity of planting material is recommended for mitigating seasonal variation and contributing to wine complexity

2. There is a significant diversity of wine styles within the category, important for producers to clearly understand the style they wish to target (and what is best suited to the fruit available) as significant resources and time may be involved in making the desired wine

3. From a small producer’s perspective, specialist equipment and additional storage capacity is required and most (not all) can be expensive, high debt and high risk is a realistic scenario so important to grow production moderately and if possible have a reliable revenue stream contributing to the balance sheet.

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

Recordings of the presentations will be made available on the Wines of WA YouTube channel.

Wine industry newsletter article summarising the event in the September edition.

Budget: was funding expended as approved in the Regional Funding Agreement and 2023–24 AOP? Please state approved funds and actual expenditure and detail any difference.

Originally budgeted $6,000 for 4 speakers (travel costs and speakers fees), spent $11,900 for 4 interstate and 4 local speakers. Sponsorship from DPIRD and Business Events Perth contributed $12,000 and ticket sales provided $4,800 in revenue.

Comments: please provide any further comments about this activity

This activity would not have been financially viable if not for sponsorship from DPIRD and BE Perth. The value of the time WoWA and DPIRD staff contributed to organising and facilitating this event was vastly higher than the amounts they received and therefore their in kind contribution was also critical to the viability of this event.

ACTIVITY

3 NATIONAL COONAWARRA AUSTRALIAN CABERNET SYMPOSIUM – MARGARET RIVER SATELLITE

Was the activity achieved and, in the timeframe, expected? (250 words)

This successful collaboration between the Regional Programs of WA and Limestone Coast is a great example of what regions working together can achieve.

The event was conducted as planned and featured a program that explored the future of Australian Cabernet Sauvignon simulcast across two venues (Margaret River and Coonawarra).

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP.

1. Have over 60 WA producers attend and be exposed to the latest international and national R&D concerning the production of premium Cabernet Sauvignon – unfortunately WA attendance was lower than hoped due to the early vintage but access to the presentation recordings are freely available.

2. From the information presented, 80% of attendees will consider adopting some of the principles and techniques into their own practices in producing Cabernet Sauvignon – only 20 people completed the survey across both venues, results showed 60% found the event extremely or very valuable and 20% somewhat valuable in assisting or inspiring attendees on ways to improve their business.

3. 80% of attendees to have found this event valuable or very valuable use of levy funds –90% of those surveyed rated the event as either excellent or very good

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

1. Collaborating with another Regional Program region was a rewarding experience fostering relationships and maximising resources.

2. Understanding techniques to reduce ‘green’ characters in Cabernet Sauvignon i.e. timing of leaf plucking.

3.Having a program that involved international speakers, wine tastings, scientific topics but also practical presentations was appreciated by the delegates.

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

Video recordings of all the presentations and a wine industry newsletter article summarising the event in the March edition.

Budget: was funding expended as approved in the Regional Funding Agreement and 2023–24 AOP? Please state approved funds and actual expenditure and detail any difference.

DPIRD speaker fee - In kind Ticket sales - $6,200 -

Budgeted items ‘expense sharing’ and international speaker (travel & fees) were exceeded by $10,365 which was somewhat offset by the budgeted $5,400 for benchmark tasting which was not realised as the wines for the event were provided in kind. Ticketing income enabled this event to be essentially cost neutral

Comments: please provide any further comments about this activity

Unfortunately having the event held on 1 February and WA experiencing its earliest harvest on record, WA attendance was lower than expected as Margaret River producers had started harvesting Chardonnay by this date.

ACTIVITY 4

DEEP PLANET VINEYARD SCAN

Was the activity achieved and, in the timeframe, expected? (250 words)

Funding for the project via the Regional Program was confirmed in April 2024, using unspent funds from previous years. We conducted due diligence on the service provider in collaboration with Wine Australia prior to proceeding.

The scan has been completed and reviewed with Deep Planet to ensure anomalies (table grapes, other orchard structures) have been recognised and removed. A further review of the scan has been completed to identify properties that have been “mothballed” or removed. The scan will be updated based on this input.

GI boundaries have been added. Initially, scans of regions will be provided to each region for further review to ensure an accurate map of actively managed vineyard area is finalised.

The scan will then be uploaded to a grower portal. Growers will be able to log in, claim blocks and link to the survey for completion, allowing them to ‘pre-populate’ some acreage data where required.

At this point, the scan shows that total vineyard area in WA is 11,300 hectares which is similar to the ground-truthed scan done in 2018. Industry feed-back suggests this may be closer to 10,000 hectares once inactive sites are identified.

If applicable, please re-state and report specifically against the SMART objectives as specified in your AOP.

1. Understand the area of wine grape vineyards planted across WA’s nine wine regions -

As noted above, the area identified is 11,300 hectares with further adjustments for removals (and additions) required.

2. Qualify the contraction/expansion of the WA wine industry in terms of production area -

It appears that contraction has been approximately 10% since 2018. A further review by region may show that, while some regions have contracted, others have increased.

3. Provide a foundational geo dataset that can be annually updated -

With the development of a grower portal, it is hoped that annual updates via grower inputs will occur. The scan is planned to be updated every two years.

4. Showcase a technology that could be further adopted for other regions and states -

We are working closely with Wine Australia on the outputs. As the grower portal is implemented, further value should be apparent.

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

1. Vineyard area appears to be stable.

2. Access to real-time production data will require an opt-in/collaborative approach by industry.

3. To encourage this collaborative approach, the value proposition to industry needs to be clear. We will be working with Deep Planet to undertake a workshop for growers to communicate the value of the portal.

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

- A current map of all WA vineyards provided as a shape file in kml/kmz format.

- A grower portal to gather further sit specific information.

Budget: was funding expended as approved in the Regional Funding Agreement and 2023–24 AOP? Please state approved funds and actual expenditure and detail any difference.

Yes. A total of $6000 Regional Program funding was allocated for the project.

In total, $6000 has been expended, including $5,500 for Deep Planet services and $500 administration.

Comments: please provide any further comments about this activity

OVERVIEW OF 2023–24 BUDGET

Please answer the questions below in relation to the entire 2023–24 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

Note: The additional $11,935 was a carry over from 2022-23 Activity 4. (Demonstrating the timing of powdery mildew and botrysphaeria spore release to assist in effective disease management) as budgeted diagnostic services were provided in kind.

WA Wines to the World

PROGRAM UPDATE – 2023/24

GLOBAL ACTIVATIONS

Activation: Exporters: New or Existing Delivery Partner(s):

Winexportal.info New & Existing

'New Voices' Content

Development & Distribution

New & Existing Freelance Writers

Description/Purpose:

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.

Builds on 2022-23 program activity to further develop a body of WA wine storytelling content through ‘New Voices’ activation. Focus this year is on distributing the body of content already created, however we have allocated funds for one further targeted ‘New Voices’ story.

Progress/Status:

ONGOING across program:

• www.winexportal.info (Password: GlobalGrowth)

ONGOING across 12-month program – final stage moved into 2024/25 program:

• See ‘New Voices’ Stories web page

• Have already had 5 stories published with The Buyer, UK (2022-23)

• Currently embarking on USA outreach

WA Education Assets –Japanese Translation & Annual Update

CAPABILITY DEVELOPMENT

Global TradeshowProWein Dusseldorf 2024

New & Existing

Global TradeshowVinexpo Asia Pacific 2024 (Hong Kong)

Existing Wine Australia & Regions

Builds on 2022-23 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 finalisation of WA Regional Guide (media kit), translated into Japanese, plus provision for annual update of Regional Fact Sheets.

Collaborative stand/presence at ProWein for WA regions, within the larger Wine Australia stand. Also providing opportunity for up to 2x regional masterclasses.

PLANNED for June 2024 completion – final stage moved into 2024/25 program:

• Annual Update of Regional Fact Sheets

• WA Regional Guide (media kit), translated into Japanese

COMPLETED March 2024:

• See web post (with linked docs)

• Participated with MR regional booth, 4x producers (AW attended)

• Also delivered MR (Chardonnay) & GS (Riesling & Syrah) masterclasses

• See Wine Australia Report – noting the MR masterclass was the highest attended (from all 15 masterclasses) with 60+ PAX scanned.

• Awaiting further feedback re GS masterclass attendance.

New & Existing Wine Australia & Regions

Collaborative stand/presence at Vinexpo for WA producers and/or regions, within the larger Wine Australia stand (includes individual booth

COMPLETED May 2024:

• See web post (with linked docs)

• 6x WA producers participated with individual stands (vs 15 in 2023)

Inbound Trade Visit 1 (Wine Retail Buyer Tour)

New & Existing TradeStart & Regions

subsidies). Also providing opportunity for up to 2x regional masterclasses.

• Participated with WA multi-region booth, 6x producers from various GIs (LM attended)

• Also delivered MR (Chardonnay) & GS (Riesling & Syrah) masterclasses

• Delivered ‘What’s Changed in China?’ Webinar & Vinexpo Briefing on 21/05/24

• Feedback re WA booth very positive – 50+ scanned ‘engaged’ sales leads and meeting table booked throughout. Masterclasses were more of a struggle to fill this time.

• See Wines of WA Media Release with final report to follow.

Inbound Trade Visit 2

(Taste Western Australia, Fine Wine Buyers’ Mission)

Wine Retail Buyer Tour to Margaret River and the Great Southern, targeting appropriate retailers in USA, UK and selected Asian markets. Focus is to bring in retailers that can ‘turn the dial’ on sales of WA wines, both new direct imports as well as new listings (purchases through other 3rd party importers). Project managed by WA Wines to the World, with assistance from TradeStart/regions.

New TradeStart & Regions Distributor tour to cover Swan Valley, Margaret River and the Great Southern, targeting appropriate distributors across various Asian markets. Focus is on creating NTM opportunities. Project managed by TradeStart, with assistance from WA Wines to the World and regions.

COMPLETED October 2023:

• See web post (with linked docs) – project managed by WA Wines to the World

• 13 buyers participated, representing 11 companies (across UK & Asia)

• Program involved 40+ producers across MR and GS (established and NTM brands)

• By all reports Tour was very successful with some solid commercial outcomes expected –See Stakeholder Report – noting Wine Connection (Singapore) has since committed to ~$300,000 worth of new orders in 2024.

COMPLETED May 2024:

• See web post (with linked docs) – project managed by TradeStart

• 12 buyers participated from South Korea (4), Thailand (3), Japan, Sing, Malaysia, China & UK (Waitrose buyer)

• Program involved 50+ producers across SV, MR and GS (established and NTM brands)

• Inbound Mission very successful from a commercial standpoint, noting commitments from Waitrose, Pran Wines and Cellar Select to represent a number of new brands (with one large WA group reporting expecting sales ~$1m) – awaiting final Stakeholder Report from TradeStart.

Wine Australia ‘Explore’ program: Nordics

New Wine Australia Funding support for producers to participate in Wine Australia’s ‘Explore’ education program –currently available for the Nordics. Program

COMPLETED September 2023:

• See web post (with linked docs)

• 10x participating brands (some within larger portfolio groups)

CAPABILITY DEVELOPMENT

Grants for Regions & Producer GroupsSMALL

New & Existing Regions & Producer Clusters

includes in-depth briefings covering the markets and how to work with the monopoly buyers

Proposals brought to the program from regions or producer groups (<$20,000, averaging $5,000). Based on an open call for proposals with clear guidelines that identify program KPIs.

• Wine Australia provided FOC in the end, as all participants also joined the Nordics tasting events (their cost)

COMPLETED June 2024:

• See web post (with linked docs)

• 2x submissions pre-approved, 5x new submissions approved (total funds $23,810)See WoWA News Story

• 1x recipient has since pulled out – See updated list (6x grant recipients)

• 5x claims processed, 1x claim in progress

Grants for Regions & Producer Groups –LARGE

New & Existing Regions As above but targeting a smaller number of large activations ($20,000+).

UK & IRELAND ACTIVATIONS

Retail Promotions Support Program (Round 3)

Existing UK and Ireland Retailers & Distributors

UK/Ireland Distributor Incentives Support Program (Round 3)

Existing UK and Ireland Distributors

Wine Australia Bespoke Press Kit New & Existing (mainly existing)

Builds on 2022-23 program activity; a series of options for producers already established in the UK and Ireland markets to undertake retail promotions with their distribution and retail partners, with 40% funding support from WA Wines to the World.

Builds on 2022-23 program activity; a series of options for producers already established in the UK and Ireland markets to undertake new or expanded distributor incentives programs targeted at sales team performance in the UK and Ireland, with 30% funding support from WA Wines to the World.

Wine Australia Media pitch to 12x selected UK press/writers; 6 wines sent by courier together with printed material, coordinated by Wine Australia.

COMPLETED June 2024:

• $25,000 pre-committed for GSWPA – Executive Officer support

• $50,000 approved for MRWA: IWSC Judging ‘In-Situ’ in Margaret River – very positive outcomes confirmed (see final MRWA Report)

• $33,000 approved for GSWPA: Thailand Mission – positive outcomes confirmed to date, some concerns re process/brand comms (see final report prepared by TradeStart)

• All claims processed

COMPLETED June 2024:

• See web post (with linked docs)

• EOIs closed 30/06/23 – 4x participating producers (5x campaigns), various GIs

• 2x claims still expected for processing

COMPLETED June 2024:

• See web post (with linked docs)

• EOIs closed 30/06/23 - 2x participating producers, various GIs.

• 1x claim still expected for processing

COMPLETED May 2024:

• See web post (with linked docs)

• 12x packs of GS wines (3x Riesling & 3x Syrah) sent out to 13 pre-qualified journalists.

Australia Trade Tasting –NTM support

New Wine Australia Support 3x full tables (or 6x half tables) plus 20x SKUs for WA producers seeking distribution in the UK market, via Wine Australia’s established Australian Trade Tasting event in January. Event showcases a diverse range of Australian wines to 500+ targeted attendees in London.

• Very impressed with quality of media that participated (incl Jancis Robinson MW and Peter & Susie from Wine Blast).

• See Wine Australia interim report with full media list.

COMPLETED January 2024:

• See web post (with linked docs)

• Good interest from WA producers with 1x producer and 2x WA portfolios on own tables; plus 17x producers on NTM free-pour table

• See Wine Aust media release reporting outcomes, list of 400 London attendees and selected photos from event

Matthew Jukes Inbound Media Visit

New & Existing (mainly existing)

WA Good Food Guide

Sponsorship for Matthew Jukes to visit WA (first time in 15 years, despite undisputed status as UK-based Australian expert) to feature as international guest judge at the WAGFG Wine Awards. Involvement in follow-on 4-day itinerary (taking in MR and GS)

USA ACTIVATIONS

Activation: Exporters: New or Existing Delivery Partner(s):

US Market Entry Program

CAPABILITY DEVELOPMENT

BREATHTAKING

MARGARET RIVERTexas Retail Promotions (Round 2)

New Wine Australia

Existing (with Importers & TX Distributors)

USA Retailers (TX), Distributors and Importers

Description/Purpose:

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.

Builds on 2022-23 program activity; 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 to run for several years, building ongoing brand loyalty and sales for Margaret River wines.

COMPLETED October 2023:

• See web post (with linked docs)

• A very successful alignment with WAGFG in the end (despite some early hiccups)

• See final report

• See MJ’s in-depth analysis of Western Australia – an exclusive report published by The Buyer!

Progress/Status:

COMPLETED June 2024:

• See web post (with linked docs)

• 2x exporters participating in 2023-24 program (3x brands, various WA GIs)

• 1x exporter in discussions with large national distributor

• Awaiting final report from Wine Australia

NO LONGER PROCEEDING:

• See web post (with linked docs)

• See BREATHTAKING MARGARET RIVER flyer

• EOIs closed 31/07/23 – initially 3x participating producers, but now all have pulled out (1 producer pulled out due to their promo not delivering significant results, 2x Winebow brands pulled out due to challenges working with TX distributor).

USA Distributor Incentives Support (Round 2)

Existing (with Importers & Distributors)

USA Distributors & Importers

Builds on 2022-23 program activity; a series of options for producers already established in the USA market to undertake new or expanded

COMPLETED June 2024:

• See web post (with linked docs)

TEXSOM Tasting Sessions Existing (with Importers & TX Distributors)

ASIA ACTIVATIONS

Wine Australia

Activation: Exporters: New or Existing Delivery Partner(s):

Tokyo Trade Tasting Existing Wine Australia, Austrade and JTSI (WA Govt Office, Japan)

distributor incentives programs targeted at sales team performance and BTG placements, with 30% funding support from WA Wines to the World.

• Opportunity to showcase MR wines as part of Wine Australia’s dedicated tasting sessions at this important sommelier conference (with national reach). Wine Australia staff to pour wines. 50% funding provided to eligible producers.

Description/Purpose:

Provide support package to producers wishing to participate in this Wine Australia and Austrade initiative (an event they now hold annually). Opportunity to participate in masterclass and buyers dinner. Co-funding provided by WA Govt Tokyo Office.

• EOIs closed 30/06/23 – 4x participating producers, various GIs

• 2x claims still expected for processing

COMPLETED August 2023:

• See web post (with linked docs)

• 6x participating MR wines

• Wine Australia reported that the wines were well received and they were busy pouring the whole time – see images from event

Progress/Status:

COMPLETED September 2023:

• See web post (with linked docs)

• Approx 300 trade and media guests (47% new visitors compared to LY).

• 14x WA producers participated (total 79 Australian producers), various GIs

• MR Chardonnay masterclass (1 of 3 presented), 66 attendees – see Wine Australia report

• 3x SKUs (of 9 total) presented at wine trade dinner, all MR – see Wine Australia report

Asia On/Off-Trade Promotions Support Program (Round 1 & 2)

Existing Asia Distributors & Trade

Seoul Trade Tasting Existing Wine Australia and JTSI (WA Govt Office, Japan)

Builds on 2022-23 program activity (aimed initially at Singapore and Malaysia); a series of options for producers already established in Asian markets to undertake on- and off-trade promotions with their distribution partners, with 40% funding support from WA Wines to the World.

COMPLETED June 2024:

• See web post (with linked docs) Round 1: EOIs closed 30/06/23 –- 7x participating producers (various GIs) - 3x claims still expected for processing Round 2: EOIs closed 22/09/23 –

- 4x participating producers (various GIs) plus - 1x participating distrib. (Farmstone, Japan –representing 9x brands, various GIs) - 3x claims still expected for processing

Provide support package to producers wishing to participate in this Wine Australia activation (new event). Opportunity to participate in masterclass.

COMPLETED November 2023:

• See web post (with linked docs)

• 333 attendees at main tasting

• Only 3x WA producers participated (total 47 Australian producers), various GIs

• MR Chard & Cab masterclass (1 of 3), 60 attendees – see Wine Aust report

Japan New-to-Market Promotion & Tasting New Austrade and JTSI (WA Govt Office, Japan)

Provide support to producers wishing to participate in this Austrade activation (same format as 2022 event).

Australian Wine Tasting Osaka 2024 Existing Austrade and JTSI (WA Govt Office, Japan)

Provide support to producers wishing to participate in this Austrade initiative (an event they now appear to hold annually). Co-funding provided by WA Govt Tokyo Office.

COMPLETED April 2024:

• See web post (with linked docs)

• 9x WA producers participated (24x SKUs selected by Austrade, incl 1x wine in plastic pouch), various GIs.

• 33 attendees and 16 active leads reported.

• See Austrade report

COMPLETED May 2024:

• See web post (with linked docs)

• 109 trade attendees

• 9x WA producers participated (total Australian producers 48), various GIs

• See Austrade report

Export Growth Partnership Program Review

February 2024

2022-23 Export Growth Partnership

Executive summary

The Export Growth Partnership (EGP) is a 5-year co-funded partnership between the WA wine industry and the WA state government. The state government and the WA wine industry are contributing $3 million each to support a program with the stated aims to, “increase the profitability of the WA wine industry by:

• Growing the average value and volume of WA wines exported

• Growing the number of WA wine producers successfully participating in export markets

• Aligning investment in international wine marketing, promotion, media and wine tourism to maximize profile and sales outcomes for WA fine wines

Program strategy, development and implementational oversight is undertaken by an industry steering committee (ISC) which is appointed by Wines of WA. The ISC is comprised of up to 7 industry representatives, the DPIRD EGP program manager and the WoWA CEO as Chair. The ISC meets bimonthly. The Terms of Reference for the ISC is included in the appendices of this report.

The program is administered by WoWA. This involves managing stake-holder relationships across the program, submitting milestone and acquittal reports to DPIRD as per partnership contract requirements and, receival and disbursement of state government grant funding and industry/stakeholder co-contributions.

The program is delivered via a collaboration between a contracted consultant (Hydra Consulting), ISC, Regional Wine Associations, Regional Development Commissions and Tourism Organisations, Wine Australia and Austrade.

In the first year of the program, WoWA commissioned Agknowledge (a private consultancy) to undertake a stakeholder review of the program using a standardised questionnaire which was undertaken via telephone interview. This is included in the appendices of this report.

Additionally, an online survey is conducted each year by Hydra to guide development of program structure

As a part of the ongoing management of the program, the WoWA Board has implemented a review of the program at the partnership term mid-point. This paper summarises the results including:

- A summary of the online survey results.

- A summary of a telephone survey of producers and program stakeholders using the question format developed by Agknowledge for the first review in 2022

- A summary of results of the current telephone survey against the 2022 Agknowledge review

- Analysis of program spend compared to 2021-22

Topline observations from the online and telephone surveys

1. There is strong industry support to continue implementation of the EGP in its current format so long as industry feedback is continually considered and incorporated as required.

2. The program should provide support to all producers with the capability and commitment to invest in export market development.

3. Measurement of EGP outcomes against stated KPIs is essential.

4. Measurement of the success of each activity is essential to provide producers with feedback on what works and what does not.

5. Program management (Hydra and ISC) has been responsive to date to industry feedback on how to improve the program. An objective of the program is to continually build industry capability and self-reliance. Program structure should continually evolve to support this

2022-23 Export Growth Partnership Program Review

2023 Online survey summary

The online survey is conducted each year by Hydra to gather industry views on the program. The information is used to adapt and refine program activities to align with industry requirements. The survey is sent to all participating producers.

Participant Demographics

There were 23 respondents from a total of 71 participating producers and 33 who invested more than $1000 in program activities in 2022- 23.

Respondents produced wine from the following regions (note sum is greater than 100% as some produce across several regions):

• Margaret River 75%

• Great Southern 25%

• Geographe and Swan District both13%

• Pemberton 8%

• Manjimup and Blackwood both 4%

Size of producers was:

• Less than 10,000 cases 29%

• 10,000 to 50,000 cases 46%

• Over 50,000 cases 25%

• 20% of respondents had not previously participated in WA Wines to the World

Survey summary

The following comments were provided in response to open ended questions on what is working and what is not working:

What is working?

• Hearing about opportunities, support, information, opportunities identified, proactive

• Good leverage (more with same resources)

• Importers happy to get support

• Inbound trade and media

• Funding of fairs and tradeshows, tempered by concerns about amount of funding and limited range of shows supported

• Regional programs are regarded as being successful

• Providing a stronger voice with Wine Australia and Austrade

• Passion and professionalism of Hydra team

What is not working?

• Opportunities needed for smaller regions whose associations lack capability in export

• Claim complexity

• Retail distributor programs not that effective

• 60/40 support often not enough

• Need to focus more on regional awareness, trade, media, and influencers

• Too tailored to large promotions, need smaller niche for distributors

• Funding doesn’t include travel

• Haven’t seen an increase in sales

• It would be great to get lists of distributors for different markets

• Not enough individual producer help (for what they want to do, rather than chosen)

• Subsidies for tradeshows and in-market visits too low (and seem to be declining)

• More co-design

2022-23 Export Growth Partnership Program Review

In response to the question, “what would WA exports look like if the program did not exist?”, a majority of 71% felt that there would be a more fragmented approach to export market development by WA producers resulting in greater challenges for most in growing or maintaining export markets. Another 14% felt the program has had no positive impact on WA export market activity and a further 14% were non-committal noting it was too early to determine the success or not of the program.

Most felt the program was “growing sales value per bottle in existing export markets” but was less successful in growing sales volumes in existing markets and developing new markets. Most (87%) either somewhat or strongly agreed that the program delivers value for money.

A full summary of online survey results is available in the 5- Year Program Framework document (pages 7-10) included in the appendices of this paper.

Telephone survey

A further 10 program participants were contacted to conduct a 30-minute survey using the questionnaire format developed by Agknowledge for the 2021-22 program survey. The aim of this process was to obtain further detail on responses provided via the online survey and to compare results from the 2021-22 survey.

Participant demographics

A total of 10 participants were surveyed including:

- 8 wine producers (5 Margaret River, 3 Great Southern, 1 Swan Valley, 1 Geographe – noting some are multi-regional; 2 above 500 tonnes; 4 150 – 500 tonnes; 1 below 150 tonnes; only one 1 had been exporting for 5 years or less)

- industry stakeholders (1 regional wine association, 1 regional development commission)

All had participated in activities in at least 3 different markets and had invested a minimum of $1000 in program activities in 2022-23. The sample represents a group of producers who are seriously invested in developing export markets across a range of business size, GI location and export experience.

Responses to the 5 key questions in the survey

1. Do you believe the EGP is achieving its stated aims, from a business and state industry perspective.

- 70% believed the EGP strongly supported their business objectives in export development, 20% believed the EGP somewhat supported their business objectives in export development and 10% believed the EGP did not support their business objectives in export market development.

- 80% believed the EGP supported export market development objectives at state and regional level and 20% believed the EGP supported export market development objectives at state and regional level.

General comments noted the extreme challenges facing exporters presently. All believed that the industry should be collectively supporting an export focused market development program. All believed the benefits of regionally based brand and market development activities should be supported through EGP activities. However, some felt that more direct financial support should be provided to producers via the EGP.

2. What activities do you believe the EGP should do more of?

- 70% supported more regional in-bound trade/media groups

- 60% supported more master classes both in-region and in-market.

- 30% supported more distributor/retailer promotional support in-market.

- There was less support for tradeshow participation noting below comments.

- All felt strongly that the most valuable activities were those that supported direct producer and customers/media engagement. Most favoured in-region visitation followed by master classes in market. There was support for highly immersive, on-property events which allowed producers to engage strongly with trade and media.

- A common comment was that the curation of activities was very important. Every activity should have a clear focus. Is it for new to market or established in market producers? Are the targeted trade distributors or retailers/on-premise? Participating producers should also be matched to the purpose of the activities.

- Several producers noted that their existing relationships with distributors were hard won through a long market development process. EGP activities could compromise these through introduction of new businesses to these distributors. The program needs to carefully select distributors for NTM programs to ensure there is no cannibalisation of existing business.

- Trade/distributor support programs were either very strongly supported or not at all. This seemed dependent on the business model of respective producers. Most who participated found these programs to be useful. All commented that required documentation for approval was overly onerous.

- Tradeshows (VinExpo, Prowein) were largely seen as difficult to measure value from participation. The ability to cut through in big events was questioned. Many felt that the level of support to producers was not sufficient. Most felt that attendance was a biennial undertaking. All noted the level of organisation by Hydra at all events was very good.

- Most noted the importance of activities that build regional brand awareness and supported further investment in this area.

- All were aware that the funds available are limited and must be targeted at activities that address the key KPIs. Some felt the focus of activities was too much on the outputs/requirements of bigger businesses.

3. What activities do you believe the EGP should do less of?

- As noted above, some felt trade shows required too much investment to ensure success and would reduce funding available for other activities.

- Some questioned the value of distributor/retailer support programs. More were supportive of these programs if they were focused on Asia markets.

- Some felt that more funding should be pr ovided directly to producers/regions with the program spend being adjusted to allocate less the contracted consultant (Hydra).

- All agreed that the decision to limit or stop virtual tastings was correct.

2022-23 Export Growth Partnership Program

4. How easy is the EGP to work with?

- 70% of respondents felt the EGP and consultant were easy to work with and professional in delivery of the program. 20% felt the program required too much compliance and 10% felt that while good, engagement could be better.

- Several commented that time frames for submissions to participate were often too tight.

- Some commented that the challenge in bringing so many partners together was significant and required a lot of engagement and work to align resources efficiently. They also acknowledged that collaboration within region and across region had increased significantly as a result of the EGP.

- Most noted that the program has evolved positively in response to feedback from producers.

- Most noted that additional activities for smaller producers/regions are being developed but also noted the difficulty in bringing these to fruition due to lack of in-region resources. They felt the EGP could/should provide these resources.

5. Will you increase your engagement with the EGP?

- 80% of respondents stated they would either increase or maintain their current level of engagement.

- All noted this was dependent on alignment to their business goals.

- All noted that Hydra had improved communications

- Those who stated they would reduce their level of engagement cited compliance complexity and insufficient value as the main reasons why they would reduce their engagement

Industry feedback

The 2021-2 Agknowledge EGP noted feedback from producers across range of issues A summary of these with results to date are noted below:

- Review the value of online activities such as Wine Connect and virtual wine tastings. As a result of industry feedback, the program no longer supports these directly.

- Investigate the promotional value of wine trade fairs to determine if supporting individual producer participation or regional/collective participation is a better investment. The program has supported both with a skew towards regional participation support. Note this is being further reviewed given the most recent producer feedback.

- Continue market entry activities to support producers in finding distribution. The program continues to support both NTM and existing market programs, noting the need

Comparison of 2023-24 telephone survey results to 2021-22 Agknowledge program review

2022-23 Export Growth Partnership Program Review

to ensure support is targeted to producers with the capability and commitment to invest in export market development.

- Continue trade/distributor support programs

The program has continued to support these noting the mixed response from survey participants. Further refinement of these has been implemented to reduce compliance complexity.

- Share activity feedback with producers/promote success and learnings/utilise feedback to improve the program.

General feedback from both the online and telephone survey has highlighted Hydra’s and the program’s response to feedback and comments. The EGP is an industry led program and this is apparent to most producers. It is noted however that further work can be done to ensure program success and learnings are shared with producers and promoted broadly.

- Review activities to develop more programs for smaller producers/clusters/regions. The small grants program was developed in response to this recommendation. Most other programs can fit small to large producer models noting those with establish ed markets will find it easier.

- Engage with in-market government agencies to support events.

In the UK and Japan, WA Trade Offices have supported events. Through closer working relationships with Regional Development Commissions, Austrade resources have been leveraged to deliver activities. All Wine Australia in- market offices support EGP activities where alignments allow. As noted above, constant attention to alignment of effort is required to ensure all resources are leveraged by the EGP.

- Support producers to work as collectives

The small grants program has supported several producer collectives to implement activities.

- Continue to co-ordinate inbound activities. In 2022-23 a wide range of inbound activities were implemented and planned for 2023-23 implementation. These focused on key markets including the UK and Asia.

- Continue to review target market focus.

Through regular reviews of market trends and producer surveys, the EGP has aligned resources to producer objectives. Over the course of the 5-year framework, this focus shifts more towards to Asia and away from traditional markets in the USA and UK/Europe.

- Develop partnerships with the food sector to showcase unique WA offerings. Some out-bound and in- bound trade missions have incorporated food ele ments with positive outcomes, however, producers and the ISC have determined that this is difficult to implement and still deliver trade outcomes for producers – too many distractions. Additionally, cost to deliver such events can reduce the amounts directed to wine trade development.

- Collaborate with tourism to promote WA as a wine and food destination. This element has been incorporated somewhat but must be carefully managed as noted above, re food.

2022-23 Export Growth Partnership Program Review

- Seek feedback on each activity to determine success Feed back on each activity is gathered, however, as trade outcomes can be a medium-term development, accurate measures are difficult to generate. To date, the program continues to be measured by Wine Australia quarterly data on WA/regional export sales as captured in the Export Approval Report (WEA) Further measurements of success at activity level need to be developed.

Analysis of program spend

Table one shows analysis of spend by program activities for 2022-23 with a comparison of change from 2021-22 The biggest change has been a shift to spend in global activities which includes the small and large grants programs to producer clusters and regions (total $179,695). These grants funded collaborative producer group activities and regional collaborative activities including out-bound market visits and inbound trade/media visits. Additionally, $149,866 was allocated to global trade fairs and $42,508 to in-bound trade/media visits. This has largely been re-allocated from USA program spend.

Market Spend Activities Participants Change in Spend

Table 1 Market Spend

The shift in spend from primarily program consultant driven activities to producer and regional cluster driven activities shows this recommendation from the 2021-22 Agknowledge review has been adopted. A more balanced allocation of spend across markets is evident as is a greater focus on the activities that producers have identified as valuable (in-bound activities and direct engagement with customers). The amount allocated to trade fairs has been reviewed for 2023-24 and was reduced as per feedback from industry. Allocation for distributor/retailer support programs should be refined to target markets where producers are willing to invest.

Analysis of program performance

The metrics of program performance stated in the program partnership contract with DPIRD are:

• Growing the average value and volume of WA wines exported

Table 2 below shows the results to the end of September 2023 against baseline data at 1 July 2021 with a comparison of the performance of other states against the same metrics. The table shows how difficult export markets have been over the last 2 years, in part because of Covid disruptions and in part because of China’s trade tariffs on Australian wine. WA has not increased aggregated value and volume metrics, however, there are some improvements on the baseline data

2022-23 Export Growth Partnership Program Review

Average value per litre for bottled wine has increased 12.47% to $13.88 noting bottled wine exports represent 81% of aggregated export value ($26.2 million of $32.2 million). WA’s share of national export value has increased by 21.83% to 1.82%.

• Growing the number of WA wine producers successfully participating in export markets

The total number of exporters at 30 September 2023 decreased by 3% from 157 to 152 Nationally, the number of exporters decreased by 41% from 2193 to 1298

• Aligning investment in international wine marketing, promotion, media and wine tourism to maximize profile and sales outcomes for WA fine wines

In 2022-23, the EGP leveraged $693,542 partnership funds with $688,909 co-contributions from producers, federal government agencies (Wine Australia, Austrade) and other state government agencies (Regional Development Commissions, JTSI, Regional Tourism Organisations). This closely matches programs requirements of $1 for $1 matched funding. It is also indicative of a high level of alignment of resources and collaboration between stakeholder partners.

Recommendations for the program

Based on feedback from industry the 2022 Agknowledge review made the following recommendations. Comments on these from current industry feedback is included against each recommendation. Further recommendations to improve the program are included in bold text.

1. Continue the EGP program.

Feedback from industry and stakeholders supports this recommendation, with constant review of resource allocation and investment.

2. Broaden producer engagement. It is noted that participation in the program has dropped slightly (112 participants invested in activities in 2021-22 with 98 investing in 2022- 23). Those who are investing largely agree that engagement and support from the program has improved and grown in 2022-23. Economic conditions are likely to be the main reason that producer numbers investing have reduced. It is also noted that program spend is best

Table 2 Analysis of change to volume, value and average value compared with other states from Wine Australia Export Dashboard WEA Reporting based on label claim approvals

2022-23 Export Growth Partnership Program Review

allocated to producers with the capability and commitment to invest in export market development. The most important metric is increasing the number of producers who are successfully exporting,

3. Support smaller producers.

As noted above, the small grants program allows smaller producers and clusters to engage with the program more easily. Also note that most activities provide opportunities for smaller producers and all markets have activities for smaller producers.

4. Ensure that all future target markets are sustainable.

As noted above, through regular reviews of market trends and producer surveys, the EGP has aligned resources to producer objectives. Over the course of the 5-year framework, this focus more towards to Asia and away from traditional markets in the USA and U K/Europe.

5. Promote success stories.

Regular updates from the program are circulated to all participants directly and via the WoWA weekly EDM. More work should be done to accurately measure outcomes from activities.

6. Provide feedback on each event to be fully accountable for program outcomes.

As noted above, regular updates on program activities are provided to industry, however, more work should be done to measure outcomes more accurately from activities

7. Calculate and track the growth in WA exports

Wine Australia Export Approval Reports are used to measure growth against the baseline of 1 July 2021

8. Collaborate with the food and tourism sectors to develop complimentary partnerships. Most outbound and inbound activities have had food sector partners. This is easier to implement with in-bound activities and probably more effective. Note the risk of diluting wine trade outcomes and cost blow-out risks.

Introduction, provide name (person completing the phone interview) and explanation, as follows:

The Export Growth Partnership (EGP) is a 5-year co-funded partnership between the WA wine industry and the WA state government. The state government and the WA wine industry are contributing $3 million each to support a program with the stated aims to, “increase the profitability of the WA wine industry by”:

• Growing the average value and volume of WA wines exported

• Growing the number of WA wine producers successfully participating in export markets

• Aligning investment in international wine marketing, promotion, media and wine tourism to maximize profile and sales outcomes for WA fine wines

Request a short conversation.

1. How many years have you been exporting?

a. What % of your production before Covid did you export?

b. What % of current production do you export?

c. What % of production do you aspire to export?

2. As a participant in the EGP first year’s program, are you aware of the shared assets and activities that the EGP has developed for all regions and producers? E.g.: Media, Education, Knowledge hub

Comments

a. Don’t know about them

b. If so, have you used them?

c. Do you intend to use them?

3. What EGP programs have you participated in?

Participant (identified) Investment (from record)

4. Do you believe the EGP engagement is achieving the stated aims?

a. From your company perspective?

b. From a WA Industry perspective?

Looking for a view on whether the program is correctly implementing to achieve the 3 KPIs.

5. Has your participation with EGP supported your efforts to increase sales/profitability in the targeted market?

a. Can you please provide examples of success and or not so successful? E.g.: did these help you to obtain a distributor/agent?

b. How did you find the EGP program to work with?

E.g.: communication, clear activities, follow up and delivery.

c. Will you look to grow/continue or reduce your engagement with EGP?

6. What activities do you believe the EGP should do more of or focus on?

7. What activities do you believe the EGP should do less of?

Complete by thanking the interviewee for their time and ask for any other comments.

WoWA Domestic Marketing Campaign / Event Strategy Summary

Published 15 July 2024

Background & Context :

In 2023, Western Australian wines represented 3% of Australia’s annual grape crush and 12% of Australian off-trade sales (2022-23) Some key producers from the State’s prominent wine regions are receiving feedback from major customers that this share of market is under threat, due to a decline in engagement and enthusiasm for WA wine styles in New South Wales, Queensland and Victoria. In these markets, there is a suggestion that the wines from regions such as Tasmania (state / regional level) and Adelaide Hills (regional level) are perceived as more relevant and desirable, reflecting their proactive effort to engage buyers and customers with messages of innovation, modernity and artisan craft

Amongst trade buyers and influencers, there may be misconceptions surrounding the wines from Western Australian regions, an outcome of physical distance, combined with a recent absence of proactive, cohesive brand messaging and engagement in these markets at a holistic level. There is an exciting opportunity to address this through the proposed WoWA domestic marketing investment and signature trade event.

Possible Market Perceptions vs Realities to Inform WA Wine Brand Positioning / Messaging:

Note¿.aspects.of.the.›realities".below.will.be.finessed.into.evocative language ―.USPs.in.the.next.phase.of.the.project¡.

Objection Customer Perception

“ Conservative / Traditional ” A dominance of classical varieties – SSB blends, Chardonnay, Shiraz and Cabernet Sauvignon (Merlot) means the wines aren’t interesting to modern drinkers.

(Chardonnay an exception in current market, as it is trending).

“ Stayed / Safe / Establishment ”

WA’s established reputation for quality and consistency is marred by an undertone that the wines are trusty and good, but not as exciting as other regions, especially in $15$25 price points, where wine trends influence what’s on shelf and pouring on premise Blends like SSB and Cabernet Merlot in aren’t “cool” right now

“ Unattainable ” The high price-points and scarcity of celebrated wines in WA’s most famous regions (such as Margaret River), plus the overall low inventory of Western Australia’s smaller producers found outside of the State means gatekeepers are unaware of the breadth of WA wines or prioritise other regions where it’s easier to discover and source a variety of wines.

WA Wine Reality

In WA’s wine regions there is significant winemaking innovation happening within its traditional varieties at an elite expert level In addition, there are invigorating and ‘best in class’ styles of Chenin Blanc, Riesling, Grenache and alternative varieties being championed by new-gen winemakers.

Wines from WA’s regions offer modern, finessed and excellent experiences at every price point. Their freshness, elegance, specialisation and artisan nature (from sustainable vineyards in a Biodiversity Hotspot) make them the most desirable “accessible luxe” wines for the Australian lifestyle (eg SSB) Quality, consistency and responsible wine growing are traits for conscious consumers to seek and celebrate.

WA’s wine regions are isolated geographically, which adds to their rarity and desirability. DTC or intra-WA sales do dominate for many producers, however if it was easier for WA wineries to connect with decision makers in non-WA markets and appropriate sales opportunities were available, more diverse WA wine inventory would be in-market outside of the State.

Strategy.Summary.from.WoWA.Domestic.Marketing.Workshop.77 July.8680. Prepared.by.Emily.Sharland?.Strategic.Creative.Marketing.Communications

A (Draft) Vision for “Brand WA” Wines in the Domestic Market : Wines from Western Australia are sought-after as the most dynamic, cultured and world- class styles being crafted in the country.

WoWA Domestic Program Objective :

Revitalise the reputation of Western Australia’s wines and re- engage key customer groups in non-WA domestic markets to support commercial growth targets.

Strategy One : Revitalisation of Brand Positioning , Key USPs & Creative Concept :

Refine the key attributes of the ‘wines of Western Australia’ and articulate aspirational brand positioning. Develop messaging and a creative concept that can work cohesively with existing WA and Wine Region brand architecture, while uniting producers behind a collective big idea that is motivating to the target market/s. This creative will underpin the domestic marketing communications program and inform how to best curate and promote the signature WA wine event.

Strategy Two : Australia’s Most Talked About Wine Trade Tasting Experience

An event for key trade opinion leaders (eg buyers, shop managers, sommeliers, educators and media) will be the first campaign experience, and aims to deliver the highest impact, engagement and commercial prospects with the available funding.

The Event Idea :

The vision is to design an event that WA’s finest established and emerging producers want to clear their calendar to participate in, and that national buyers from nearby cities would want to travel to attend.

A.possible.message.to.producers.for.a.› save.the.date".and broader.event.pitch¿

The.East.Coast.wine.trade.has.lost.touch.with.the dynamic.and.world‗ class.wines of.the.West?.and.that"s.outrageous¡. Let"s.band.our.community together in.the.collaborative and.go ‗getting manner.for.which.we.are.renowned?.to. showcase.the.most.epic.and.diverse all ‗ star.line ‗up.of.WA.wines and winemakers.ever.assembled.in.one.space outside.of.the.State¡.We"ll.stage.it.in Sydney?.a.pivotal.wine.market that"s.central.to.the.East.Coast¡.Help.us.deliver.a. thought‗provoking?.unexpected.and.thrilling day.that.the.trade.will.talk.about.for.a.while¡.We.need.you.there¡ Save.the. date.and.register.your.interest.now¡ More.details.soon¡ (Steering.committee team faces.to.go.out.with.the.EDM)¡

How ?

• The most impressive array of WA producers (representing a diverse spread of geography, region, varieties, price and scale) to ever be in one room together (curated for relevance and to deliver WoWA brand and commercial KPIs, while encouraging industry inclusiveness)

• Stage the room creatively to showcase the diversity of WA’s regions, and bring elements of their terroir and uniqueness to the room – this could be through the curation of wines, video projection supports, WA produce or other interactivity that complements the status quo of tasting tables (Chefs and wine tourism will not be a priority of this event)

• Possibility of shared tables for smaller producers or emerging regions, and larger “branded” stands for producers seeking to make a statement (self-funded and subject to approval)

• Invitation- only masterclasses to get intimate with icon, regional heroes and key emerging wines, led by curated panels of the country’s most celebrated winemakers

• Include influential East Coast opinion leaders in programming as relevant to influence their peers

• Possible retail intelligence panel to educate and present data / sales trends favourable to WoWA

• Carefully program the day’s timing to maximise its appeal to different trade customer segments

• Option: support with a sales incentive: WoWA Scholarship or ultimate WA Wine Tour - once in a lifetime trip competition for XX buyers that commit to XX volume of WA wine as an outcome of attending (flesh out by customer type and what motivates them and tracing mechanic)

• Possibly VIP invite only launch element to attract ‘hard to reach’ media, MWs, top buyers

• Support with trade PR to make buzz / impact and generate interest

• A camaraderie side event for WA maker participants in Sydney as a bonus – details TBC

Strategy Three : Integrated Marketing Communications Campaign

Design and deliver an ongoing campaign to reinvigorate and reconnect key stakeholder groups to drive awareness, demand and commercial results for Wines of Western Australia and its compelling regions, styles and producers. (Example – advertorial / paid WA SSB program with Dan Murphy’s.)

Strategy.Summary.from.WoWA.Domestic.Marketing.Workshop.77 July.8680. Prepared.by.Emily.Sharland?.Strategic.Creative.Marketing.Communications

Appendix:

Trade and Key Opinion Leaders will be the focus of the event, and a priority for the ongoing domestic program, detailed as per below:

RETAIL TRADE

CUSTOMER / SEGMENT

Endeavour Group (Dan Murphy’s, BWS, Woolworth’s Liquor and Langton’s)

Coles Liquor Group (Vintage Cellars, Liquorland, First Choice Liquor)

Wholesalers (eg ALM, Paramount)

Independent Retail Groups (eg Cellarbrations, IGA etc)

Online & Subscription Clubs

Fine Wine Retailers

Distribution Companies

CUSTOMER / SEGMENT

Pub Groups & Hotels

Fine Dining / Sommeliers

Airlines, Cruise Ships

CUSTOMER / SEGMENT

Media & Influencers

Wine Educators

Decision makers and key merchants / shop managers, brokers

Decision makers and key merchants / shop managers

Decision makers & account managers

Franchise owners & shop managers

Owners & buyers

Owners, buyers & shop managers

Decision makers & account managers

ON PREMISE TRADE

Decision makers and key merchants / managers

Decision makers and key merchants / managers

Buyers, tasting panellists

WINE MEDIA & INFLUENCERS

Reviewers, writers, bloggers

WSET Educators, Masters of Wine

Programming for end consumer will not be a priority in the short term. Note, if not done already, it is worth checking trade event timing against the date for the Sydney Good Food and Wine Show, to enable producers who would like to participate in both events to do so in one trip.

Strategy.Summary.from.WoWA.Domestic.Marketing.Workshop.77 July.8680. Prepared.by.Emily.Sharland?.Strategic.Creative.Marketing.Communications

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