CAMPAIGN COPS CRITICISM

Your auStralian wine induStrY newS

Electronic Barossa winemakers online petition receives more hits than expected... tounge licks Its only 26 days of out fraud
REBECCA GIBB
DECANTER

n online petition calling on Australians to drink local has been accused of protectionism. Producer Stephen Pannell has launched a website, allforonewine. com.au, urging Australians to drink Australian wine in January 2011. The petition, which has attracted more than 500 signatories in the first five days including winemakers Vanya Cullen, Jeffrey Grosset, has

Vine Cuttings
vinecuttings.com.au

Volume one, iSSue one, noVember 30, 2010

A woman is suing UK supermarket Asda after buying a bottle of wine from the supermarket which allegedly contained a frog. The end is in sight for the oversupply situation, claims industry giant Asda said it was takThough clearly still in an oversuping the case really very BRIDGET CARTER ply situation, we expect the Australian THE AUSTRALIAN industry will move to a balanced po- seriously. sition in the next few years as it has lobal liquor giant Fosters Group in earlier oversupply periods, said Dr Global Vine Ltd says Australias wine industry is Stuart McNab, director of Treasury Decline cellarS are full to oVer- moving closer to the end of an over- Wine Estates - Fosters wine arm. The International OrContinues page three... flowing with Stock supply of grapes and wine. ganisation of Wine and Vine (OIV) confirmed Plastic bottles set to offer an environmentally conscious option with no impact on taste. that the global area under launching the AUS$17 house gas emissions than vines has decreased by CRAIG NESBITT Green Label wines - a wine packaged in glass 70 thousand hectares. THE AUSTRALIAN crisp dry white blend bottles. OIV director, Fedand a Shiraz Cabernet Wolf Blass global erico Castellucci, said: olf Blass is Sauvignon which it brand director, Oliver In comparison to last launching two wines in says have major environ- Horn says consumers years production, world plastic bottles next week mental credentials. need not be concerned wine production this year the first 750ml plastic A study by CSIRO about a change in taste. recorded a level 10.7 bottles in Australia. shows the wines pro- Laboratory trials have million hectolitres (-4%) Fosters Group is duced 29% less green- recorded no difference. wolf blaSS going green lower.

attracted a good deal of criticism. There has been considerable debate amongst bloggers and on Twitter, with claims it is protectionist and jingoistic. Pannell said he was

Stephen pannell, founder of allforonewine.com.au

simply trying to celebrate Australian wines. Australian wine is not travelling well even in our own market. Theres almost a cultural cringe about our wines but we should have pride in them he said.

drinking Australian wine Im not asking people to drink five litres of Yellow Tail or donate a kidney. The petition has also been criticised overseas notably in New Zealand, for which Australia is the biggest export market. Philip Gregan, CEO of New Zealand Winegrowers, questioned the campaigns motives. There is room for all of us. Where would the Australian industry be if a similar campaign started in the USA?

The new electronic tongue is a portable device created by Barcelona Institute of Microelectronics professor, Jimnez-Jorquera. The invention is intened to detect frauds committed regarding the vintage year of the wine, or the grape varieties used.

Semillion Frog?

Fosters rolls out the wine barrels

G

Blass: Fantastic plastic packaging

W

The over-supply issue

What to do when we have too much of a good thing
The 2010 vintage has been an very So what lies in the future for Ausdifficult one indeed. In most cases, it tralian wine and winemakers? has been diffcult for growers to make We can try to pierce other markets ends meet. The global financial crisis such as China and India as the Agcombined with the strong australian ricultural Minister Michael OBrian dollar has greatly diminished our ex- advises. Or we could look to securport sector. The US, UK and NZ are ing a bigger share of our own local turning to their local wines. markets. Aspiring winemakWinemakers such as ers are in abundance. Lateral thinking Peter Lehman and KatHowever, with so many and strategic nook are turnng to transproducers, there are forming their wineries marketing is into event venues. This too many vines and not enough drinkers. An October, both hosted A the key oversupply. Day on the Green music For wine marketers, festivals to boost their lothis has been a disaster. In 2008, sales cal identity. Sales from a single event to the US declined 15%, yet the net were said to be in excess of $400,000. yield of litres for 2009 exceeded that Lateral thinking and strategic of 2008. The sector is trying to grow marketing is the key to riding out despite a shrinking export market. the oversupply. But undervalue your In over-supply, growers are fight- wine, and chances are you will find ing to sell their produce by constantly yourself squeezed out of the market undercutting prices. As a result, shelf by bigger players prices are hugely undervalued. GEORGETTE MARCH, EDITOR

picture bY John nicholSon, reSident cartooniSt

The Community Grapevine:

Why are Roseworthy and Waite Colleges taking in larger groups of students when there is not enough work for those who are already qualified? Angry, VIC
game

grapes of Wrath

Beat

at our oWn

Sure we have had a run of bad luck with the aussie dollar affecting our exports. Its not all about markets. The truth is, our woes are mostly self-generated. Weve trashed their own brand. The biggest problem is

that Australia has made itself synonymous in the minds of many drinkers with cut-rate, generic wines. Because we have flooded the planet with our discount juice and now countries like Argentina (who are closer geographically to our major importers) are undercuting us! Onlooker, NSW

stunts like these made by big businesses that are pushing us little guys out. They are hurting our industry. Small player, SA

The truth is, our woes are mostly selfgenerated

We have closed down our glass bottling plant and moved to a tetra-pak alternative. I just wanted to tell your readers how much we are saving on transportation costs! Vino Disgusto Ms. Thrifty, SA I recently paid a visit to my say What you mean local First If Fosters is so sure C h o i c e the wine surplus will subliquor store side, why was it so quick and was very to demerge the wine pordisgusted to tion from its business find 750ml into a separate entity? bottles of shiraz selling Concerned, VIC for $1.99! It is publicity Vine Cuttings: The Over-supply Issue

paCkage profits

I dont understand why this debate about screw caps and corks is still going on. Corks are so archaic. Its time to move on to a closure which is more cost efficient and doesnt require the consumer to have a bottle opener on them to enjoy your product. Get with the times people! Capper, SA

Closure DeBate

the debate liVeS on: corkS or Screw capS?

the eDs reply:

Dear Capper, The reason why the

debate is still continuing is due to the limited amount of oxygen a screw cap lets into the bottle during the cellaring process versus the original cork closures. There is still debate in the wine industry about the amount of oxygen to allow into the bottle. For now, the trend has been to move to screw caps. But corks still do have their place on the market. Georgette March

Montreal, QUEBEC, H3G 1R6 georgette_march@hotmail.com page two (514) 632-4721

7141 Sherbrooke Street West,

Vine Cuttings

Volume One, Edition One, 30 November 2010

Fosters rolling out the barrels

Our industry mega-power says the grape surplus actively declining
r McNab said recent Australian Bureau of Statistics data suggested the total planted area of vines had fallen by about 8,000 hectares, or about five per cent, and about 10,000 hectares had been left unharvested over the 2010 vintage. So I think we could say that we are moving towards balance, but we still have some way to go, he told investors at a TWE briefing day in Sydney on Friday. Dr McNab said the total industry crush was starting to trend downwards as vines were removed and grapes left unharvested. He said factors such as water availability would

also drive change. The commercial supply of grapes is actually relatively balanced, he said. The real oversupply is in mid-level-quality

Fosters is convinced our oversupply is only temporary and due to exchange rates.

grapes. Luxury grapes and wine are always in demand. In terms of demand, exchange rates will continue to impact demand. Imports like New

Zealand sauvignon blanc are still very strong, but the average price there is weakening. Dr McNab said TWE was in balance after the 2010 vintage as a result

of active management of its surplus bulk wine. We are now in a very flexible position to source grapes or bulk wine at market prices to meet our demand, he said. The surplus position has steadily moved towards deficit in the last few months and this reflects a recent trend of increasing demand for our Australian-sourced wine. Winemaker for Chain of Ponds Graeme Thredgold thinks the issue is being played down by Fosters. We have just pulled out 3 hectares of Chardonnay vines and will not plant our Sangiovese this season he said.

Oversupply forces new marketing strategies

Agricultural minister calls for vinters to branch into emerging markets and defend existing market share. economy, generating more than AMANDA DEBORTO $2.15 billion for South AusABC NEWS tralia in 2008-09 according to records from the Australian Buustralias wine industry reau of Statistics. needs to show a more united The industry is going front to defend market share through a difficult period of and create opportunities in structural adjustment as it tackemerging markets, South Aus- les oversupply, with maturing tralias Agriculture Minister markets and increased comMichael OBrien says. petition particularly from new I think we have debased world competitors, Mr OBrien and debauched the Australian said. brand in the UK market - with The challenge now is to the two-for-one offers and all re-focus on defending market the rest of it. We dont want to share and generating investmake that mistake in the rest of ment for new growth opportuthe world. nities, he said. The wine industry is second We have to show a unified only to the mining industry as front on getting into new mara key contributor to the states kets such as China he added.

Vine Cuttings: The Over-supply Issue

Volume One, Edition One, 30 November 2010

page three

2010 Vintage

Tasting Selections

Grant Burge is a fifth-generation Barossan vigneron and winemaker. Grant Burge Winery again impressed nationally acclaimed winetaster James Halliday this year. In his 2010 wine companion, Halliday awarded the winery rating of five stars. Their 2010 vintage was a top performer, with 5 styles achieving ratings of over 95 (out of a possible 100).

In the limelight: Grant Burge of the Barossa Valley

96/100

Vine Cuttings: The Over-supply Issue

89/100

95/100

Volume One, Edition One, 30 November 2010

92/100

98/100

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