Daily Wine News

««« return to Daily Wine News index

29/08/2017

Wine industry pleased with support package


Photo: Wine Australia

The grape and wine sector has welcomed yesterday’s launch of the Australian Government’s $50 million Export and Regional Wine Support Package by Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce, and Assistant Minister for Agriculture and Water Resources, Anne Ruston.

Australian Vignerons, the Winemakers’ Federation of Australia and Wine Australia have worked in close consultation with the Australian grape and wine sector to develop the business plan for the package, which will be delivered over three years.

The package comprises four distinct programs that aim to transform the sector by enhancing and showcasing the nation’s wine tourism offerings while also driving further demand for Australia’s growing wine exports.

Australian Vignerons Independent Chair Jo Andrew praised the manner in which all parties had supported the opportunity provided by the package. "This funding allows Australian growers and makers of wine to build on the excellent recent results in both domestic and international markets. This is a great outcome from the collaboration between the wine sector, Wine Australia and the Federal Government."

Winemakers’ Federation of Australia President Sandy Clark said, "the $50 million package provides a once in a generational opportunity to grow demand for Australian wine. It will benefit all winemakers and provide a lasting platform for profitability throughout the supply chain, and I would like to thank all those who have got behind this initiative. It is now up to us to maximise the opportunity."

Wine Australia's role

"Our thanks to Deputy Prime Minister Joyce and Minister Ruston for their enduring commitment to supporting the growth of the Australian grape and wine sector and their ongoing engagement with our regional communities throughout the development of this package," said Wine Australia chair, Brian Walsh.

"We have convened a nine-person expert marketing advisory group drawn from different parts of the sector to provide advice on the strategy and activities to be considered for program one — accelerating growth in international demand. This program, which focuses on the United States and China markets, aims to grow both demand for our wine exports and showcase Australia’s wine tourism offering and we will continue to work with Tourism Australia to leverage opportunities.

"Program one is in addition to Wine Australia’s existing activities, through which there is unwavering commitment to continued investment into the full breadth of Australia’s export markets. We have already received sector approval to commence some early activities this year including Australian Wine Week in San Francisco and New York and involvement in the Hong Kong Wine and Dine Week in October.

"Wine Australia will be spending the next few months developing materials for the capability and capacity building portions of program two, with a view to delivering the first workshops, forums and online tools early next year.

"Consultation with the sector on the draft guidelines for the grants schemes under programs two and three are expected to start soon. We are committed to keeping our grape and wine community actively involved throughout this initiative and I encourage all to visit the Wine Australia website where we will have further information, including grants guidelines and how to get involved, as it becomes available."

Tourism pull

Wine Victoria Chair, Damien Sheehan said the package would allow Victorian grapegrowers and winemakers to continue to showcase the state's unique terroir and premium products not only to Australians but to the world.

“We have seen exponential growth [in] Victorian sales to the Chinese wine market and the US market is slowly returning,” he said.

“This has been matched by a slow increase in the number of tourists visiting our cellar doors – but much more needs to be done to ensure our members can continue to kick goals in these areas,” Mr Sheehan said.

“Getting our domestic and international wine tourism right also means strengthen[ing] the wider economy, already the Victorian wine industry directly contributes $7.6 billion to the state’s economy and employs about 13,000 people – most of these jobs are in regional Victoria,” he said.

“However, if new wine tourism products mean an international visitor stays for one additional night and 10% of Victorians are convinced to change their holiday plans to a Victorian destination, the Victorian economy will grow by and $2 billion every year,” he said.

Export and Regional Wine Support Package programs

The Export and Regional Wine Support Package will be managed by Wine Australia through a combination of direct implementation, contracted services and a range of grants schemes.

• Program 1 will accelerate growth in international demand through dedicated, multi-year marketing campaigns in the United States and China, representing a more than eight-fold increase on current investment in these markets.

• Program 2 will create export-ready businesses by building the capability and capacity of grape and wine businesses to capture export and tourism opportunities. This will include a wine exports grants scheme for current and new exporters to China and the United States.

• Program 3 will capture growth in wine regions by offering state-based and competitive grants to develop exciting wine tourism experiences and attract international tourists.

• Program 4 will transform cider businesses by building knowledge of potential export markets and developing improved understanding for accessing these markets.

Governance

Wine Australia will continue to work with the grape and wine sector through Australian Vignerons and the Winemakers’ Federation of Australia to implement the Export and Regional Wine Support Package's four programs.

The President of Winemakers’ Federation of Australia and Chairs of Australian Vignerons and Wine Australia will meet to agree the annual operating plan for the package each year, which will be subject to Wine Australia Board approval, and to undertake mid-year reviews. The Wine Australia Board will also measure and report on progress.

Marketing Advisory Group

The Export and Regional Wine Support Package Marketing Advisory Group will work closely with Wine Australia’s marketing team to develop the plans and campaigns covered by Program 1.

The group comprises:

• Andrew Stark, Accolade Wines
• Libby Nutt, Casella Family Brands
• Bill Moularadellis, Kingston Estate Wines
• Darryn Hakof, Pernod Ricard Australia
• Mitchell Taylor, Taylors Wines
• Simon Marton, Treasury Wine Estates
• Nick Waterman, Yalumba Family Vignerons
• Simone Horgan-Furlong, Leeuwin Estate, and
• Simon West, Fullglass Management.

Wine Australia, Australian Vignerons and the Winemakers’ Federation of Australia will jointly sign off on the developed plans and campaigns to ensure all Australian wine exporters are supported through the proposed activities.


Cellar Door and Tourism Grant

Through the $10 million Wine Tourism and Cellar Door Grant, which is designed to encourage wine tourism, wine producers who meet the eligibility criteria will be able to access an annual grant of up to $100,000 (plus GST) for eligible cellar door sales from 2018–19.

Wine Australia will administer this grant on behalf of the Federal Government and wine sector consultation on the draft guidelines is expected to start soon.

For further information about the Package, including how to get involved and to view the Business Plan, visit http://erwsp.wineaustralia.com

Bayer


Flavourtech


New Holland


Braud


Kauri


WID 2017