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The Five-Year Plan: 1997-2001
Into the Next Century
The Five-Year Plan: 1997-2001
In June 1996, the Australian Wine Foundation released Strategy 2025, a statement of the aspirations and goals for the Australian wine industry over the next 30 years. Strategy 2025 addresses Australia's competitiveness, market opportunity, resource requirements and government facilitation required to fulfil the industry vision. The Five Year Plan (1997-2001) establishes the industry strategic framework for the next five years, in the context of the industry vision outlined in Strategy 2025.
The Australian wine industry has set itself an ambitious vision:By the year 2025 the Australian wine industry will achieve $4.5 billion in annual sales by being the world's most influential and profitable supplier of branded wines, pioneering wine as a universal first choice lifestyle beverage.
The industry will achieve its vision by adopting the mission statement:Total commitment to innovation and style from vine to palate.
The vision is both achievable and also worth achieving -- it outlines the scope of industry opportunity ($4.5 billion), the industry's position in the world market (not the biggest but the most influential and profitable), the key product (branded wines), the existing competitive advantage of innovation, and Australia's leadership in securing the image of wine as a preferred choice beverage.
Most importantly, the vision provides a focus for the future but does not preclude a wide scope of opportunity.
The wine industry has identified a number of key objectives which will be critical in the ultimate realisation of its vision. Those objectives are to:
- Enhance the image and reputation of Australian wine
- Entrench innovation as the growth driver of industry competitive advantage
- Enhance wine style in quality, purity, uniqueness and diversity
- Establish global leadership in specific branded market price segments
- Capitalise on market growth opportunities by expanding industry capacity
- Extend the scope of industry participation in complementary business sectors
- Improve profitability.
In adopting these objectives it is important to realise that industry growth and development will occur in stages. Over the thirty years 1996 to 2025, wine industry growth is expected to occur in the following time frame:
- Volume growth (1996-2002) during which the rapid vineyard expansion of recent years will overcome product shortages thereby enabling expansion in existing markets and penetration of new markets.
- Value growth (2002-2015) which will place increased emphasis on building brand strength, sector share and margins.
- Pre-eminence (2015-2025) when Australia will have established brand leadership in specific market segments.
The focus of the wine industry Five Year Plan, 1997-2001 is, of course, on the first 'volume growth' period, where the industry must fully exploit its competitive advantages to firmly entrench itself as a significant participant in the world wine industry.