Written by By Anita McPherson for the Wangaratta Chronicle

The decision by New Zealand to give in to Italy’s demands to classify Prosecco as a geographic indicator under its free trade agreement with the European Union will be keenly felt by Browns Family Wine Group (BFWG).

CEO Dean Carroll said they had been confident New Zealand felt as strongly as Australia on retaining the right to use Prosecco as the name of the grape variety, but he speculated it may be the fact New Zealand doesn’t have a Prosecco industry which swayed their government’s position on it.

He said while it might take six or seven years before it directly impacts export of the popular bubbly from Australia to New Zealand, strategies would be put in place to deal with it.

“It’s very concerning they would make a decision like that, based on the reason we have long argued – that Prosecco is a grape variety and has always been recognised that way,” he said.

“While we were reasonably comfortable, now it feels like at the negotiating table, one of those bargaining chips has been handed over.”

Mr Carroll said decisions would need to be made on how they continue to market the brand in New Zealand, before it takes effect.

But he said with the strength of the Brown Brothers brand there – particularly across its sparkling varieties – he was confident they would come up with a solution which would ensure the same product already enjoyed on the ground could be marketed in the future.

“It also potentially opens up opportunities for us to pursue other markets more aggressively overseas that we’ve stayed out of to this point while it is being debated,” he said.

Mr Carroll said about 15 per cent of all the Prosecco produced by BFWG currently goes to New Zealand. He said the domestic market also remained incredibly strong for Prosecco, the total Australian market having grown from around $60m in 2018 to around $200m today.

“As a leader (in the market) we are enjoying it, but we are also working hard to continue to invest and build in the category,” he said.

Mr Carroll said while lobbying with the Australian Federal Government during trade negotiations on the Prosecco naming issue continues through industry group Australian Grape and Wine, BFWG is continuing to ensure the newly elected government understands the story.

He said with so many local businesses having invested a significant amount of time and money into growing and marketing Prosecco brands over the last decade – to have it at risk based on a negotiation point was concerning – and it required the assistance of people like Member for Indi Helen Haines to help make a strong case at a federal level.

“Our focus remains very much around the fact there is a huge body of evidence saying Prosecco is a grape variety,” he said.

“There was a slight of hand on behalf of the Italians to try and rename it, but we remain very committed to our central argument and con­ dent we will continue to be able to use it in a domestic market.”

Mr Cleave-Smith said local producers had experienced a great vintage this year, with quality high and production volumes up in both red and white varieties.

He said ongoing public and private sector investment in the region, in projects like the Prosecco Road Revitalisation Project which would improve the visitor experience in the King Valley, was very positive and welcome, particularly following the years of bush­ res and COVID lockdown.

Australian Grape and Wine’s director of strategy and international affairs, Damien Griffante, said this week the announcement that only Italian Prosecco from the Prosecco region will be able to be sold under that name in New Zealand was a blow to Australian producers.

“We are disappointed in the decision as reported and are seeking clarification of the impacts from the New Zealand government,” he said.

“The New Zealand government FTA decision on Prosecco does not alter Australia’s position in our own negotiations, to continue to strongly protect the legitimate rights of Australian producers to grow, produce and sell wines made from the Prosecco grape variety.

“Prosecco to New Zealand in the year ended June 2022, is valued at roughly $3.5 million.”

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