Australian wine industry looks to the top drop

Ben Porter inspects the product at his family’s Yarra Valley winery. A report has urged winemakers to focus on fine-wine production. Picture: David Geraghty Source: News Corp Australia

The release of an Australian Grape and Wine Authority discussion paper calling for the industry to “refocus on our best wines and what makes them special” has prompted renewed debate among winemakers and grape growers, in particular drawing concern from producers of cheaper wines.

Riverina Wine Grapes Marketing Board chief executive Brian Simpson said the industry had to keep a broad focus and think also of emerging export markets. “Not everyone likes drinking Grange,” he said.

“We’ve got to start them, we’ve got to get them away from the spirits and beer into the entry-level stuff and then they can move up the value chain.

“If you look at just the high end — if you’re trying to pull consumers — you’re not going to pull them at $30 a bottle to drink our wine.”

In the discussion paper, released last month, authority chairman Brian Walsh said Australia had the resources and capability to be recognised as the world’s pre-eminent wine-­producing country. “We believe that increasing demand will be largely driven through the enhanced image and reputation of our fine wines, those wines of exceptional quality and finesse that reflect their provenance and terroir, and command a premium,” he said.

“This focus will deliver a halo benefit for the entire grape and wine community and our global promotion activities should reflect this belief.”

In Victoria’s Yarra Valley, 10th-generation winemaker Ben Portet agreed that focusing on the best wines would help the whole industry but said innovation and young leadership would be crucial in setting Australia apart. “There is going to be a lot of competition from other countries as well, doing exactly the same thing,” he said. “I’ve lived in South Africa and they’re making some great wines, too.

“The pressure is really on for the winemakers from my generation. We need to be much more educated, well-travelled and more business-oriented, which will lead to more innovation.”

Mr Portet, whose father, Dominique, left Bordeaux to travel and eventually establish the family winery in the Yarra Valley, said the previous boom for Australia’s low-priced wines no longer was sustainable. “There is probably an oversupply of more commercial wine available on the market from many other countries, such as South Africa and Chile,” he said.

“We have to lead from the fine-wine perspective because that’s what people aspire to.”

Riverland Winegrape Growers Association chief executive Chris Byrne said popular premium wines would still be important, especially for emerging overseas markets. “We know full well that’s where our wines sit.

“It is affordable, it’s competitive, it’s reliable, consistent and it’s what the emerging markets want.”

Submissions on the discussion paper are due by February 20, ahead of consultation meetings.

A final plan is to be submitted to the federal government by May.

Source:  The Australian - 13th January 2015