Margaret River R E G I O N A L R E V I E W 2 0 1 5 Australian - - PowerPoint PPT Presentation

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Margaret River R E G I O N A L R E V I E W 2 0 1 5 Australian Grape and Wine Authority Wine Australia www.wineaustralia.com What wed like to cover today AGWA update Wine Australias Market Development Strategy and Update

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Margaret River

R E G I O N A L R E V I E W 2 0 1 5

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

What we’d like to cover today

  • AGWA update
  • Wine Australia’s Market Development Strategy and Update
  • Market opportunities for Margaret River:

– Supply base – Domestic sales and exports – Market opportunities – Global markets for Margaret River’s key varieties

  • opportunities through Wine Australia’s Market Programs
  • Research, Development and Extension
  • Restaurant Australia
  • Wine Australia’s Visitors program
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Australian Grape and Wine Authority www.agwa.net.au

AGWA Update

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australian Grape and Wine Authority

  • AGWA commenced on 1 July 2014
  • Unified the RD&E activities of the Grape and Wine Research

and Development Corporation and the market development and compliance activities of the Wine Australia Corporation in

  • ne body
  • Challenge is to capture the benefits of having a single statutory

service body for the Australian wine community

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

The first nine months

Capturing the benefits of the merger:

  • operational savings of about $1 million
  • seamlessly continuing all of our business as usual
  • investing in additional projects
  • recruiting key senior personnel (Stuart Barclay: GM, Market

Development, Laura Jewell: Regional Director, Europe)

  • restructured operational areas, including creating a Corporate

Affairs and Strategy team and appointing Kate Harvey and Liz Waters to new roles

  • consulted widely on new five-year Strategic Plan
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

The next six months

Challenge now is to build on the synergies by:

  • securing long-term, sustainable benefits for the sector
  • encouraging RD&E projects that are linked to market-based
  • utcomes
  • accessing better data to allow fact-based decision making
  • developing a cohesive brand for all of our activities
  • enhancing our market development activities – further investment

in education and retail promotions and enhancing existing promotions (Vancouver International Wine Festival and Prowein)

  • delivering on key priorities to:
  • Increase demand and the premium paid for all Australian wine, and
  • Increase competitiveness.
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Australian Grape and Wine Authority www.agwa.net.au

Wine Australia Market Development Strategy and Update

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Financial

Our Ambition…to be the World’s Pre-Eminent wine producer

By sharing with the trade, media & the consumer the stories of the people and places behind the labels... By bringing to life a world of discovery, passion and enjoyment. How do we make this happen? What does success look like?

  • Volume Increase in sales of

Australian wine.

  • Value Increase in $ per Litre.
  • Profitable /competitive wine

industry.

  • Increased Investment meets

and exceeds global benchmarks.

Consumer Team

  • Quality Culture – People first.
  • Developing our skill set and

capability across all teams.

  • Flexible creative thinking.
  • Development of can do

attitude.

Stakeholders

  • Australian Wine becomes

the natural choice of the consumer in our key markets.

  • Consumer embraces higher

price points.

  • Consumer understands a

greater breadth of wine knowledge around Australia.

  • Australian wine industry

becomes profitable.

  • Confidence rises.
  • Investment Levels

increase.

  • Industry unity and less

fragmentation.

  • Coherent unified voice.
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

"Best at delivering a digital and social media” message “Best in market wine destination” proposition “Best destination” for visitations and press experience

"Best at executing and

delivering” the food & wine message

How do we become the wine of choice for the global consumer?

Developing “Winning Category Strategies” – use our Insights and Data Creating “Marketing excellence” around the Food + Wine experience Delivering excellence and innovation in our engagement with Press/Media Setting the Global benchmark for Education delivery “Best at delivering an exciting educational message”

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Key elements to developing our success.

Putting the right level education at the center of our strategy

1

Understanding each others strategies and objectives

2

Identify and prioritize the opportunities

3

Align and adapt ways of working - collaboration

4

Review and adjust as required

5

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Our key strategic challenges

Fragmentation of Stakeholders (Regions, States, Associations and Wineries)

1

Funding Challenges for Marketing (Market Development) & statutory structure.

2

Global Trade, Press and Consumer perception of Australian wine.

3

The Industry’s commercial ability to take advantage of opportunities

4

Rise of lower cost – better value competitors eroding Australian market share.

5

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Wine Australia strategy summary

Execute a Halo leadership position around our most authentic, most well regarded wines and get Australia back into the markets with increased foot traffic and excitement to grow demand.

1

Delivery of a revised digital footprint and strategy for the future.

2

Execute a simple multi channel strategy of Education online and via traditional mechanisms.

3

Raise the Bar on promoting food, wine and destination with key partners (Tourism Australia, Regional and State Associations) to develop markets and demand.

4

Maximize our global insights and usage of data to drive and inform our commercial decisions around trade, press and consumer activation and visitations.

5

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Prowein – Germany March 2015

  • Major international wine

trade fair

  • 39 Wineries participated

30 already committed for 2016

  • 400 wines from 28 regions

across Australia

  • 52,000 visitors
  • Wine Australia also held:

– ‘History, evolution, revolution’ masterclass – Daily focus barrel tastings – Feature tastings with food and wine matching’

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Savour Australia at the Vancouver International Wine Show – Feb 2015

  • Australia was the theme country at Canada’s most important

trade and consumer wine fair

  • Wine Australia partnered with 55 Australian wineries, Barossa

Grape and Wine, McLaren Vale Grape Wine and Tourism, Tourism Australia, the South Australian Tourist Commission and PIRSA

  • 25,000 attendees
  • Australia held multiple associated events including:

– 6 Wine Australia wine seminars + a Barossa and a McLaren Vale seminar – A VIP dinners and reception – Trade lunch and 2 x consumer lunches

https://vimeo.com/121757143

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Vancouver

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australia Day Tastings - Worldwide January 2015

  • Tastings to celebrate Australia day in January, including:
  • Australian Embassy Tasting - Mexico City
  • Australia Today Trade/Media tasting – San Francisco
  • SA Culinary Adventure, San Francisco
  • Australia Day Tasting - London UK
  • Annual Trade Tasting - Dublin
  • Highlights:
  • Mexico - More than 70 commercial leads for 5 new-to-market wineries
  • UK – 1,000 Australian wines on tasting for buyers from UK and Europe
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

ADT London ADT Dublin ADT London

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Core activities

In addition to our user pay activity, in 2015-16 we will initiate 70 core activities across:

  • Education
  • One day wine schools
  • A+ program across Asia
  • PR and comms
  • 30 + media releases per year
  • Websites
  • Social media channels
  • Key relationships with trade

and media

Wine Australia’s North American team

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Australian Grape and Wine Authority www.agwa.net.au

Supply Base

Market Opportunities for Margaret River

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Regional Production

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Regional key varieties in perspective

Variety Margaret River Western Australia Australia Margaret River share of Western Margaret River share

  • f Australia

Cabernet Sauvignon 1,153 2,187 25,879 53% 4% Sauvignon Blanc 911 1,601 6,927 57% 13% Chardonnay 821 1,655 25,491 50% 3% Semillon 691 1,062 5,632 65% 12% Shiraz 646 1,813 42,012 36% 2% Other 795 2,239 42,567 36% 2% Total 5,017 10,556 148,509 48% 3%

Area (hectares)

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Regional key varieties

Production by grade (tonnes) Area by variety

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Implications of supply

Questionable sustainability Red varieties White varieties

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Australian Grape and Wine Authority www.agwa.net.au

Domestic sales and exports

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Total Sales of the Region

  • The domestic market is split by sales we

have data on and sales which we do not

  • The major categories of sales which are

included in the ‘unknown’ segment include;

  • On-trade (accounting for 20% of all

sales in Australia)

  • Cellar door
  • Online
  • Independent off-trade
  • Off-trade where grapes have not

been identified on the label

Estimated on-trade Cellar door/ online

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Domestic Off-trade Margaret River Sales

by varietal

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Domestic Off-trade Margaret River Sales

by price point

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Regional Exports

Container type detailed

Container type

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Bottled Margaret River-labelled exports

moving annual total volume and average value

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Bottled Margaret River-labelled exports

by varietal (2014)

Volume share Average value (A$/ litre fob)

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Exporters of Margaret River-labelled Wine

Volume share Number of exporters

Classification Exporter Rank Major Top 12 Medium Top 13 – 37 Small All others

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Bottled Margaret River-labelled exports

by destination

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Australian Grape and Wine Authority www.agwa.net.au

Market opportunities

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Market opportunities

  • The following markets have been ranked based on a series of

metrics that are relevant to the region in focus. The metrics include:

  • market sales (volume)
  • market growth (volume)
  • Australian exports (volume, value and price)
  • Australian export growth (volume, value and price)
  • regional exports (volume, value and price)
  • regional export growth (volume, value and price)

Note: The model has a slight bias for growth over existing sales. As a result, markets such as the United Kingdom are not ranked highly. AGWA supports a ‘defend existing sales’ strategy in this case.

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Top Five Targets

USA Japan UK Singapore Hong Kong Global Cabernet Market volume (million litres) 304.4 49.8 72.8 1.8 4.0 Volume change (million litres) 12.0 2.4

  • 1.4

0.1 0.2 Rate of change (%) 4% 5%

  • 1.9%

6% 5% Australian Cabernet above $5.00 fob Volume (litres) 1,474,851 256,619 1,032,632 922,656 1,706,290 Value (AUD) $13,569,325 $3,392,124 $8,813,508 $17,961,315 $49,149,241 Average value (AUD per litre) $9.20 $13.22 $8.53 $19.47 $28.80 Volume growth (%)

  • 4%

27% 12% 32% 48% Value growth (%)

  • 4%

74% 17% 63% 99% Average value growth (%) 1% 37% 4% 23% 35% Global Sauvignon Blanc Volume (litres) 93.0 20.2 94.2 0.6 0.5 Value (AUD) 6.8 1.5 0.9 0.1 Average value (AUD per litre) 8% 8% 1.0% 0% 25% Australian Sauvignon Blanc above $5.00 fob Volume (litres) 226,528 106,676 149,879 118,708 65,227 Value (AUD) $1,905,511 $718,825 $1,194,655 $1,103,943 $691,410 Average value (AUD per litre) $8.41 $6.74 $7.97 $9.30 $10.60 Volume growth (%) 27% 346%

  • 16%

0%

  • 17%

Value growth (%) 45% 220%

  • 14%
  • 4%
  • 1%

Average value growth (%) 14%

  • 28%

2%

  • 4%

20% Global Chardonnay Market volume (million litres) 592.2 28.9 161.1 0.9 1.7 Volume change (million litres) 16.5 2 2.1 0.1 Rate of change (%) 3% 7% 1% 0% 6% Australian Chardonnay above $5 Volume (litres) 547,452 449,924 1,029,212 769,131 347,651 Value (AUD) $4,760,945 $3,458,623 $8,536,108 $7,788,725 $3,063,440 Average value (AUD per litre) $8.70 $7.69 $8.29 $10.13 $8.81 Volume growth (%)

  • 5%
  • 49%

46% 65%

  • 2%

Value growth (%) 9%

  • 47%

60% 76%

  • 7%

Average value growth (%) 15% 4% 9% 7%

  • 4%

Margaret River and Margaret River blends Volume (litres) 346,311 45,667 355,023 218,661 114,489 Value (AUD) $3,842,799 $668,429 $3,677,291 $2,817,039 $1,446,009 Average value (AUD per litre) $11.10 $14.64 $10.36 $12.88 $12.63 Volume growth (%) 35% 19% 5% 13%

  • 48%

Value growth (%) 44% 27% 22% 9%

  • 27%

Average value growth (%) 7% 6% 16%

  • 3%

40%

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

United States

Market’s Global Rank  Cabernet sales increased by 4% to 304 million litres in 2013  Sales of Sauvignon Blanc increased by 8% to 93 million litres  Australian Sauvignon Blanc exports (>$5) increased by 45% to $1.9 million  Sales of Chardonnay increased by 3% to 592 million litres  Australian Chardonnay exports (>$5) increased by 9% to $4.8 million  Margaret River exports increased by 44% to $3.8 million in 2014

USA Global Cabernet Market volume 2 Volume change 2 Rate of change 15 Australian Cabernet above $5.00 fob Volume 4 Value 5 Average value 22 Volume growth 21 Value growth 21 Average value growth 22 Global Sauvignon Blanc Volume 3 Value 1 Average value 7 Australian Sauvignon Blanc above $5.00 fob Volume 1 Value 1 Average value 14 Volume growth 14 Value growth 13 Average value growth 7 Global Chardonnay Market volume 1 Volume change 1 Rate of change 14 Australian Chardonnay above $5 Volume 4 Value 4 Average value 12 Volume growth 22 Value growth 16 Average value growth 8 Margaret River and Margaret River blends Volume 2 Value 1 Average value 17 Volume growth 6 Value growth 7 Average value growth 8

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

USA Wine Trade

Australian growth by price segment Australian exports Total imports Imports by source

$0 $200 $400 $600 $800 $1,000 $1,200 50 100 150 200 250 300 350 400 450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAT March Export (million AUD) Exporter count

  • 15.0
  • 10.0
  • 5.0

0.0 5.0 10.0 15.0 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and

  • ver

Volume (million litres)

  • 200

400 600 800 1,000 1,200 1,400

  • 1,000

2,000 3,000 4,000 5,000 6,000 2008 2009 2010 2011 2012 2013 2014 Volume (million litres) Value (million AUD) Value Volume

  • 50
  • 50

100 150 200 250 300 350 Volume (million litres) Incremental change Volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Japan

Market’s Global Rank  Cabernet sales increased by 5% to 50 million litres in 2013  Australian Cabernet exports (>$5) increased by 74% to $3.4 million  Sales of Sauvignon Blanc increased by 8% to 20 million litres  Australian Sauvignon Blanc exports increased by 220% to $0.7 million  Chardonnay sales increased by 7% to 29 million litres in 2013  Margaret River exports increased by 27% to $0.7 million in 2014

Japan Global Cabernet Market volume 10 Volume change 3 Rate of change 13 Australian Cabernet above $5.00 fob Volume 9 Value 10 Average value 9 Volume growth 11 Value growth 6 Average value growth 3 Global Sauvignon Blanc Volume 8 Value 2 Average value 6 Australian Sauvignon Blanc above $5.00 fob Volume 5 Value 6 Average value 30 Volume growth 1 Value growth 1 Average value growth 35 Global Chardonnay Market volume 9 Volume change 5 Rate of change 7 Australian Chardonnay above $5 Volume 6 Value 6 Average value 25 Volume growth 35 Value growth 33 Average value growth 19 Margaret River and Margaret River blends Volume 11 Value 10 Average value 7 Volume growth 9 Value growth 8 Average value growth 9

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Japan Wine Trade

Australian growth by price segment Australian exports Total imports Imports by source (2014)

$0 $10 $20 $30 $40 $50 $60 50 100 150 200 250 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAT March Export (million AUD) Exporter count

  • 0.4
  • 0.2

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and

  • ver

Volume (million litres)

  • 50

100 150 200 250 300

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2008 2009 2010 2011 2012 2013 2014 Volume (million litres) Value (million AUD) Value Volume

  • 10
  • 10

20 30 40 50 60 70 80 Volume (million litres) Incremental change Volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

United Kingdom

Market’s Global Rank  Australian Cabernet Sauvignon exports (>$5) increased by 17% to $8.8 million  Sales of Sauvignon Blanc increased by 1% to 94 million litres  Sales of Chardonnay increased by 1% to 592 million litres  Australian Chardonnay exports (>$5) increased by 60% to $8.5 million  Margaret River exports increased by 22% to $3.7 million in 2014

UK Global Cabernet Market volume 6 Volume change 31 Rate of change 28 Australian Cabernet above $5.00 fob Volume 5 Value 7 Average value 27 Volume growth 15 Value growth 13 Average value growth 19 Global Sauvignon Blanc Volume 2 Value 5 Average value 16 Australian Sauvignon Blanc above $5.00 fob Volume 2 Value 2 Average value 19 Volume growth 25 Value growth 27 Average value growth 13 Global Chardonnay Market volume 3 Volume change 4 Rate of change 22 Australian Chardonnay above $5 Volume 1 Value 1 Average value 18 Volume growth 6 Value growth 6 Average value growth 11 Margaret River and Margaret River blends Volume 1 Value 2 Average value 21 Volume growth 15 Value growth 9 Average value growth 6

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

UK Wine Trade

Total imports Imports by source (2014) Australian exports Australian growth by price segment

$0 $200 $400 $600 $800 $1,000 $1,200 50 100 150 200 250 300 350 400 450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAT March Export (million AUD) Exporter count

  • 2.0
  • 1.5
  • 1.0
  • 0.5

0.0 0.5 1.0 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and

  • ver

Volume (million litres) 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 3,800 4,000 4,200 4,400 4,600 4,800 5,000 5,200 2008 2009 2010 2011 2012 2013 2014 Volume (million litres) Value (million AUD) Value Volume

  • 50
  • 50

100 150 200 250 300 Volume (million litres) Incremental change Volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Singapore

Market’s Global Rank  Sales of Cabernet Sauvignon increased by 6% to 1.8 million litres  Australian Cabernet Sauvignon exports (>$5) increased by 63% to $18 million  Australian Chardonnay exports (>$5) increased by 76% to $7.8 million  Margaret River exports increased by 9% to $2.8 million in 2014

Singapore Global Cabernet Market volume 26 Volume change 19 Rate of change 9 Australian Cabernet above $5.00 fob Volume 7 Value 3 Average value 5 Volume growth 10 Value growth 7 Average value growth 6 Global Sauvignon Blanc Volume 21 Value 18 Average value 18 Australian Sauvignon Blanc above $5.00 fob Volume 4 Value 3 Average value 8 Volume growth 18 Value growth 24 Average value growth 24 Global Chardonnay Market volume 28 Volume change 25 Rate of change 25 Australian Chardonnay above $5 Volume 3 Value 2 Average value 7 Volume growth 5 Value growth 5 Average value growth 13 Margaret River and Margaret River blends Volume 4 Value 4 Average value 11 Volume growth 11 Value growth 12 Average value growth 22

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Singapore Wine Trade

Australian growth by price segment Australian exports Total imports Imports by source

$0 $10 $20 $30 $40 $50 $60 $70 250 260 270 280 290 300 310 320 330 340 350 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAT March Export (million AUD) Exporter count

  • 0.3
  • 0.2
  • 0.1

0.0 0.1 0.2 0.3 0.4 0.5 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and

  • ver

Volume (million litres)

  • 5

10 15 20 25 30 35

  • 100

200 300 400 500 600 700 2008 2009 2010 2011 2012 2013 2014 Volume (million litres) Value (million AUD) Value Volume

  • 2
  • 2

4 6 8 10 12 14 16 Volume (million litres) Incremental change Volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Hong Kong

Market’s Global Rank  Cabernet sales increased by 5% to 4 million litres in 2013  Australian Cabernet exports (>$5) increased by 99% to $49 million  Hong Kong is Australia’s largest export destination for Cabernet above $5  Sales of Sauvignon Blanc increased by 25% to 0.5 million litres  Chardonnay sales increased by 6% to 1.7 million litres in 2013

Hong Kong Global Cabernet Market volume 22 Volume change 13 Rate of change 12 Australian Cabernet above $5.00 fob Volume 2 Value 1 Average value 2 Volume growth 7 Value growth 5 Average value growth 4 Global Sauvignon Blanc Volume 23 Value 12 Average value 1 Australian Sauvignon Blanc above $5.00 fob Volume 8 Value 8 Average value 4 Volume growth 26 Value growth 22 Average value growth 5 Global Chardonnay Market volume 26 Volume change 23 Rate of change 9 Australian Chardonnay above $5 Volume 7 Value 7 Average value 10 Volume growth 19 Value growth 25 Average value growth 32 Margaret River and Margaret River blends Volume 6 Value 6 Average value 12 Volume growth 30 Value growth 28 Average value growth 4

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Hong Kong Wine Trade

Australian growth by price segment Australian exports Total imports Imports by source

$0 $20 $40 $60 $80 $100 $120 50 100 150 200 250 300 350 400 450 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAT March Export (million AUD) Exporter count

  • 0.5
  • 0.4
  • 0.3
  • 0.2
  • 0.1

0.0 0.1 0.2 0.3 0.4 0.5 $2.49 and under $2.50 to $4.99 $5.00 to $7.49 $7.50 to $9.99 $10.00 and

  • ver

Volume (million litres)

  • 10

20 30 40 50 60

  • 200

400 600 800 1,000 1,200 1,400 2008 2009 2010 2011 2012 2013 2014 Volume (million litres) Value (million AUD) Value Volume

  • 5
  • 5

10 15 20 Volume (million litres) Incremental change Volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Export Market Guides

To

  • fin

find ou

  • ut more ple

lease refer to th the AGWA Win ine Export Gu Guid ides at: t: www.win ineaustrali lia.com

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Australian Grape and Wine Authority www.agwa.net.au

Global markets for Margaret River’s key varieties

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Global Markets for region’s key varieties

  • Australian exports of Chardonnay above $5.00 fob
  • Australian exports of Sauvignon Blanc above $5.00 fob
  • Australian exports of Cabernet Sauvignon above $5.00 fob
  • Global Chardonnay sales
  • Global Sauvignon Blanc sales
  • Global Cabernet Sauvignon sales
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australian Chardonnay Exports >$5

Export volume Change in export volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australian Sauvignon Blanc Exports >$5

Export volume Change in export volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australian Cabernet Exports >$5

Export volume Change in export volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Global Chardonnay Markets

Sales volume Change in sales volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Global Sauvignon Blanc Markets

Sales volume Change in sales volume

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Global Cabernet Markets

Sales volume Change in sales volume

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Australian Grape and Wine Authority www.agwa.net.au

Accessing opportunities through Wine Australia’s Market programs

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Market programs in 2015-16

What’s in it for you?

  • Opportunity to build on the improving market sentiment
  • Opportunity to tap into growth markets
  • Levies already partly fund the market programs i.e. the Wine

Australia offices – opportunity to leverage from this

  • Access to Wine Australia’s networks and in-market expertise
  • A cost-effective way to be engaged in market
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Market programs

Approximately 50 initiatives held in the following markets: Covering the following activities:

Markets UK Singapore Ireland Hong Kong Melbourne USA Japan Poland South Korea Sydney Canada Norway Germany Finland China Sweden Denmark Initiatives Trade and consumer fairs – 3rd party Wine Australia trade/media events Educational masterclasses Consumer engagement In-bound media/trade visits

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

United States of America

Opportunities for regions and brands:

TRADE/CONSUMER SHOWS:

  • Wine Riot – consumer events
  • Wine Australia Winter Trade Show –

trade and media event PR/MASTERCLASSES:

  • Aussie Wine Month 3 city fine

wine tastings MARKET ACCESS:

  • Market Access

Program

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Japan

1) ) Wine Aus ustrali lia Tas astin ing

  • Largest tasting of Australian wine in Japan
  • Held annually
  • 450 x trade per year
  • Record numbers in 2014
  • Open to existing brands in market and states/regions

2) ) Lea eadin ing Asia sian Trad ade and and Med edia ia Vis Visit it

  • 10 leading trade and media from Hong Kong, Japan, Taiwan,

Singapore and South Korea 3) Japan A+ Ambassador’s Visit

  • 5 x educators/trade are appointed as Australian specialist

ambassadors and travel through Australian wine regions

  • Their role is to promote the education of Australian wine in Japan
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Wine Australia Japan Tasting Wine Australia Tasting - Japan

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

United Kingdom

1) 1) Aus ustr trali lia Day Tas astin ings

– ADT London and Dublin

2) 2) Fin Fine Win ine Tas astin ings

– Premium Australian Tasting – Langton’s Roadshow – London, Manchester and Edinburgh – Old Vines Seminar

3) 3) New to

  • mark

arket com

  • mpanies

– Market Access Tasting – Alternative Varieties tasting

4) 4) Con

  • nsumer

r even ents

– Oxford Consumer Festival – Three Wine Men – Oz Clarke, Tim Atkin and Olly Smith – Winchester Wine Festival

5) ) Prowein 6) ) UK/ K/EU tr trad ade and and med edia ia trip trip

ADT London, 2015

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Singapore

1) ) ProWine Asia ia

  • April 2016
  • Held every two years in conjunction with Singapore’s

largest food and beverage trade fair – Food Hotel Asia (FHA)

  • FHA attracts 45,000 visitors from across the SE Asia

region Opportunity for regions and brands:

  • Regionally or winery branded stand
  • Regional masterclasses at the Fair
  • External events – dinners, private tastings etc.
  • Leverage from Wine Australia PR capability and

networks 2) ) Greater Asia ia Asian Trade and Media Visitor Program

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Hong Kong

1) ) Vine Vinexpo Hong

  • ng Kon
  • ng
  • One of the largest international trade shows

for the Asia Pacific region.

  • 16,700 trade visitors from 22 countries
  • Suitable for existing brands and

state/regional associations 2) ) Hong

  • ng Kong
  • ng In

Internatio ional l Win ine an and Spir pirit its Fai air

  • 3 day trade and consumer show
  • 20,000 buyers and 31,000 consumers
  • Suitable for new-to-market, existing, states

and regions

Vinexpo, Hong Kong

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Australia

Opportunities for the region:

  • Sommelier (SIP) and Trade (TIP) regional visits
  • 2015 Unreleased Tasting , Sydney
  • 2015 vintage wines tasted from the barrel
  • Sydney CBD, Sept 15
  • Australian media ‘famil’
  • 1-3 media
  • 2 days per region
  • Spring Pop-up Riesling Tasting
  • Sydney CBD, October 2015
  • Pop up garden wine bar
  • Targeting 1,000 25–40 year olds
  • 100% Riesling focus
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Speak with our Teams:

GLOBAL Stuart Barclay General Manager – Market Development E: stuart.barclay@wineaustralia.com T: +2 9361 1233 EUROPE (INCL UK), MIDDLE EAST AND AFRICA (EMEA) Laura Jewell Regional Director E: laura.jewell@wineaustralia.com T: +44 207 887 5259 ASIA PACIFIC Aaron Brasher Regional Director – Asia Pacific E: aaron.brasher@wineaustralia.com T: +61 2 9361 1227 THE AMERICAS Angela Slade Regional Director E: angela.slade@wineaustralia.com T: +1 202 973 6442 CHINA Willa Yang Regional Manager E: willa.yang@wineaustralia.com T: +86 21 6010 3951 ASIA Hiro Tejima Regional Manager - Asia E: hiro.tejima@wineaustralia.com T: +61 8 8228 2000

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

How to Get involved

To

  • review all

all Mar arket Program ac activ ivity go

  • to:

: www.win ineaustrali lia.com For Mar arket Program enquir irie ies con

  • ntact: (08

(08) 82 8228 28 20 2000 00

  • r
  • r to fin

find ou

  • ut more ab

about in in-market in initi itiatives go

  • to:
  • :

mar arket.programs@wineaustralia ia.com Ple lease als also disc iscuss wit ith your St State an and Regional l Ass ssociation

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Do you qualify for the Export Market Development Grant scheme?

  • The Export Market Development Grant (EMDG) scheme is a key Australian

Government financial assistance program for aspiring and current exporters.

  • EMDG encourages small- and medium-sized Australian businesses to

develop export markets by reimbursing up to 50 per cent of eligible export promotion expenses in a financial year, provided that the applicant has incurred at least $15,000 in eligible expenses.

  • State and regional associations can seek approval from Austrade as an

‘approved body’ to claim EMDG for generic marketing expenses incurred to promote their particular industry sector or region.

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Australian Grape and Wine Authority www.agwa.net.au

Research Development & Extension Projects in Margaret River

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Margaret River

Upcoming R&D events 26 May - Margaret River (Howard Park Winery) Workshop on UAVs (drones) fertiliser trials managing extreme heat and wind events the new MyPest App Contact Keith Pekin, Perth Region NRM, for more information. Extension activities / trials in your region: Managing vines for extreme heat and wind events Field trials in Margaret River on the effectiveness of three commercially available spray on sunscreen products (measuring canopy density/fruit zone exposure, sun damage incidence and yield) Temporary ‘pull-up’ shade cloth screens on VSP canopies Contact David Botting, Howard Park Wines for more information. Investigating the potential application of unmanned aerial vehicle (UAV) imaging in vineyards Field trials in Margaret River and Swan Region to assess the utility of UAV sensing technology Contact Tony Proffitt, AHA Viticulture for more information.

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Margaret River

R&D projects in your region: SAR 1204 Understanding fungicide resistance in powdery and downy mildew Determining how, and to what extent, fungicide resistance is developing in powdery mildew, downy mildew and botrytis bunch rot across Australian vineyards. Developing comprehensive information on the fungicide sensitivity and distribution of key pathogens affecting Australian vineyards. Laboratory research conducted at Curtin University and field research at Margaret River and DAFWA facilities at Bunbury. Contact Richard Oliver (Curtin University) or Barbara Hall (SARDI) for more information. SAR 1303 Assessing clonal variability in Chardonnay and Shiraz for future climate change Assessing viticultural and winemaking differences among Shiraz and Chardonnay clones grown across five Australian wine regions Field trials in Margaret River and Great Southern. Part of a national evaluation program Contact Richard Fennessy, DAFWA, for more information.

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Growing the Appetite for Australian Tourism

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Food and Wine is a key factor in holiday decision making

Source: Consumer Demand Project, Tourism Australia, December 2014

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Low association of Australia with ‘good food and wine’

Source: Consumer Demand Project, Tourism Australia, December 2014

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It is 60% amongst those who have visited

Source: Consumer Demand Project, Tourism Australia, December 2014

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Three key ingredients …

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Three phases guided the past 12 months…

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Thank you to the companies, states and regions that have participated…

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You helped generate 400+ articles & reach 22M people

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Wall Street Journal Good Food Herald Sun Gourmet Traveller James Halliday Wine Companion

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Consumer response to in market activities is strong…

Source: Fox One Stop Media, Campaign Research, August 2014

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Restaurant Australia assets

  • Print ads
  • TVC
  • Posters
  • Imagery
  • Pull-up banners
  • Invitations
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Some tremendous early signs…

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Looking ahead we have a range of initiatives planned…

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Subscribe to Essentials: www.tourism.australi a.com/ subscribe Follow us on Twitter: @TourismAus Visit our corporate site: www.tourism.australi a.com

Stay in touch with TA

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Australian Grape and Wine Authority www.agwa.net.au

Wine Australia Visitors Program

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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

Visits in the last12 months

  • Australian Trade Immersion Program (TIP) – May 2014
  • Australian Sommelier Immersion Program (SIP) – June 2014
  • Japan A+ Trade Specialist Program – May 2014
  • UK / Ireland / Europe Trade & Media Visit – October 2014
  • North American and Asian Trade & Media Visit – October /

November 2014

  • Asian Trade & Media Visit – November 2014
  • China Vintage Visit – March 2015
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Australian Grape and Wine Authority – Wine Australia www.wineaustralia.com

China Vintage Trip (2014) Australia

  • SIP

Australia

  • TIP

Japan A+ Specialist North Americ a/Asia visit UK/EU/I R visit Asian Trade & Media New Listings 35 new brands – actual listings higher 4 new brands 18 new listings 9 SKUs 17 3 visitors in discussio ns with a view to list 2 brands in South Korea 1 brand in Japan 3 visitors seeking to list new wines Media 14 2 3 7 3 4 Blogs 2 5 1 7 6 Promotio ns 35 5 5 5 9 Education 9 1 6 4 6 4

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Video Introduction to Visitors Program https://www.youtube.com/watch?v=RG4NVapXHNA

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Thank You