BAROSSA GRAPE & WINE ASSOCIATION
ANNUAL REPORT
2015/16
Table of Contents About BGWA Report . . . . . . . . . . . . . . . . . . . . . . . . . Page 3 Chairman’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4 CEO Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6 Grape Barossa Chairman Report. . . . . . . . . . . . . . . . Page 8 Wine Barossa Chairman Report. . . . . . . . . . . . . . . .
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BGWA Activities Our Own Backyard. . . . . . . . . . . . . . . . . . . . . .
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Our Bright Future. . . . . . . . . . . . . . . . . . . . . . .
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Our Promise Kept. . . . . . . . . . . . . . . . . . . . . . .
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Our Collective Voice. . . . . . . . . . . . . . . . . . . . . Page 18 Barossa Big Ideas Think Tank. . . . . . . . . . . . . . . . . . . Page 20 Barossa Grounds Report . . . . . . . . . . . . . . . . . . . . . . Page 22 BGWA Activity Timeline . . . . . . . . . . . . . . . . . . . . . . Page 24 BGWA Member Toolkit . . . . . . . . . . . . . . . . . . . . . . . Page 26
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Barossa Grape & Wine Association Established in 2008, the Barossa Grape & Wine Association’s (BGWA) vision is to position the Barossa as a world class region of fine wine endeavour based on a unique story of generations, inheritance and hallowed ground. Wine Mission
Winemakers and winegrape growers continue to grow Australia’s most vibrant and highly valued region by working collaboratively to produce and market wines of excellence, renowned for exceeding consumer expectations and derived through practices that are both environmentally and economically sustainable.
Wine Sector Values Commitment to: •
Maintain and nurture our culture and heritage.
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Ongoing positive positioning of Brand Barossa.
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Superior quality and best practices.
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Environmental and economic sustainability.
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Research and innovation.
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Diversity of our region and its products.
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Collaborate with our stakeholders to achieve common goals.
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Our community and our people.
BGWA Board 2015/16
Linda Bowes (Chairman) Stefan Jury, Jones Harley Toole Lawyers Matt Alexander (Deputy Chairman) James March (Chief Executive Officer)
BGWA Staff L-R below
Nicki Robins Viticultural Development Officer
Grape Growing Representatives Nigel Blieschke Tim McCarthy Brendyn Hueppauff Anthony Scholz
Ashleigh Fox Office Manager
Winemaking Representatives Jan Angas <500 tonnes Fiona Donald >5000 Tonnes Matthew McCulloch >500 Tonnes Brett McKinnon >10,000 tonnes
Annemaree Clementson Communications and Marketing Projects (part-time)
James March Chief Executive Officer
Annabel Mugford Strategic Operations Brian Waples Finance Manager (part-time) not pictured
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Chairman’s Report Ten years ago, on 23rd February 2006, 200 growers came together at the Tanunda Club to discuss the poor state of industry affairs in the Barossa and to share ideas on how to address the problems. As many of you will remember, it was a challenging time of oversupply, an escalating AUD, and plummeting grape and wine prices.
the domestic market, and challenged us with disruptive thinking around branding and telling the Barossa story. These presentations gave confidence that the next phase of our strategy, Under a Barossa Sky: the Next Horizon, was heading in the right direction and gave food for thought as to future possibilities.
We will celebrate BGWA’s formal decade milestone next year but I didn’t want to miss the opportunity to recognise that first meeting and the 200 growers who acted with purpose and began the journey of growers and winemakers together in a single well-funded organisation. Their vision has certainly reaped rewards for the region, and today BGWA is widely regarded as the benchmark for association success.
This year also brought major new initiatives to fruition, including the new Barossa.com website – a collaborative undertaking with Tourism Barossa and Barossa Food that provides a genuine seamless experience for all visitors to the region; a digital marketing campaign for the Barossa Trust Mark that resulted in a suite of new concepts and images to support the program; the launch of our six-part video series that demonstrates Barossa’s environmental best practices and responses to climate change; and the Barossa Grounds Toolkit so members can readily explain the unique characteristics and diversity of Barossa Shiraz and share the story with others.
National issues On the national front, industry structure and taxation were the two dominant issues for us. The restructure project, Grape & Wine 2015, began in August last year to reduce duplication and increase efficiencies across the industry’s representative organisations, including regions. Our view, advocated to the Winemakers’ Federation Australia and to the project consultant, is that they must get the national structure right before proposing realignment of other bodies. I’m confident our voice has been heard and expect that a progress report due in late 2016 will emphasise national functionality as the priority. I hope it also proposes a single body for growers and winemakers so the benefits of unity can be reaped at the national level too. 2016 saw continuation of yet another taxation debate. This one began in March 2015 with a Senate Inquiry into the Grape & Wine Industry. It resulted in recommendations to not just fix anomalies in the Wine Equalisation Tax rebate system but to also drop rebate thresholds. BGWA is actively working with other industry bodies to achieve an outcome based on sound reasoning for the WET rebate’s existence and one that balances the needs of our diverse membership. Government’s response is anticipated by the end of 2016. BGWA Highlights for 2015-16 During the year we held two strategic sessions with members. The first was the November Barossa Supply and Demand Summit, which established a better understanding of our supply base —what was in the ground and what may be coming on-stream. The second session was the Think Tank in May where three outstanding speakers discussed implications of supply/demand levers and export markets, gave a snapshot of
Water remains high on our list of priorities and we made significant progress in this area, particularly in gaining acknowledgement from the Minister for the Environment, Hon Ian Hunter, of the need for greater flexibility in the water allocation plan and a commitment from him to take into account climate change and social and economic values in developing the plan. We have also seeded conversations about the quality of imported water and measures that need to be in place to protect Barossa soils whilst improving future water security. In 2014, BGWA re-imagined the biennial Barossa Wine Auction from primarily a local fundraiser to being recognised as one of the world’s leading regional wine auctions by 2024, alongside such notables as the Hospice de Beaune, Auction Napa Valley and Cape Wine Auction. The first auction trialled under the new format in April 2015 and renamed the Barossa Wine Chapters Auction, demonstrated very significant benefits in profile, promotion and prices. This year, building on that momentum, the board signed off an ambitious plan for the 2017 event which will commence internationalisation of the auction targeting China and Hong Kong. As members know, the Barons of Barossa have a vision to create The Barossa Cellar, a landmark building on Stockwell Road, Vine Vale to house a repository of the great wines of Barossa and to showcase the region. On completion of the Cellar, the Barons have proposed that BGWA takes up residence as the sole tenant of the building. The board spent numerous meetings deliberating on this proposal, inviting member discussion and feedback, identifying pros, cons and risks. While it has been controversial, feedback from the majority of members has been in favour of the proposed move, should the build go ahead as planned.
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We are confident this represents a singular opportunity for BGWA to make its home in what promises to be a stunning building of international standing, with fit-for-purpose facilities from which to deliver member services and increase the profile and impact of our programs that promote Barossa to the world. The industry context Reflecting on the past 12 months, I feel a real sense of positive change in the industry’s fortunes. At the start of the year, external signs were already hopeful. The Australian dollar had fallen during the previous 12 months from 94c to 78c, wine exports had lifted slightly and three Free Trade Agreements had recently been signed. By the end of the financial year, the positive signs had consolidated. The Australian dollar had stayed below 78c – it spent 8 months below 74c, and the volume of Australian bottled wine exports was up by 11%. The Barossa fared particularly well. The harvest up by 10,000 tonnes (a 20% increase) and the average price paid for Shiraz grapes in the Barossa Valley was over $2,200 – the highest it’s ever been. In Eden Valley it was even higher. In fact Eden Valley had the highest average grape price paid in South Australia for Shiraz, Cabernet Sauvignon, Merlot and Riesling in 2016, and the second highest (after the Adelaide Hills) for Chardonnay. In total, an extra $21 million was paid to Barossa growers in the 2016 vintage. The average value of Barossa Valley exported wine in 2015-16 was over $16 per litre, while its nearest domestic rivals, the Yarra Valley and Margaret River, averaged around $12 per litre and McLaren Vale $11.
Coming together is a beginning; keeping together is progress; working together is success.
Our financial position This year resulted in a small operating deficit of $9,318. As this included a pre-payment of half of our $20K sponsorship of the 2017 Barossa Vintage Festival, it is a good result for the depth of programs, projects, and services delivered over the year. The balance sheet stands solid with members’ equity of $1 million at year’s end compared with $1.15 million in 2015. The reduction is due to the transfer of the Vintage Festival Art Collection off our balance sheet to Tourism Barossa as part of our agreement for them to take on the running of the festival.
Acknowledgements On behalf of all members I thank our CEO James March for his committed leadership and our staff team for another year of high achievement. Together they continue to innovate and influence, to leverage relationships for mutual benefit, and to never deviate from delivering high value outcomes for members. Thanks and appreciation also go to our hard working and dedicated committee members, to our sponsors and partners across the region and within government. I also pay tribute to my fellow board members for their commitment, for the rigour they apply to board deliberations and for the wisdom shared during our debates. No-one takes their responsibilities lightly and strong discussions, scrutiny and alternate points of view are welcomed and considered. At the end though, we make decisions by consensus, reaffirming that at board level too, success comes from working together. And finally… It has been a very positive year – not just for achievements but for taking bold steps towards new horizons enabled by the trust we have developed, a strong collaborative working environment, and the passion we all have for the industry and the region. Henry Ford said it well: Coming together is a beginning; keeping together is progress; working together is success.
Linda Bowes, Chairman
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Chief Executive’s Report Painting the new horizon is the leader’s privilege and responsibility. Establishing a roadmap and a sense of true north has helped contribute to the Barossa’s positive momentum over the last few years. At the inaugural Big Ideas Think Tank in 2011 we came together and established a destination goal of positioning the Barossa as Australia’s leading regional experience on the world stage. Without a destination, you have no journey, and no way of knowing when and how we would arrive. We needed a number of pieces of work to come together, and they all needed to have an established value system. We needed a plan – or a strategy. We needed a story that went beyond just wine and geography. And above all, we needed a community commitment to ensure that both our plan and our story would be supported and resourced. Fast forward five years and we came together to anticipate the next phase and a new horizon. Immediately following last year’s AGM, as a community we considered the results of a Wine Australia-commissioned whole-of-zone supply analysis for Barossa and delved into the survey results of growers’ intentions and plans over the next few years. In my presentation that day I began with the statement: And so we’re now at a point when the inevitable question must be raised – what do we intend to do with all of this information that has been presented to us this morning? The AGM had highlighted the BGWA’s commitment to strategic thinking and belief in planning for a good outcome. Whether we’re in a pendulum swing or have the ability to imagine a future without a boom and the corresponding bust, the point is we need to continue to work together to build an enduring community of grape growers and winemakers united by more than just the vine. We knew the supply analysis presented us with slightly unfinished business, and that the next instalment, the Barossa Big Ideas Think Tank scheduled for May 2016 would delve deeper into the supply and corresponding demand analysis, providing context
We have to be outward looking and we can succeed by being ahead of the market, by reminding ourselves that our greatest obligation is to be relevant to our audiences and members.
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and thought provoking commentary from guest speakers with the aim of engaging members in our strategy setting. At the beginning of the 2nd Barossa Big Ideas Think Tank I encouraged everyone to cast their thoughts to the questions of how and why we were there that day. Leading into the inaugural event in 2011, it was becoming apparent that the Australian wine category was flirting with ‘market failure’. Structurally, environmentally, socially and financially, the headwinds were against the Barossa as a warm climate region in a competitive marketplace. As a category there was no retention of our core audience, Australian wine was a promiscuous brand with no real loyalty, we were becoming a price taker, not a price maker. We couldn’t continue down this road and needed to plot our own journey, to be self-determined and to become more self-referential. So the Barossa’s challenge was answered by Big Ideas – Our Story, Our Brand and Our Commitment. We arrived at a new truth that was: OUR BAROSSA. This meant not only us as a community, but was an inclusive statement that meant all of Barossa’s audiences too, even those we have not yet made. When we talk about our Barossa, don’t forget there’s a silent letter ‘y’ in front of it. We’re moving well beyond the notion that it’s about ‘me’, it’s about us and that includes our audience. We have to be outward looking and we can succeed by being ahead of the market, by reminding ourselves that our greatest obligation is to be relevant to our audiences and members. Delivering the Supply and Demand Summit and Big Ideas Think Tank as was one of the major achievements of the year. By sharing insights, a collective sense of purpose and ambition, and the opportunity to participate, I believe we have anticipated the market and outperformed it. There’s an ongoing body of work from the BGWA to be constantly refined and expanded into new horizons. As resources allow we are developing new programs and expanding the reach of Barossa’s message to new audiences. A revitalised Barossa.com was a core tenet in our strategy this year, and while maintaining and growing our commitment to Asian markets, we orientated slightly toward the world’s largest consumer market, the US, through initiatives such as inviting Lisa Perrotti-Brown MW to judge at the 2015 Barossa Wine Show, and running a series of Old Vine Heritage masterclasses across Texas and San Francisco in March 2016. The new consumer-facing marketing campaign for the refreshed Barossa Trust Mark also delivered a new audience and community as a direct result of the support we received from PIRSA. We achieved the result of another small operating deficit of $9,318 while maintaining our cash flow. While our overall income was down from the previous year despite an upside in membership levies, specific project expenses related to viticulture and extension, and market development activations were increased, to ensure we are delivering collective benefit for
our members. Delivering the new website required additional labour resource and the increased costs were allowed for within the project parameters. The following pages of the Annual Report for 2015/2016 set out in more detail specific highlights under our Operational Plan framework. It was another year of fantastic delivery from a committed team of staff and I thank Annabel, Annemaree, Ashleigh, Brian and Nicki for their tireless efforts in creating value for our BGWA membership. The support and leadership of the Board and Chairman, Linda Bowes is significant and helps create a dynamic and collaborative culture for all staff, committee members, volunteers and members across the region. The large interest, attendance and ongoing support of BGWA’s endeavours by our members, demonstrated through the turnout to our two main engagement events is deeply appreciated. The opportunity to present to the Premier and members of his Cabinet late last year in Barossa was a fantastic platform to showcase how collegiate, and coordinated we are. By painting a vision for the next horizon we caught their imagination and support to help keep building Barossa’s momentum. I look forward to sharing the outcome of some of these and more exciting developments in the year ahead. With thanks.
James March, Chief Executive
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Grape Barossa Report 2016 Barossa vintage The 2016 Barossa vintage saw both growers and winemakers happy, despite a very dry start to the growing season. A couple of well-timed rain events in late January and early March helped produce solid average yields which, coupled with very high quality, signaled a “return to normal”.
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Barossa grower survey In 2015-16, BGWA initiated the “Barossa Grower Survey” to gain an understanding of Barossa growers’ plans for planting/ grafting/reworking vineyards over the next five years, and the varietal mix. The aim was to gain a better understanding of the potential supply coming from Barossa growers, to ensure the region had an opportunity to meet and plan for future demand and supply balance.
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This followed an earlier survey of Barossa wineries, who reported on their target markets and varietal requirements to meet anticipated consumer demand. Both activities culminated in a “Barossa Supply and Demand Summit” for BGWA growers and wineries in November 2015, which also featured a presentation of Wine Australia’s analysis of national and international demand scenarios for Barossa wine. The 2015 Barossa Grower Survey also highlighted the ageing population of growers, revealing that 31% were exiting the industry now or in the next 5-10 years. Hence, the BGWA’s primary objective in 2016-17 is to provide targeted information and tangible tools around succession planning and business structures for generational Barossa winegrape growing families. 2015 Barossa Mentoring Circle In 2015-16, six young Barossa winegrape growers took part in the BGWA’s “Barossa Mentoring Circle”. Led by mentor Leon Deans and facilitated by Trina Thompson, this followed the inaugural Barossa Mentoring Circle run in 2014-15 – a joint initiative of BGWA and Wine Australia. Our Own Backyard Other BGWA viticultural activities in 2015-16 (detailed in BGWA Activities – Our Own Backyard) included: • •
Premium, Profitable, Sustainable Barossa Growers project (partnership with Wine Australia); Environmental Champions of the Barossa” video series (partnership with Adelaide & Mt Lofty Ranges Natural Resource Management Board – AMLR NRM);
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Sustainable Australia Winegrowing (SAW) Barossa (partnership with McLaren Vale Grape Wine & Tourism Assn); Restoration of native vegetation from Kaiserstuhl to the North Para (partnership with AMLR NRM); GrowCare Barossa ‘crop watch’ email service (partnership with Magarey Plant Pathology and Western Electronic Design); Barossa Water sources, security and allocation (liaison with Regional Development Australia, Barossa; and Department of Water, Environment and Natural Resources); The Barossa Grounds Project (partnership with Primary Industries and Regions SA).
For the first time, the Winegrape Council of South Australia’s growers’ summit was a sell-out, and again well attended by Barossa growers. It’s encouraging to see more BGWA members becoming involved in the uptake of information, and attendance at events at the state level. A big thank you to all those involved in BGWA activities. It’s certainly this collaborative input from everyone that sees the Barossa at the forefront of achievement amongst Austalia’s wine regions. Brendyn Hueppauff, Chairman Grape Barossa Grape Barossa Committee 2015/16 Alistair Dinnison Anne Moroney Daniel Habermann Trent Reilly John Hahn Nicki Robins (BGWA) Adrian Hoffmann Brett Thompson Brendyn Hueppauff James Rosenzweig James March (BGWA) Kirsty Waller Tim McCarthy Michael McCarthy
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Wine Barossa Report I am delighted to report that Barossa exports to our top 10 markets grew by $13.6m (+14.6%) in value and that we maintained our share of Australian wine exports at 3.1% by volume and, more importantly, 7.4% by value (source: Wine Australia Wine Export Approval System 2015-16).
Source: Wine Australia Wine Export Approval System 2015-16 The BGWA 2015/16 Operational Plan continued marketing the Barossa wine region and its wine, with the goal of increasing the market value of wine made from Barossa grown grapes through more effective marketing in the region’s top five export destinations; China, USA, UK, Canada and Hong Kong, with a particular emphasis on China and Hong Kong through the Barossa Wine School program. As illustrated in the above table, China remains the largest market by value and volume for Barossa wine and has the third highest value/9 litre equivalent (9LE) at $138 after Hong Kong and Singapore. These figures support the BGWA’s ongoing marketing focus in our key Asian markets. Notably, total China value has increased to $32.7m (+29.2%) since last year when the value/9LE was $129. Key highlights of the Wine Barossa program were: • Barossa Wine School, which is now in its fourth year of operation and continues to build momentum and outcomes for the Barossa and the individual wineries that choose to be actively involved in the program. • Domestic Consumer and Trade Engagement with a strong presence at Tasting Australia and the Aussie Wine Month Regional Tasting. • North America – Second Life in a collaborative approach with PIRSA. • An active in-bound and in-market visitation program. Please see more details of the Operational Plan and outcomes on the following pages..
As always, a massive thank you to everyone involved in the development and delivery of the 2015/16 Operational Plan, which ensures the Barossa remains Australia’s best-known wine region and internationally recognised as one of the world’s finest wine regions. Matthew McCulloch, Chairman Wine Barossa Wine Barossa Committee 2015/16 Kevin Miller Mark Pearce Sam Holmes Ben Bryant Richard Sheedy Matthew McCulloch Ben Chipman Bernadette Kaeding Howard Duncan James March (BGWA) Helen McCarthy Annabel Mugford (BGWA) Stuart Bourne
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BGWA Activities The BGWA continues to innovate and lead by being involved in activities, events and projects that align with the four pillar strategy of Our Own Backyard, Our Bright Future, Our Promise Kept and Our Collective Voice.
Our Own Backyard Premium, Profitable, Sustainable Barossa Growers
In its second year in 2015-16, this Wine Australia-funded project has had ongoing success in showing (not telling) Barossa growers how to achieve more consistent winegrape yield and quality using modern viticultural practices. Three further ‘demonstration vineyard’ sites were established at Gomersal, Krondorf and Eden Valley, in addition to the three sites set up in 2014-15. The objective of this ongoing project is to help Barossa growers improve the ‘resilience’ and sustainability of their vineyards and, in turn, increase their ‘adaptive capacity’ to a changing climate.
Environmental Champions of the Barossa
In 2015-16, BGWA produced case studies via video and print, featuring six “Environmental Champions of the Barossa” to showcase the Barossa’s positive actions for the environment. The videos, featuring Barossa growers Dan Falkenberg, Anthony Scholz, Dr Michael McCarthy, Prue Henschke, Evan Gobell and Sam Dahlitz, were launched at the CSIRO/NCCARF national climate change conference held at the Adelaide Convention Centre.
Sustainable Australia Winegrowing (SAW) Barossa
2015-16 saw a ‘groundswell’ of interest by Barossa winegrape growers to implement SAW – an environmental management program initiated by McLaren Vale growers in 2011 with proven success. The primary objective in 2016-17 will be to help Barossa winegrape growers implement SAW in order to record, benchmark, communicate, and build upon Barossa’s positive environmental actions – and to create environmentally and financially sustainable Barossa vineyard businesses.
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Restoration of native vegetation from Kaiserstuhl to the North Para
BGWA initiated a pilot in partnership with Natural Resources AMLR to engage a ‘community’ of vignerons in Bethany, Krondorf and Rowland Flat to restore ‘stepping stones’ of native vegetation from Kaiserstuhl to the North Para River. The objective of this project is to provide habitat for Barossa native fauna, increase biodiversity, improve the health of the North Para River, and build-on, record and communicate Barossa’s positive environmental actions.
GrowCare Barossa
The ‘crop watch’ email service continued to provide Barossa growers with viticultural management advice, including preventing vineyard pests and diseases, following significant weather events.
Water
In 2015-16, BGWA was in ongoing liaison with Regional Development Australia Barossa, Natural Resources AMLR, and the Barossa Water Allocation Planning Advisory Committee regarding current and potential Barossa water sources, security and allocation. This included the development of an interchangeable ‘map’ to provide accurate information – and therefore better informed discussion – around Barossa water issues.
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Our Bright Future Barossa Wine School (BWS) – China – Year 3
BGWA currently partners with Ease Scent Wines to deliver the BWS in mainland China in Mandarin and with AWSEC to deliver BWS in Southern China in Cantonese. The primary objective is to support the education providers in delivering a quality educational program to mainland China consumers, and wine trade, media and educators. The secondary objective is to create Barossa ambassadors in mainland China who can be activated in the future. Progress 2015-16 • Productive meetings held with both Ease Scent Wines (China) and AWSEC (Southern China) with agreement for continuation of BWS for 2015-16. • Ease Scent Wines once again successfully ran BWS Level 1 video-streamed to 23 Tier 1, 2 and 3 cities around China and 350+ students participating. James March and Annabel Mugford audited the delivery of the video-streaming and were confident in the quality of the teaching. Six Barossa wines were used reaching 350+ students. • BWS Level 2 “Train the Trainer” conducted with 1 mainland China educator, Ofilos Wu. • Wine Australia China Annual Awards – Educator Award sponsored, with James March presenting the awards to three educators in Shanghai in October 2015. • Partnering with Wine Australia, BGWA hosted a Rare & Distinguished Masterclass in Shanghai in October with 40 trade, media and educators attending. • The successful Educator award winners were hosted in Barossa in March for a one day immersive visit as part of the Wine Australia Pan-Asian Visit. They are all now accredited Barossa Wine School Educators – Level 1 and are in negotiation for delivery in China. • Barossa Dirt WeChat continues to be used as a tool to connect with BWS China Alumni with 123 connections to date. • Several discussions held with Wine Australia about how to work with A+ Australian Wine School in China. These discussions are informing the plan for BWS in 2016-17. • Working with local tour operator on creating Barossa Wine School Level 1 visits to Barossa for the China market.
Barossa Wine School – Hong Kong – Year 3/4
BGWA currently partners with AWSEC to deliver the BWS in Hong Kong in English and Cantonese. The primary objective is to support the education providers in delivering a quality educational program to Hong Kong consumers, and wine trade, media and educators. The secondary objective is to create Barossa ambassadors in Hong Kong who can be activated in the future. Progress 2015-16 • Productive meetings held with AWSEC with new agreement for BWS delivery in Hong Kong in 2015-16. • BWS Level 3 visit conducted successfully in September hosting 12 students. All successfully passed the exam in October. • 12 BWS Level 3 Students presented with BWS Master Certificates at Graduation Ceremony in October in Hong Kong. • BWS HK Alumni database developed. Currently have 40 people on the database plus many followers on Barossa Dirt Facebook and WeChat. Barossa Dirt Facebook is the key tool for connection with Alumni. • Hosted BWS Alumni dinner in Hong Kong in October with 22 people attending. • In 2015-16, 82 people have attended BWS Level 1 classes across seven sessions in Hong Kong and 20 across two sessions in Guangzhou. 37 people attended BWS Level 2 classes across four sessions in Hong Kong. • Six AWSEC/BWS video clips have been released across Wechat, Facebook and YouTube with a strong following, promoting the Barossa, AWSEC and Barossa Wine School.
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Barossa at the Races in Hong Kong held on Sunday 22 May as a BWS Alumni event hosted by James March and Barossa wineries who were in Hong Kong for Vinexpo 2016. Attended by 30 people. Barossa Wine School Alumni invited to visit the Barossa stand at Vinexpo. Several attended. AWSEC promoted BWS at Vinexpo at the Barossa stand.
Barossa Wine School
Ensure that the BWS is delivered to world’s best practice standards via regular review of delivery processes and methods in partnership with education providers and monitoring of feedback from students looking for improvement and innovations. Progress 2015-16 • BWS Level 1/2 materials updated with 2015 data. • BWS Level 2 Booklet translated into Mandarin. • Sponsorship of SE Asia Hilton Sommeliers Cup confirmed. Finals held in Bangkok in February. BGWA organised wines for blind tasting and exam questions. Successful winner announced – Nick Loo from the Kuala Lumpur Hilton. • Nick Loo visited Barossa in May. Co-hosted by six wineries. Nick passed the BWS Level 1 exam and is now a Barossa Enthusiast. • BWS Level 1 delivered to six Pernod-Ricard Wines Graduate Program Participants who were all successful in passing.
Domestic Consumer and Trade Engagement
Establishing the position that Barossa wine has a “seat at all tables” around Australia through targeted activities and consistent branding and messaging. 1. Activate domestic trade/consumer engagement activities: • Direct involvement: Tasting Australia (May 2016), • Co-ordination: Aussie Wine Month Regional Tasting (May 2016) , • Indirect involvement (branding and administrative support): Good Food and Wine Shows. 2. Further develop the www.barossa. com consumer database and engage with
consumers with offerings from BGWA/ Tourism Barossa and Barossa Food 3. Roll out Barossa Brand Tool kit Progress 2015-16 • Worked with Tourism Barossa on Barossa activation at “Tasting Australia Town Square”. Artisans of Barossa and Harvest Kitchen ran the food and beverage outlet. • Worked with Tourism Barossa on Barossa activation in Town Square Exhibition Space (Barossa Tasting Space) by organising Barossa wineries to be involved. 17 wineries participated in this activation. Supported with banner and branding. • Barossa Consumer database at 1450 subscribers at end of June. • EDM to database inviting them to attend Tasting Australia events. • Post sign up at AGM, 50 have signed up for the BGWA member toolkit.
North America – Second Life
USA: Collaborating with PIRSA focusing on Texas as the target market. The strategy is currently being developed in consultation with stakeholders and once finalised will form the basis for the Barossa approach. Progress 2015-16 • James March joined with the PIRSA/ Wine Australia Texas/California activation in March 2016. In discussion with PIRSA and Wine Australia regarding development of the next steps.
Capability Development
Support the business and marketing capabilities of the Barossa grape and wine community through the co-ordination and delivery of targeted workshops. Progress 2015/16 • Industry Capability Development program “Barossa – Creating Consumer Value” successful in receiving PIRSA funding. Program to be delivered in partnership with AWRI in 2016-17.
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Savour South Australia Texas and California Market Visit – March 2016 The opportunity to partner with PIRSA on developing a coordinated approach in the US market was highly instructive and provided an invaluable platform from which we can all build. A series of four seminars was held highlighting Barossa and McLaren Vale wines on behalf of South Australia along the theme of ‘Old Vines, Classic Wines, Family Lines’. Developing a strategy that has activities and measurable outcomes across a channel approach; an influencer/trade/consumer level; and understands the infrastructure requirements to make it all happen will be a critical next step. The market visit was a very positive, collaborative exercise that reached some new audiences, connected with existing importers and stakeholders, and has opened the door for further activity to be defined with input from Barossa wineries. A detailed strategic plan is currently being developed to that end. TEXAS Austin: Seminar Attendance: 15 Trade and Media Houston: Seminar Attendance: 22 Trade and Media Dallas: Seminar Attendance: 27 Trade and Media CALIFORNIA San Francisco: Seminar Attendance: 46 Trade and Media
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2015 Barossa Wine Show The 2015 Barossa Wine Show was held from 13 to 18 September and received 711 entries from 114 exhibitors. The presentation dinner was held at Wolf Blass Visitor Centre on Thursday 17 September attracting 377 guests. This was a great evening for the Barossa, showcasing the exhibitors, sponsors and community support. In June 2015 the Barossa Wine Show hosted a wine assessment course in conjunction with the AWRI. From 12 participants, six were selected based on their performance and participation to go through to Associate Judging positions within the show. Lisa Perrotti-Brown MW, Editor in Chief and Reviewer for Australia and New Zealand for Robert Parker’s Wine Advocate, was welcomed as the guest International Judge who made an outstanding contribution to the tasting bench. Her experienced international palate and keen insights were well appreciated by her fellow judges. Before joining us in Barossa, Lisa had recently moved to the San Francisco Bay area, so was a fully qualified USA-based judge, and was generous in sharing her observations and feedback at the Trophy Presentation dinner. 2015 was the first year for Matt Harrop as the Chairman of Judges, taking over from retiring Chairman, Nick Stock.
2015 Medal Tally 55 Gold 85 Silver 202 Bronze The best wines of show were: Most Outstanding Barossa White Table Wine, Premium Classes Long Yarn 2015 Riesling Most Outstanding Barossa Red Table Wine, Premium Classes Heirloom Vineyards 2013 Eden Valley Shiraz Most Outstanding Barossa Table Wine, Premium Classes Heirloom Vineyards 2013 Eden Valley Shiraz Most Successful Exhibitor – Small Producer: Trevor Jones Fine Wines Most Successful Exhibitor – Medium Producer: Hentley Farm Most Successful Exhibitor – Large Producer: Cellarmasters
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Our Promise Kept Barossa Trust Mark Marketing Advisory Group (BTMMAG) Progress 2015-16 • Activated activities agreed through the Barossa Trust Mark group program. • Integrated Barossa Trust Mark wine licensees within existing and proposed BGWA marketing programs. • Worked with Barossa Trust Mark wine licensees to identify new collective promotions. • Integration into the new barossa.com. Communikate Campaign Statistics Website Analytics Overall website performance • During the competition period the website had 4,198 sessions, with 3,645 users – this indicates some users visited the website more than once (resulting in more sessions per user). 3,645 users over the 23-day competition period averages to 158 users per day, which is a great result. • The percentage of first time visits was 85.66%, which is a positive result given one of the competition aims was to target people who were previously unfamiliar with the Barossa Trust Mark and increase brand awareness. • The average session duration was 00:02.04 which demonstrates users were engaged and took the time to read content and interact with the site. • We had a total of 6,923 page views. • Majority (80.8%) of our website visitors came via our social media channels indicating this was the best source of referrals for our users. 2015-16 Licencees (Wine) • • • •
Hentley Farm – ‘Clos Otto’ Shiraz Murray Street Vineyards – ‘The Barossa’ SGM Blend Teusner Wines – ‘Joshua’ Grenache Mataro Shiraz Thorn Clarke Wines – ‘William Randell’ Shiraz
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Our Collective Voice Marketing and Commuations Strategy and Plan
Deliver Marketing and Communications Plan that encompasses both traditional and digital media strategies including actively growing Barossa Dirt as the primary voice for the Barossa Grape & Wine Community. Progress 2015-16 • Barossa Wine Show delivered in September 2015 – 711 wines entered. • Institute of Masters of Wine visit in October 2015 delivered in partnership with PRW. 45 MW’s attended. Barossa Wine Chapters Tasting – 48 wines from 35 wineries tasted. Under a Barossa Sky dinner hosted by 45 Barossa wineries. Dr Josef Schuller MW inducted as Honorary Baron of Barossa. • Vancouver Sun consumer and media visit delivered in November 2015. • New barossa.com launched at the end of May 2016. Collaborative effort between BGWA, TBI and BF creating a fully responsive website, with comprehensive translation and with a new fresh look. • Worked with Wine Australia on creating a Barossa area in the Wine Australia Pavilion at Vinexpo, May, 2016. 16 Barossa wineries participated. Worked with Wine Australia on delivering strong Barossa branding. • At Vinexpo, delivered three mini-masterclasses within the Wine Australia Pavilion co-hosted by AWSEC including bilingual materials. • Barossa Old Vine Masterclass delivered with Wine Australia at Vinexpo. • AGM delivered in November 2015 with new look Annual Report well received. Combined with BGWA Supply & Demand Summit.
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• • • •
Barossa Big Ideas Think Tank 2016 delivered in May. Well attended with good feedback. Generations Lunch delivered in December – sold out with over 300 people attending. Barossa touring map artwork finalised and printed – 100,000 copies. BGWA updates delivered fortnightly.
Key Relationship Management represent BGWA at committees, forums and events. • • • • • • • • • •
James March continues on SAWIA Executive Committee. James March continues as SAWIA State Representative on WFA Small Winemakers’ Committee. Annabel Mugford continues on the RDA Barossa board. Annabel Mugford continues as a member of the Mt Lofty Ranges World Heritage Bid Economic Advisory Committee. Annabel Mugford continues as a member of the Restaurant and Catering Australia – Food, Wine and Tourism Advisory Group. BGWA led presentation at the State Government Country Cabinet forum in the Barossa. Annabel Mugford represents BGWA on the Barossa Vintage Festival Committee. Nicki Robins continues on Wine Australia’s Regional Program committee. Nicki Robins continues on Vinehealth Australia’s regional partners committee. James March, Annabel Mugford and Annemaree Clementson attended the University of SA EhrenbergBass Wine Marketing Conference.
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Barossa Big Ideas Think Tank
More than 100 Barossa winegrape growers, winemakers, marketers and wine industry support businesses took part in the Big Ideas Think Tank on 11 and 12 May. The Think Tank was an opportunity for the BGWA to engage with the Barossa community about its strategic direction, opportunities and challenges, in light of the Barossa’s positive trajectory after a strong 2016 vintage and optimistic signs in key export markets. Attendees discussed the supply and demand outlook for the Barossa wine industry – and the steps required to guard against potential oversupply. This detailed presentation was led by Chris Neville, who was most recently the Global Head of Strategic Planning for Pernod Ricard Winemakers. Think Tank attendees also heard about trends in the Australian domestic wine market from Clement Hery, Account Director at IRI Australia. And they experienced “disruptive thinking” around customers and brands, and how it applied to the Barossa, from Matt Jones of “Better Happy”.
On Day Two of the Think Tank, attendees provided input and discussed the BGWA’s Operational Plan for 2016/17. The overwhelming feedback from attendees was that the quality of information from the speakers was “outstanding”. There was a high level of interaction and support from the people who came and a strong demand for the presentations from those who couldn’t be there on the day. The presentations are available by arranging a Members Toolkit Drop Box invitation from Ashleigh Fox, bgwa@barossa.com. For the first time the region now has a set of baseline and context-setting data from which we can track and measure our future development. This will be an ongoing program, which will continue to evolve and become more streamlined. The Big Ideas Think Tank gave us lots of options to consider with our strategic planning into the future, as well as providing an opportunity for all members to consider their level of participation and contribution to the overall strategy.
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BAROSSA AS AUSTRALIA’ S LEADING REGIONAL EXPERIENCE
Establish hierarchy of engagement
Barossa Grounds Generational Farming
Tactical & responsive vehicles in place New Consumer Creation Lead on behalf of community - Domestic - Greater China - North America
Supply Strategy - consistent yield - profitable - value chain
EAST COAST INFLUENCERS
BWS HONG KONG & CHINA
OUR OWN BACKYARD
OUR BRIGHT FUTURE
OUR COLLECTIVE VOICE
OUR PROMISE KEPT
SHARED PLATFORM DIGITAL & ONLINE
Dashboard in place to filter & measure foundation principles Potential to endlessly evolve
BAROSSA TRUST MARK Engagement and support from Participants
Engaged Community without borders - direct to consumers - start conversations
National Reach
Our audience becomes our stakeholders - real time engagement
Consumers supporting products that carry the Trust Mark International Reach
OUR STORY: BAROSSA CHAPTERS A strong identity underpinned by a strong community
First 3 years – Brand Building - Big Ideas / Chapters Next 3 years – Strategic Implementation - Members / Stakeholders / Markets How Far Can We Radiate? Amplification - New Audiences / New Platforms / New Technology
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Barossa Grounds Project The Barossa Grounds Project was established in 2008 to evaluate the variation in wine styles of Barossa Shiraz. This collaborative undertaking, led by BGWA and including the participation of South Australia’s leading soil scientists, the Barossa Viticulture Technical Group, wine critics, PIRSA, Wine Australia, and many of Barossa’s most experienced winemakers, has now extended to analysis, recording and communication of soil, climatic and topographic influences on those wine styles; controlled winemaking studies and annual tasting reviews. The Barossa Grounds Project gained significant momentum during 2015-16, topped off by James Halliday’s commendation that “…the truly fascinating Barossa Grounds Project is, by some distance the best analysis of the terroir of a wine region I have ever encountered, here or overseas.” The other highlight of 2015-16 was the production of a “Barossa Grounds Toolkit” – a suite of marketing, educational and training material developed to help BGWA members communicate to their customers, staff, trade and media the unique characteristics and diversity of Barossa Shiraz.
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Barossa Grounds Toolkit includes: •
a consumer-facing Barossa Grounds brochure identifying, in plain language, how climate, soil, landscape, grower and winemaker all contribute to the diversity of Barossa Shiraz.
•
a Barossa Grounds video series shot by internationally acclaimed photographer Dragan Radocaj, featuring educational information on the soils, climate and topography of the Barossa Grounds – and their influence on the taste of Barossa Shiraz. The videos feature winemakers and viticulturists from Torbreck, Dutschke Wines, Soul Growers, Rusden Wines, Gibson Wines, Winewise and Wolf Blass, and are available on the BGWA website.
•
Barossa Grounds photography shot by Dragan Radocaj, of landscapes, soils, vines, wines and people from the Northern Grounds, Central Grounds, Southern Grounds, Eastern Edge and Western Ridge of Barossa Valley, as well as Eden Valley.
•
the Barossa Grounds soils, featuring actual samples of Barossa soil types, including deep sand over clay, black cracking clay, sandy loam over clay, red brown earth, podzolic soils, and deep alluvial clay loam. a Barossa Grounds soils poster (A2) to accompany the ‘Barossa Grounds soils’, extending the soils information in more detail.
•
hard copy Barossa Grounds maps illustrating the Barossa Grounds soil types, rainfall, temperature, elevation and soil available waterholding capacity.
•
an interactive web-based Barossa Grounds map, enabling the user to ‘layer’ soil type, soil available water-holding capacity, mean annual rainfall, growing degree days, slope and aspect onto a topographical map of Barossa. Detail is available down to individual vineyards.
Over two days of discussion about “terroir” at the 2016 Australian Wine Industry Technical Conference, the Barossa Grounds Project was referred to as the most advanced study of ‘terroir’ in Australia. This bodes well for the BGWA and wider Barossa community’s long term vision to communicate the diversity and complexity of Barossa Shiraz wine styles. In the future, this may extend to an examination of Eden Valley Riesling wine styles.
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BGWA Activities 2015/16 Barossa Mentoring Circle Barossa Wine School Educator Training Visit
Barossa Grounds Workshops SAW Growers Briefing
Barossa Grower Survey conducted
Barossa Wine Show July 2015
WGCSA Summit
Barossa Grenache Tasting – International Media
Aug
Barossa Regional Tasting – International Media
Masters of Wine Hosted Visit
Sep
Taste of Spring EV Riesling Demonstration Vineyards Project
Barossa Clonal Tasting
Barossa Rare & Distinguished Tasting – International Media Barossa Wine School Level 3 Barossa Visit
Grower Demonstration Vineyard Tour
Barossa Generations Lunch
Oct
Nov
JM & AM Asia Market Visit Asia BWS Exam & Graduation Country Cabinet Presentation & Ministerial Hosted Visit
BGWA AGM & Supply and Demand Summit
Dec
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Hosted International Trade Visit
Declaration Sustainable of Vintage Australia Winegrowing (SAW) Barossa Introduction Jan 2016
Feb
Barossa Grounds Video & Photography Production Barossa Wine Grounds Australia Video Hosted Visit Toolkit Production
Barossa Grounds Tasting & Tour – International Viticulturist Pan Asia Trade & Media Hosted Visit
Barossa Grounds Tasting & Hosted Visit – Briefing – International Australian Sommelier Media JM & AC Vinexpo Hong Kong
Hosted Visit – Barossa Environmental / Water Issues
Mar
JM USA Market Visit / Premier’s Trade Mission Barossa Environmental Champions 2016 Video & Barossa Photography Vintage Production Updates – Video & Photography Production
Apr
May Tasting Australia
Hosted Visit – International Media
Barossa Big Ideas Think Tank Barossa.com website launch Barossa Regional Tasting – International Media
Hosted Visit USA Trade Jun Barossa Wine Show AWAC WGCSA Summit SAW Barossa Launch
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Barossa Grape & Wine Association Member Toolkit The Toolkit is available to all members of the BGWA. The files are located in a dropbox folder so you can access the collateral globally. The collateral is designed for use in presentations, tasting etc. Please email bgwa@barossa.com to request access.
Content includes: Booklets a. Barossa Chapters i. Booklet ii. Individual Chapter PPT Templates • Discovery • Flavours • Generations • Grounds • Old Vines • Rare and Distinguished • Shiraz b. Barossa Ingredients Imagery a. Barossa Images i. High Res (only available on USB) ii. Low Res b. Video’s i. Barossa at Home ii. Barossa Be Consumed TV Commercial iii. Grape Growers of the Barossa Maps
a. Barossa Grounds b. Barossa Valley Map c. Eden Valley Map d. Barossa Topographical Map e. Wine Australia Regional Flyover
Digital Media Posters a. Barossa Dirt
Logos a. Barossa Logo examples b. Barossa Style Guide c. Barossa Logo Usage Terms and Conditions Barossa Wine School a. Customisable Power Point b. Educational Booklet c. Barossa Wine School Video* (*can be accessed via USB from BGWA) Barossa Grounds a. Barossa Grounds Journey of Discovery Booklet b. PIRSA Report c. PIRSA GIS Maps d. Barossa Grounds Toolkit order form Over the Vineyard Fence a. Winegrapes for Sale Register information Websites a. Barossa Dirt 20 questions b. How to list your event c. How to get involved
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Barossa Grape & Wine Association 1 John Street Tanunda, South Australia, 5352
Tel: 08 8563 0650 E: bgwa@barossa.com W: barossa.com/barossa-grape-and-wine-association/about-bgwa W: barossadirt.com W: barossavintages.com
The Barossa Grape & Wine Association would like to acknowledge our valued partners for their long term support and commitment to the region.
This information has been made available to assist on the understanding the Barossa Grape & Wine Association (BGWA) is not rendering professional advice. The information is not legally binding and is not intended to be a substitute for legal advice. The information is based on the BGWAâ&#x20AC;&#x2122;s understanding regarding the requirements of the market at the time. The BGWA does not accept responsibility for the results of any actions taken on the basis of this information, nor for the accuracy or completeness of any material contained in it. The BGWA expressly disclaim all and any liability and responsibility to any person in respect of the consequences of anything done in respect of reliance, whether wholly or in part, upon this information. Š Barossa Grape & Wine Association, October 2016.