Grapegrower & Winemaker - March 2016 by Provincial Press Group

MARCH 2016

Australiaâ&#x20AC;&#x2122;s largest wine companies

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INQUIRY

Dozens of recommendations

WINERY

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Recovering better quality wine

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contents features MARCH 2016

COVER The contrasting colours of vintage were captured at the end of a basket press cycle at Torbreck by Randy Larcombe.

Pruning

Irrigation

Australia’s largest wine companies

SENATE

INQUIRY

Dozens of recommendations

Filtration

WINERY

LEES

Recovering better quality wine

news On the grapevine .....................................6 From the editor .........................................7 A little less conversation, a little more action please

Less wineries, but exports on the rise .........8 My View: Dan Sims ..................................9 Wineries won't often reach new wine consumers through the old communication channels.

Australia’s largest wine companies The biggest players in the Australian wine industry .........................20 Positive vibes return, attention now focused on sustainable success .........22 The TOP 20 ............................................27 27

Senate Inquiry reflects a fractured industry ................................... 12 Regional Roundup: South Australia .......... 15 Grand openings and government-funded support for small business

Chinese wine drinkers drive export growth ........................................16 Movers & shakers ...................................18

New Zealand’s TOP 5 wine companies ......................................42

regulars 6

What’s online

68 Ask the AWRI

89 Industry profile 90 Marketplace classifieds

88 Calendar 4 Grapegrower & Winemaker

www.winetitles.com.au

March 2016 – Issue 626

March 2016: Issue 624 grapegrowing

Innovation in action ................................65 Paul Baggio, Della Toffola Pacific managing director, provides some insight from his latest ‘tech tour’.

Alternative materials to glass ..................69 What are the effects on the sensory properties of wines?

Young Gun: Clare Burder ........................ 74 Ideas are nothing without action

The Jameson Cell ................ 76

Potassium accumulation ..........................46 This article discusses potassium accumulation by grapevines and the inter-relationships between potassium and pH in grape juice and wine.

Technology to improve wine quality while and save energy, time and labour

Building research ties with Italy ............... 51 Late in 2015 a group of Italian viticulture academics spent time in Australia, strengthening the links between research programs.

The balance between sustainable and profitable management ....................54 Smaller margins for larger vineyards mean that compromises need to be made. But sustainable practices are even more critical in large operations.

winemaking Winery lees: Minimising volumes and recovering better quality juice and wine ..62 62

business & technology Bright, shiny new Sunshine Creek winery..........................................84 Benjamin Roberts, the Sunshine Creek marketing manager, shares the news of a state-of-the-art winery development in the Yarra Valley.

sales & marketing

This article provides some preliminary data from recent AWRI research on winery lees.

Rainbow celebration bottle from Yellowglen ............................85 The future of ‘Who Makes My Wine?’................86 Raising awareness about the sheer volume of private label wines produced by Coles and Woolworths

PUBLISHER AND CHIEF EXECUTIVE Hartley Higgins

PRODUCTION Simon Miles

MANAGING EDITOR Elizabeth Bouzoudis

CIRCULATION: Melissa Smithen subs@winetitles.com.au

EDITOR Nathan Gogoll editor@grapeandwine.com.au EDITORIAL ADVISORY BOARD Denis Gastin, Dr Steve Goodman, Dr Terry Lee, Paul van der Lee, Bob Campbell MW, Prof Dennis Taylor, Mary Retallack and Corrina Wright EDITORIAL Emilie Reynolds journalist@winetitles.com.au ADVERTISING SALES Maria Stephenson sales@grapeandwine.com.au

March 2016 – Issue 626

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Grapegrower & Winemaker

on the grapevine what’s ONLINE WA harvest begins after mixed growing season Harvest for the 2016 vintage is underway in Western Australia with producers grateful for strong finish to the growing season. Winemakers say recent hot weather across the south west of the state has been a gift, after heavy rains threatened the start to harvest. The heavy rain that fell in mid-January had the potential to disrupt quality and could have created pest issues, just as many vineyards were about to start picking, reports the ABC.

Tool frontman heading to Pinot Noir NZ 2017 Lead singer and lyricist for alternative metal and art-rock acts Tool, Puscifer and A Perfect Circle, and winemaker, America’s Maynard James Keenan is heading to Pinot Noir NZ 2017. Keenan said his visit to New Zealand, the first in a wine capacity, would be as much about education as sharing his own journey. “A major drawcard for visiting Pinot Noir NZ 2017 is learning about how New Zealand winemakers use Pinot Noir to express their own individual sites, styles and persona.” Reports Daily Wine News.

‘Lite’ business model saved Vinomofo years and millions With plans to expand the business, originally Vinomofo was going to focus on just one market – China. But soon it realised how long it would take to grow globally, taking one market at a time. Looking for other possibilities, the Vinomofo team came up with a new, more flexible business model that would let them reach more markets, faster. “So then we can up with this idea of a lighter version of Vinomofo.” Reports Business Insider.

Daily Wine News is a snapshot of wine business, research and marketing content gleaned from international wine media sources, with a focus on Australian news and content. To subscribe visit www.winetitles.com.au/dwn. 6 Grapegrower & Winemaker

Wine Odyssey forced to shut AN INNOVATIVE wine bar located in a Sydney’s popular waterfront location The Rocks, has been forced to close its doors after almost eight years in business after the Sydney Harbour Foreshore Authority announced they are seeking a “more relevant” tenant. Wine Odyssey, the ‘cellar door in the city’, offered tourists and Sydney-siders the opportunity to taste wines from the most popular regions of Australia and had been referred to as a “lifeline” for smaller producers to enter the mainstream market. Angela Brown, co-owner of Wine Odyssey, said she was “gutted” by the decision after she and co-owner Lynette Rae put their life savings into restoring the bar, which was previously a high traffic site that lay derelict. “Not only have the decisions of a couple of public servants been able to have such a devastating effect on our business, but it’s our livelihood, and that of the small wine producers which we represent,” Brown said. Brown said the “crippling effect on the business” began when the landlord forced capital renovations to the premises

without offering any rent relief while the business was forced to close for a number of weeks about 18 months ago. At that time, Brown said she was assured that a new five-year lease was in the pipeline however negotiations were strained by the renovations (the matter was due to be heard in the NSW Civil and Administrative Tribunal). With the initial lease term having expired and without warning, the landlord put the lease of the premises out to public tender in late 2015, and the fully paid-up, incumbent tenant was told that its bid for a new lease was unsuccessful and given one week to vacate and “make good” having occupied the site for almost eight years. “While we are completely crippled, mentally, physically, emotionally and financially, we hold our heads high, in the knowing that we have done what we can do for the Australian wine industry, and small business,” she said. “We pride ourselves on the fact that we always paid our suppliers, staff and rent, and we have put our all into developing what was a great little business on so many fronts, that we put our heart and soul into.”

Sydney wine bar questioned by police HEADLINES lit up social media in the middle of February with claims New South Wales police questioned management of a popular Sydney wine bar over a wine list. Giovanni Paradiso, co-owner of Sydney bar 10 William Street, took to Instagram to express his frustration after police allegedly spoke with the bar manager and took issue with some of the contents of the blackboard wine list and its position in the bar. “So according to NSW Police Force our blackboard with what we are pouring by the glass is promoting unsavoury antisocial behaviour Sydney what the f*** is happening?” he wrote in the post, alongside a picture of the incriminating blackboard. Another co-owner Marco Ambrosino told online magazine Broadsheet the police had allegedly taken issue with a reference to “free wine” on the sign which he said was actually about preservativefree wine. He said the police also said the wine list was too close to the front of the restaurant and could promote heavy drinking. “There’s an undercurrent of disappointment amongst venue-owners,” Ambrosino said. “There seems to be a www.winetitles.com.au

real confusion of drinking and dining and when you can trade. We’re very, very frustrated. None of us have had any trouble. The police are painting us all with one brush. “We are a wine bar, so we put our wines by the glass at the front, and hand people a menu when they sit down. We’ve had it like this for six years.” New South Wales police released a statement about the incident claiming the venue, with a license to operate primarily as a restaurant, was operating as a bar. “A large number of patrons were consuming wine. A large wine list on the wall made no reference to food service,” the statement said. “No tables had menus on them. A bar area with a large amount of wine and spirits was observed. The kitchen was closed. “No action was taken against the business, despite breaches being detected regarding failure of the primary purpose test (operating as a bar not a restaurant),” the police statement said, stressing the incident took place during a wider operation targeting alcohol-related violence, anti-social behaviour and compliance with the Liquor Amendment Act 2014. March 2016 – Issue 626

from the editor

Nathan Gogoll Editor

A little less conversation, a little more action please WHEN TOURISM AUSTRALIA launched the ‘Restaurant Australia’ strategy in 2015 I was very impressed to see the efforts to put food and wine in focus. Tourism Australia’s research conducted across 15 of Australia’s key tourism markets showed that ‘great food, wine, and local cuisine’ was a major factor influencing holiday decision making (at 38 per cent), ranking just ahead of world class beauty and natural environments (37 per cent). To narrow the perception gap between those who have visited Australia and those who have not, Tourism Australia developed the idea that Australia could be the world’s greatest restaurant – ‘Restaurant Australia’. The main piece of promotion was a three-minute video that matched stunning scenery with mouth-watering food shots and all the action of it been gathered, prepared and served. I thought it was a terrific promotion built on a solid strategy. But then I double checked how wine experiences were portrayed in the video. Turned out there wasn’t a lot on offer. I got a stopwatch out and measured the amount of time a wine glass, bottle of wine, vineyard or winery made it into the video. It was less than 30 seconds of the three-minute total, made up of seven seconds of winery and tasting room footage; half a second of vineyard scenery and the remainder of the measure featuring wine glasses or wine bottles as a prop on the table, occasionally in a hand but never near the lips. I counted a dozen bottles of wine that snuck in, but most of those were on the tasting bench as Keith Hentschke swirled a glass and hosted guests at his Hentley Farm cellar door. There were actually more boats in the video than bottles of wine. I do understand that promoting the consumption of alcohol is a touchy subject, and acknowledge a

March 2016 – Issue 626

lot of wine ‘experiences’ on offer are tied to a restaurant setting or tasting room situation which might not create stunning video footage. But why couldn’t wine and wine experiences have been more prominent than boats? Surely with all the resources at Tourism Australia they could think outside the square and show something better than a romantic wander down the mid-row? Ummm, no. Fast-forward to February this year and the latest big production video release from Tourism Australia has been gorgeously narrated by Chris Hemsworth. Remember the research that said ‘great food, wine, and local cuisine’ was a bigger factor in holiday decision making than ‘beauty and natural environments’? Yeah, nah don’t worry about it. This video is all about coastal scenery. Food and wine represent less than 13 seconds of this latest three-minute promo. Boats were back, big time. In fact there was more footage of boats than food and wine combined. I’m sure behind the release of the feature video there will be back-up pieces that drill down to seafood and even maritime climates where stunning wine is made. Maybe. Then there would be a chance to introduce wines that go with seafood, or the wine regions of Australia influenced by a maritime climate. Yeah, right. I can’t help think the lack of a marketing budget for Wine Australia is an issue here. In 2014/15 Tourism Australia spent $89.5million on advertising plus $26.1million on publicity. In the same financial year, Wine Australia spent $2.8million on marketing costs and $240,000 on communications. Even though the budget lines have slightly different labels, to me that looks like a war chest of $115.6million compared to a piggy bank of $3million. Look at it another way… For every $100 Tourism Australia spends on promotion,

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Wine Australia manages $2.60. Tourism accounts for about three per cent of Australia’s GDP (gross domestic product) and the wine industry somewhere between 0.3 and 0.8 per cent of GDP, depending on who did the sums and when they did them. (There’s more insight into this from Page 22) In other words… for every $100 tourism generates within Australia, the wine industry manages somewhere between $10 and $25. Now imagine if Wine Australia had one tenth, or even a quarter, the advertising and publicity budget of Tourism Australia. And think about how many more wine consumers might have been influenced around the world if there was $11.5million or spent promoting Australian wine each year. I know growth in export wine sales can’t just be achieved by showing consumers some beautiful images and have a sexy voice over from somebody like Chris Hemsworth in the background (although I’ve heard Nick Dry has just done some voice-over training). But don’t all the wineries battling in the US and UK markets deserve a little bit of consumer publicity support? Last time I looked Australian wine regions boasted some stunning landscapes and plenty of interesting characters. Isn’t brand building all about storytelling and imagery these days? Can ‘brand Australia’ expect Jancis Robinson to drive demand? Does the average consumer who spends a ‘fiver’ on a bottle of Australian Chardonnay at Tesco even know who Jancis is? Is it even possible to promote the wine industry to a broad audience without dumbing it down, getting all geeky or causing a stir for the promotion of alcohol? Perhaps it’s all too hard… but I thought Aussie wine deserved more of a run in the ‘Restaurant Australia’ campaign than boats. Enjoy the read

Grapegrower & Winemaker

Less wineries, but exports on the rise THE RELEASE of the 2016 edition of The Australian and New Zealand Wine Industry Directory has revealed the wine industry has structurally changed. The 34th edition of the directory, released in February, reported vineyard area had declined by 22% from the peak in 2006-07, and is lower than any time since 1999. The number of wine producers also decreased for the second consecutive year, reducing by more than 100 (4.1%) since 2014. However the 2015 winegrape intake increased marginally to 1,669,564 tonnes. Elizabeth Bouzoudis, the directory editor, said the number of wine producers had been on a recent downward trend after three decades of growth. “We have to go back to 1987 to find the last time the number of wineries decreased for two consecutive years. We are seeing now the results of low profitability across the industry, and we believe there will be more exits from the list over the next year through closures and mergers,” Bouzoudis said. However wine exports were good news for the industry, rising by 7.8% to almost $2 billion, led in terms of volume by Accolade Wines which was boosted significantly by its acquisition of Grant Burge Wines. Treasury Wine Estate remains on top of the list for value of wine exports. The Wine Industry Directory has listed Australian wine companies that sell wine commercially each year since 1983, making it a valuable resource for tracking trends, personnel and the overall structure of the industry. The data collected by the directory informs the annual ‘Top 20 Australian Wine Companies’ report presented by the Grapegrower & Winemaker magazine (both Winetitles Media publications), which you can read from Page 20. The 610-page 2016 directory includes a comprehensive listing of wine producers, grapegrowers, suppliers, distributors, retailers, universities, research and education facilities, writers, wine publications, wine blogs, organisations, events and wine shows and industry personnel. This year the directory includes a new ‘contract winemakers’ section that can be searched by the GI Zones(s) as well as individual contract winemaker listings by state, with contact information and key winery personnel both featured. The Wine Industry Directory is available for purchase from Winetitles Media for A$113.85 in Australia/New Zealand and A$137.00 overseas (prices include postage as well as access to the subscription-only online directory through www.winetitles.com.au).

For more information or to order a copy of the Wine Industry Directory, contact Winetitles Media: P: +618 8369 9522 E: orders@winetitles. com.au

8 Grapegrower & Winemaker

SNAPSHOTS FROM THE WINE INDUSTRY DIRECTORY: • 2468 Australian companies sell wine commercially; • Total winegrape intake increased marginally to 1.7million tonnes; • The total area of Australia’s vineyards continued to decline in 2014-15. New estimates from the Australian Bureau of Statistics show total vineyard area (including not-yet-bearing areas) decreased by 9% from 148,507 ha in the previous survey in 201112 to 135,178 ha in 2014-15. Vineyard area has now declined by 22% from the record level of 2006-07, and is lower than any time since 1999; • Accolade Wines remains comfortably on top of the list of Australia’s largest wine companies in terms of winegrape intake. Accolade is the largest company by a wide margin, with an annual intake of 284,636 tonnes, and is unlikely to be challenged for top spot. However, Casella Wines is closing the gap, lifting winegrape intake by 8.6% in the past year to 179,805 tonnes and overtaking Treasury Wine Estates. The acquisition of Peter Lehmann Wines in late 2014 was a key factor in Casella’s improvement in the ranking; • Exports were good news for the industry, rising by 7.8% to almost $2billion; • Accolade Wines overtook both Casella Wines and Treasury Wine Estates to become the largest exporter by volume. Accolades’ export volumes were boosted significantly by the acquisition of Grant Burge Wines. Lower down the order, a number of winemakers rose up the list due the exit of Grant Burge Wines and Peter Lehmann Wines, but a number of producers also lifted in their own right, including Yalumba Wine Company, Nugan Estate, Wingara Wine Group, Brown Brothers and Zilzie Wines; • In terms of exports by value, Treasury Wine Estates remained on top of the list. Andrew Peace Wines, De Bortoli Wines and Berton Vineyards each improved their ranking by two places, while Brown Brothers jumped from 17th to 12th position following a strong increase in exports by value; • The domestic industry faced a growing challenge from imports, which lifted by 6.2% to almost $700 million. New Zealand remains the leading source of imports, selling $340.2 million worth of wine to Australians in the latest year, up 1.6% from the previous year. However, New Zealand is losing significant share to other countries, especially France, which boosted its sales to Australia by 11.0% to $248.5 million. Other countries making greater inroads to the domestic market include Italy (up 12.0% to $57.1 million), Germany (up 44.9% to $5.7 million), Chile (up 22.2% to $5.2 million) and Argentina (up 20.8% to $4.1 million); • Australian wine producers advised the directory they used 155 winegrape varieties to produce straight varietal or blended wines. New varieties to emerge this year include Albariño, Ancellota and Grenache Blanc. These join a wide variety of new entrants in recent years that include Bonvedro, Grillo, Lambrusco Salamino, Nosiola, Pavana and Refosco dal Peduncolo Rosso; • Shiraz is the most common variety being made as a straight varietal wine or blended with 79% of producers listing it, followed by Cabernet Sauvignon (66%), Chardonnay (65%) and Merlot (48%).

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March 2016 – Issue 626

my view Ignoring the vinous obvious Dan Sims, from Bottle Shop Concepts, has crunched some numbers and what he found reinforces an idea that wineries won't reach new wine consumers through the old communication channels.

AT THE START of the year we tallied up many of the facts and stats that Bottle Shop Concepts accumulated throughout out 16 events in 2016, our biggest event year to date. • 8500+ people joined us at our events in 2015; • 60% attendees were women; • 55% were under the age of 35; • 89% increase in Pinot Palooza attendees from 2014; and • 101% increase in Game of Rhones attendees from 2014. We did so in the spirit of openness and collaboration to hopefully highlight just how interested people are about what they imbibe; especially wine. One of more fascinating parts of the report, as far as I was concerned, related to the demographic data of the people who engage with our events. 60% of our attendees were women and 55% were under the age of 35 and in fact the percentage of women, under 35, increases from event to event peaking in Brisbane at 75% for Game of Rhones. I highlight these statistics especially as March 2016 – Issue 626

they offer some pertinent insights. Plus, it reminded me of a twitter discussion I attempted to enter late last year about how young people, apparently, we’re disinterested in wine. The participants, of which I observed were of an older male demographic, were stating that young people aren’t interested wine by quoting some stats and graphs. I offered a contrary opinion and shared some of the data from our events hoping to positively contribute. And their response? Silence. For me, it was this that highlighted the exact issue they were attempting to comprehend. They failed to engage or acknowledge someone of contrary opinion and not of their wine critical world. How can you complain about young people are not engaging with you if you ignore them or, at worst, berate them for their drinking choices? Why are you not surprised if their attention is elsewhere? I would argue that young people ARE interested in wine. They’re just not interested in reading/hearing about it the same old way in which wine has been communicated, by the same people, nor sit in a class room to learn about it. People want to learn about wine the same way in which they consume it; socially. And then share their experience. Said people also complained about the shrinking of column inches in newspapers dedicated to wine. Again, why are you surprised if you’ve been saying the same thing over and over again for 20 years? I’m reminded of this today as yet another article questioning a certain wine style, and the sommeliers who pour it, is doing the internal wine rounds. I stress ‘internal’ as I very much doubt it will have any reach outside of the top 5% of wine drinkers. The cold hard reality is that if people aren’t reading or listening to you, what you are saying is not relevant to them and this is obviously why column inches are shrinking. Their attention is elsewhere and had been for years. Stomping your foot at your next wine junket or free lunch will still not change the fact the market for wine commentary consumption, and influence, has shifted significantly. In fact it did years ago. www.winetitles.com.au

I don’t think for a moment the demographic data we’ve compiled is the be all and end all. But what I do believe is we are seeing the ‘new’ wine drinker fill the gap between the top 5% and the lower, ‘high volume’ end the market. What the data does show is not only increased interest and engagement, but perhaps more importantly, how people want to engage with wine brands and learn about wine. Again, socially. This new middle wine ground is where the attention and excitement is and, sadly, many commentators (and wine producers for that matter) are missing it or, at worst, failing to acknowledge it. In the words of Gary Vaynerchuk… We need to market in the year that we actually live in.

Grapegrower & Winemaker

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news

Senate Inquiry reflects a fractured industry It is not difficult to understand a group of Senators couldn’t agree on a set of recommendations that might assist the Australian wine industry. Especially when you consider the huge differences of opinion they encountered during their inquiry. Nathan Gogoll reports. OF ALL THE COMMENTARY to follow the release of a report on the Australian grape and wine industry from the Senate Rural and Regional Affairs and Transport References Committee, the most damning came from Riverland Wine. “For many, the report was a Claytons, the report you have when you’re not having a report,” said Riverland Wine’s Weekly Roundup on February 18. However, the explanation behind this point of view revealed more about the differences of opinion that exist within the wine industry itself than the work of the Senate committee. A lot of work was done in order to present the committee’s final report. It was delivered 11 months after the Senate initially referred the matter, during which time the committee received 41 submissions and heard from 38 individuals at public hearings (held in Adelaide and Launceston in September and the Swan Valley in October). The feedback from the industry resulted in hundreds of suggestions relating to the nine specific areas of interest outlined in the committee’s terms of reference, which included profitability of wine grape growers; the impact of the Wine Equalisation Tax (WET) Rebate; the power and influence of retailers of Australian wine in domestic; as well as the effectiveness of market intelligence in sending price signals to growers. To have distilled this all down to a dozen key recommendations was no easy task. Especially when consideration is given to the wide range of views the committee was asked to consider.

Completely contrasting submissions were received on matters such as the WET Rebate; wine tax matters; and the ‘code of conduct’. In view of what were vastly different points of view presented in the submissions, it seems hardly surprising the committee could not find complete consensus on all the issues. As a result there were an additional 19 recommendations from the ‘dissenting reports’. For example, while the official recommendation was to “phase out the current Wine Equalisation Tax (WET) rebate over five years”, the ‘dissenting reports’ called for a number of different responses. These included everything from a WET review outside of the Federal Government’s existing taxation system review (including instructions for what such a review should consider); the immediate phase out of WET Rebates for producers of bulk and unbranded wine; keeping the WET rebate in line with the original policy intent; abolishing New Zealand rebate arrangements; and introducing transitional WET rebate measures to allow separate rebate entitlements of the merging entities to be phased down to one entitlement over four years. There is clearly a mood for reforming the WET Rebate, both from the industry and from the Senators involved in the inquiry, but there are still lots of ideas about what that reform might look like. Andrew Weeks, Wine Grape Growers Australia executive director, said the recommendations of the committee plus the dissenting reports “reflect the diversity and the fractured nature of the industry at the moment”. He recognised it

FULL LIST OF RECOMMENDATIONS 1. T he committee recommends that the Government phase out the current Wine Equalisation Tax (WET) Rebate over five years, allocating the savings to a structural adjustment assistance program for the industry including an annual grant to genuine cellar door operators to support their continued operation. 2. The committee recommends that the Government amend labelling requirements so that wine labels must declare whether wine is produced by an entity owned or controlled by a major retailer. 3. The committee recommends that in responding to the Competition Policy Review’s Final Report, the Government specifically consider commercial agreements between growers and producers of wine and the major retailers. 4. The committee recommends Australia Post review its approach to wine delivery in each Australian state and territory with a view to developing harmonised agreements across Australia. 5. The committee recommends that the Commonwealth Government, through the Council of Australian Governments (COAG), work with states and territories to establish mutual recognition arrangements for responsible service of alcohol qualifications. 6. The committee recommends that Government continue to match the grape research levy and wine grapes levy income collected by the Australian Grape and Wine Authority.

12 Grapegrower & Winemaker

7. The committee recommends that Government give further consideration to the roles of the Australian Grape and Wine Authority and the Australian Bureau of Statistics in wine industry data collection. 8. The committee recommends that funding be allocated so that the production of the Vineyards Census is resumed on an annual basis. 9. The committee recommends that Government commit to increasing export demand for Australian wine by considering whether current opportunities for industry participants to increase exports through the Australian Grape and Wine Authority and the Export Market Grants Development Scheme are fully optimised or would benefit from redesign. 10. The committee recommends that the government significantly increase its funding to wine export market development. 11. The committee recommends an independent review of the Australian Wine Industry Code of Conduct, to report to Government before 30 June 2016. 12. The committee recommends that if targets for increase uptake of the Australian Wine Industry Code of Conduct are not met, the Government, in consultation with representative organisations for growers and winemakers, reconsider the development of a mandatory code before the end of 2017.

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March 2016 – Issue 626

would have been very difficult for the committee to present clear recommendations because so many different ideas were presented by the industry. “There were a lot of things in the report I guess we did expect, including a lot of focus on the WET. Generally speaking, people do realise it’s not working. So it would be great to see some traction on that and to see some changes,” Weeks said. “Unsurprisingly, commercial practices and the code of conduct have come up again. The previous Senate Inquiry came up with suggestions on the voluntary code of conduct. Growers and winemakers are both seeing examples of commercial practices that aren’t ideal, so maybe it’s time to look at a whole of value chain code of conduct?” The Winemaker’s Federation of Australia appeared to immediately downplay the importance of the Senate Committee’s report. “The inquiry’s report is not binding on any party, the parliament or the government,” was the first point raised by Tony D’Aloisio, the president of the Winemakers’ Federation of Australia, when information was sent to members. A week later a joint statement from D’Aloisio and outgoing CEO Paul Evans revealed the WFA objective would remain unchanged by the Senate Inquiry recommendations. So while the Senate Inquiry has called for the WET Rebate to be phased out, the WFA will continue to campaign for its own WET Rebate agenda to: • End the schemes and speculative claims with tougher antiavoidance provisions; • Maintain the current maximum rebate for eligible claimants; • Phase out eligibility for bulk and unbranded wine over four years; • End the preferential and unfair treatment of New Zealand producers who claim the rebate; and • Limit eligibility to those with a relevant local liquor licence and a business premises located in regional Australia. The WFA remains committed to delivering $43million (which it forecasts in savings achieved through its WET Rebate reform plan) for marketing; export opportunities; and industry assistance to those directly impacted by the changes. The D’Aloisio/Evans joint statement said “there may be different avenues open to government to achieve these objectives and different legislative options”. “Given the lack of detail on the majority Senate Inquiry

RECOMMENDATIONS FROM SENATOR SEAN EDWARDS AND SENATOR THE HON BILL HEFFERNAN: 1. We recommend that WET reform be considered outside of the Government’s Tax White Paper process so as to relieve it of those time constraints and to avail Treasury of an opportunity for full and thorough exploration of the issue. 2. We recommend that in the interests of the WET rebate scheme’s integrity, formal definitions be created to differentiate ‘winemaker’ and ‘wine trader’ and that: (a) wine traders be made immediately ineligible; (b) winemaker rebate eligibility be reduced to a maximum of $150 000 over a period of five years with a commencement date of 1 July 2017. 3. We recommend concurrent with the reduction of the WET rebate applicable for wine producers, that increased funding be available to wine producers via a marketing grant for which Australian Grape and Wine Authority–approved marketing activities qualify, ramping up to a maximum of $150 000 per annum in the final year of the WET rebate wind back period to assist each wine producer support Wine Australia’s export marketing activities in addition to any existing arrangements for development of foreign export markets through other government agencies. 4. We recommend in respect to the merger of eligible wine producer entities during the WET rebate wind back period that eligibility of entities be maintained until the final year whereby the ultimate combined entity would qualify for a single rebate. 5. We recommend that in accordance with Senate Standing Order 25(2)(a) the Economics Committee undertake an inquiry into the performance of the Australian Competition and Consumer Commission with respect to its role in the prevention of the misuse of market power by certain retailers in dealing with the wine industry.

REGISTER NOW 2016 VARIETAL SHOWCASE – DURIF Join us at the NSW DPI Varietal Showcase – Durif under the spotlight event. In collaboration with the NSW Wine Industry Association and the Riverina Wine Grapes Marketing Board this workshop brings together the latest research and practical experiences from leading Durif researchers, producers and winemakers from Australia and South Africa. With a tutored tasting conducted by Nick Bulleid MW, this is a great opportunity for grape growers, viticulturists, winemakers and cellar door staff to experience, taste and reflect on modern day Durif wine.

March 2016 – Issue 626

www.winetitles.com.au

When: 11 May 2016 Where: TAFE NSW Riverina Institute, Riverina Wine and Food Technology Centre, Griffith Cost: $77 per person [includes morning tea, lunch and wine tasting]. For registrations and payments please call WGMB on 02 6962 3944 or email board@wgmb.net.au. For further enquires contact Darren Fahey on 0457 842 874 or email darren.fahey@dpi.nsw.gov.au

Grapegrower & Winemaker

RECOMMENDATIONS FROM SENATOR PETER WHISHWILSON:

RECOMMENDATIONS FROM SENATOR NICK XENOPHON:

1. I recommend that the Government immediately phase out WET rebates for producers of bulk and unbranded wine. 2. I recommend that the Treasury model the sectoral impacts of various volumetric-based taxes on wine, considering producer size, type and locational data. This analysis should be used as the basis for any compensation or readjustment scheme necessary during a transition to a volumetric tax on wine. 3. I recommend that the Government work with wine industry stakeholders to design and determine eligibility for a rebate scheme for small wine producers to accompany the introduction of a volumetric tax on wine. 4. I recommend that the Government introduce a volumetric tax on wine and set a timetable to phase it in. report’s key recommendation to abolish the rebate in favour of an undefined grants scheme, it is unclear whether this proposal guarantees future eligibility to a maximum of $500,000 for all producers who are claiming the rebate in a manner consistent with the original policy intent. That is why WFA cannot support the recommendation and will continue its detailed discussions with Government to ensure this important outcome is achieved and not compromised. “We will also continue to encourage government to act quickly to ensure the necessary changes get underway as soon as possible and for the government to release the report of the industry consultative group on WET Rebate reform which reported in November 2015. “The appetite for reform to achieve these objectives remains very strong within industry given the limited window of opportunity created by the declining Australian dollar and recent FTAs. “The level of attention from government and parliamentarians on the challenges and opportunities facing our sector (including the Senate Inquiry) is welcomed by the WFA board. It is unprecedented and we remain confident that it will result in the necessary reforms being put in place.” The Riverland Wine Weekly Roundup said the Senate Inquiry had been an opportunity for the Australian wine industry “to speak with one voice in a forum with the capacity to make strong, unambiguous recommendations to our Federal Government around reforms that would move our industry forward”. But this wasn’t achieved through the 41 submissions, nine supportive documents and three days’ worth of hearing transcripts that informed the Senate Inquiry. “If (the industry) can’t pull ourselves together and speak with one voice we will continue down the pathway of self-harm,” said the Riverland Wine Weekly Roundup. “To avoid that outcome there must be active listening and compromise on all sides. The Australian wine industry is only partly about individuals and international businesses. For all those who have their own ‘hard earned’ invested it’s about communities in regional Australia; it’s about jobs; it’s about exports; it’s about generating wealth for all those who put their livelihoods on the line and for all the extras who are employed, mainly in regions across the country.” Senator Anne Ruston was one of five Senators who moved to establish the inquiry (but did not participate in it due to her promotion to the role of Assistant Minister of Agriculture

14 Grapegrower & Winemaker

1. Keep the WET rebate in line with the original policy intent of delivering long-term benefits to industry and tourism in regional Australia; 2. Stop the rebate going to unintended recipients and shut down the schemes; 3. Phase out the WET rebate on bulk and unbranded wine over four years to advance strong brands that command consumer loyalty and profitable margins to reinvest back into regional Australia; 4. Abolish the separate New Zealand rebate arrangements that provide preferential treatment to NZ wine producers and replace it with a level playing field for all claimants, irrespective of nationality; 5. Encourage winery consolidation, where appropriate, by introducing transitional WET rebate measures that allow the separate rebate entitlements of the merging entities to be phased down to one entitlement over four years; 6. Return $44m of government savings from these reforms to industry to boost marketing of Australian wine to grow export demand; 7. Provide industry support to assist those impacted by the changes; 8. I recommend an effects test in respect of abuses of market power; 9. I recommend divestiture laws as a penalty in cases of abuse of market power; and 10. I recommend an overhauled and strengthened mandatory code of practice to provide protection to growers and wine makers from unconscionable practices and abuses of market power. and Water Resources in September) and when she outlined her ambition for the inquiry in 2015 she spoke of bringing people together to get the industry to agree on the responses to big issues. Now Ruston has the final report it is her job to help form the government’s response, and she remains committed to “focus on what we agree on”. “We know people want the same outcomes, we just need to be big enough and mature enough to have the debate about how to reach them,” she said. “We have to find or create a structure for the long term, not focus on ruling things in or ruling things out. I think if we stay focused on the outcomes we all want and then work back we can achieve good policy settings.” The Senate Inquiry began with an ambition to assess Government policy adjustments that might facilitate improved profitability in the wine industry. But the huge diversity of opinion that was offered from the industry helped fuel four separate lists of recommendations. It seems unlikely that meaningful reform is any closer now than it was at the beginning of the Senate Inquiry process. The industry now has to wait to see how the Federal Government responds. To read the committee report, the supportive documents and the transcripts of the hearings head to www.aph.gov.au/ Parliamentary_Business/Committees. Find the ‘Senate Standing Committees on Rural and Regional Affairs and Transport’ page and search the ‘completed inquiries’ for Australian grape and wine industry.

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March 2016 – Issue 626

REGIONAL ROUNDUP

Regional roundup – South Australia The South Australian wine industry has been creating national news this past month with grand openings and government-funded support for small business. Emilie Reynolds reports.

Bottling plant to create ongoing SA jobs. A NEW $55MILLION wine bottling facility is expected to provide up to 50 jobs when it is completed and another 120 during construction, according to the South Australian Government. Australian Global Wine Services, in conjunction with Red Capital Pty Ltd, have announced plans to construct a large bottling, storage and container facility at Port Adelaide, which would cater predominately to the wine industry. Stage 1 of the facility is expected to be completed in late October/early November this year. Ashley Wright, Australian Global Wine Services executive consultant, said he had been delighted to work with

Investment Attraction South Australia in securing this investment. “The Port Adelaide location meant the new venture would be ideally situated for import and export activity and close to interstate rail services,” Wright said. “This unique access will help eliminate some double handling and financial issues caused by current production processes“We are building this for the Australian wine industry to bring a competitive edge to the exporting and importing community. “By increasing efficiency in transport, location and production we may be able to reduce the bulk export requirement that is so prevalent today on the international

stage. We’re also aiming to reduce lead times so as a major wine producing nation Australia can compete and be more reliable to our customers both domestic and international. “South Australia the leading wine producing state for both bottled and bulk product, however a large volume of the production has been exported in bulk for bottling offshore, so it was time for someone to bring this valueadding process and associated jobs back to Australia.” Wright said the new facility would incorporate renewable energy and water recycling, utilising best-practice methods for sustainable, “green” production.

New tasting room inspired by the Napa Valley BERESFORD WINES launched its ‘tasting pavilion’ in February in the heart of the McLaren Vale. The facility offers a premium wine and food experience – with three tiers of wine available for tasting, matched with local, seasonal produce. Angelo Kotses, managing director of parent company Bickford’s Australia, said the ‘tasting pavilion’ was the result of extensive research into successful wine businesses from across many regions. “We travelled the world to see many wine regions and discovered McLaren Vale needs a tasting space that showcases what wonderful wines we have here at Beresford,” Kotses said. “We make great wine. We bottle great wine. We’ve got a wonderful estate. We need to showcase what we have and we need to give people the opportunity to experience it.” Leon Bignell, SA Tourism Minister and the local Member of Parliament, spoke at the opening, commending the

Beresford Estate’s new tasting pavilion in McLaren Vale.

Beresford team on creating a unique drawcard for South Australian tourism. “I love that we have this brand asset for our McLaren Vale region,” he said. “It is a stunning building which shows that McLaren Vale is truly blending the old with the new.” Bignell said the Tasting Pavilion added value to the McLaren Vale wine region

and rivalled successful wine businesses in California’s Napa Valley. “This is like the Napa Valley and that’s where we need to be aiming,” Bignell said. He also praised Beresford’s decision to charge for wine tastings, and said it should be the way of the future in the state’s wine community.

Funding for small wine producers THE SOUTH AUSTRALIAN Wine Industry Association (SAWIA) has announced a new program to support small wine businesses through education and support. The Agribusiness Growth Program is aimed at small wine businesses with a turnover between $300,000 and $1.5 million who are ready to grow their March 2016 – Issue 626

business but not sure where to start, The program aims to accelerate business growth through expert business evaluation and coaching services for activities that will have a direct impact on your growth. SAWIA will undertake the delivery of the Agribusiness Growth Program for the wine industry on behalf of the South www.winetitles.com.au

Australian Government through Primary Industries and Regions SA (PIRSA) to support eligible small wine businesses. The number of evaluations and coaching sessions is limited by the availability of funding and is available until 30 June 2016. Applications will be processed on a first come first served basis. Grapegrower & Winemaker

news

Chinese wine drinkers drive export growth AN INCREASE in the number of Chinese wine drinkers buying imported wine ‘off-premise’ and consuming it at home is helping to drive the sale of Australian wine in China. A three-year study by the University of South Australia’s Ehrenberg-Bass Institute for Marketing Science funded by Wine Australia is nearing completion and has found the number of people buying imported wine in China and their frequency of consumption was on the rise. Larry Lockshin, Professor of Wine Marketing at Ehrenberg-Bass, leads research into marketing related to consumer choice, packaging and retailing, and is an acknowledged specialist in all aspects of the Australian and global wine business. He said the “surprising” growing offpremise trend represented an opportunity for the Australian wine industry. “It was assumed when we started this project that on-premise, especially western restaurants in China, would be the driving force behind wine consumption but what we’ve seen over the survey is that more wine is being consumed off-premise, which means people are buying it online, in wine shops and to some degree grocery stores than the last few years,” Lockshin said. “People are moving from wine as purely a drink for formal occasions where eight or 10 people would share a bottle by having a “little teeny glass” each at a special occasion like a wedding or business function. Then the occasions started to become less formal. “That’s the part where the Australian wine industry needs to ask itself ‘what kind of retail channels are going to access that growing trend’. Lockshin said the opportunity was there but it’s not going to be a pot of gold without work. “Build your brand, build it slowly, sustainably, know who you are selling

#V16 & #vintageaus

SWEET TWEETS

The vintage tweets have been steady, but there has been a noticeable lack of ‘best vintage ever’ claims (although we did spot one ‘best in a decade’).

16 Grapegrower & Winemaker

Frequency of consumption is rising rapidly for people consuming wine off-premise, even three years ago that wasn’t a major thing people were saying when asked why they were buying wine. to, pay attention to your labelling and pricing, spend some time to make it work,” he said. The University of South Australia study included six surveys of Chinese buyers of imported wines conducted over the three-year span of the project. The latest survey results – the fifth of the six – found 52 per cent said they drank wine at home for a relaxing drink once a week or more often, 46 per cent said they consumed wine once a week or more often with an informal meal at home, while more than half the people in the most recent survey drank wine at special occasions at least once every two months. Dr Justin Cohen, Postdoctoral Research Fellow in Wine Marketing at the University of South Australia, who has made several trips to China during the project, said wine had shifted from being just a special occasion experience to being a more everyday product. “Frequency of consumption is rising rapidly for people consuming wine offpremise, even three years ago that wasn’t a major thing people were saying when asked why they were buying wine,” Cohen said. “One of the things that we’re starting to counsel wine brands about is if you make your product all about special occasions, that limits you entering the headspace of a potential consumer,” he said. “But if you’re also saying ‘we’re an approachable product from Australia, we’re a clean, green, safe place with a great lifestyle’ then you’re probably more likely to enter the consideration set for

purchase occasions that happen more frequently.” Cohen said Australian wine brands were doing a good job of educating people in China about their wine but they needed to shift their focus from the sommeliers and masters of wine to the uninitiated. “If you look at our sample, which is people who are regular drinkers of imported wine, only two thirds of them actually know that Australia makes wine, 48 per cent of them know about the Barossa Valley, shiraz – our most iconic grape variety – is only known by 28 per cent of people who are regular drinkers of imported wine,” Cohen said. “I think one of the challenges is before we start getting into this whole idea of ‘what do we want to communicate about Australian wine’ we have to make sure that people have even heard of us – there’s people that don’t even know that we exist. “France is dominant but probably the biggest surprise to most people is that the Chinese actually have a very large domestic industry – four out of five bottles of wine sold in China are in fact Chinese produced. “Ultimately we are going to grow the Australian category in China by acquiring new wine drinkers and that’s probably going to start more at the entry level than at the very sophisticated knowledgeable level.” The three-year project is in its final stages and a comprehensive report will be tabled for Wine Australia later this year.

Hanging Rock Winery @HangingRock (Jan 28)

The first nets are on our Jim Jim vineyard in #macedonranges I promise we’re not making this up! #v16 #coolclimate John Duval @JohnDuvalWines (Feb 8)

A grape or two and a kangaroo... JD’s 43rd Barossa vintage has begun with Marsanne and Shiraz #barossa #v16 Darryl Catlin @winodaz (Feb 14)

Winery in full swing of vintage and it hoses tanks presses and all - organised chaos #v16… Yarra Yering @YarraYering (Feb 16)

The first #Pinot crush is away into vat #lucky88 #v16 #vintageaus www.winetitles.com.au

March 2016 – Issue 626

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Vineyard and winery acquisitions Property transactions have been making news in both Australia and New Zealand in early 2016. Representatives of the companies making purchases, or securing long-term leases, have indicated positive trading conditions have been a big factor in their expansion plans.

Howcroft Vineyards acquired by Australia’s largest family-owned wine company a "highly-contested" sale CASELLA FAMILY BRANDS completed a purchase of Howcroft Estate Vineyards in South Australia’s Limestone Coast region in early 2015, reportedly for more than the $9million asking price. Howcroft Estates, comprising two properties managed by Seven Fields, was put up for sale in September last year by Sandhurst Trustees on behalf of a syndicate of investors. The sale was facilitated by Colliers International and the investment by Casella Family Brands was $22,000 per planted hectare of vines. “We were surprised at how highly-contested the sale was, which augers well for other vineyard sales this year,” said Tim Altschwager, Colliers International agribusiness director. The Howcroft Vineyards are located near Bordertown in the northern reaches of the Limestone Coast zone and are among the largest commercial vineyards in the district. “Howcroft Vineyards 1 and 2 were developed from 19982000 and are highly productive, planted to a mix of premium varieties suited to the Limestone Coast Zone,” Altschwager said. The sale included a grape-supply agreement with Australian

Vintage Limited for roughly half of the fruit supply according to Altschwager. The acquisition continues a strong period of expansion for Casella, which in December acquired Coonawarra’s Brand’s Laira business and winery from McWilliam’s Wines; and in November 2014 completed the purchase of Peter Lehmann Wines in the Barossa for $57million. John Casella, the managing director at Casella Family Brands, said the business was performing strongly, and had benefitted from a falling Australian dollar. “We’re travelling very well,” John Casella said. Earlier this year John Casella said he expected improved earnings as unfavourable currency hedges wind down and his company locked in the weaker exchange rate with new contracts. “We are very profitable today and are going to be even more profitable this coming year as that hedging wears off and we begin to take advantage of the low currency,” he said. More than 90 per cent of Casella’s sales are exports, with Yellow Tail generating annual sales of 12.5million cases.

Pemberton winery Salitage Estate sells for $2.85m

A WESTERN AUSTRALIAN investor has secured a footprint in the state’s wine industry, after acquiring the award-winning winery Salitage Estate for $2.85 million. Located in the cool climate region of Pemberton, the winery and vineyard is set on a 51 hectare landholding and has almost 23 hectares of vineyard planted to Cabernet Sauvignon, Pinot

Noir, Chardonnay and Sauvignon Blanc. The property also includes a custom-built winery, cellar door and four accommodation suites as well as additional staff accommodation. Phil Melville and David Kennedy from commercial real estate company CBRE, in conjunction with VNW, a local WA real estate business which specialises in rural property, negotiated the sale on behalf of receivers Ferrier Hodgson. Melville said the sales campaign attract strong buyer interest from both local and offshore parties. “The opportunity to acquire one of the south-west’s most well-known wineries was met with strong market interest, with a number of enquiries from foreign investors looking for an opportunity to reallocate capital into Australia’s agribusiness market,” Melville said. “There was also a strong level of Australian interest in the asset, with the successful buyer a local investor from WA.” Melville said the property represented a unique opportunity to acquire an outstanding property with quality infrastructure.

Invivo secures historic 114-year-old NZ winery NEW ZEALAND’S Invivo Wines has secured a long-term lease and full control of an historic 114-year-old winery south of Auckland in Te Kauwhata. The winery was first designed and constructed by the New Zealand Government in 1902 as the country’s first viticulture research station and was originally headed by industry pioneer and viticulturist Romeo Bragato.

18 Grapegrower & Winemaker

Tim Lightbourne, Invivo co-founder, said he was looking forward to adding another chapter to the winery’s long history. “It’s exciting to be taking over the place where Romeo Bragato made some of New Zealand’s first export wines. The guy’s a legend. Winemaker, innovator and exporter. The history of the place and the great stories that have been documented also really appealed to us.

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March 2016 – Issue 626

“This is a piece of Southern Hemisphere wine history. So it’s great that we can continue the winemaking story there and it won’t be used for any other means or property developments.” The lease will give winemaker Rob Cameron even greater creative control and an on-site bottling plant will turn out up to 12,000 bottles a day of Invivo’s award-winning Sauvignon Blanc, Pinot Noir, Chardonnay and other New Zealand varietals. “We plan to respect the historic features but also add extra capacity to support our growth plans. We are honoured to keep this historic winery operating and continue the legacy, when otherwise it would’ve had to close its doors,” Cameron said. “I’ve also got my eye on the enormous copper still. Who knows what we could make in that beast!” After the New Zealand Government’s ownership, the winery was operated by Rongopai wines from the 1990s until 2007. It was then recently run as a contract winemaking and bottling facility where all winemaking and bottling equipment has been upgraded to modern winemaking specs. As well as this new venture, Invivo has invested in product development, further staff and marketing, and is already working with Graham Norton on the 2016 Sauvignon Blanc

– which will be among the first Invivo wines to be made and bottled at the 114-year-old facility. Invivo will still be sourcing grapes from Marlborough, Central Otago and Gisborne but these will be transported to the new winery where all the winemaking and bottling will occur. “Our business model has always been to invest in our brand and the markets we work in, and in doing so source our grapes and winemaking through contract growers, wineries and bottlers,” Cameron said. “This model has worked extremely well for us over the years but we always knew that at a certain size the economies of scale in having some or all of our production handled ‘in house’ would make sense financially. “We plan to grow the capacity of the winery significantly this year, and with this we expect the return on this investment to be substantial. “Having our own bottling facility and centralised logistics around one site will also hugely increase our efficiency in production and getting wine to our customers. From a winemaking perspective, this is our new home, where all our wines will be made, where we can experiment and refine.”

Indevin snaps up Winegrowers of Ara vineyards in Marlborough ARA AND INDEVIN have reached an unconditional agreement for Indevin to purchase Ara’s existing vineyard and landholding in Marlborough. The vineyard is located in the Waihopai Valley, south-west of Blenheim, and consists of about 600 hectares of existing vineyard and roughly 900 hectares of bare land suitable for viticulture. Indevin will offer ongoing employment to the existing vineyard team and is looking forward to the ongoing development of this exceptional Marlborough vineyard. Winegrowers of Ara, owned by the Todd family, has retained the Ara Brand and associated business and the Sale and Purchase Agreement includes a provision for supply of wine to Ara by Indevin. Neither company would comment on the sale price, however

New Winemaker Joins Claymore Wines CLARE VALLEY’S Claymore Wines welcomed Marnie Roberts as its’ new winemaker in time for vintage 2016. She has been involved in crafting some great wines in previous roles and is looking forward to taking over the winemaking reins at Claymore. Given Claymore’s continuing growth in the market place, Roberts plans to keep making the same outstanding quality but already has a few ideas as to how the wines might be developed further. “I am really looking forward to working with the passionate team at Claymore Wines. Our aim is to grow exceptional fruit and produce wines that are unique to the Clare Valley and that over-deliver in value,” Roberts said. The winemaker grew up on her parents’ vineyard in Mildura and worked at Buronga Hill Winery and Salisbury, an Evans and Tate company. Her formative years were spent travelling for vintage work, including a year in the Sonoma Valley and two years at Haselgrove in McLaren Vale before moving on to Kirrihill, Clare, in 2008 where she remained for eight years. In her new role at Claymore Wines, Roberts will have oversight of all vineyard and winemaking operations. The winemaker has exceptional hands-on experience in all facets of winemaking and studied Oenology at Charles Sturt University. She has also been an associate judge at the Clare Valley Wine Show. March 2016 – Issue 626

UK trade publication The Drinks Business speculated the deal could be potentially worth £130 million (NZ$283 million) based on the average cost of a planted vineyard in Marlborough. Duncan McFarlane, Indevin CEO, said he looked forward to the development of an “exceptional Marlborough vineyard”. Indevin owns, or holds long-term leases, on extensive vineyard properties in Marlborough, Gisborne and the Hawke’s Bay.

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The biggest players in the Australian wine industry THIS YEAR’S RANKING of Australian wine companies by revenue has remained largely unchanged from the previous year, with Treasury Wine Estates remaining in top spot. Pernod Ricard Winemakers occupy second spot on the list compiled by the 2016 Australian & New Zealand Wine Industry Directory. While the top five remain unchanged from 2015, McWilliam’s Wines Group moves up one place from last year jumping above De Bortoli Wines, which moves down one place. Brown Brothers Milawa Vineyard and The Yalumba Wine Company both dropped down one place from last year, while Angove Family Winemakers jumped two places and Kingston Estate Wines was up one spot. #

TOP 20 by total revenue:

Treasury Wine Estates

Pernod Ricard Winemakers

Accolade Wines

Casella Family Brands

Australian Vintage

McWilliam’s Wines Group

De Bortoli Wines

Warburn Estate

Brown Brothers Milawa Vineyard

The Yalumba Wine Company

Tahbilk Group

Angove Family Winemakers

Kingston Estate Wines

Qualia Wine Services

Wine Insights

Andrew Peace Wines

Littore Family Wines* (Idyll Wine Company Pty Ltd)

Zilzie Wines

Berton Vineyards

Wingara Wine Group

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The big movers on the list include Wine Insights, which now owns Cumulus Wines and Beelgara Wines, a new entrant to the top 20 winemakers by revenue at position number 15. Andrew Peace Wines has seen a quick jump, up five places on the previous year, while Qualia Wine Services continues to rise (up one place) from a position outside of the TOP 20 list just four years ago. Accolade Wines remains comfortably on top of the list of Australia’s largest wineries measured by winegrape intake, at close to 285,000 tonnes. In this area, Accolade is the largest company by a wide margin, however Casella Wines is closing the gap, lifting its winegrape intake by 8.6% in the past year to 179,805 tonnes and overtaking Treasury Wine Estates. The acquisition of Peter Lehmann Wines in late 2014 was a key factor in Casella’s improvement in the ranking. Pernod Ricard Winemakers climbed to fourth ranked position by overtaking Australian Vintage, which reported a decrease from 124,000 to 114,000 tonnes. Kingston Estate Wines and De Bortoli Wines were unchanged at sixth and seventh position respectively, with De Bortoli now within striking distance of improving its position next year. Lower down the order, a number of producers reported significant growth in their winegrape intake, despite flat conditions overall. Zilzie Wines was the biggest improver, lifting winegrape intake by 26.5% to 43,913 tonnes and boosting its ranking by two positions. Andrew Peace Wines, Salena Estate and Brown Brothers also reported strong growth. With both Accolade and Casella making significant acquisitions in the past year, consolidation of the industry at the top end continues to be a much talked about trend. However, growth by a number of medium sized companies has counterbalanced consolidation at the top of the industry, as shown by a slight decrease in winegrape intake by the top five companies from 52.0% to 51.7%. www.winetitles.com.au

TOP 20 by winegrape intake:

Accolade Wines (284,636 tonnes)

Casella Wines (179,805)

Treasury Wine Estates (165,621)

Pernod Ricard Winemakers (NA)

Australian Vintage (114,000)

Kingston Estate Wines (69,000)

De Bortoli Wines (65,000)

Zilzie Wines (43,913)

Qualia Wine Services (40,000)

Warburn Estate (37,500)

McWilliam’s Wine Group (33,543)

The Yalumba Wine Company (30,280)

Andrew Peace Wines (27,750)

Salena Estate (25,761)

Angove Family Winemakers (19,686)

Littore Family Wines (NA)

Berton Vineyards (16,353)

Brown Brothers Milawa (14,466)

Wingara Wine Group (13,571)

20. Wine Insights (NA)

The league table of Australia’s largest wine companies by total wine production mirrored the changes in winegrape intake. Accolade extended its lead at the top of the table, while Casella Wines overtook Treasury Wine Estates. Zilzie Wines was one the biggest movers, up from 11th to 9th position. Treasury Wine Estates remained the giant of Australian wine companies in terms of vineyard area, with 9,133ha under vine or almost three times its next biggest competitor, Australian Vintage with 2,700ha. Most companies reported steady or increased vineyard areas, which is difficult to reconcile with recent ABS data showing a 9% decrease in total vineyards. March 2016 – Issue 626

Australia’s largest wine companies

Notable moves in the past year included McWilliam’s Wines, up from 895 to 980ha, Andrew Peace Wines, up from 400 to 565 ha, and De Bortoli Wines, up from 820 to 845ha. The latest Wine Industry Directory survey found a decrease in the number of commercial wine companies for the second consecutive year. The number of companies deceased by 13 in the past year, bringing the decline over the past two years to almost 100. However, the number of wineries is still well above historical averages, and within 4% of the peak of 2,573 in 2014. These are surprisingly buoyant numbers given the low profitability across the industry, and suggest that more reductions could lie ahead. The change in the number of wine producers was uneven around the country. Numbers increased slightly in South Australia, Victoria and Tasmania, but were lower in other states and territories, with Queensland down from 85 to 79, WA down from 366 to 358 and NSW/ACT down from 469 to 463. Victoria remains the largest state by number of wine producers.

SALES ENVIRONMENT The domestic market remains the largest for Australian wine, accounting for 40% of sales. However, the volume of Australian sales in the domestic market has been relatively flat over the past four years. The Australian category has faced increasing pressure from imports, particularly from New Zealand but also from France, Italy and Spain. An increase in export performance will help relieve some of the competitive pressure on the domestic market and the lower exchange rate may see a decline in imports. Australian wine exports grew at the strongest rate in more than a decade in 2015 thanks partly to the easing of the exchange rate and subsequent boost to global competitiveness. Exports by value increased by 7.8% while volumes increased by 4.9%, according to the Wine Export Approval Report September 2015, released by Wine Australia. While March 2016 – Issue 626

TOP 20 wine producers by vineyard area:

Treasury Wine Estates (9133ha)

Australian Vintage (2700)

Littore Family Wines (1850)

Pernod Ricard Winemakers (1662)

Kingston Estate (1500)

Seppeltsfield (1078)

Warburn Estate (1017)

Accolade Wines (1002)

McWilliam’s Wines Group (980)

De Bortoli Wines (845)

The Yalumba Wine Company (820)

Brown Brothers (787)

Qualia Wine Services (690)

Zilzie Wines (587)

Andrew Peace Wines (565)

Wine Insights (508)

Taylors Wines (483)

Robert Oatley Vineyards (468)

Shaw Family Vintners (430)

Tahbilk Group (421)

export activity lifted strongly, the average value of Australian wine exports per litre increased by only 3% from A$2.60 to A$2.67. This is consistent with commentary from many local companies that overseas markets remain fiercely competitive and the Australian dollar depreciation has not been a windfall for local producers as they try to build overseas sales. Australia exported wine to 123 countries, with the value of wine exports rising in 78 countries in the year to September 2015. With the recent addition of Hong Kong, Australia now has five markets valued at more than A$100 million – a first for Australian wine exports. The US remains Australia’s most valuable market, with exports of A$427 million. www.winetitles.com.au

In the 12 months to September, value declined by 4%, but the most recent quarter produced promising growth – particularly in the upper price segments. The UK was the largest market by volume and second by value, with exports worth A$370 million (down 2%). China was again ranked third at A$313 million (up 47%), followed by Canada valued at A$189 million (up 4%) and Hong Kong valued at A$118 million (up 24%). Export figures by wine type and container type highlight the emergence of bottled reds as a rapidly expanding sweetspot for Australian producers. Exports of bottled red surged ahead by 9.2% in terms of volume, overtaking bulk reds and bulk whites to become the largest export category. The value of bottled red exports grew at an even faster pace, up 14.6%, with the assistance of solid price increases. The average value per litre of bottled reds increased by almost 5% to A$5.55, in contrast to declining average values per litre in every other category. The Wine Industry Directory’s own data, collected from its long-running annual survey of Australian wine producers, shows that Accolade Wines overtook both Casella Wines and Treasury Wine Estates to become the largest exporter by volume. Accolades’ export volumes were boosted significantly by the acquisition of Grant Burge Wines. Lower down the order, a number of winemakers enjoyed an improved ranking by virtue of the exit of Grant Burge Wines and Peter Lehmann Wines from the rankings. However, a number of winemakers also lifted in their own right, including Yalumba Wine Company, Nugan Estate, Wingara Wine Group, Brown Brothers and Zilzie Wines. In terms of exports by value, Treasury Wine Estates remained on top of the list. Andrew Peace Wines, De Bortoli Wines and Berton Vineyards each improved their ranking by two places, while Brown Brothers jumped from 17th to 12th position following a strong increase in exports by value. Grapegrower & Winemaker

Positive vibes return, attention now focused on sustainable success Nathan Gogoll investigates the ‘state of the industry’ “THE FEEDBACK from across the industry, not just those selling fine wine – but universally, is far more positive… more business deals, more travel, more open doors and conversations,” said Paul Evans, the outgoing CEO of the Winemakers’ Federation of Australia. “In a general sense Australian wine is coming back into favour, it is a place of interested again. Jancis Robinson talking up Australian Chardonnay has been one example of that. “Wineries are starting to have a lot of really good conversations with people who previously wouldn’t return the calls. “Anecdotally, I’m hearing a lot of positive discussion from the key decision makers. It is hard to quantify, but it is there. The vibe is a lot more positive than when I started at the WFA in 2012 and I hope we grasp the opportunity. “It’s all good, we just want to see more of it and make sure it’s structural and not cyclical.” The positivity throughout the industry is helping to ease what John Casella said was “the pain of oversupply” that had been “shared by everybody”. The managing director of Casella Family brands said there have been quite a few reasons that people are more upbeat, but the value of the Australian dollar was very important. Yet Casella stressed he’s not sure the favourable exchange rate would be “the cure-all for getting growers back into the sustainable profitability they need”. Andrew Weeks, the executive director of Wine Grape Growers Australia (WGGA), said he had also had conversations with wine companies and heard the positive news, “but I don’t think anybody is making any more money just yet”. “And this can be really frustrating for grapegrowers and very hard to figure out and get a handle on,” Weeks said. “We’ve seen grape prices become a real mixed field across the regions and it might be shaking out on a product basis at the moment – Shiraz from the Barossa looks an extremely good bet, for example, and we have even heard of some wineries drawing up three-year contracts again. “On the supply and demand balance I think there’s a real ‘catch 22’, Australia should probably produce a bit less wine to take the pressure off – but that impacts on the efficiency of the big wineries as well as things like the funds delivered to research and development.” Paul Evans acknowledged the positivity isn’t felt across every part of the industry, “we are aware the story for our grapegrowers hasn’t improved yet”. As Matthew Moate, the executive officer of Wine Industry Suppliers Australia (WISA), pointed out – the true indication of industry positivity would be “extra money coming into the industry that flows through the whole value chain for the benefit of wineries, grapegrowers and suppliers”. “Of course even if there is more positivity across the industry

Grapegrower & Winemaker

Anecdotally, I’m hearing a lot of positive discussion from the key decision makers. - Paul Evans, Winemakers’ Federation of Australia CEO

we don’t necessarily expect that our members to generate more income from providing the same number of products or level of service. But we are certainly seeing the optimism and we hope this reaches all areas of the industry.”

SIZE AND SHAPE OF THE INDUSTRY Independent economic research commissioned by Wine Australia has revealed the Australian wine sector contributes $40.2 billion to Australian economy (the total reflects both the direct and indirect contribution of the Australian wine sector to the national economy). The Australian wine sector – defined as winegrape growing, winemaking and wine-related tourism: • Supports more than 172,000 full- and part-time jobs, most of which are located in regional Australia; • Contributes 19.7 billion in value (value-added or the difference between the cost of goods and their sale price); and • $10.4 billion in wages and salaries from full- and part-time employment. (Please note: These figures do not capture margins on wine sales through wholesale, retail and restaurant sales.) Andreas Clark, CEO of Wine Australia, said it was good to see the wine sector’s contribution to the Australian economy quantified. “Wine is a unique, high-quality product created in Australia’s 65 wine regions by highly skilled winegrape growers and winemakers. We welcome the recognition of the wine sector’s contribution to the Australian economy,” Clark said. “The wine sector brings together agriculture, sophisticated production and tourism. It is pleasing to see that wine-related tourism accounts for 15.8 million domestic visitor nights and 44.2 million international visitor nights. An integral part of Australia’s tourist offering, wine-related tourism contributes $9.2 billion to the economy.” The report, Economic Contribution of the Australian Wine Sector by AgEconPlus and Gillespie Economics, shows direct employment in the wine sector of 68,395 full- and part-time jobs and a further 104,341 indirect full- and part-time jobs. Income from both direct and flow-on employment in the wine sector totals $10.4 billion.

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March 2016 – Issue 626

Australia’s largest wine companies

Importantly, the report also includes the average effects of a contraction or expansion within the wine sector, suggesting: • The wider economy would gain an extra 1.53 jobs for every job gained in the wine sector; • The economy would gain an extra $2.01 million for every additional $1 million of gross output generated by the wine sector; and • The economy would gain an extra $2.17 million in contribution to value-added for every additional $1 million of value-added generated by the wine sector.

2015 VINTAGE The 2015 Vintage Report estimated the annual intake was 1.67 million tonnes, an increase of 0.4% from the previous year. The latest figure is just below the eight-year average of 1.70 million tonnes. The slight increase in overall crush was attributable to Riverina’s increase in yields, offset by lower yields in Murray Darling and most cooler temperate regions. Close to 80% of the 2015 crush (1.33 million tonnes) was estimated to have been processed by the 20 largest Australian wineries. Profitability analysis by WFA revealed worrying trends for the industry, despite a strong lift in exports, the signing of Free Trade Agreements and strengthening consumer demand. The proportion of all production that is unprofitable is estimated

SUPERSTART

But I don’t think anybody is making any more money just yet. - Andrew Weeks, Wine Grape Growers Australia executive director

to have risen slightly from 84% in 2014 to 85% in 2015, while profitable production (defined as a profit of greater than $300 per tonne) decreased to only 6%. The WFA believes there is a structural mismatch between supply and demand at profitable price points, and that better informed business decisions are needed.

SO WHAT HAS CHANGED? This time last year Australia’s biggest wineries were still in ‘batten down the hatches’ mode, looking at their own business models and working to find efficiencies. The indications from the TOP 20 feature of 2015 were wineries were looking to focus on higher-value brands (Casella Family Brands and Accolade Wines had even gone out and purchased additional premium brands) and target key export markets despite the hurdle of an unfavourable exchange rate. Senator Anne Ruston, the Assistant Minister for Agriculture

NATURAL YEAST OPTIMISATION

SUPERSTART® Blanc

March 2016 – Issue 626

SUPERSTART® Rouge

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Grapegrower & Winemaker

The Australian dollar devaluation has had signiﬁcant impact; the trade arrangements; and people are starting to make some decisions realising that reliance on the domestic market is not going to be a good model for the longer term. - Senator Anne Ruston, the Assistant Minister for Agriculture and Water Resources

and Water Resources, said improved export conditions were directly linked to today’s more positive vibe. “The Australian dollar devaluation has had significant impact; (as have) the trade arrangements; and people are starting to make some decisions realising that reliance on the domestic market is not going to be a good model for the longer term,” Ruston said. “Like anything, it’s all about momentum – giving people confidence. Hopefully the early signs, these export trade figures being as positive as they are, will give the confidence to the industry that the international marketplace is where they should be putting their energy.”

EXPORT MARKETS Evans said export figures were “all going in the right direction” but he wanted to see another 12 months of growth before he would declare it a recovery. Asia has been the stand-out growth region for Australian wine exports. China is the major Asian market and volumes are on the rise after austerity measures caused a slowdown in the imported wine market in the previous 18 months. China remains the number one destination for Australian exports priced at over $7.50 per litre. Opportunities do exist across the broader Asian market outside China, with different levels of maturity and accessibility across our focus markets of Japan, Hong Kong, Singapore, South Korea and Taiwan. These countries display relatively high wine consumption for Asia and this translates into a greater expertise in wine and potential for genuine appreciation of Australia’s wine offer. In June, Asia (including China) became the number one region for Australian wine exports by value. Spurred by a series of successful free trade agreements and increasing disposable incomes, exports increased by 31% in the 12 months to September to $644 million. Yet the United Kingdom remains the biggest export market. While growth wasn’t as impressive in the UK as Asia, for the year ended March 2015 exports grew by two per cent and were valued at more than $370 million. The strongest growth to the UK was achieved above $10 per litre. According to the Wine Industry Directory, the UK can be regarded as a “defend” market, as Australia has been the number one category in the UK off-trade market for more than a decade. Europe still accounts for more than half the volume of Australian wine exports and growth to the region has been

Grapegrower & Winemaker

solid – exports to Europe (excluding UK) grew 10% from 201314 to 2014-15. Wine Australia’s strategy in Europe is to target key markets where it can deliver an educational message in addition to trade and consumer tastings. The US remains a substantial but largely unrealised opportunity for Australian premium wine. The US is the largest premium wine market in the world and it continues to grow. Australia is seeing some recovery at the premium end of the market but has a significant way to go. Australia’s image as a low-cost value producer continues, which is understandable given 95% of Australian exports to the US are below $5 per litre. Shiraz remained the most favoured exported variety, with value increasing 8% to $410 million. However, Cabernet Sauvignon recorded stronger growth, increasing in value 23% to A$236 million. The average value per litre of Cabernet Sauvignon rose 9% to $5.64. Cabernet Sauvignon/Shiraz blends showed even better growth still, increasing in average value per litre by 41% to $16.87, to command the highest value per litre. Sales to China were the primary driver behind this trend. Chardonnay remains the most popular white variety, despite a 3% decline in value to $167 million due to declining exports to the US. Sauvignon Blanc exports increased 7% in value to $31 million. The UK and US were largely responsible for the growth, importing 62% of all Australian Sauvignon Blanc

DOMESTIC MARKET Unfortunately, export success has not been matched in the domestic market, where sales are estimated to have declined by 2.5% in the year to June 2015. The decline was led by white wine (down by 4.1%) and the much smaller category of sparkling wine (down 6.0%). Domestic sales of red wine were almost steady, down 0.5%. This was the continuation of a downward trend observed for at least the past five years. On first inspections both imported wine sales growth and a decrease in wine consumption seem to explain the figures – but these are not the only factors. Evans said the domestic market remained “incredibly difficult”. “Domestic sales have recorded below inflation price rises for the sixth year in-a-row. Obviously that is a recipe for shrinking margins,” he said. “Even winery cellar doors have been affected because domestic tourism was hit by the high dollar and we saw that a lot of Aussies went overseas for their holidays. We’re also seeing state government cellar door subsidies coming to an end across the country.” The volume of Australian wine imports continued to grow in the year to October, increasing by 3.9%. White wine remained the most popular import, but now makes up a significantly smaller share of all wine coming into country than it did just a few years ago (down from 69% in 2011 to 43% in 2015). Red wine imports increased by 8.5%, but the driving force behind the overall growth in imports was due to surging demand for overseas sparkling wines – up 13.5%. Growth in the value of imported wine continued through a fourth consecutive year – up 42% from $487 million in 2011. The data suggests that reduced price points for many imports have been a key driver of demand from Australian consumers. New Zealand remains the leading source of imports, selling

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March 2016 – Issue 626

Australia’s largest wine companies

$340 million worth of wine to Australians in the latest year, up 1.6% from the previous year.

SUMMING UP “Things have been heavily weighted to Asia and we still have issues in the US market, but the recent trend is good,” Evans said. “We have to ensure the wine is being sold to consumers, not just being warehoused, so only time will tell whether this represents a shift in consumer demand. “We would like to see consistent growth across all our export markets, we need to be firing in all the major markets and, of course, it needs to be sustainable. But we have seen four positive quarters, but let’s get that out to 24 months then we will be able to call it a positive shift. “There are always exceptions, but it is very tough for wineries when we produce a lot more than we domestically consume and we have two retailers that dominate domestic pricing behaviour. “These are all reasons the Winemakers’ Federation is shamelessly for a demand-led recovery in export markets. We think that will have a positive flow-on impact for those focussed on the domestic market place.” Let’s hope the positive vibes flow though to improved profitability.

PREMIUM WINES DESERVE PREMIUM PACKAGING

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Grapegrower & Winemaker

Winejobs data: ‘Sales & Marketing’ jobs most prevalent THE AUSTRALIAN wine and viticulture industry directly employs more than 68,000 people according to a recent report from AgEconPlus and Gillespie Economics. In addition to this big number of full- and part-time jobs the report estimates a further 104,000 people are employed in roles indirectly related to the industry. Data from Winejobs, Australia’s leading wine industry jobs site (www.winejobs.com.au) revealed that almost 30% of all jobs posted throughout 2015 were in the ‘sales and marketing’ sector. (Which could have indicated wine businesses created additional ‘sales and marketing’ roles; or, more likely, there was a higher turnover of staff in this sector compared to other areas of the wine and viticulture industry.) Cellar door job opportunities were the second highest listings at 18%. Followed by jobs listed under ‘viticulture’ (14%) then ‘winemaking’ and ‘management’ which both represented 12% of all jobs advertised. The other significant sector was ‘administration’ with nearly 10% of the listings.

(By way of comparison to the tonnages processed across the country, South Australia accounted for 46% of the 2015 crush; New South Wales 31%; Victoria; 20%; Western Australia 3%; and Tasmania and Queensland combined for less than 1%.) July through to October were the months when most jobs were posted and the most job ads went up during September (12% of all job listings for 2015 were posted in September).

ABOUT WINEJOBS ‘Winejobs’ is a resource for the industry administered by Winetitles Media. As Australia’s leading wine industry jobs site, it seeks to benefit both employers and job searchers. For the employers, the site puts their position in front of the target audience. The site is also proud to offer maximum candidate reach for the most cost effective price. Job searchers looking for wine and viticulture related opportunities can target their search with Winejobs via location, date and industry category. Listings by the location of the job roughly reflected the size of the wine industry in each state. More than 40% of the job ads were for positions located within South Australia; 28% within Victoria; 23% within New South Wales; 6% in Western Australia; 2% in Tasmania and 1% in Queensland.

For more information, contact: P: +618 8369 9500 E: jobs@winetitles.com.au

Accolade Wines Australia Limited, Aravina Estate, Australian Vintage Ltd, Barwick Wines, Beltunga, Bests Wines Great Western, Bremerton Wines, Brown Brothers Milawa Vineyard Pty Ltd, Campbells Wines, Casama Group Pty Ltd, Cellarmaster Group, Charles Melton Wines, Clover Hill Wines, CMV Farms, Coriole Vineyards, Delegats Wine Estate, Delegat’s Wine Estate Limited, DogRidge, Edgemill Group, Fanselow Bell, Five Star Wines, Fowles Wine, Fuse Wine Services Pty Ltd, Gemtree Vineyards, Glenlofty Wines, Harry Jones Wines, Henry’s Drive Vignerons Pty Ltd, Hentley Farm, Hope Estate, Hospitality Recruitment Solutions, Howard Park Wines, Hungerford Hill Wines, Inglewood Wines Pty Ltd, Innocent Bystander, Jack Rabbit Vineyard, Jim Barry Wines, KarriBindi, Kauri, Kingston Estate Wines Pty Ltd, Kirrihill Wines Pty Ltd, Krinklewood Biodynamic Vineyard, L’Atelier by, Aramis Vineyards, Leeuwin Estate, Make WInes Australia, McWilliam’s Wines Group, Memstar, Mondo Consulting, Moppity VIneyards, Moxon Oak, Nadalie australia, Nexthire, Oenotec Pty Ltd, Options Wine Merchants, Orlando Wines, Ozpak Pty Ltd, Patrick of Coonawarra, Plantagenet Wines, Portavin Integrated Wine Services, R&D VITICULTURAL SERVICES PTY LTD, Robert Oatley Vineyards, Rymill Coonawarra, Seville Estate, Stella Bella Wines, Streicker Wines, The Gilbert Family Wine Co, The Lane Vineyard, The Scotchmans Hill Group Pty Ltd, The Yalumba Wine Company, Tintara Winery, Tower Estate Pty Ltd, Treasury Wine Estates, Turkey Flat Vineyards, Two Hands Wines, Tyrrell’s Wines, Vinpac International, Warburn Estate Pty Ltd, WebAware Pty Ltd, Wine and Vine Personnel International,Wines Overland, Wingara WIne Group,Wirra Wirra Vineyards, Zilzie Wines, Accolade Wines Australia Limited, Aravina Estate, Australian Vintage Ltd, Barwick Wines, Beltunga, Bests Wines Great Western, Bremerton Wines, Brown Brothers Milawa Vineyard Pty Ltd, Campbells Wines, Casama Group Pty Ltd, Cellarmaster Group, Charles Melton Wines, Clover Hill Wines, CMV Farms, Coriole Vineyards, Delegats Wine Estate, Delegat’s Wine Estate Limited, DogRidge, Edgemill Group, Fanselow Bell, Five Star Wines, Fowles Wine, Fuse Wine Services Pty Ltd, Gemtree Vineyards, Glenlofty Wines, Harry Jones Wines, Henry’s Drive Vignerons Pty Ltd, Hentley Farm, Hope Estate, Hospitality Recruitment Solutions, Howard Park Wines, Hungerford Hill Wines, Inglewood Wines Pty Ltd, Innocent Bystander, Jack Rabbit Vineyard, Jim Barry Wines, KarriBindi, Kauri, Kingston Estate Wines Pty Ltd, Kirrihill Wines Pty Ltd, Krinklewood Biodynamic Vineyard, L’Atelier by, Aramis Vineyards, Leeuwin Estate, Make WInes Australia, McWilliam’s Wines Group, Memstar, Mondo Consulting, Moppity VIneyards, Moxon Oak, Nadalie australia, Nexthire, Oenotec Pty Ltd, Options Wine Merchants, Orlando Wines, Ozpak Pty Ltd, Patrick of Coonawarra, Plantagenet Wines, Portavin Integrated Wine Services, R&D VITICULTURAL SERVICES PTY LTD, Robert Oatley Vineyards, Rymill Coonawarra, Seville Estate, Stella Bella Wines, Streicker Wines, Accolade Wines Australia Limited, Aravina Estate, Australian Vintage Ltd, Barwick Wines, Beltunga, Bests Wines Great Western, Bremerton Wines, Brown Brothers Milawa Vineyard Pty Ltd, Campbells Wines, Casama Group Pty Ltd, Cellarmaster Group, Charles Melton Wines, Clover Hill Wines, CMV Farms, Coriole Vineyards, Delegats Wine Estate, Delegat’s Wine Estate Limited, DogRidge, Edgemill Group, Fanselow Bell, Five Star Wines, Fowles Wine, Fuse Wine Services Pty Ltd, Gemtree Vineyards, Glenlofty Wines, Harry Jones Wines, Henry’s Drive Vignerons Pty Ltd, Hentley Farm, Hope Estate, Hospitality Recruitment Solutions, Howard Park Wines, Hungerford Hill Wines, Inglewood Wines Pty Ltd, Innocent Bystander, Jack Rabbit Vineyard, Jim Barry Wines, KarriBindi, Kauri, Kingston Estate Wines Pty Ltd, Kirrihill Wines Pty Ltd, Krinklewood Biodynamic Vineyard, L’Atelier by, Aramis Vineyards, Leeuwin Estate, Make WInes Australia, McWilliam’s Wines Group, Memstar, Mondo Consulting, Moppity VIneyards, Moxon Oak, Nadalie australia, Nexthire, Oenotec Pty Ltd, Options Wine Merchants, Orlando Wines, Ozpak Pty Ltd, Patrick of Coonawarra, Plantagenet Wines, Portavin Integrated Wine Services, R&D VITICULTURAL SERVICES PTY LTD, Robert Oatley Vineyards, Rymill Coonawarra, Seville Estate, Stella Bella Wines, Streicker Wines, The Gilbert Family Wine Co, The Lane Vineyard, The Scotchmans Hill Group Pty Ltd, The Yalumba Wine Company, Tintara Winery, Tower Estate Pty Ltd, Treasury Wine Estates, Turkey Flat Vineyards, Two Hands Wines, Tyrrell’s Wines, Vinpac International, Warburn Estate Pty Ltd, WebAware Pty Ltd, Wine and Vine Personnel International,Wines Overland, Wingara WIne Group,Wirra Wirra Vineyards, Zilzie Wines, Accolade Wines Australia Limited, Aravina Estate, Australian Vintage Ltd, Barwick Wines, Beltunga, Bests Wines Great Western, Bremerton Wines, Brown Brothers Milawa Vineyard Pty Ltd, Campbells Wines, Casama Group Pty Ltd, Cellarmaster Group, Charles Melton Wines, Clover Hill Wines, CMV Farms, Coriole Vineyards, Delegats Wine Estate, Delegat’s Wine Estate Limited, DogRidge, Edgemill Group, Fanselow Bell, Five Star Wines, Fowles Wine, Fuse Wine Services Pty Ltd, Gemtree Vineyards, Glenlofty Wines, Harry Jones Wines, Henry’s Drive Vignerons Pty Ltd, Hentley Farm, Hope Estate, Hospitality Recruitment Solutions, Howard Park Wines, Hungerford Hill Wines, Inglewood Wines Pty Ltd, Innocent Bystander, Jack Rabbit Vineyard, Jim Barry Wines, KarriBindi, Kauri, Kingston Estate Wines Pty Ltd, Kirrihill Wines Pty Ltd, Krinklewood Biodynamic Vineyard, L’Atelier by, Aramis Vineyards, Leeuwin Estate, Make WInes Australia, McWilliam’s Wines Group, Memstar, Mondo Consulting, Moppity VIneyards, Moxon Oak, Nadalie australia, Nexthire, Oenotec Pty Ltd, Options Wine Merchants, Orlando Wines, Ozpak Pty Ltd, Patrick of Coonawarra, Plantagenet Wines, Portavin Integrated Wine Services, R&D VITICULTURAL SERVICES PTY LTD, Robert Oatley Vineyards, Rymill Coonawarra, Seville Estate, Stella Bella Wines, Streicker Wines, Accolade Wines Australia Limited, Aravina Estate, Australian Vintage Ltd, Barwick Wines, Beltunga, Bests Wines Great Western, Bremerton Wines, Brown Brothers Milawa Vineyard Pty Ltd, Campbells Wines, Casama Group Pty Ltd, Cellarmaster Group, Charles Melton Wines, Clover Hill Wines, CMV Farms, Coriole Vineyards, Delegats Wine Estate, Delegat’s Wine Estate Limited, DogRidge, Edgemill Group, Fanselow Bell, Five Star Wines, Fowles Wine, Fuse Wine Services Pty Ltd, Gemtree Vineyards, Glenlofty Wines, Harry

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March 2016 – Issue 626

Australia’s largest wine companies

Australia’s 20 largest wine companies

Treasury Wine Estates Revenue: $1,962 million Total production: 30.1million 9L cases Total number of employees: 3,500+ The 2014-15 financial year was described by CEO Michael Clarke as a reset year for Treasury Wine Estates (TWE). Clarke said necessary steps were taken to reposition TWE for sustainable financial success, moving from an order-taking, agricultural company to a more efficient brand-led marketing organisation. Major initiatives included delivering “supply chain optimisation” to remove excess complexity and cost from the supply chain; increasing consumer marketing investment by more than 50%, funded by overhead savings; embedding a more

March 2016 – Issue 626

focused brand portfolio architecture, with a number of priority global brands identified; and moving the Penfolds release date to October to ensure the brand could be marketed and sold throughout the year. Clarke said TWE had been investing in a number of key exports markets in the past year. “The Asia region, and in particular China, has been a strong opportunity for growth for TWE. We’ve focused on building greater capability in the region, and optimising our route-tomarket in Asia, notably in Greater China, Korea and Singapore. “We have also increased our focus and investment in consumer marketing activity for our global priority brands. A great example of this was the annual release of our Penfolds Collection launch, which was held for the first time in Shanghai at a spectacular gala event on October 15.” In the domestic market TWE has turned its attention to strong regional brands. “At our 2015 AGM on 12 November, we announced a new regional gems strategy to provide these brands with a more dedicated focus and investment,” Clarke said.

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“Our ‘regional gems’ portfolio includes iconic Australian wines such as Coldstream Hills, Bailey’s, Abel’s Tempest, Heemskerk, St Huberts, Yarra Ridge, Seppelt, T’Gallant, Leo Buring, Saltram, Devil’s Lair and 19 Crimes in Australia. “Over the past year, TWE has also increased our investment and focus on strong marketing activations to help drive consumer connection to our brands. Great examples of this are our association with Spring Racing Carnival through Yellowglen and Wolf Blass, and our collaboration with Danish design house Georg Jensen for the launch of the elegant Georg Jensen Hallmark Cuvée by Heemskerk, a premium sparkling wine that features a unique re-sealable closure.” In October 2015, TWE announced the acquisition of the Diageo wine business, taking on brands including Beaulieu Vineyard, Sterling Vineyards, Acacia, Provenance and Blossom Hill. This was a significant and positive step forward for our business, in line with our strategic roadmap.

Revenue: $524 million Total production: NA Total number of employees: About 900 (Australia & New Zealand) Despite being French-owned, Pernod Ricard Winemakers (PRW) maintains links to some of the earliest origins of the Australian winemaking industry. George Wyndham planted Australia’s first commercial planting of Shiraz grapes in 1830. Today, Shiraz is Australia’s most planted variety and Wyndham Estate is a one million-case brand. The company has capacity to crush about 80,000 tonnes across two Barossa sites (Richmond Grove in Tanunda and Orlando, Rowland Flat) which are less than eight kilometres apart. To get from one site to the other you need to cross Jacob’s Creek and pass the site where, in 1847, German immigrant Johann Gramp planted the first commercial vineyard in the Barossa. This rich history and heritage is seen as particularly important for the China market. Today Jacob’s Creek is one of the parent company’s ‘five priority premium wine brands’ and is sold in more than 65 countries. It is estimated that nearly two million glasses of Jacob’s Creek are enjoyed around the world every day. Jacob’s Creek has seen significant marketing and innovation projects rolled out across the past 12-24 months. The brand has partnered with Novak Djokovic the world’s number one tennis player and released the new ‘Double Barrel’ range of red wines finished in whiskey barrels. According to the company, the ‘made by moments’ campaign has successfully driven mass engagement and reached more than 17 million consumers.

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Accolade Wines

Pernod Ricard Winemakers

Another new product development, focussed on the US, was Two Lands – “a collaboration that married Californian winemaking craft with Australian varietal character”. Brett McKinnon, PRW Global Operations director, said new products had been developed closely with consumers. “They participate in every stage of a product’s lifecycle. Initially their help comes from generating new product ideas during brainstorming sessions, but they also contribute during product development and at the numerous tastings we organise. “Innovation is all about exchanging ideas and combining our know-how. For example, all of our teams – viticulture, marketing, and so on – helped to develop our new line of Premium Jacob’s Creek wines. It’s also a business driver: a large part of our growth derives from the new products we create.”

Revenue: $490 million Total production: NA Total number of employees: About 875 Accolade Wines claims to be the number one wine company by volume in Australia, even though figures from the Wine Industry Directory indicated its Berri Estates winery has slipped to second position on the list of the country’s largest wine processing facilities. The big news in 2014-15, was the purchase of a Barossa icon in Grant Burge Wines (as well as Chile’s Viña Anakena). The company said the addition of Grant Burge Wines ensured it could offer customers across the globe some of the very best examples of Barossa red and fortified wines. Bringing Viña Anakena into the business means Accolade is the only wine company with a presence in all major New World wine regions. “Accolade Wines is the number one wine company in the UK where we have continued to invest in Hardys’ sponsorship of English cricket ,” said Paul Schaafsma. “This investment has been incredibly successful in helping us to maintain Hardys’ status as the number one Australian brand in the market “Offering our customers innovative solutions is an essential part of the Accolade Wines business. “We are focused on working in partnership with our customers to build their business, whether it’s finding efficiencies in our supply chain processes, or developing new products for young-adult consumers like our Banrock Station and Echo Falls fruit fusions.” Throughout 2015 Accolade Wines brands claimed 57 Trophies and 178 gold medals in both domestic and international wine competitions, while House of Arras, Houghton, Bay of Fires and Leasingham were all awarded trophies at last year’s Decanter World Wine Awards and Hardys and House of Arras were recognised at the International Wine and Spirits Competition.

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March 2016 – Issue 626

Australia’s largest wine companies

Casella Family Brands

Total revenue: $403 million Total production: About 12.5 million cases Total number of employees: More than 850 (during peak vintage season) There were plenty of positive numbers for Casella Family Brands in 2014-15: • It had the 10th largest brand in the UK, as well as the fastest growth of the top 20; and • The number four Australian brand in the UK (on a ‘moving annual total’ basis). Yellow Tail Shiraz was: • The number one Shiraz in the UK; • The number one Aussie SKU in the UK; and • The number two overall red SKU in the UK. “We had a particular focus on the UK market in the past 12 months for Yellow Tail which has seen solid growth with the sales increasing for the brand 70% year-on-year in a category

that was essentially flat,” said John Casella, managing director of Casella Family Brands. “We utilised a number of marketing initiatives to gain momentum for the brand under the ‘grab life by the tail’ campaign which included building brand awareness via an integrated consumer campaign including extensive digital (social media) activity, extensive sampling campaign at POS and high traffic locations and partnering with key customers to drive in-store visibility and theatre. “We continue to keep the consumer needs at the heart of everything we do with Yellow Tail which has resulted in a number of targeted range extensions which have seen success in the market.” John said despite the challenging domestic environment, Yellow Tail “has done an amazing job in promoting volume and value growth for the range in FY15”. He said this was achieved through strategically integrated sales and marketing initiatives. “The brand implemented an above the line targeted media awareness campaign, including television and out of home support and took this through the line to create relevant and effective customer activations. The above the line campaign has reached 1.3 million Australians to date on some of television’s top rating shows for the year.

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March 2016 – Issue 626

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“In the off premise space we saw particular success with the LMG ‘Wine Down In Paradise’ promotion which saw a 50 per cent uplift in volume for the promotional period (ex-factory data). “Brand love for Yellow Tail has also increased in this time period, with the brand shifting affinity measures by six per cent as a result of the program of campaigns. “While the total wine category was in volume decline -1% and the $8-$12 category where Yellow Tail plays was growing but only slightly at +1.2% volume. “Yellow Tail is the number three wine brand in the total market and number two in the $8-$12 category. While competitor brands experienced decline, Yellow Tail has successfully outgrown the category.”

Australian Vintage Ltd Total revenue: $231 million Total production: 8.5 million cases Total number of employees: 440 While Australian Vintage Ltd (AVL) increased branded sales and reduced debt in 2014-15, net profit after tax was down 11% to $9.4 million. At the time Richard Davis, the AVL chairman, said the business would continue to focus on reducing its cost base while running its core assets hard, and at the same time improving the reputation and value of its brands and wines. While other companies in the Top 20 purchased winemaking facilities, AVL finalised the sale of the Yaldara winery in the Barossa for $15.5 million. “This sale represents another important step toward giving effect to the company’s strategy to be the lowest cost premium wine maker,” Davis said. Three key AVL brands, McGuigan, Tempus Two and Nepenthe, recorded total sales increases 43% for the three years concluding in June 2015. Over the same period AVL reduced

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bulk wine sales and processing to the extent that branded sales represented 72% of total sales compared to 62% in 2012. (By comparison, ten years ago AVL branded sales represented only 35% of total sales.) The company’s business has evolved into a respected branded wine business with a very clear focus on quality and growing branded sales. The 2015 vintage crush was 113,771 tonnes compared to 124,215 tonnes in 2014. The volume of third party contract processing tonnes was down by 24,916 tonnes, due to the expiry of a long-term contract processing agreement. The lower Australian dollar provided a benefit of $5.2 million compared to the previous year. However, this benefit did not flow through to improved margin due to the higher cost of the 2014 vintage and margin pressure from UK supermarkets. Australian wine exports for the year ended June 2015 increased by 4% to 724 million litres. As a result of an Australian dollar that has weakened significantly, the average value of exports increased by only 0.3%. Australian Vintage Limited owns and operates 2700 hectares of vineyards and two wineries (Buronga Hill in southern NSW which has a 135,000 tonne capacity; and a Hunter Valley winery focusing on production of small batches, crushing 3000 tonnes annually). The packaging and distribution of Australian Vintage (AVL) products is managed from its packaging facility near Mildura, Victoria. Cameron Ferguson, AVL general manager, said changes to Free Trade Agreements had seen a continued focus on developing new and emerging export markets, particularly China. “In 2016, the company will re-enter the US market as the dollar and the United States’ general view of the Australian wine category is undergoing some positive change,” Ferguson said. In the domestic market, Ferguson said retailers wanted to work “with partners that understand their business strategy, can adapt to industry demands and are highly responsive, transparent and trusted”. “We have a solid business model that provides a lot of depth and breadth to our trading partners and with an unwavering focus on quality, we position ourselves well to be adaptable and responsive to market conditions and customer needs.”

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March 2016 – Issue 626

Australia’s largest wine companies

McWilliam’s Wines Group Revenue: 164m Production: 3m cases Total number of employees: 180

The McWilliam family is one of Australia’s oldest winemaking families, dating back to 1877 when Irish immigrant Samuel McWilliam planted the first vineyards in Corowa on the banks of the Murray River. The wine group, whose brands include Mount Pleasant and Evans & Tate, is chaired by fifth-generation family member Doug McWilliam, with sixth-generation Scott McWilliam the winemaker. Robert Blackwell, McWilliam’s Wines Group CEO, said the company had completed “three key developments over the past financial year”. “McWilliams returned to 100 per cent family ownership after we bought out two shareholders that held 20 per cent of the company. “McWilliams set up new distributors in the USA and China. And we undertook a vineyard sale and lease back program to set up value.”

March 2016 – Issue 626

The vineyard sales related to three specific sites across NSW and SA fetched a total of $15.7 million. The deal includes the Hanwood Vineyard in Griffith, NSW – the first vineyard planted by John James McWilliam more than a century ago – and the Station and Kirkgate vineyards in Coonawarra, South Australia. The vineyards comprise 700 hectares of land and 650 hectares of planted vines. The purchaser was Hong Kong-listed group CK Life Sciences and the deal included a 15 year lease-back arrangement, with further options to renew the tenancy for five years. McWilliam’s Hanwood Estate winery remains the home of the business, under leasehold. On the wine sales front, Blackwell said McWilliam’s invested the most resources into establishing new distributors in the USA. “We employed two people to handle our USA distributions, one for the east coast and one in the mid-west,” Blackwell said. There was also a focus on new product development throughout 2014-15. One example was the new style of the Evans & Tate Butterball Chardonnay. “We made it a customer exclusive brand and it was successful all through last year,” Blackwell said.

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De Bortoli Wines

Warburn Estate

Family-owned De Bortoli Wines operates vineyards in four regions (Hunter Valley, the Riverina, the Yarra Valley and King Valley) and is headquartered in Bilbul, New South Wales. The third generation wine business is a majority-held subsidiary of Vittorio De Bortoli Investments Pty Ltd. According to The Australian, De Bortoli recorded $4.526 million loss for the 2014-15 financial year with investments in mining and resources stocks dragging it into the red “despite stronger earnings from its core wine business as the lower dollar improved export margins”. De Bortoli stands out from other big wine businesses with its long standing practice of investment in the sharemarket to supplement wine earnings. The 2015 financial accounts showed the company’s share portfolio was valued at $11.365m as at June 30, down sharply from $27.49m in 2014. “We have usually invested counter-cyclical, and we did invest in the resources sector, which has copped a hiding,” Darren De Bortoli told The Australian. De Bortoli Wines is one of 11 members of the Australia’s First Families of Wine joint marketing initiative (in fact, one quarter of the TOP 20 list double up as members of the First Families of Wine group, the others being McWilliam’s, Brown Brothers, Yalumba Family Vignerons and the Tahbilk Group). De Bortoli Wines has adopted a number of innovative sustainability practices across the past decade, encompassing wise water management, energy efficiency, biological farming and improved waste management. De Bortoli’s work towards becoming a zero-waste winery is continually recognised, most recently being named an ABA100 Winner in The Australian Business Awards 2015 for Sustainability, a finalist in the 2015 Banksia Sustainability Awards and winner of the 2014 Green Globes Sustainability Award. “Reducing our carbon footprint while maintaining wine quality is integral to our vision and philosophy,” said Darren De Bortoli. On the sales front the company has been focussed on strategic partnerships to build its presence in the UK and US, as well as increasing its profile in Asia – where the Trans-Pacific Partnership looks likely to have a positive impact. “In addition to improved export market access that’s been achieved through the Japan, China and Korea Free Trade Agreements, the Trans-Pacific Partnership is a positive step for helping Australian wine makers to become more internationally competitive,” said Victor De Bortoli, the executive director.

The big news from Warburn Estate was the acquisition of the production and distribution of Coolabah casks, both four and five litre casks, for the Australian market (the Coolabah brand was founded by Orlando in 1974). This moves another wellknown brand into a portfolio that includes the AC/DC, Gossips and Rumours ranges. The production base for the company is a 45,000 tonne capacity winery at Griffith and Warburn Estate has 2500 acres of vineyard it either owns or leases. The winery has 10 export partnerships across Asia-Pacific, five across Europe as well as a Canadian partner. The Europe and Asian markets saw the greatest investment of resources across 2014-15. Warburn Estate reported its highest sales growth rates were achieved with Sauvignon Blanc, closely followed by Moscato (which came off a much bigger base). On the domestic front, new products across more categories were introduced to address the challenges of the competitive environment. One example has been the launch of Sweet Lips Infusions, a product range that was launched into Dan Murphy’s, and subsequently the independent market. The products are white wines infused with additional natural flavours. The first three infusions were: Hibiscus, pomegranate and lime; orange blossom and nutmeg; as well as mango, ginger and lemongrass. Each product is 8.0% alcohol/volume (which equates to 4.7 standard drinks from the standard 750ml bottle it is packaged in) and retails for around $5. Following the success of the launch – a fourth SKU is set to be added to the line-up (mango, elderflower and passionfruit), hitting shelves March 2016. Other news from the winery has included two key staff appointments. Adrian Mazinni was appointed as the new national sales manager at the conclusion of 2015 and Christina Sergi joined the team at the commencement of 2016 as the digital marketing assistant. This new role is part of a company strategy to apply resources and focus on the digital and social media space, in relation to key brands.

Revenue: $127 million Production: NA Employees: 400

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Revenue: $100 million Production: 4.4 million cases Employees: 120 full time

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March 2016 – Issue 626

Australia’s largest wine companies

Brown Brothers Revenue: $88 million Production: 1 million cases Employees: 225

CEO Dean Carroll said 2014-15 had been “another year full of challenges” but Brown Brothers brands had “performed quite well”. Growth was achieved in the domestic market as well as priority export markets including New Zealand and China. On the sales front, the joint-venture business Taylor Brown (operating in New Zealand) showed positive trends and “benefits for both businesses in a market that is experiencing less retail growth than Australia”. As has been widely acknowledged, the lower Australian dollar had an “affirmative impact on export”. Asia has been the greatest source of optimism for Brown Brothers, with China, South Korea and Taiwan performing well. “The key for our business is to develop a sustainable export strategy that is less reliant on foreign exchange and more motivated by engaged consumers in our brands,” Caroll said.

In the domestic environment there was both positive news and additional cellar door investment. “Being voted Australia’s most loved wine brand (shared with Jacob’s Creek) was a great fillip for our company and the people within our business who work so hard to maintain its integrity,” Carroll said. “Brand Tasmania is receiving strong endorsement both here and abroad to the point that supply on our Devil’s Corner brand has not been able to keep up with demand. Our commitment to Tasmania is evidenced by our investment into the new cellar door at Devil’s Corner located on the Freycinet Peninsula overlooking Coles Bay. It is a breathtakingly beautiful site where we have been able to team up with two local food businesses and local tourism to provide a wonderful setting for food and wine. “The market remains challenging with our biggest concern as an industry being lower or flat wine consumption. Population growth from non-wine drinking countries, ‘health and wellbeing’ and pressure on responsible consumption all contribute to the challenge we face. Combined with increasing costs, supply imbalance and uncertainty around wine taxation and there is no shortage of challenges for wine businesses.” Carroll reinforced the 126 year success story of the family business was based on two key platforms: leadership and innovation.

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“We firmly believe they will remain prevalent for our business going forward,” he said. “We will continue to focus our resources into potential consumer occasions to unlock future growth. Those avenues are changing with such speed as communication via social media and digital disruption businesses alter the way we look at consumers’ relationship with brands. “Developing greater quality and quantity from our Tasmanian vineyards will continue to be our focus and we will invest time and energy into our export markets particularly throughout Asia to develop sustainable business models.”

10.

Yalumba Family Vignerons Revenue: NA Total production: 2 million cases (estimate) Total number of employees: More than 200 Midway through the 2014-15 financial year the family-owned company went through a major succession as Nick Waterman was announced as the new managing director, Robert Hill Smith stepping into the role as chairman board of directors. Waterman is the first non-family member to take on the top job. After more than 30 years leading Australia’s oldest family owned winery as managing director, Hill Smith replaced Peter Barnes as the chair (who retired after 12 years in the role). Waterman stepped up from his role chief operating officer within the company, which triggered a series of changes to the management structure across Samuel Smith & Son and Negociants. Hill Smith called it a “formidable front row”. The company also celebrated its 165th birthday in November 2014 and Hill-Smith vowed the winery would “remain independent, innovative and forward thinking”.

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At the time, Hill Smith spoke philosophically… “For some time now I have reinforced widely the view that the wine business as we knew it has changed forever,” he said. “It is a time for intelligent perseverance, innovation, ideas creation and discipline to generate growth.” “We will continue to invest in new vineyards and plantings, winery improvements in bottling and logistics, leadership training and up skilling.” In the vineyard, the company’s Tasmanian vineyard developments continued and a large vineyard in the Barossa was purchased and redeveloped as the new Patchwork vineyard. Hill Smith said there’s a lot of enthusiasm for development in Tasmania at the moment, “but it is not without risk”. “It is high-cost viticulture, which is fortuitous from a premium wine point of view, but it is just an expensive place to grow grapes,” he said. “I think Tassie is on everybody’s radar for certain styles and the production only fits into the premium and luxury segments and that will be its godsend. There is no scope for mass-market varietal, so it does become a niche proposition.” The Yalumba Nursery continued to attract strong demand for planting material. There was a raft of redundancies which the company did not comment on. Just before the end of the financial year, Yalumba launched a new website with a strong focus on photography and video of the company’s wines, winemakers, cooperage, nursery and wine room. Waterman said the revamp was in response to consumer demand for an innovative online presence, and reflected the competitive nature of the global wine industry. “We launched Yalumba.com more than a decade ago, with the aim of providing consumers with information on our history, family and our wines,” Waterman said. “While a cutting edge website then, 10 years is a long time in the ever-evolving technological landscape.” He said it was important for the website to be an interactive experience for consumers who were unable to visit the Barossa winery.

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March 2016 – Issue 626

Australia’s largest wine companies

11.

The Tahbilk Group Revenue: $62.2 million Total production: 769,000 cases Total number of employees: 211

Alister Purbrick, the chief executive of Victoria’s oldest family owned winery said The Tahbilk Group has adequate infrastructure/production resources to achieve substantially greater sales with minimal further capital expenditure. This means the focus for the past two years has been on “securing sales growth as distinct from margin growth, which has been non-existent”. “The key change in the past 12 months has been the dramatic weakening of the Australian dollar against the currencies of most of our major markets which will improve margin and has already increased sales. The full positive impact of this will be seen in 2016/2017 and onwards for as long as the Australia dollar remains weak. North America remained Tahbilk’s biggest export market, Canada in particular. At the start of the current financial year, Tahbilk received

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a significant domestic promotional boost when it was named the ‘winery of the year’ in the 2016 James Halliday Wine Companion. While the wine reviews were glowing, Halliday made special mention Purbrick… “He has served on wine industry boards and associations with clear-eyed intelligence, unafraid to express views different from the stance of some of his peers… he has guided Tahbilk through a decade of financial challenges impacting on every sector of the Australian wine industry… one aspect of this success has been the enhancement of what must be one of the most successful wine clubs, connecting Tahbilk with its thousands of loyal customers.” The wine club reportedly generates 65% of sales. “As far as the Australian market is concerned, it’s still as tough as it has been … for four or five years,” Purbrick told The Australian. “There is still a lot of competition in the marketplace for brands and the unbranded issue is now not just in the big chains but the banner groups, independent retailers, have their own branded product as well.” “So that puts pressure on proprietary branded products like Tahbilk. “And of course imports continue to grow in marketshare, admittedly a lot of it is Marlborough Sauvignon Blanc, but having said that imports across the board now have a significant chunk of the market, and that takes shelf space from brands.”

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12.

Angove Family Winemakers Revenue: NA Production: NA Employees: 155

The Angove family wine business operates its own vineyards in the Riverland and McLaren Vale; a commercial winery and a micro-winery; a bottling and warehousing facility as well as a national distribution operation (rebranded as Vintage House Wine and Spirits in February 2015, which also represents 20 other Australian and international wineries). “Our largest vineyard historically has been 500 hectares, but at the moment it is only planted to 280 hectares. We have removed 220 hectares and, given the state of the industry at the moment, it does not make any sense to replant,” said Victoria Angove, the family business’ executive director. The majority of the vineyards have organic certification and Angove Family Winemakers is the largest Australian winemaker to export organic wine to China. Achieving certification through the rigorous Chinese Organic Standard was a “slow, at times tedious” process, but worthwhile according to export manager Mark Ramm. “The organic wine market in China is potentially worth $3-4 million dollars in additional revenue to us so we need to do it right, first time and every time.” While the commercial winery in Renmark has a capacity of 20,000 tonnes, the forecast for the 2016 vintage was to only crush 16,000. “We lost a significant contract into the UK, so we do not have the need for any extra grapes,” Victoria Angove said. Exports have fallen to just 20% of total sales, the lowest export percentage in more than 15 years and well below the target of 50%, according to Victoria Angove. “The domestic market remains very tough,” Victoria said, though she admitted the export market had been tougher still for Angove Family Winemakers. “We have never known business to be so tough. Over the last three years we have recorded loss and two years of virtual breakeven. We have not declared a dividend for two of the last five financial years. We have seen significant cost increases across the board without being able to achieve any price increases.” Clearly, export demand growth will be critical for the family business and Victoria said “free trade agreements give us a fantastic platform to work from”. China remains a focus; it is the third most important trading country for Angove Family Winemakers despite being much smaller in volume than the UK and the USA. Both Victoria and her father John, the company’s managing director, have spoken publicly about their desire for WET Rebate reform. They argue it should be returned to its original intent, which was to support regionally-based Australian wineries. Victoria brought extra attention to this issue during the committee hearings during the Senate Inquiry into the wine industry in this exchange with Senator Nick Xenophon:

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“If we do not see urgent WET rebate reform, we have considered helping our growers set up as producers to access the rebate. That is not the intention of what the WET rebate is all about,” she said. “If you cannot beat them, join them?” asked Senator Xenophon. “Yes. That is not what this was about, but that is how dire it is,” Victoria responded.

13.

Kingston Estate Wines Revenue: $62 million Total production: NA Total number of employees: 100 In theory, Kingston Estate Wines should be more excited than all the other businesses in the TOP 20 about the improved export trading conditions. Why? “95 per cent of our sales are export sales, so we’re totally dependent upon an export market and we are exposed to the – those cold winds of market reality,” Bill Moularadellis, Kingston Estate Wines managing director, told the ABC in April last year. Of course, it is almost 12 months since that statement was made and there is probably more of a warm breeze now compared to the cold winds back then. But the news that Australia wine exports jumped both in volume and value might not have been as brilliant for Kingston Estate Wines as it first seemed. While the figures released from Wine Australia pointed out the value of exports increased at each price point, they didn’t go into a lot of detail about the price points Kingston Estate Wines command. What we were told was the largest increase in export value was achieved by wines with a FOB value of more than $10 per litre. But... The wines above $10 per litre make up less than a quarter of the value of Australia’s wine exports. (That’s less than a quarter of the value, not a quarter of the volume) Not long before the export report landed, Moularadellis was quoted in the Australian Financial Review pointing out it was hard to manage the costs of running a winery, particularly peak usage electricity prices. “Power is a big part of our input costs and these increases add to the cost base significantly,” he said. Perhaps the rumours of empty bulk wine storage tanks in Australia’s before the 2016 vintage – thanks to export demand – didn’t come from Kingston Estate? The real challenge for Kingston Estate is actually a challenge for all of the Australian wineries that sell, in Moularadellis’ words “wines for Monday to Thursday”. If Australia’s unpretentious, affordable wines become more popular perhaps

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March 2016 – Issue 626

Australia’s largest wine companies

14.

Qualia Wine Services Revenue: $26 million Total production: 3.75 million cases Total number of employees: NA

the tiny margins might stretch out a little. Then those that make these wines, from grapes grown throughout inland, irrigated regions, will have more profit to share with the grapegrowers. “We sell a quarter of a million bottles of wine every day,” Moularadellis told a group of wine writers touring the Riverland a couple years ago. If the winery can earn an extra five cents per litre on those sales, it makes nearly $10,000 extra each day. And more than $3.4 million if it can sustain that price increase for 12 months.

March 2016 – Issue 626

Qualia Wines was founded in December 2009 when the assets of Neqtar Wines were acquired. Specialising in made-to-order projects, Qualia supplies customers in 25 different countries, including international distributors, supermarkets and brand marketers. There is also a limited-release branded wine portfolio and bulk wine. The business model works by outsourcing all non-core, nonwinemaking functions in order to offer greater flexibility and superior economy to customers. Despite the size and nature of the business, CEO John Pezzaniti works hands-on as a winemaker. The 2016 vintage was Pezzaniti’s 20th. The ambition is to be Australia’s largest provider of specialist wine services and bespoke wines. There is 50 million litres of wine storage available across two winemaking sites near Mildura as well as a bottling facility

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Grapegrower & Winemaker

with a capacity of 39,600 bottles per line, per shift, per day. Each year Qualia Wines also producers more than 1000 metric tonnes of 68º Brix (36.5 Baume), heat and cold stable neutral and varietal concentrate which is shipped frozen or refrigerated. About 40% of the production is sourced from the company’s 2200 hectares of vineyards, the rest sourced from a base of more than 100 grapegrowers, mostly from within the Murray Darling region.

15.

Wine Insights Group Total revenue: $26 million Total production: 355,000 cases Total number of employees: 45 The big news here came on the final day of the financial year we are looking at. Wine Insights purchased the Cumulus Winery in Orange, NSW, on June 30, 2015. Peter Toohey, Wine Insights managing director, said the other key company developments fell under an overarching strategy of a “pathway to premium”. “Europe and the USA remain strong markets for our brands with China continuing to grow strongly year on year as our strategic supply agreements gain traction,” Toohey said. “Wine Insights has continued to maintain a strong focus on the ‘on-trade sales channel’, with 70 per cent of our domestic sales in this channel. “By comparison we now sell 25 per cent of our domestic sales into the ‘off trade’, or retail market channel, as increased competition and the proliferation of own-brand wines has

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continued to place downward pressure on supplier margins. “Our continued focus on the business-to-consumer channel has seen the development of multiple internet sales portals that have helped deliver double digit growth in this channel.” “The company will now realign its grape intake to now source predominately from premium Orange and Central Ranges grape growing region with all production now to be completed at its newly acquired 10,000 tonne fully integrated winery facility in Cudal NSW. The cooler climate and high altitude of the Orange region also offers longer term benefits for sustainable supply as climate change starts to take hold.” The company’s base, the Beelgara winery was originally built in 1930 by Italian immigrants, in the heartland of the Riverina wine district of New South Wales. It was purchased by the Toohey Family who have a history as liquor merchants dating back to 1900. In 2007 Beelgara was extensively modernised by 2012 new partnerships had been forged with other wineries and new wine companies had been acquired, so Wine Insights was born to reflect the diverse range of wine brands and services.

16.

Andrew Peace Wines Revenue: NA Total production: 180,000 cases Total number of employees: 150 More than 25 years after the first block was planted, Andrew Peace Wines remains a proud family business... as well as one of the largest family-owned wineries in Australia. The Peace family has been a major Swan Hill grapegrower

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Australia’s largest wine companies

since 1980, but the wine business has been on a steady rise since 1996, when $3 million was invested in building a winery and the grape intake was 1711 tonnes. These days the annual crush is more than 30,000 tonnes per year, and the 1600 hectare property includes close to 300 hectares of vineyard. The winery is modern and makes the most of advanced first class technology and the family has established sound business acumen to make the most of it. It boasts a position that is consistently among the top 20 performing Australian exporters and has collected plenty of awards. Despite the scale of the business today, the winery remains very much a family affair. In fact, the Peace family believes its success lies within its family ties, as well as its connection to community. The winery is located just out of the small town on Piangil, about 40km north west of Swan Hill. Of the 150 people who call this little town home, 70 are employed at Andrew Peace Wines. The business is based on exports, with 95 per cent of its production going to Europe, the UK, US and Asia. It’s innovative too, claiming the largest planting of the Italian grape variety, Sagrantino, in Australia in addition to popular alternative styles like Tempranillo and Pinot Grigio. Andrew Peace was also among the first producers to embrace the environmentally-friendly TetraPak packaging.

17.

Littore Family Wines Revenue: NA Total production: NA Total number of employees:100

While these reports have been focussed on 2014-15 fiscal year, the big news for the Littore Family wine business came in October last year when it went into receivership and its winery, vineyards and other assets were placed on the market. The winery and bottling facility in the Moorabool Valley, near Geelong, was acquired by the Idyll Wine Company – which falls under the umbrella of Costa Asset Management, a privately owned Australian entity with a large and diverse range of assets across agriculture, private equity and property. The vast Littore Family vineyard holdings in the Murray Darling (believed to be at least 1400ha) were acquired by Duxton Vineyards, a new venture administered by the Duxton Group and managed by Warren Randall (part owner and managing director of Seppeltsfield Wines). It appears Duxton Vineyards will process up to 60,000 tonnes from the 2016 vintage (potentially 5% of Australia’s total wine

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Grapegrower & Winemaker

grape harvest) within the Murray Darling region. Randall has been keen to improve the quality of the grape supply and have more input into the wine made, so no doubt there are plans to drive up the value and find new markets. A statement on the Duxton Vineyards website sets out lofty ambitions. “By consolidating some of the district’s most exciting vineyards and applying specialised viticultural knowledge and techniques, Duxton Vineyards is poised to set the benchmark for Murray Darling grapes and wines into the future.” Randall has already drafted Bruce Chalmers into his team, who actually established one of the newly acquired vineyard properties, at Euston, in the 1980s. Chalmers’ son-in-law and winemaker, Bart van Olphen – who worked with Randall at Tin Lins, has also been recruited. According to the Duxton Group website, it plans to specialise in emerging Asian markets. No doubt Randall will see China as a key market. The Duxton Vineyard plans would seem to have left the Idyll Wine Company searching for grapes to process at Moorabool this vintage, where there is 18 million litres of wine storage space. Littore Family Wines had been a significant own-brand supplier to the Coles group (First Choice, Liquorland and Vintage Cellars; plus 90 hotels within its Spirit Hotels group) and the new Idyll Wine Company website still references the Whispers and Trails End ranges, which sit on the shelves of the three Coles Group retail liquor outlets for $5 and $10, respectively. If Idyll continues to supply Coles and Duxton Vineyards finds export markets for the wine it will make, this could potentially impact on the supply-demand balance of Australian wine.

18.

Zilzie Wines Revenue: NA Total production: 2.5 million cases in 2015, anticipate just short of 4 million cases in 2016 Total number of employees: 45 core team, up to 100 during vintage Andrew Forbes, the managing director at Zilzie Wines, said he prefers “not to look back too often”. “We are more excited about the dynamic playing field and the opportunities the wine industry continues to present,” Forbes said. “Staying agile and reading the play is key but our continued growth is directly attributable to service, quality and building long term relationships with key players in the industry around the world.” The strategy at Zilzie Wines is built on sustainability – for both the winery and the growers. “This relies on us continually adjusting and balancing our three key business streams of bulk wine supply, contract processing/storage and our Zilzie brands,” Forbes said. “As each

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contribute their own unique benefits to the long term health of the business. “We’ve enjoyed growth in both the domestic and export markets over the past 12 months, particularly with China but we are also developing new relationships in markets where Free Trade Agreements and or the lower Australia dollar has renewed market interest in Australian wines. “We’re really pleased with what we’ve been able to achieve over the past 17 years, taking our modern winemaking facility to 50,000 tonnes, and continuing to evolve and develop our extensive holdings of pristine vineyard. They are without a doubt the foundation of our quality wines. “It’s our long serving team however, we attribute our success to the most. They are incredibly passionate about our brand and the industry as whole. They continue to embrace new technology, innovation and best practise – lean and positive leadership – always exploring opportunities to improve quality, reduce cost and become more efficient. “This great team dynamic and positive vibe will continue to drive our future and keep us competitive. We strive for work life balance, and I believe you do have to enjoy coming to work and have fun as you go to be truly successful.”

19.

Berton Vineyards Total revenue: $27 million Total Production: 860,000 9L cases and 106,000 18L casks Number of employees: 55 (full-time equivalent) Berton Vineyards was established in 1996 by Bob and Cherie Berton when they purchased a block of land in High Eden, a subregion of the Barossa. This idyllic property sits 450m above sea level on gently rolling hills – except for the Chardonnay block which is anything but gentle. Bob and Cherie planted the first Berton Vineyard cuttings in the spring of 1996 – 10 acres of Shiraz and seven acres of Chardonnay. Hang on, isn’t this feature about the 20 largest wineries in Australia? Yes, bear with me. In 2005 the Berton’s decided they needed their own winery to process about 1000 tonnes from the High Eden Vineyard – and the former Southcorp winery in Yenda became available. Bob and Cherie joined with Jamie Bennett, Paul Bartholomaeus and James Ceccato to form the Berton Vineyards company and the winery was purchased. There were some busy months chasing additional fruit and arranging contact crushing for the 2006 vintage. The Berton’s described it as the “scariest vintage we have all experienced” and despite very few staff 13,000 tonnes was crushed. Today, the winery has the capacity to crush and bottle about 20,000 tonnes and has a storage capacity of 14 million litres. Bob Berton, the managing director, said the company

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Australia’s largest wine companies

continued to invest and upgrade its winery and vineyard throughout 2014-15. “But most of the focus has been about broadening our skill base,” Berton said. “So we have appointed Glen Snaidero as white winemaker; Rebecca Brown as production winemaker; David Thornhill as sales manager for UK and Europe and Leigh Whytcross as marketing manager.” The export market where Berton Vineyards invested most resources was the UK. “Our focus is firmly on our traditional markets particularly the UK, so we now have sales staff based in the UK rather than trying to manage that market from Australia,” Berton said. “Our view is that the market will always find its equilibrium so we need to work with it as it is. We agree with the Winemakers’ Federation of Australia that the WET Rebate has had some unintended impacts on the market but we don’t agree that it is the core issue – merely the one that relatively simple to grasp. “If the WET is removed, the route to market will still be concentrated and brand owners will still have limited opportunity to make increased profits, the only way to correct this is to grow our international markets so that we can reduce pressure to sell here.”

20.

Wingara

Total revenue: $23 million Total production: 350 000 cases Total number of employees: 65 The Wingara Wine Group is actually part of Spain’s Freixenet Group, and maintains Australian brands Katnook Estate, Katnook Founder’s Block, Deakin Estate and Azahara. The Wingara Wine Group own vineyards in the Limestone March 2016 – Issue 626

Coast (198ha) and Murray Darling (350ha) and generally does not purchase much fruit from other growers. In fact, throughout 2014-15 the company planted extra Shiraz, Cabernet Sauvignon and Pinot Grigio. There was a key staff appointment at the Deakin Estate winery when Frank Newman took the role of ‘winemaker manager’ in January 2015, after Phil Spillman resigned. Spillman had been in the role for more than 10 years and a company statement said “his passion and dedication have raised the quality of the Deakin Estate range to a level seldom seen in wines at the sub $10 price point”. Newman has decades of winemaking experience, including senior roles at Penfolds and Angoves. Speaking on the appointment Chris Pike, Wingara Wine Group’s director of operations and finance, said “given Frank’s outstanding credentials, we are confident he is the ideal person to carry on from what Phil has created for Deakin Estate”. More recently Aidan Menzies joined Newman in the Deakin Estate winemaking team. These winemakers will continue to develop the La La Land range that was first released midway though the 201415 financial year and was expanded from the 2015 vintage. The La La Land packaging has been designed to engage a new generation of wine consumers and initial uptake has been very strong. Sean Shortt, the executive director for sales and marketing, said the biggest focus in the export market had been on Asia, particularly Japan, China and Korea. “We believe these countries currently offer the strongest sales growth opportunities,” Shortt said. The business will not be shying away from the domestic market. “Like many wineries, we recognise the importance of growing our direct sales and this year will overhaul our online sales and cellar club management systems,” Shortt said. “We will focus on integrating this with our cellar door purchases to offer customers a seamless experience. We will continue to invest heavily in our brands to engage on and off premise customers as well as developing exclusive lines for the chains.”

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Grapegrower & Winemaker

Record exports out of New Zealand THE WINE SECTOR in New Zealand continues to be a vital contributor to the national economy and a major employer across a number of regions. Recent estimates suggested the NZ wine and grape industry employs more than 7500 people. The ongoing success of the country’s success in this sector is being driven by wine exports, which reached a new record high of $1.54 billion for the 2015 year. This was an increase of 14% on 2014 according to New Zealand Winegrowers. “The new record level of wine exports is an outstanding achievement for New Zealand wine exporters and testifies to the strong global demand for our wines,” said Philip Gregan, CEO of New Zealand Winegrowers. New Zealand wineries currently export to more than 90 countries, and wine s New Zealand’s sixth largest export good. “The past year has seen particularly strong growth into the USA, with export value up 26% to $430 million, Canada up 18% to $100 million, and the UK up 12% to $380 million,” Gregan said. “The lower New Zealand currency has assisted the increased returns, but underlying the growth is the very positive reputation of

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NZ WINE INDUSTRY NUMBERS (2015): Wineries: 675 Grapegrowers: 762 Total vineyard area: 35,859ha (20,266ha planted to Sauvignon Blanc) Tonnes crushed: 326,000 Total production: 235 million litres Export volume: 209 million litres

Achieving the $1.5 billion record means the industry is well on track to achieving exports of $2billion by 2020 New Zealand wine amongst consumers and the wine trade globally.” The rapid growth of New Zealand wine exports, which only reached $1 billion by value in 2010, has allowed for the industry to aim for $2 billion of annual wine exports by 2020.

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“Achieving the $1.5 billion record means the industry is well on track to achieving exports of $2billion by 2020,” Gregan said. One strategic development that was warmly welcomed across the industry in 2014-15 was an announcement from the NZ Government that a Geographical Indications Registration Act would be introduced, which will set up a registration system similar to the trademark registration system “It will equip the wine industry with the tools to protect its premium brand from misappropriation or misuse, as well as help secure market access in some regions. It’s a big step forward for the industry,” Gregan said.

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New Zealand’s Top 5 wine companies

TOP 5 NZ Wine Companies

Pernod Ricard Winemakers New Zealand Limited Revenue: NA Production: 10.3 million cases (estimate only) Employees: About 900 (NZ and Australia) It has been suggested that Pernod Ricard New Zealand makes 30% of all New Zealand wine and has more than 40% of the local market, by value. As a result, Pernod Ricard Winemakers remains New Zealand’s largest wine company. Its Montana Gisborne Winery has the largest winemaking capacity in the country. Its biggest brand, Brancott Estate, sold more than 2.2 million cases in 2014-15, raising the sales value of the brand by one per cent on the previous year. The brand also recorded 17% growth in sales volume in Australia. The company has operations based in Marlborough (Brancott Winery), Gisborne (Montana Gisborne Winery), Hawke’s Bay (Church Road Winery, Corbans Winery), North Canterbury and Auckland (Tamaki Winery). When the parent Pernod Ricard company forecast a 5% medium-term profit growth at the end of the 2014-15 financial year, it said the focus would be consumers rather than brands and categories. Alexandre Ricard, Pernod Ricard chairman and CEO, said the business model was changing. “We are moving from a brand-centric approach to a consumer-centric approach. This is the cornerstone of our priorities. We need to strengthen our consumer focus, leverage new technologies and spend more time with them to better understand their needs. “Consumers are no longer loyal to one specific brand, but to a range of drinks for different occasions. The winning brands

will stand out for a set of emotions consumers identify with and relate to.” This seems to be an interesting idea for the New Zealand wine division, where Brancott Estate was recently acknowledged with a ‘best in nation’ award at the San Francisco International Wine Competition. However, the news that Geographical Indications are set to be register may play neatly into those plans. In other company news Pernod Ricard Winemakers New Zealand has continued to reinforce its clean and green image becoming a partner in a by-product recycling initiative, the Marlborough Grape Marc Group, which aims to convert 45,000 metric tonnes of marc into compost annually.

Lion

Revenue: $NZ564 million (year ended 30 September 2015) Production: 3.4 million cases (estimate only) Employees: NA Across 2014-15, Lion experienced growth in key premium wine brands with The Ned, Mt Difficulty and sparkling wine Daniel Le Brun all growing volume. The New Zealand wine portfolio was actually a standout performer for the parent company, Japan-based food and beverage company Kirin Holdings, boosted by innovation and brand investment. Wither Hills achieved strong growth domestically and through export markets, while Huntaway became the fastest growing premium wine brand in grocery in the country. Lion maintains its position are the second largest wine company in the country with a portfolio of wine brands

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including Wither Hills, Lindauer, Two Tracks, Te Hana, Huntaway and Saints. The company reported that trading conditions in both Australia and New Zealand remained challenging throughout the 2015 financial year and it was yet to see the recent upward trend in consumer confidence translate into improved spending. The overall performance of the New Zealand branch of the company is impacted by the various different industries it operates in. For example, the 5.6% decline in group net sales revenue to $4,709 million was driven by Lion’s decision to sell its low margin everyday cheese operations, the non-renewal of private label milk contracts toward the end of the prior year and a contraction in beer volumes driven by the overall market decline in both Australia and New Zealand. Despite the revenue reduction, the group was still able to deliver a four per cent increase in group operating earnings before interest and tax to $695 million due to a focus on more profitable categories, continued premiumisation and effective cost management. Lion CEO, Stuart Irvine said: “Despite the tough conditions, we’ve remained firmly focused on managing our business for the long-term and we are continuing to invest in our brands, new facilities and to grow our presence in Asia.

Delegat Group Revenue: NZ$231 million Production: 2.2 million cases Employees: 600 Jim Delegat, the group’s executive chairman, remains committed to see his business develop into a leading global wine exporter. “The group is investing for growth to support its strategic goal to build a leading global super premium wine company,” he declared boldly in the group’s annual report. There is a certainly a solid base to build from. In 2015 group sales reached 2.2 million, rising roughly four fold since 2005. And expectations are that 3 million cases will be achievable by 2020 (which ties in neatly with the New Zealand Winegrowers target of $2 billion worth of exports by the same year). There were several highlights from the 2014-15 financial year: • Total sales rose 9%, by volume; • Sales to North America grew by 16% in volume; and • Net profit increase by 10%, to $23.3 million. Investments back into the group included a $55 million winery expansion in Marlborough; a new winery in Hawke’s Bay; as well as vineyard developments ‘across the ditch’ following the purchase of Barossa Valley Estate. There was vineyard development too, with more than 200ha planted in Marlborough; 33ha planted in Hawke’s Bay; and

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During the year under review, $80.6 million was invested in additional property, plant and equipment 12ha planted in the Barossa (where about 100 more hectares are planned for 2015-16). “During the year under review, $80.6 million was invested in additional property, plant and equipment,” Jim Delegat noted in the annual report. “The group will invest $101.9 million in 2016 to provide earnings growth in the years ahead. “This capital investment supports the group’s plan to grow sales to 3.17 million cases by 2020 and provide for further growth beyond that period.” Export markets account for 90% of the group’s output. Of note, the success of Oyster Bay Sauvignon Blanc sales in Australia has seen it become the number one white wine in that market (according to Dave Jordan, a New Zealand viticulturist who tracks the company). Reports indicate the UK had been Delegat’s biggest market, but the main growth is now being driven from North America which accounts for 40% of current global sales, but is projected to pass 70% by 2010. China is still very much on the radar. Anybody who has worked for Jim Delegat knows he carefully considers his business decisions, then throws significant resources behind the chosen direction. It would not be a surprise to see the Delegat Group move up this list.

Constellation New Zealand Revenue: NA Production: 2.5 million cases (estimate only) Employees: NA Constellation Brands NZ still claims to be the number one New Zealand wine company by sales volume and the largest exporter of New Zealand wine. And it is another company with big plans for New Zealand. In fiscal 2015, Constellation set a vision for 2020: “Achieving 60 in 6”. The goal is to raise depletions to 60 million bottles and produce 60,000 tons of grapes within six years. Constellation Brands NZ is the nation’s leading exporter of New Zealand wines with world-renowned brands like Kim Crawford, Nobilo and Selaks along with other brands that include Drylands, VNO, The Peoples Wine and Monkey Bay. Constellation Brands NZ received a boost in 2014-15 from growth in sales to North America, where reports indicated that both volume and value were rising. The Kim Crawford range remained the largest New Zealand

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New Zealand’s Top 5 wine companies

wine brand in the US and recorded growth of 19% to remain comfortably ahead of the second ranked brand, with Nobilo, another Constellation Brands NZ wine brand, rounding out the top three (up 17.6%). Sam Glaetzer, managing director of Constellation Brands NZ, said the success in the US and Canada was driven by growth at the premium end of the market. “Figures like these are great for our business; they demonstrate the increasing demand for good quality New Zealand wines,” Glaetzer said. “We’re working hard to ensure that we can continue to supply future demand by investing in our people, wineries and vineyards.” Glaetzer was also encouraged by the prospect of New Zealand Geographical Indications. “This is an outstanding decision and one that has huge benefits for New Zealand’s wine exports and the industry in general. New Zealand’s Marlborough Sauvignon Blanc, Hawke’s Bay Chardonnay and Central Otago Pinot Noir are examples that are justifiably popular and deserve protection. “Up until now there’s been no legislation to prevent rogue operators from anywhere in the world from filling a bottle with their wine and labelling it ‘Marlborough’. “Geographical Indicators provide consumers with the reassurance that what they’re drinking really is a quality wine from one of the best regions in the world. This is a great move and will ensure that quality New Zealand wine continues to drive international trade and economic Growth.”

Villa Maria Revenue: NA Production: 2.5 million cases (estimate only) Employees: NA Across the past 55 years Villa Maria Estate has progressed from leasing a five hectare plot of land near Auckland to being the owner of respected international wine brands, with Drinks

International last year naming Villa Maria as the fourth ‘most admired wine brand in the world’. Villa Maria owns vineyards across New Zealand, with major production sourced from Gisborne, Hawke’s Bay, Marlborough and Auckland. It has wineries in Auckland, Marlborough and Hawke’s Bay, as well as bottling facilities at the Auckland site. The wine portfolio includes seven major brands: Villa Maria, Vidal, Esk Valley, Thornbury, Riverstone, Kidnapper Cliffs and Te Awa. Sir George Fistonich, Villa Maria Estate founder and chief executive officer, said it was “phenomenal” to think the brand he created was not only the most admired wine brand in New Zealand and inside the world’s top five. “It’s such amazing recognition for Villa Maria as well as New Zealand,” Fistonich said. This recognition has encouraged more focus on the super premium end of the market, as seen by the release of a 2013 Hawkes Bay Cabernet Sauvignon that Nick Picone, Villa Maria’s chief winemaker, described as the “first high-end wine” in the brand’s history. “It’s an exciting evolution for us,” Picone said. “We’ve got the vineyards, we’ve got the history behind us to produce an ultra high-end wine.” When Picone was appointed as the chief winemaker at the end of the 2014-15 financial year, Fistonich was thrilled with the appointment and described the 37-year-old as a “shining star” of the New Zealand wine industry. But the company founder is known for his ability to instil a passion for excellence in those he works with – which has become a major factor in the company’s continued success. While Villa Maria has been a member of Sustainable Winegrowing New Zealand (SWNZ) since its inception in 1995, it is interesting to note it was the first major New Zealand winery to achieve BioGro organic certification – which allows organic certification to be traced from grape to bottle. It has also been measuring and managing greenhouse gas emissions (everything from the growing of grapes, to winemaking; through to bottling; as well as the contributing emissions that come from vehicles, freight, air travel and manufacture of packaging) through the Certified Emissions Measurement and Reduction Scheme. Villa Maria is a leader in managed measurement.

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grapegrowing

Potassium accumulation by grapevines and potassium-pH inter-relationships in grape juice and wine In this article Rob Walker and Peter Clingeleffer (from CSIRO Agriculture, Waite Campus, South Australia) discuss potassium accumulation by grapevines and the inter-relationships between potassium and pH in grape juice and wine. POTASSIUM (K) is the major cation in grape juice, while the major anions are the ionic forms of the organic acids malic acid and tartaric acid. Grape juice pH is strongly correlated with grape juice K and largely determines the pH of the wine after fermentation, with high wine pH negatively impacting wine colour, stability and taste (Somers 1977). Adjustment of pH with tartaric acid during vinification is routinely applied to protect against such impacts (Godden and Gishen 2005). The aim is generally to bring pH to below 3.0 (white wines) and to below 3.5 (red wines) (Iland et al. 2000). Rootstocks can lead to differences in K concentrations in grape berries and grape juice (Rühl et al. 1988), which can carry over into wine. .

K ACCUMULATION BY GRAPEVINES In glasshouse studies using potted grapevines over a two month period, total K uptake (mg K / grapevine) by ungrafted rootstocks Freedom, Schwarzmann, 1103 Paulsen, 110 Richter, 140 Ruggeri and 101-14 (Kodur et al. 2010 a) and by Shiraz grafted to the same rootstocks (Kodur et al. 2010 b) was found to be correlated with total plant dry matter and total root length and surface area at the end of the two month period. For the ungrafted vines, rootstock 1103 Paulsen had highest total K uptake and rootstock 110 Richter had lowest total K uptake (Kodur et al. 2010 a), while for grafted vines, Shiraz on 110 Richter and 140 Ruggeri had higher total K uptake than Shiraz on Ramsey and 1103 Paulsen, indicating a scion-rootstock interactive effect on total K uptake (Kodur et al. 2010 b).

46 Grapegrower & Winemaker

K translocation efficiency (ratio of K content in shoot to K content in shoot plus roots) of 101-14 was higher than that of 140 Ruggeri for both ungrafted and grafted vines (Kodur et al. 2010 a, b). Unfortunately, we don’t have any field studies to compare with these glasshouse studies on K translocation efficiency, since destructive harvest and analysis of whole vines from the field is required. Accumulated K in grapevines can also be re-translocated to other plant parts. This was demonstrated by Kodur et al. (2011) in studies using rubidium (Rb) as an analogue of K that involved an initial loading of Rb into leaves. For example, concentrations of Rb in leaves decreased significantly during a 48 hour period after loading and increased significantly in lateral shoots, stem and roots (there were no bunches on these plants). Factors contributing to the re-translocation of K in plants have been reviewed by Marschner (1995). K accumulation is also higher with higher soil K supply. For example, in an experiment involving fruiting Sultana grapevines in the glasshouse supplied with either low K supply (0.05 g K per week as KH2PO4) or high K supply (0.15 g K per week as 0.05 g KH2PO4 and 0.10 g K2SO4), the high K supply vines accumulated significantly higher concentrations of K (56.8 mmol/L) and malate (1.20 g/L) and had higher pH (4.08) in grape juice relative to low K supply vines (46.8 mmol/L K, 0.94 g/L malate and 3.95 pH). Tartaric acid concentrations in grape juice were similar between high and low K supply vines (Rühl 1989).

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March 2016 – Issue 626

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grapegrowing Data for grape juice and wine K and pH for Chardonnay and Shiraz across own rooted vines and the range of rootstocks conﬁrmed the strong positive correlation between K and pH in both grape juice and wine. ROOTSTOCK VIGOUR, VINE PERFORMANCE AND BERRY TRAITS In a field trial involving seven scions (Gamay, Chasselas, Ehrenfelser, Reichensteiner, Egiodola, Perdea and Rousanne) grown on their own roots and on five different rootstocks (SO4, Schwarzmann, 1103 Paulsen, Ramsey and Dogridge), a wide range in vine vigour was obtained which was conferred primarily through the rootstock. This enabled correlations to be tested between variables. Grape juice K concentration was positively correlated with pruning wood weight (r=0.55, P<0.001) and grape juice pH was positively correlated with juice K (r=0.77, P<0.001). Grape juice tartaric acid was negatively correlated with yield (r=0.62, P<0.001) and berry weight (r=0.56, P<0.001), while grape juice malic acid was positively correlated with pruning wood weight (r=0.57, P<0.001) and juice K (r=0.69, P<0.001). In a second field study involving Shiraz grafted to five standard rootstocks (Freedom, Ramsey, 1103 Paulsen, 140 Ruggeri and Dogridge) and to 55 hybrid rootstocks from the CSIRO rootstock breeding program, a similar wide range in vine vigour was obtained which was conferred primarily by rootstock genotype. In this case, based on three season means for the respective variables, positive correlations were obtained between grape berry K concentration and pruning wood weight (r=0.81, P<0.001). Grape juice pH was positively correlated with berry K concentration (r=0.93, P<0.001), pruning wood weight (r=0.70, P<0.001) and berry weight (r=0.55, P<0.001). Grape juice titratable acidity was positively correlated with pruning wood weight (r=0.85), yield (r=0.66) and berry weight (r=0.66) (all P<0.001). The CSIRO rootstock breeding program has aimed to select rootstock types with lower K accumulation in order to achieve lower grape juice pH and therefore reduced need for pH adjustment during winemaking. Three low to medium vigour selections demonstrating lower grape juice K accumulation in Sunraysia (Victoria) trials have progressed to release in Australia with Plant Breeders Rights protection (Walker and Clingeleffer 2009; Clingeleffer et al. 2011).

GRAPE JUICE AND WINE K AND PH RELATIONSHIPS FOR CHARDONNAY AND SHIRAZ Four trial sites were established in different wine regions of Australia (Merbein and Koorlong in Victoria; Barossa Valley and Padthaway in South Australia) in the early 1990s. Each involved Chardonnay and Shiraz on their own roots and grafted to eight different rootstocks (Ramsey, 1103 Paulsen, 140 Ruggeri, K 51-40, Schwarzmann, 101-14, Rupestris St. George and 1202C). All were drip irrigated, but irrigation water electrical conductivity was different between the sites, ranging from 0.4 dS/m at one site to 3.3 dS/m at another site. Soil K concentrations also varied from site to site (Walker and Blackmore 2012). Data for grape juice and wine K and pH for Chardonnay and Shiraz across own rooted vines and the range of rootstocks confirmed the strong positive correlation between K and pH

48 Grapegrower & Winemaker

in both grape juice and wine (Walker and Blackmore 2012). It was clear from the data that as grape juice and wine K increase, [H+] decreases and pH increases. The relationship is linear for Chardonnay and exponential for Shiraz for both grape juice and wine (Walker and Blackmore 2012). It was also clear from this work that certain rootstocks can result in higher K in wine produced from the different sites. For example, rootstock K 51-40 resulted in highest wine K concentrations at the Merbein Chardonnay and Shiraz sites and also at the Nuriootpa Chardonnay and Rowland Flat Shiraz sites in the Barossa Valley (Walker and Blackmore 2012). However, at other sites, e.g. Padthaway, South Australia, K concentration in grape juice of Chardonnay and Shiraz from K 51-40 rootstock was comparable with other rootstocks, indicating rootstock site interactive effects on grape juice K.

GRAPE JUICE K IS CORRELATED WITH JUICE TOTAL SOLUBLE SOLIDS When grape juice K and total soluble solids were measured at regular intervals between post fruit set and berry maturation at two sites (Merbein and Koorlong, Victoria) for Shiraz grapes on own roots, or grafted to Ramsey, 1103 Paulsen, 140 Ruggeri and 101-14 rootstocks, positive linear relationships (R2=0.9) were obtained between grape juice K concentration and grape juice total soluble solids (Walker et al. 2000). Furthermore, the slope of the relationships was the same at both sites, despite large differences in electrical conductivity of the irrigation water, specifically 0.4 dS/m at one site (Koorlong) and 2.1 dS/m at the other site (Merbein). Similarly, using data for grape juice K and total soluble solids obtained at harvest for each of Chardonnay and Shiraz in trials at four sites involving vines on own roots or grafted to eight different rootstocks, strong positive correlations (R2=0.7) were obtained between the variables (Walker and Blackmore 2012). Both sucrose and K are transported in the phloem to developing berries (Lang and Thorpe 1989). This close association between the variables is further evidence of a potential relationship during phloem loading and unloading.

WINE COLOUR HUE IS POSITIVELY CORRELATED WITH WINE PH. The strong correlation between K and pH in grape juice and wine has already been noted. As previously reported by Somers (1977), high wine pH has a negative impact on wine colour. Using Shiraz wine data from the trial involving four sites, where wine was made using fruit from own rooted vines and fruit from Shiraz grafted to five different rootstocks, wine colour hue was positively correlated with wine pH (Walker and Blackmore 2012). Lower colour hue means a brighter wine, hence the higher colour hue with higher wine pH means less brighter wines. Similar observations were made by Gong et al. (2010).

DISTRIBUTION OF K IN GRAPE BERRIES When examined in terms of total berry K content, the percentage of total berry K in skins is similar to the percentage of total berry K in pulp, with only a small percentage of total berry K in seeds. For example, for the grape varieties Muscat Gordo Blanco, Shiraz, Riesling, Cabernet Sauvignon and Chardonnay, all growing on their own roots, the mean percentage of total berry K content in skin, pulp and seed was 43%, 50% and 7%, respectively (Walker et al. 1998). For each of the varieties grafted on Ramsey, the mean percentage of total berry K content in skin, pulp and seed was 41.5%, 53% and 5.5%, respectively (Walker et al. 1998). On a concentration basis, because skins are only small percentage of total berry weight, K concentrations are much higher in berry skins than in pulp. For example, skin K concentrations were 4.0 – 4.5 fold higher

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March 2016 – Issue 626

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grapegrowing than in the pulp for Chardonnay and 4.0 – 5.5 fold higher than in pulp for Shiraz (Gong et al. 2010).

Dunsford, P. and Boulton, R. (1981b) The kinetics of potassium bitartrate crystallization from table wines. II. Effect of temperature and cultivar. American Journal of Enology and Viticulture 32, 106-110.

K CONCENTRATION IN FERMENTING MUSTS

Clingeleffer, P., Smith, B., Edwards, E., Collins, M., Morales, N., Davis, H., Sykes, S. and Walker, R. (2011) Industry puts low-medium vigour rootstocks to the test. Wine and Viticulture Journal, May/June 2011, p.72-76.

In a study involving four varieties, during fermentation on skins, there was a 50 - 120% increase in must K concentration during the first two-to-three days of fermentation, after which concentrations plateau over the next 10 days. During juice fermentation (no skin contact), the increase over the same period was smaller (0 – 38%) followed by a plateau or decline (Walker et al. 1998). This suggests that significant K is released from skins into the must during the initial stages of fermentation. The subsequent plateau in must K concentrations may be explained by pressing off skins after three days. The study by Walker et al. (1998) also showed that K concentration in ferments was higher from Ramsey-grafted than from own rooted vines, most likely reflecting higher K concentrations in pulp and skin of berries from Ramsey grafted vines than from own rooted vines, as demonstrated in the study by Gong et al. (2010).

RED VERSUS WHITE WINE IN THE JUICE K/WINE K RELATIONSHIP Using data obtained from the study on Chardonnay and Shiraz grown on own roots and grafted to eight different rootstocks at four different sites in Australia, and where wine was made from grapes harvested at the various sites, it was observed that K concentrations in wines (measured on average 10 months after completion of vinification) showed a decrease of more than 50% for white wines and around 20% for red wines relative to concentrations in grape juice. This agrees with observations by Somers (1977), although recently for Shiraz, we have observed a wide range, from increases of around 20% to decreases of around 40% in K concentrations between grape juice and wine. The main influencing factors are likely to involve formation and precipitation of potassium bitartrate during vinification (Dunsford and Boulton 1981 a, b), extraction of K from skins and time on skins during the making of ‘reds’ (Walker et al.1998), and possible adsorption of K on pomace (Harbertson and Harwood 2009).

Acknowledgement The support of CSIRO and the Grape and Wine Research and Development Corporation (now Australian Grape and Wine Authority) is gratefully acknowledged.

References

Dunsford, P. and Boulton, R. (1981a) The kinetics of potassium bitartrate crystallization from table wines. I. Effect of particle size, particle surface area and agitation. American Journal of Enology and Viticulture 32, 100-105.

Gong, H., Blackmore, D.H. and Walker, R.R. (2010) Organic and inorganic anions in Shiraz and Chardonnay grape berries and wine as affected by rootstock under saline conditions. Australian Journal of Grape and Wine Research 16, 227-236. Harbertson, J.F. and Harwood, E.D. (2009) Partitioning of potassium during commercial -scale red wine fermentations and model wine extractions. American Journal of Enology and Viticulture 60, 43-49. Iland, P. Ewart, A., Sitters, J., Markides, A. and Bruer, N. (2000) Techniques for chemical analysis and quality monitoring during winemaking. Patrick Ireland Wine promotions, South Australia. ISBN: 0646 38435 x. Kodur, S., Tisdall, J.M., Tang, C. and Walker, R.R. (2010a) Accumulation of potassium in grapevine rootstocks (Vitis) as affected by dry matter partitioning, root traits and transpiration. Australian Journal of Grape and Wine Research 16, 273-282. Kodur, S., Tisdall, J.M., Tang, C. and Walker, R.R. (2010b) Accumulation of potassium in grapevine rootstocks (Vitis) grafted to ‘Shiraz’ as affected by growth, root traits and transpiration. Vitis 49, 7-13. Kodur, S., Tisdall, J.M., Tang, C. and Walker, R.R. (2011) Uptake, transport, accumulation and retranslocation of potassium in grapevine rootstocks. Vitis 50, 145-149. Lang, A. and Thorpe, M.R. (1989) Xylem, phloem and transpiration flows in a grape: application of a technique for measuring the volume of attached fruits to high resolution using Archimedes principle. Journal of Experimental Botany 40, 1069-1078. Marschner, H. (1995) Mineral nutrition in higher plants. Academic Press: London. Rühl, E.H., Clingeleffer, P.R., Nicholas, P.R., Cirami, R.M., McCarthy, M.G. and Whiting, J.R. (1988) Effect of rootstocks on berry weight and pH, mineral content and organic acid concentrations of grape juice of some wine varieties. Australian Journal of Experimental Agriculture 28, 119-25. Rühl, E.H. and Walker, R.R. (1990) Rootstock effects on grape juice potassium concentration and pH. In: P.J. Williams, D.M. Davidson and T.H. Lee, Eds. Proceedings of the Seventh Australian Wine Industry Technical Conference, Adelaide, South Australia, October 1989, pp 75-78. Somers, T.C. (1977) A connection between potassium levels in the harvest and relative quality in Australian red wines. Australian Wine Brewing and Spirit Review, May 1977 pp 32-34. Godden, P.W. and Gishen, M. (2005) Trends in the composition of Australian wine 1984 - 2004. In: Advances in Wine Science, Eds: R.J. Blair, M.E. Francis and I.S. Pretorius, The Australian Wine Research Institute, Glen Osmond Australia. pp 115139. Walker, R.R., Clingeleffer, P.R., Kerridge, G.H., Rühl, E.H., Nicholas, P.R. and Blackmore, D.H. (1998) Effects of the rootstock Ramsey (Vitis champini) on ion and organic acid composition of grapes and wine, and on wine spectral characteristics. Australian Journal of Grape and Wine Research 4, 100-110. Walker, R.R., Read, P.E. and Blackmore, D.H. (2000) Rootstock and salinity effects on rates of berry maturation, ion accumulation and colour development in Shiraz grapes. Australian Journal of Grape and Wine Research 6, 227-239. Walker, R. and Clingeleffer, P. (2009) Rootstock attributes and selection for Australian conditions. Australian Viticulture 13 (4), 70-76. Walker, R.R. and Blackmore, D.H. (2012) Potassium and pH inter-relationships in grape juice and wine of Chardonnay and Shiraz from a range of rootstocks in different environments. Australian Journal of Grape and Wine Research 18, 183-193.

VITICULTURE

50 Grapegrower & Winemaker

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March 2016 – Issue 626

Building research ties with Italy Late in 2015 a group of Italian viticulture academics spent time in Australia, strengthening the links between research programs. Dr Rob Walker, the chief research scientist at CSIRO Agriculture, based at the Waite Campus in Adelaide, compiled this report. FOUR LEADING GRAPE and wine specialists from Italy visited Australia in December to attend Symposia in Canberra and Adelaide, participate in vineyard tours and meet with Australian grape and wine scientists to strengthen existing collaborations and build new ones. Professor Mario Pezzotti, Professor Fulvio Mattivi, Dr Giorgio Gambino and Dr Anna Schneider were in Australia for around one week. Professor Pezzotti is a specialist in grapevine genomics and Vice-Rector for Research at the University of Verona. Professor Mattivi is a chemist, specialising in the flavour and aroma of grapes and wine and leads the Department of Food Quality and Nutrition, Research Dr Anna Schneider with Giulio Dimasi (in the d’Arenberg vineyards) and Innovation Centre, Edmund Mach control by variety and environment as grapevine genetic resources for industry Foundation, San Michele all’Adige. Dr a basis for manipulating expression to and research, the application of molecular Gambino specialises in the interaction improve vine performance and wine approaches and tools to achieve better between grapevine viral pathogens and quality. Professor Mattivi demonstrated vine performance and wine quality, environment. Dr Schneider is a renowned the capacity to distinguish sparkling better characterization of grape and wine grapevine ampelographer specialising wines from different regions based on flavour and aroma that link to regional in grapevine variety identification by chemical measures of wine flavour terroir and a better understanding of morphological and molecular methods. and aroma. He further highlighted the interactions between grapevine Drs Gambino and Schneider are from the the importance of ensuring correct genetic biodiversity, pathogens and the Institute for Sustainable Plant Protection, oxygen levels at bottling and the ideal environment. National Research Council of Italy, Turin. temperatures for wine storage by Professor Pezzotti highlighted the Topics covered at the Symposia of demonstrating how changes to these importance of understanding the genes importance to industry in both countries 4407Metarex185x88 2016-02-17T14:32:12+11:00 variables affect wine composition. regulating key traits and their relative included the value of well characterized

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Grapegrower & Winemaker

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Professor Fulvio Mattivi

Dr Giorgio Gambino

Dr Gambino’s presentations described tools for investigating the interactions between grapevine genetic biodiversity, pathogens and environment, with special reference to grapevine-virus interactions. Grapevine rupestris stem pitting-associated virus (GRSPaV) was used as an example to demonstrate how grapevine response to environmental cues was impacted by viral infection and how distinct variants of the stem pitting virus can impact the interaction. Dr Schneider outlined some of the reasons why grapevine nomenclature is a challenging topic. These included cultivation of grapevines for thousands of years, the transfer of bud wood of varieties between countries and regions over that time and different approaches to naming resulting in numerous synonym names for some varieties. Dr Schneider further outlined the morphological and molecular approaches used in grapevine identification and the European data bases that document the primary and synonym names of varieties. Prominent Australian grape and wine scientists also participated in the Symposia and gave presentations on topics that complemented those presented by the visitors. Tony Battaglene, General Manager Strategy and International Affairs, Winemakers’ Federation of Australia,

Professor Mario Pezzotti

The grape and wine industries of both countries have a strong base in research and development and it is important that we continue to work together to address similar challenges. presented an overview of the Australian wine industry at the Canberra Symposium. CSIRO Research Directors Dr Lynne McIntyre and Dr Steve Swain praised the overall initiative. “Both countries have a rich history of productive collaboration in agriculture innovation and initiatives such as this are vital for strengthening the collaborative partnership,” McIntyre said. The Embassy of Italy, National Research Council of Italy, Wine Australia and the Grains Research and Development Corporation sponsored the CSIRO led visit in liaison with the

Scientific Attaché for the Embassy of Italy, Professor Oscar Moze and the Wine Innovation Cluster. A highlight of the Canberra Symposium was a dinner for invited speakers and guests hosted by the Ambassador for Italy in Australia held at the Embassy of Italy. The program included vineyard tours of the Canberra and McLaren Vale Wine Regions including opportunities to taste wines from both regions. This included viewing Italian grape varieties, their adaptation to Australian vineyard conditions and tasting wines of the locally grown Italian varieties. Former Australian President of the OIV (Office International de la Vigne et du Vin), and current Deputy Chancellor of Charles Sturt University, Peter Hayes, participated in the McLaren Vale vineyard and winery tour and strongly supported the ongoing cooperation and collaboration between the two countries. “The grape and wine industries of both countries have a strong base in research and development and it is important that we continue to work together to address similar challenges,” Hayes said. Researcher-to-researcher collaborations that consolidate the linkages established during the Symposia will be an important next step in further building the research ties between the two countries.

2016 Edition OUT NOW

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52 Grapegrower & Winemaker

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March 2016 – Issue 626

Effective snail control starts now AUTUMN RAIN and the changing season can trigger snail activity in vineyards. This is the perfect time to consider baiting, when snails are active and feeding but haven’t yet begun to lay eggs. Snails generally shelter in the vine canopy from late spring through summer to escape the heat. This can cause serious contamination issues at harvest in wine and table grapes as well as in dried fruit operations. Recent research from SARDI in grain crops has shown snails move down to the ground in summer when humidity is above 90 percent, but in early autumn snails respond to lower humidity, at about 80 percent. Once the weather begins to change and the moisture and humidity increases, snails will move from the canopy to the ground to begin feeding and egg laying. Snails lay eggs from autumn through to spring, with some species laying up to 1500 eggs in small batches throughout the season. Many can live for up to two years. Eggs hatch within two weeks and juvenile snails can grow quite quickly and join last season’s adults in feeding on new buds and young leaves. For every snail taken out in autumn before egg laying, you could prevent thousands of snails from entering your vineyard during the next two seasons. Controlling snails now will help lower their numbers before breeding and reduce feeding damage and contamination issues later in the season. The common garden snail (Cantareus aspersus) and the white Italian snail (Theba pisana) are the two most common species that can damage plants and impact on production and/ or cause contamination issues. This varies throughout the wine growing regions and there are as many as five species that can cause problems across southern Australia. Some, like the small pointed snail (Prietocella barbara), can also clog irrigation sprinklers and cost growers significant amounts of time and money. Snail bait is the best form of chemical control in autumn. Bait needs to be applied when snails are active and feeding. They have a limited life in the field, so it’s particularly important that bait application coincides with snail feeding. SARDI’s research on snail baiting in cropping systems shows that commonly used bran baits may need to be re-applied in less than 2 weeks, while more expensive products will last 3-4 weeks. Monitoring snail activity is essential to get the most out of any bait applications. Snails are generally active at night, early in the morning and during cool damp periods, so these are the best times to monitor their numbers and feeding activity. Check

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for snails in areas where you’ve had problems in the past or noticed them sheltering in the canopy during harvest. Irrigation points are also a good place to check for snails. A successful baiting program in autumn depends on a range of factors, including snail species and number, bait type and environmental conditions. In general, if snails are active and feeding then: • There must be enough bait points on the vineyard floor to maximise the chance of snails encountering bait; and • The rate needs to be appropriate for the number of snails in your vineyard to make sure they get a lethal dose. Monitor closely after baiting to check on your results and apply fresh bait according to the label specifications, if necessary. Earwigs and millipedes may also eat the snail bait – another reason why it’s important to monitor after baiting and check for snail mortality. Starting your baiting program now in autumn will help prevent problems in the season ahead. An example of an attractive and palatable bait product is Metarex, from AgNova, which is known as a long lasting product with a good kill rate in rain, hail or shine. For more information about Metarex, contact AgNova Technologies P: 03 9899 8100 E: info@agnova.com.au

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54 Grapegrower & Winemaker

Large-scale viticulture: The balance between sustainable and profitable management Smaller margins for larger vineyards mean that compromises need to be made. But sustainable practices are even more critical in large operations. In this report Mark Greenspan draws on his own Pruning experiences. While he has reported on the challenges in California, he has some valuable insights that viticulturists across Australia and New Zealand should take note of. This article was originally published in the US for Wine Business Monthly and is used here with permission. THOUGH I SPENT nearly nine years with one of the largest wineries in the world before starting up my own private consulting, my focus then – as now, was on smaller-scale vineyards and wineries. I have previously shared my rather embarrassing, yet enlightening, moment many years ago when speaking to a group of growers about the benefits of deficit irrigation of vineyards when a grower chipped in and said the practice ‘would benefit the winery but not the growers’. He said it more brashly than that, however, and as my red face returned to its natural colour, I continued awkwardly with my presentation, realising that I needed to approach water management differently with different types of farmers. Clearly, that experience has lived with me and, I believe, made me a more practical viticulturist. Those of us involved with smallerscale viticulture have a different outlook on winegrape growing. A Central Valley colleague of mine once told me that he thought of smaller growers as “gardeners” when comparing our own 20 to 25-acre “vineyards” to his 2000 to 2500-acre “ranches.” It’s interesting. There really are two worlds within the wine industry. It exists as much in the wine production side as it does in the vineyards. Neither portion of our industry can be dismissed as being subsidiary to the other. For volume, the California interior valley wins by a long shot (and the same can be said for Australia where the inland, irrigated regions where about 40% of Australia’s winegrape www.winetitles.com.au

vineyards are located). However, when you look at the value of the winegrape crops grown in California, the coastal regions win out, bringing 58 percent of the value to the crush, with the largescale vineyards offering only 42 percent. Weighted average prices per ton (across all varieties) for the smaller-scale regions is about four times that of the larger-scale regions in California. The discrepancy means that largescale vineyards in the interior regions of the state operate at a far smaller profit margin per ton of grapes. In order to be economically sustainable and maintain a viable business model, those vineyards must operate differently than their coastal counterparts. We cannot expect boutique viticulture in large-scale farming. But viticulture is viticulture, and the concepts of good practice hold true regardless of where the vines are grown and for what purpose. And while we coastal vineyard operators can be smug about our “hands-on” viticulture, it just doesn’t (and can’t) play in Central Valley viticulture. Let’s break it apart just a bit.

VINEYARD DESIGN One of the biggest costs for development is vine costs and costs for hardware. While coastal Californian vineyards have been moving toward closer vine and row spacing, that has not been followed in the Central Valley. Closer spacing tends to produce more even budbreak, which leads to more uniform canopies and therefore more uniform ripening. March 2016 – Issue 626

That tends to also produce better wine quality. But higher planting density costs more money, both with regard to number of plants per acre and number of stakes per acre. Central Valley soils and climate are such that vines can grow fairly large, something that is enhanced by the choice of more vigorous rootstocks. Presence of parasitic nematodes in many Central Valley soils necessitates the use of nematode-resistant rootstocks, like Freedom and Harmony, both of which are rather vigorous growers. That means that vines may be spaced further apart in the vine rows. The compromise of potential uniformity of maturation is necessary to reduce development costs, as well as to offset the potential vigour of commonly used rootstocks. The trend in coastal vineyards has been to put stakes about 15 to 18 feet apart and use training rods (pencil rods or rebar) at each vine location. That reduces hardware costs but is less effective for intensely mechanised operations. Large-scale vineyards are most often mechanised in some aspects, at least for harvesting. Highly mechanised vineyards can have a stake at every vine, which increases development costs but provides a sturdy infrastructure for mechanised operations. Other aspects of trellis design will differ between coastal and interior vineyards, with coastal vineyards commonly employing some sort of shoot-positioned trellis system while high-volume vineyards cannot afford to have hand crews positioning shoots and lifting trellis wires. High-production vineyards are usually

trained with higher fruiting zones to facilitate machine harvesting and employ a sprawl canopy architecture. The “California Sprawl” as it is often called, works very well for highproduction vineyards, not simply because of the low maintenance aspects of the canopy. The more random positioning of shoots (kind of a porcupine in crosssection) provides good shading of fruit in the hot climates of the Central Valley. It’s only when the sprawl becomes unruly, because of over-watering or excessive fertilization, does the sprawl canopy take on its more notorious reputation. Row spacing is getting closer in all regions, but we’ll not see the trend toward six-foot rows in the Central Valley that we are seeing in coastal vineyards. The sprawl canopy does not lend itself to narrow rows, although row spacing may be made narrower than the old 12-foot rows. If canopy growth can be constrained (hint, hint: less water and nitrogen), then row spacing can be narrower and the peracre yield increased.

PRUNING AND CANOPY MANAGEMENT Generally, high-production vineyards are not cane-pruned. Cane pruning requires hand labour, and labour is something that needs to be minimised in large, high-volume vineyards. Spur pruning is still common, which also requires hand labour, but prepruning is employed to vastly reduce the effort and cost at pruning time. As time goes on, more vineyards are moving to mechanical pruning, which generally involves pruning to a “box” in cross-section. This creates a larger

number of buds per linear unit of vine, which can be a benefit to large-scale vineyards. More buds mean more shoots per linear unit and therefore more bunches per linear unit. It also means that more shoots will curtail vigour, which is a benefit to growers regardless of where they are growing. Less vigour means less trimming, less disease pressure and easier harvesting, not to mention better wine quality. The labour-intensive canopy management that is common in smallerscale coastal vineyards includes suckering and shoot thinning, shoot positioning and wire lifting, leaf and lateral removal in the fruit zone, and shoot trimming. These operations, with the exception of shoot trimming, are among the most labour-intensive and costly operations in the vineyard. Hence, some compromise must be made for lower-margin vineyards. Trunk suckering may be done by brushes, or also by using contact herbicides which will kill suckers without translocating within the vine. Shoot thinning, however, is more challenging. Probably the most common shoot thinning tool is the paddle type of shoot remover, which has a rotating mechanism that brushes against the cordon and knocks off tender shoots. The rate of rotation and ground speed of the machine dictate how many shoots are removed per linear unit of vine. Shoot positioning and wire lifting? Forget it. Sprawl canopies can’t be bothered with such nonsense. Leaf and lateral removal in the fruit zone will vary, but hand-leafing is not the way it is done for most growers. There are

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grapegrowing some very good leaf plucking machines out now, and they can do a job that almost mimics hand-leafing. That is becoming more commonly practiced in coastal vineyards as well, because of the small window of time during which this operation must be performed, both for quality and for practicality.

WATER MANAGEMENT I was heckled off the stage (well, not really) in Fresno by talking about deficit irrigation. There is not enough incentive for growers to practice deficit irrigation in large-scale vineyards, yet restraint in irrigation applications conveys many benefits to large-scale growers. Excessive irrigation leads to excessive vegetative growth, which creates a host of problems, especially in sprawl canopies. So, careful irrigation management of vineyards, even in the Central Valley, can pay dividends: 1. Reduced canopy growth reduces canopy trimming, disease pressure and potentially increases bud fruitfulness for the following season; 2. Irrigation within the root zone and not below it reduces leaching of nutrients (think nitrogen) and some pesticides below the root uptake zone and potentially into the groundwater; and 3. Reduced application of irrigation has direct cost reductions with regard to water cost itself, in addition to pumping and other delivery costs. Water is not getting cheaper, and it will always be a source of political, social and environmental concern. Its wise and sustainable use pertains to all vineyards. Maybe not stress-inducing

deficit irrigation, but efficient water management. The use of soil moisture devices, weather stations and portable plant moisture measurement instruments is appropriate for all scales of viticulture. Perhaps the most applicable are the soil moisture devices, which provide information as to the depth of irrigations, as well as direct measurement of water uptake by the vines. In conjunction with weather stations, they can be used to manage irrigations efficiently, even without using the plant moisture status devices.

ammonium and urea forms of nitrogen fertilisers may be lost due to volatilisation, and nitrate forms of nitrogen may be lost due to deep leaching. Usually, it is best to apply nitrogen to vineyards in small quantities, with applications made several times during the growing season to avoid losses and to avoid over-stimulation of vine vegetative growth. Organic forms of fertiliser are less likely to be lost to leaching, as much of the nutrient is tied up in organic form and is mineralised (released) slowly over time by soil microbes.

NUTRIENT MANAGEMENT

YIELD AND HARVEST

Much of the ground water in the Central Valley is contaminated with nitrate due to historical misuse of nitrogen fertilisers on crops. Not necessarily with vineyards, but most, if not all, crops have been contributing to deep leaching of nitrate due to overapplication of fertilizers and excessive irrigation. Land stewardship applies to all farming operations. Large vineyards, with higher crop production, will require a higher amount of fertilisation than lower-producing vineyards on the coast. However, fertiliser application needs to be taken with regard to the needs of the vineyard, not by some generic program and certainly not without checking the status of the vineyard tissues and soils. Lighter-textured soils cannot hold as much nutrient as heavier ones, so large applications of fertilisers are often ineffective and waste money as well as potentially pollute the environment. Nitrogen is almost certainly the nutrient misapplied the most. Ammonia,

There is not much that needs to be added with regard to these topics. Yield must be higher in large-scale vineyards because they have lower per-ton prices. That means that you won’t find many hand crews going through and de-clumping clusters or dropping green fruit at 90% veraison. Harvesting? By machine. End of story. In a sense, large-scale vineyards of the Central Valley are providing leadership to coastal growers by testing and refining mechanised vineyard operations. As labour gets more scarce, and thereby more expensive, many mechanical operations practiced inland are being seen in coastal vineyards with great success. The large vineyards have something to learn from smaller vineyards, though. More careful water management (no, not necessarily deficit irrigation) and fertilisation practices need to be adopted by all growers because sustainable viticulture applies to all vineyards.

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March 2016 – Issue 626

Early signs point to a stand-out vintage THE COMBINATION of high quality grapes and above average yields in several of Australia’s premier wine regions have growers and winemakers confident the 2016 vintage will be one to remember. A warmer than average spring across the state helped strong canopy growth while timely summer rain in many regions in January has led to good yields without impacting on quality. BAROSSA VALLEY Barossa Grape & Wine Association Viticultural Development Officer Nicki Robins said the 2016 Barossa vintage was shaping as a stand-out, with strong indications of very high quality and yields generally above the five-year average. “Winemakers are reporting dense colour and rich, vibrant flavours in Shiraz picked to date,” she said. “A fortuitous 1.5 inches (40mm) of rain fell from January 21, followed by mild conditions throughout late January/early February, which has seen phenology keeping up with sugar levels in Shiraz - lots of brown, crunchy seeds early, yielding rich, ripe tannins.” Robins said the mild conditions had also been kind to Barossa Valley whites, including semillon and chardonnay, which had been building delicate flavours slowly, while retaining crisp acid levels. Cabernet Sauvignon, Grenache and Mataro in the region are yet to be picked. Growers have been harvesting Barossa Valley white grapes since late January with Chardonnay yields reported to be up to 20 per cent above estimates while Semillon yield was variable, depending on irrigation practices. Harvest of Barossa Valley Shiraz started around February 10 with close to 50 per cent picked. Yields reported for Shiraz so far have been between average to 20 per cent above the five-year average. In Eden Valley, Shiraz is holding up well, but yields are looking slightly

below average. Cabernet Sauvignon and Riesling quality and yields are tracking nicely, with potential harvest dates late Feb/early March for Riesling and Viognier, mid/late March for Shiraz, and late March/early April for Cabernet Sauvignon. Yalumba Chief Winemaker Louisa Rose presented her 2016 Barossa Vintage Report at the “Barons of Barossa Declaration of Vintage” ceremony on February 21. “At this early stage whites are showing delicate but intense flavours and pleasingly good natural acidity, and reds strong colours and rich flavours,” she said.

CLARE VALLEY On February 24, Clare Valley Wine Grape Growers Association Chairman Troy van Dulken said harvest was about halfway through. He said most vineyards were experiencing above average yields across several varieties. “Most of the whites are off and about 90 per cent will be picked by the end of next week. The Cabernets and things like that will start coming off next week,” he said. “It’s been a very good season, the heat we’ve just had across the weekend has just finished the Shiraz fruit off nicely… I’m really happy with the quality of the shiraz that’s coming into the winery at the moment and I think that’s across the valley. “It’s one of those rare years where

we’re getting a few extra tonnes of fruit and the quality is pretty solid as well.” Van Dulken said the Riesling yield was also slightly above average and was of “good solid quality” without being an outstanding year such as 2002. “There’s good flavours there and good acid as well so at this stage we’re quite happy with the Riesling. “Overall it’s been not quite a perfect vintage but it’s pretty close.”

MCLAREN VALE Wine industry stalwart Jock Harvey said strong yields and excellent quality grapes pointed to an outstanding year in the region. He said a warm spring in McLaren Vale resulted in strong canopy growth but a dry December put pressure on irrigation. He said a couple of heat events allowed for an extended veraison followed by a period of background humidity. “That’s one of the keys to an outstanding vintage that extended veraison,” Harvey said. “Once that passed we had 30mm of rain generally across McLaren Vale and what that did is it freshened up the canopies that were starting to look a bit tired and added some berry weight to the bunches which allowed flavor development to progress side by side with sugar accumulation. “Consequently we’ve got a season where we’ve got very good natural acids, thick skins, quite crunchy and ripe berries and because we’ve had mild conditions in the mid to high 20s generally, we’re

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Grapegrower & Winemaker

grapegrowing developing flavours slowly and the intake of fruit isn’t rushed.” “We are very excited – growers are reaching their contracted tonnages, which is the first time they’ve done that in a number of years and winemakers are pretty excited about the fruit.” Harvey said yields were up by about 20 per cent on 2014 and 2015. “We’re not concerned by that because we’ve also got outstanding quality – it’s just one of those very kind years. “I think it’s an outstanding year because many winemakers aren’t making any acid adjustments to their ferments, they are going straight in. We’re seeing really good colour and texture out of the thick crunchy skins and really good flavor development. “2012 was a dream year… and this vintage may well eclipse 2012.”

RIVERLAND Riverland Wine Executive Officer Chris Byrne said picking was about a third of the way through with the chardonnay harvest almost complete and red varieties just getting underway. “I think the next two or three weeks will be fairly hectic because most of the baume across our main varieties of Shiraz, Cabernet Sauvignon and Merlot are coming to maturity at about the same time but despite all the hot weather we’ve had a remarkably good season with very low pest and disease.” Byrne said at this stage he expected fairly average yields with a total crop of about 425,000 tonnes, 30,000 tonnes less than last year. “It remains to be seen. Once the reds

58 Grapegrower & Winemaker

come in it will be whether or not they’ve got the yield in them – we won’t really know until mid-March. “But the quality is excellent according to winemakers.” Byrne said Riverland grape prices were about the same as last year and remained “very unsatisfactory” for growers.

COONAWARRA Vignerons in the Coonawarra are optimistic about the 2016 vintage, which commenced with the picking of chardonnay and pinot noir for sparkling wines in the first week of February. However, the flagship variety of the region in South Australia’s South East, Cabernet Sauvignon, was unlikely to be harvested until at least mid-March. Coonawarra Grape and Wine Incorporated president Allen Jenkins said the grapes were holding up well. “Given the dry season, we have really appreciated being able to irrigate with our groundwater,” he said. “There is no disease, vine leaves are holding up very well, and the berries are developing evenly and are pea size, which is normal for this time of the year.” He said there had been no significant berry sunburn, despite the occasional hot day. “We have also done a lot of work, bunch and shoot and leaf thinning to present ideal crop levels, and are optimistic for high quality fruit. “As to vintage occurring for the Cabernet, it depends on how the temperatures evolve over the next six weeks. “There has been a strong upwelling at

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the coast off Robe and we’re hopeful that the cold oceans – which are currently 8C colder than off Adelaide, will give us cold nights and a long, cool ripening period.”

ADELAIDE HILLS A bumper crop in the Adelaide Hills region has winemakers smiling. Adelaide Hills Wine Region CEO Robin Shaw said most of the whites, including Sauvignon Blanc, Chardonnay and Gruner Veltliner, had been picked while Shiraz grapes were still a few weeks away. “The yields are really high, I know that there’s a few grapes for sale out there because people have harvested more than they expected, which is terrific,” she said. “The reds are looking fantastic but they’re still two or three weeks off for some people… the whites are also fantastic, I’ve heard some people use the words ‘my perfect Chardonnay grapes’. “The ripening season has been excellent and the big drop of rain we had through the hills which we thought was going to be a worry turned out to be a blessing because it gave the grapes a nice drink and we’ve had virtually no disease so that’s why the yields are up because the grapes have been in good condition. “Everyone seems to be very happy – I see smiles on winemakers’ faces.” Shaw said it was a compressed vintage because several varieties had been ready to pick simultaneously. “People are scrambling around for machinery and things to put grapes in but aside from that everyone seems happy.”

March 2016 – Issue 626

Wine diploma sparks interest CURTIN UNIVERSITY has increased its semester one intake for the Graduate Diploma in Oenology, due to a growing interest in wine production across Australia. The one-year postgraduate course offered at the Margaret River Centre for Wine Excellence provides an understanding of practical wine production, beer production, distillation, sensory evaluation of wines, the principles and practices of viticulture and explores the relationship between grape and wine quality and wine marketing.

Dr David Kelly, course coordinator, said the Grad Dip was designed to both introduce people to the industry as well as advance the skills of people already within the wine sector. “While the course covers solid scientific and practical studies, it’s also broad enough to allow graduates to work in different areas of the wine industry, not just in traditional winemaking,” Kelly said. “In the past, graduates with business and marketing degrees have used the course to gain employment in the industry from a business perspective.”

Moppity Vineyards appoint new team JASON BROWN, owner of Moppity Vineyards and their distribution arm Renegade Wines, has announced the appointment of four well-known trade identities to the sales and marketing team. Encouraged by success at state and regional wine shows across recent years, Jason and Alecia Brown have decided to develop and expand their sales team. Renegade Wines is the distribution arm of two premium cool climate vineyards owned by Jason and Alecia Brown in Southern NSW – Moppity Vineyards located in the Hilltops region and Coppabella Vineyards located in the Tumbarumba region. Jeff Richardson has been appointed to manage sales throughout New South Wales/Australian Capital Territory; Dave McLeod takes on Queensland and northern New South Wales; while Antony Bristow will oversee Victoria and Tasmania. These appointments are in addition to the existing team of seven already established in NSW/ACT. “With these appointments comes a wealth of knowledge that can only be gained from years dedicated to the industry. Jeff’s career has included a number of prominent roles within a wide selection of industry leading companies such as Hardy’s, Treasury and Bacardi Lion. Dave has gained extensive experience with Pernod Ricard in the UK, America and Australia. And Antony comes to us after working closely with family owned brands, Angove’s Family Wines, Grant Burge and then most recently Accolade,” said Brian McGrath, Renegade Wines national sales manager. Alongside these appointments, Renee Foster will head up the marketing and communications for Moppity Vineyards and Coppabella. Renee has extensive experience in the wine industry, having managed Sydney’s iconic Ultimo Wine Centre for 10 years. She was also a scholar at the 2008 Len Evans Tutorial and has judged at numerous wine shows across the country. “Renee is passionate about wine and well experienced in wine retail, her skill and expertise will be invaluable in supporting the sales team by way of traditional marketing and in using digital and social media for effective communication to both trade and consumer,” McGrath said. Across the past two years, Moppity has claimed 20 wine show trophies and more than 100 gold medals, including ‘most successful exhibitor’ at the 2015 Hobart Show. Moppity very

Looking for more articles, visit the Grapegrower and Winemaker article archive at: www.winetitles.com.au/gwm March 2016 – Issue 626

quickly achieved ‘five red star’ status in James Halliday’s Wine Companion and in 2015 was included in Halliday’s ‘top 10 value wineries’ in Australia. The winery also made the first NSW wine to win the trophy at the 2014 Great Australian Shiraz Challenge, with the Moppity Reserve 2013 Shiraz. “Ensuring we have a professional ‘go-to-market’ strategy is key to our longevity and, with this in mind, you get the best staff you can get your hands on. The fact that Renee, Jeff, Antony and Dave were able to be enticed to move across, further indicates that we have got something special,” Jason Brown said. “Until now we have pretty well played in the peripheral areas of the industry, with the focus on NSW and particularly the ACT. We’ve been telling everyone prepared to listen that we’re serious about our future and the industry’s future, so hopefully recruiting industry stalwart’s such as Renee, Jeff, Dave and Antony will let everyone know that we are very serious indeed.”

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grapegrowing Supplier Update

Irrigation

A new company with a long legacy: Rivulis Irrigation

THERE HAVE BEEN a lot of changes to one of Australia’s largest drip/micro irrigation manufacturers in the 20 months since what was then known as John Deere Water transferred ownership and became Rivulis Irrigation. Immediately after the change of ownership, a customer-focused review was conducted over the entire business. Since then, Rivulis has been quietly implementing these changes. Today, Rivulis is a very different company. It has doubled its product range giving growers greater flexibility and customisation, expanded its distribution network, and made customer service a priority by increasing both in-field and customer service representation. This clearly resonated with its customers when, in 2015, Rivulis Irrigation recorded its highest sales in six years. As such, Rivulis is in the process of increasing its Australian drip production capacity to meet increased demand. Rivulis Irrigation Managing Director, Greig Graham, said the company was committed to Australian growers and providing them with the support and products they need. “With greater demands on growers to be more efficient and profitable, it became clear we needed to move from product focus to solution focus,” Graham said. From Rivulis having staff in the field means they can offer on-site GPS mapping services to obtain accurate geospatial data for hydraulic design, to end-to-end irrigation project management, as a result Rivulis is becoming much more than an irrigation manufacturer. A new innovation is Rivulis Irrigation Finance to assist growers purchasing irrigation systems and farm equipment. The finance offering, designed to meet a unique gap in the market, was developed

The Rivulis management team (from left) Matt Clift, marketing & business development manager; Peta Corbett, financial controller; Greig Graham, managing director; and Nathan Ortiz, operations manager.

over nine months in collaboration with a major financial institution. Matt Clift, Rivulis Irrigation’s marketing and business development manager, said the company was excited about the new service because growers can access irrigation finance without using their property as security. “Rivulis Irrigation Finance is different because we use the irrigation system itself as security. We have developed a package that is competitive with other lenders, and is flexible so that growers have various financing options including seasonal payments,” Clift said. Rivulis Irrigation Finance is not limited to Rivulis Irrigation products only; a grower can also take out a package that covers pumps, automation and other farm equipment. Although a new name in the Australian market, Rivulis Irrigation draws on the

expertise and product development of Plastro, Roberts and T-Systems, which were purchased by John Deere and rebranded John Deere Water. The company manufactures and distributes well-known brands that include T-Tape drip tape, HydroPC, D5000 Drip Line, S2000 (ex-Rondo) sprinklers, filters, valves and irrigation accessories, and solutions to a wide range of agricultural, horticultural, vegetable and landscaping enterprises. New products introduced in 2015 include D5000 slow-drain/anti-siphon drip line, Rivulis MEA Moisture Monitoring sensors, Krohne Magflow Water Meters and a wide range of sprinkler and greenhouse products. For more information about Rivulis visit www.rivulis.com.au or phone 1800 558 009.

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60 Grapegrower & Winemaker

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March 2016 – Issue 626

Groundswell of anticipation for irrigation conference AUSTRALASIA’S LEADING irrigation event, the Irrigation Australia International Conference and Exhibition, will take place from May 24 – 26 this year at the Melbourne Convention and Exhibition Centre. Irrigation Australia Limited (IAL), in conjunction with the organising committee is pleased to announce registrations are now open and the conference program has been announced for the 2016 event. The biennial conference and exhibition will return to Melbourne after eight years and there is a groundswell of anticipation from the irrigation industry. Registration is now open for conference delegates and trade visitors who would like to join more than 4000 industry professionals who will gather together this May and get a glimpse of the future of irrigation.

ENTIRE IRRIGATION VALUE CHAIN Over the course of the conference, IAL is confident those who attend will find plenty of information on offer through the full program of technical papers, distinguished keynotes, speakers, social events and seminars. With the theme, Irrigation – for prosperity and wellbeing, this is the only conference is Australia solely dedicated to advancing and promoting the entire irrigation value chain,

March 2016 – Issue 626

presenting issues relating to, or impacting on, irrigation in Australia and across the world. Featuring separate streams covering irrigation in agriculture, horticultural and open space, the conference will be presented by both international and Australian industry leaders and respected authorities. Purchase your conference tickets before 1 April 2016 to take advantage of early bird rates.

DISCOVER SOLUTIONS AT THE TRADE EXHIBITION The now sold out exhibition is the largest display of irrigation products, technologies and solutions for all irrigation professionals and associated industries with more than 130 exhibitors showcasing in excess of 250 new products from almost 500 brands. If you are looking to source new irrigation solutions, experience new technology and challenge your current way of thinking, then register free for this all encompassing exhibition. Conference early bird rates end 1 April 2016 and registration to the trade exhibition is free. For more information and to register today, visit www. irrigationaustralia.com.au.

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winemaking Winery lees: Minimising volumes and recovering better quality juice and wine The AWRI is convening a workshop on winery lees at the 16th Australian Wine Industry Technical Conference in Adelaide in July. This workshop will consider sources of winery lees, methods of lees minimisation and techniques for juice and wine recovery. In this article, AWRI engineers Simon Nordestgaard and Tadro Abbott provide some preliminary data from recent AWRI research on winery lees. More details will be included in the July workshop. IN WINEMAKING, lees are solids-containing mixtures that have been separated from juice or wine by gravity settling, centrifugation, flotation or other techniques. The solids can include grape material, tartrate precipitates, yeast cells, fining agents and oak chips. Since 2013, the AWRI has been working on a research project that aims to better understand the physical characteristics of different types of lees and investigate alternatives to traditional racking processes.

SOURCES AND VOLUMES OF LEES Typically, the largest volumes of lees come from the grape. In white winemaking grape-derived solids are mainly removed prior to fermentation, whereas in red winemaking they are usually removed after fermentation when they are combined with yeast. As an illustration of the relative lees volumes generated at different stages of wine production, data from some simple laboratory white juice/wine settling experiments performed in 2L cylinders are presented in Figure 1. Cold settling gave 10% juice lees. In contrast, fermentation gave lees volumes between 1% and 3% (eight yeast types trialled - highest and lowest results shown). Fining agents at typical doses also produced relatively small quantities of lees, with the exception of sodium bentonite, which is widely known for producing large volumes of lees (in this experiment 6% of the wine volume). The solids content of the different lees varied – fermentation lees had four to five times the dry solids content of juice or bentonite lees.

WINERY DATA

Figure 1. Lees volumes at different stages of white wine production from laboratory settling experiments

Figure 2. Median lees volume fractions resulting from different white juice clarification methods at three wineries (n=number of batches)

62 Grapegrower & Winemaker

To better understand lees volumes at a production scale, data from four large wineries were analysed. Figure 2 shows the lees volumes resulting from different methods of white juice clarification at three of the wineries (A,B and C). Juice lees volume fractions were calculated using the formula (Volume of juice in – Volume of clear juice out)/Volume of juice in. At Winery A, with cold settling 16% of the initial juice volume was separated as lees while with flotation only 7% was separated as lees. With flotation, the solids are lifted with gas bubbles and therefore there was less juice tied up with the solids than occurs with settling. Winery B used flotation alone or centrifugation followed by cold settling to achieve clarification. Even after many of the larger solids had first been removed by centrifugation, the volume of lees obtained through cold settling was still higher than using flotation alone (13% compared with 9%). Winery C used centrifugation with flotation on the outlet of the centrifuge and this process produced a lees volume of 3%. This lower lees fraction than at Wineries A and B is likely partly a consequence of the use of centrifugation to remove the larger denser solids and subsequent use of flotation to remove the lighter solids (both technologies which produce lees with low juice content). It is also likely partly a consequence of Winery C’s use of membrane presses for draining and pressing, which may have resulted in lower initial juice solids levels than occurred at Wineries A and B where inclined or static drainers and screw

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March 2016 – Issue 626

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For accurac y and professionalism

Why buy a Hanna? 1. Easy-to-use 2. Fast 3. Affordable Figure 3. Aggregated lees fractions at different stages of red wine production at Winery D

presses were used for some operations. Types and modes of operation of crushing, draining and pressing equipment are important in limiting lees volumes in the winemaking process. Bentonite lees volumes from one winery were also examined. Where sodium bentonite was used for heat stabilisation and this operation was coupled with cold stabilisation, the median settled lees volume fraction was 5.1% across 624 batches (data not shown). The project also assessed lees volumes generated during red wine production. One winery, which removed gross red lees by settling, had a median settled volume of gross red lees of 9.6% across 518 batches. At another winery, red wine lees volumes were assessed at different stages of production (Figure 3). This analysis showed that gross red lees after fermentation contributed the highest percentage of lees compared to other stages of red wine production.

Based on the Ripper Method, Hanna sulfur dioxide mini titrators use an optimised pre-programmed method of analysis with a powerful algorithm that determines the completion of the titration reaction by the use of a specialised oxidation reduction potential (ORP) electrode.

RECOVERY OF JUICE/WINE FROM LEES The importance of lees volumes depends on how much product is tied up in the lees, how much product can be recovered, whether the recovered product is downgraded (either from being bound up in the lees or by the recovery process) and the cost and effort required for the recovery. Rotary drum vacuum filtration (RDVF) is widely used for juice and wine recovery from lees. This technology is well suited to processing high solids feedstocks with very high recovery rates, but can degrade juice or wine quality through oxidation. It also employs perlite filter aid that requires disposal. In recent years, equipment suppliers have introduced crossflow filtration systems for processing lees, claiming that they are more automated and can recover higher quality juice and wine with lower turbidity. Some of the new systems are only suitable for light juice lees, while others are also designed to handle thicker fermentation lees and abrasive fining lees. Many of the new lees filters are similar to the suppliers’ existing wine cross-flow filters but with some important adaptations – e.g. wider bore capillaries, brushing/sweeping systems at capillary inlets and rotary pre-screens to remove coarse contaminants like seeds. Another common configuration of lees filters has the filter surface on discs instead of on the inside of the capillaries and achieves the cross-flow filter surface cleaning action by rotating the discs in the lees instead of pumping the lees through the capillaries. Decanter centrifuges are also being used to process lees prior to further filtration. In another interesting development, an Australian manufacturer is offering a variation on the RDVF. March 2016 – Issue 626

Water Baths & Tanks

REF:212

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X/MARKETING/ADVERTISING/212.Grape.Growers15.2.16

Grapegrower & Winemaker

winemaking

(a)

(b)

Figure 4. Pumping juice lees from underneath water in (a) a brewery-style tank with a 55° sloped conical bottom, and in (b) a winery-style tank with a 5° back-to-front sloped base. Lees channelling can be seen in the winery-style tank.

This new device employs a permanent titanium membrane that does not require perlite and can be operated in an enclosed oxygen-free environment.

THE SEPARATION OF LEES FROM UNDERNEATH CLEAR JUICE OR WINE Clarification is a major reason for moving juice and wine between tanks at wineries. After clarifying a product by settling, the clear liquid is racked to a clean tank and the lees are then typically pumped to another tank (often a mixed lees tank) for later reprocessing. The original tank then has to be cleaned. AWRI researchers have been studying the possibility of removing the lees directly out from underneath the clear liquid, so that the liquid can remain in the same tank, reducing both transfer steps and tank cleaning. The practical challenges with this concept are in avoiding channelling of the clear liquid through the lees and in directing as much lees as possible towards the removal point without disturbing the lees-liquid interface. To facilitate this research, a laboratory apparatus with transparent tanks was constructed to be able to see how different tank designs and modifications might influence lees removal. The apparatus includes scale-model cylindroconical brewery-style tanks (55° sloped bottom cone, Figure 4a) and winery-style tanks (5° bottom slope from back to the front of the

64 Grapegrower & Winemaker

tank) as is (Figure 4b) or retrofitted with baffles, suction feet, acoustic and other vibration equipment or sweeping arms. To date the only techniques that have been reasonably successful in removing lees from below juice or wine are cylindroconical tanks and to a lesser extent sweeping arms. Neither of these is really a desirable solution because they would both require significant investment to implement - either purchase of a new tank (a cylindroconical tank) or a major retrofit to an existing tank. At the time of writing, work is being performed to investigate if there are other ways to achieve the sweeping arm effect with a non-permanent (and therefore less expensive) fixture.

CONCLUSION The lees workshop at the Australian Wine Industry Technical Conference will expand upon the topics discussed in this article. There will be presentations from AWRI researchers on local and international research, and from industry speakers on their experience with different styles of equipment for juice/ wine recovery from lees. For more information, please contact Simon Nordestgaard: P: (08) 8313 6600 E: simon.nordestgaard@awri.com.au. Conference registrations are now open at: www.awitc.com.au/registration.

Acknowledgements The authors thank the wine companies that donated materials for experimentation and provided information. They also thank Mark Braybrook for his assistance and expertise in the construction of experimental apparatus. This work was supported by Australian grapegrowers and winemakers through their investment body Wine Australia, with matching funds from the Australian Government. The Australian Wine Research Institute is a member of the Wine Innovation Cluster in Adelaide.

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March 2016 – Issue 626

Innovation in action Paul Baggio, Della Toffola Pacific managing director, has worked in the wine industry for more than 20 years and has spent lots of time travelling the world, scouting out the best technology. From his latest ‘tech tour’ his key takeaway was around knowledge sharing, particularly around innovation, and how that can enhance rather than diminish the winemaking process.

Where have you been on your most recent ‘tech tour’ and what did you see? Paul Baggio: Every year since 2003 I have taken a group of Australian and New Zealand winemakers on what has been colloquially termed ‘tech tours’. We have visited wineries in Italy, Spain, France and the USA. The trips are an opportunity to see different vinification technologies in operation and importantly for winemakers to ask and query their peers as to the performance and value of the technology. Our latest tour in November focused on wine producers in the North of Italy. It included a stop in Treviso, the home of Prosecco, to a winery using high solid cross flow and continuous tartrate stabilisation, a winery in Soave using

continuous floatation and cross flow filtration using high levels of Carbon and PVPP. We visited a winery in Barolo using cross flow filtration on super premium red wines and also high solids cross flow for red wine lees recovery, which was allowing them to remove two 25 square metres RDV (rotary drum vacuum filters). The last stop on the tour was a winery near Bologna operating thermal vinification/flash technology. It was a valuable knowledge sharing experience between Italian, New Zealand, Australian and American winemakers (the latter joined us for part of the tour), discussing the challenges faced by each region and the potential opportunity for Australasian winemakers to apply similar technology to the Europeans.

I think we’ll see more innovation on home soil in the next few years. There is a huge opportunity here for us to embrace technology and work together to share our knowledge and challenges and champion innovation.

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winemaking

Technology enables our ability to compete globally and increase our export potential. Trying to gain insight into the most viable industry technologies more rapidly should be our highest priority.

We also attended the SIMEI wine technology show in Milan, where more than 600 exhibitors showcased their latest innovations in equipment for winemaking and bottling. The tech tour facilitated the collective sharing of ideas and processes which was mutually beneficial to each winemaker involved in the conversation. It was a refreshing change to the industry here in Australia where thereâ&#x20AC;&#x2122;s a tendency for beverage producers including winemakers to work in silos.

What are your thoughts on knowledge sharing when it comes to innovation in the wine industry? PB: The most interesting insight is the manner by which the various Italian regions, well demarcated by their unique dishes and dialects and equally distinguishable by their individual wine styles, are very open to sharing their winemaking philosophies, technologies and various industry challenges. Italian wine producers welcome the opportunity to share processes and ideas with fellow winemakers which is very refreshing. It has led to an industry that is collectively becoming more competitive, instead of working in isolation through fear of provincial competition. I have seen a similar approach in New Zealand, where winemakers are collaborating, allowing each other into their vineyards to learn exactly what they are doing. Oyster Bay, for example, is welcoming American winemakers into their fold to learn how they are using high solid cross flow and continuous tartrate stabilisation to see if it is something they would like to implement back in their US vineyard. Similarly, US winemakers are allowing New Zealanders to visit and exchange their ideas on technology and how industry challenges can be tackled.

Is there anything the wine industry can learn from other industries when it comes to sharing information and getting the best results across the board? PB: Technology enables our ability to compete globally and increase our export potential. Trying to gain insight into the most viable industry technologies more rapidly should be our highest priority. The nature of working in silos has been the biggest restraint to faster adaption to technology and growth in Australia. The industry by virtue of only having one season or opportunity to trial technology each year has struggled to gain the confidence to invest appropriately in new vinification technologies to take on industry challenges. However, winemakers who are willing and more

open to sharing information and ideas can fast track their processes by tapping into networks as offered by suppliers such as Della Toffola who have a high profile global footprint. Delegats, Yealands, Giesen, Yalumba, Barossa Valley Estate (BVE), Pernod and Indevin are all companies who have been tapping into the international networks internationally scaled suppliers can provide.

Who is using continuous tartrate stabilisation and cross flow? Are there success stories people need to know about? PB: Continuous tartrate stabilisation has been used in northern Europe for decades; this has now been coupled with cross flow which has ceramic membranes allowing us to filter wines at cold stability temperatures of -4°, -5°. This evolution and convergence of technologies allows winemakers to reduce the window from post fermentation to bottling and packing, from eight to ten weeks to two or three weeks. It’s opening the doors for Australian and New Zealand white wine producers to capitalise on the demand from the northern hemisphere by addressing the

March 2016 – Issue 626

challenges of seasonal variations and the timeframes of getting product ready for export. The tech was engineered here in Australia and I firmly believe this will shift the paradigm in our ability to compete internationally. Giesen has worked with the technology for 18 months with success. It’s enabled them to maximise their current infrastructure to achieve output, such as increasing their tank turnover, so payback on investment was quite rapid. The benefits of increasing the speed of post ferment process are cash flow and market access. Yealands and Oyster Bay have also adapted this technology which they will be putting into play come vintage.

In the past, Australia has been held in high regard in the wine industry when it comes to innovation. Is this still the case? Where else in the world are the latest innovations coming from? PB: At the height of Australia’s wine export boom in the early 90s we were at the forefront of technology. With no increase in export growth combined with the strong Aussie dollar over the past seven years (2015 aside), we have been idol.

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Innovation comes from necessity. We are once again seeing green shoots of export growth and I believe this is creating a need to be investing in processes and technologies that enable us to become more competitive globally. It was Australian engineers that brought continuous tartrate stabilisation and ceramic membrane cross flow together to create a solution specific to the Australasian region and were also fundamental in developing other technologies such as the ceramic high solids cross flow processes. I think we’ll see more innovation on home soil in the next few years. There is a huge opportunity here for us to embrace technology and work together to share our knowledge and challenges and champion innovation. Italy, France and Germany in my view are currently leading the way. Italy in particular has been producing a notable percentage of the world’s winemaking technology for the past ten years. On the first trip tech tour I hosted 12 years ago we visited Villa Bamfi in Tuscany who was using Thermal/Flash, and just last year Delegat (Oyster Bay) was the first in Australasia to adapt this technology.

Grapegrower & Winemaker

ask the Ask the AWRI – Predicting alcohol levels Ask the AWRI – Predicting alcohol levels

Predicting alcohol levels

Over the past two vintages winemakers have been reporting higher than normal conversions of Over the past two vintages winemakers have been reporting higher than normal conversions of sugar to alcohol. One example was a must measured at 13.5 Baume that ended up with a 15% v/v sugar to alcohol. One example was a must measured at 13.5 Baume that ended up with a 15% v/v Over the past two vintages winemakers been reporting higher than normal conversions of sugar alcohol concentration. Estimating potential have alcohols based on grape must analysis is not as alcohol to concentration. Estimating pwas otential alcohols based at on 13.5 grape must analysis is not up as with a 15% v/v alcohol alcohol. One example a must measured Baume that ended straightforward as many winemakers assume. This article addresses some key points to be taken straightforward as many winemakers assume. This article addresses some key points to be taken concentration. into account. Estimating potential alcohols based on grape must analysis is not as straightforward as many into account. winemakers assume. This article addresses some key points to be taken into account. The science The science THE SCIENCEyeast converts sugar into almost equal masses of ethanol and carbon dioxide (CO2) Theoretically, a summary of potential Theoretically, yeast converts sugar into almost masses Theoretically, yeast converts sugar into almost equal equal masses of ethanol and carbon dioxide alcohol (CO2) concentrations gas, by the and Gay-‐Lussac equation: initial sugar concentrations. of ethanol carbon dioxide (CO 2) gas, by the Gay-Lussac gas, by the Gay-‐Lussac equation:

for a range of

equation:

Table 1. Range of potential alcohol concentrations that can be generated Glucose Ethanol Carbon dioxide from different initial sugar concentrations Glucose Ethanol Carbon dioxide C6H12O6 → 2CH3CH2OH + 2CO2 Fermentable sugar Potential ethanol → g 2CH3CH2 9OH 2CO2 + 88 g (49%) (g/L) (% v/v) C6H12O6 180 2 g+ ( 51%) 180 g 9 2 g ( 51%) + 8 8 g ( 49%) 180 10.0-10.9 reality, however, ugar is onverted to e nergy and 190 (biomass production) 10.6-11.5 In In reality, however,some some ssugar is cconverted to energy and yeast cell growth In reality, however, some s(biomass is ics onverted to eand environment. nergy and ethanol yeast cell gyrowth (biomass production) yeast cell e growth production) some 200 ever around 90% of the 11.1-12.1 and some thanol vugar apour lost to the Ethanol ields are only and some e thanol v apour i s l ost t o t he e nvironment. E thanol y ields a re o nly e ver a round 90% of the vapour is lost to the environment. Ethanol yields are only ever 210 11.7-12.7 theoretical value. around 90% of the theoretical value. theoretical v alue. 220 12.2-13.3 230 12.8-13.9 Initial s ugar c oncentration INITIAL SUGAR CONCENTRATION Initial sugar concentration Baume Brix measures commonly used quick Baume or or Brix measures are are commonly used as qas uick estimates of sugar c240 ontent in grape samples or 13.3-14.5 Baume omust. r Brix It mheasures a re c ommonly u sed a s q uick e stimates o f s ugar c ontent i samples 250 13.9-15.2 estimates of sugar content in grape samples or must. It has as become a ‘rule of thumb’ to expect that 1 Baume = 1.8 Brix = 1n 8 ggrape /L sugar = 1% opr otential become a ‘ruleaof thumb’ to expectto that 1 Baume =11.8 Brix ==18 must. It alcohol. has become ‘ rule o f t humb’ e xpect t hat B aume 1 .8 B rix = 1 8 g /L s ugar = 1 % p otential 260 14.4-15.8 alcohol. g/L sugar = 1% potential alcohol. It is important to remember that Baume and Brix do not It is important to aremember that Baume nd Brix do not malso easure a sugar concentration or to alcohol conversion It is possible to calculate the sugar actually measure sugar concentration or asugar weight peractually It is important t o r emember t hat B aume a nd B rix d o n ot a ctually m easure a s ugar c oncentration o r rate at a particular winery for the specific unit volume. Instead they measure the specific gravity of sugar weight per unit volume. Instead they measure the specific gravity of a solution, or a volume yeast, grapes and sugar wmeasurement eight per unit they dm easure specific ravity f aconditions tshe olution, ocommonly r a vvolume ferment used, to be able to better predict a solution, or vaolume. volumeInstead measurement only. Athe only. A hydrometer isplaces a vhydrometer olume of lgiquid, woith equivalent olumes potential alcoholsvolumes for future ferments. displaces a volume of liquid, with the equivalent volumes measurement o nly. A h ydrometer d isplaces a v olume o f l iquid, w ith t he e quivalent calibrated at known known sucrose sucrose concentrations. concentrations. These measures work as estimates because ripe fruit is calibrated at These measures calibrated a t k nown s ucrose c oncentrations. T hese m easures work as teannins, stimates because ripe pfectins, ruit is salts a90-‐95% sugar, wbecause ith the ripe remaining olids including pigments, organic acids, work as estimates fruit is s90-95% sugar, with the FERMENTATION EFFECTS a90-‐95% sugar, with the remaining solids including pigments, tannins, oLallemand rganic acids, pectins, salts remaining solids including pigments, tannins, organic acids, Australia fermentation trials have shown that and non-‐fermentable sugars. and non-‐fermentable s ugars. alcohol conversion rate is affected by fermentation conditions, pectins, salts and non-fermentable sugars. To better estimate potential alcohols Brix measurements can specifically: To better estimate potential alcohols by Brix measurements can be converted into sugar be converted into sugar concentrations, also measuring the • Lowerinto temperature ferments result in higher alcohol levels To better estimate potential alcohols Brix m easurements can b(SG) e converted snd ugar concentrations, b y a lso m easuring t he s pecific g ravity o f t he j uice, a using evaporation); the equation: specific gravity (SG) of the juice, and using the equation: (due to less alcohol concentrations, by also measuring the specific gravity (SG) of the juice, and using the equation: • Lower surface area to volume ratio tanks result in higher alcohol (again due to less evaporation); Sugar concentration (g/L) = Brix x SG x 10 x 0.9982 Sugar concentration ( g/L) = B rix x S G x 1 0 x 0 .9982 • Aeration of ferments results in lower alcohol (due to increased evaporation); and Since SG varies with sugar concentration, it is not possible Since SG varies with sugar calcohol oncentration, it is not orpBaume ossible to • generate a simple otential alcohol Nutrient canpaffect the rate in different ways dependent to generate a simple potential table using Brix Since SG varies sing with ugar is not aplso ossible to generate a simple levels potential alcohol table Bsrix or measuring Bconcentration, aume values wit ithout measuring the SG. on yeast strain. valuesuwithout also the SG. table using Brix or Baume values without also measuring the SG. CALCULATING POTENTIAL ALCOHOL MOST COMMON REASON FOR UNEXPECTED Calculating potential alcohol Only fermentable sugars are converted to ethanol, so it is ALCOHOL CONCENTRATION Calculating p otential a lcohol Only fermentable sugars aglucose re converted to ethanol, so it is more When accurate to measure the glucose and than expected is more accurate to measure the and fructose concentration a easure much higher Only fermentable sugars are converted to eBthanol, sr o Bit is m ore accurate to m the galcohol lucose aconcentration nd fructose c oncentration r ather t han aume o rix, t o c alculate p otential a lcohol. rather than Baume or Brix, to calculate potential alcohol. encountered, it is often put down to super-efficient yeast. Based fructose concentration rather than Baume or Brix, to calculate potential alcohol. on AWRI helpdesk investigations, however, the more likely Potential alcohol (% v/v) = glucose+fructose (g/L) / 16.83 reason is an inaccurate initial sugar reading. Potential alcohol (% v/v) = glucose+fructose (g/L) / 16.83 This particularly occurs in hot years, when grapes are more shrivelled and there are higher solids/skins to liquid ratios. Many people think the conversion factor is 18 g/L, but the Many eople think the conversion factor fermentable is 18 g/L, but the official European conversion ratio is When shrivelled officialtphink European conversion isis 16.83g sugar Many people the conversion fratio actor 18 g/L, but the official European cpressing onversion ratio is grapes it is difficult to extract a 16.83g sugar pNote er litre for 1% conversion v/v alcohol. ote trepresentative hat the conversion ate is htoighly yeast and the sugars stored liquid rsample measure per litrefermentable for 1% v/v alcohol. that the rateNis 16.83g fhighly ermentable sugar per and litre can for vary 1% vfrom /v alcohol. Note that the in conversion rate is h ighly yeast thewgrape skins themselves to be omitted, giving an yeast adependent 16.5-17.2 g/L dependent nd can vary from 16.5-‐17.2 g/L sugar for sugar 1% alcohol, ith some reporting up ttend o 17.98 dependent and can vary from 16.5-‐17.2 g/L sto ugar for 1% alcohol, with some reporting up tactual o 17.98 under-representation of sugar content and thus a higher for 1% alcohol, with some reporting up 17.98 (or rounded to (or rounded to 18). Yeast studies at the AWRI have shown an average factor around 16.4 g/L than expected final alcohol 18). Yeast studies the AWRI have shown ansaverage factor (or rounded to 18). Yeast atstudies at the AWRI have hown an average factor around 16.4 g/L concentration. around 16.4 g/L

Using the extremes of the possible conversion rates described above, for 250 g/L sugar (~13.9Be), the alcohol concentration generated could be anywhere between 13.9% and 15.2% v/v. Table 1 (adapted with permission from ETS Laboratories) gives

68 Grapegrower & Winemaker

For more information about sugar to alcohol conversion, please contact the AWRI helpdesk on helpdesk@awri.com.au or 08 8313 6600.

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March 2016 – Issue 626

Alternative materials to glass: What are the effects on the sensory properties of wines? The use of packaging materials other than glass is increasing, especially for wines made to be consumed soon after bottling. The materials used for packaging must be a barrier against oxygen, the main culprit of alterations in colour, polyphenols and aromas of wines, and for these reasons, the quantity of oxygen dissolved in wine must be as low as possible and the amount that enters at the moment of bottling must be limited by carefully dosing SO2. Maria Carla Cravero, from the Council for Research in Agriculture and Analysis of the Agricultural Economy at the Asti Research Centre for Oenology, reports. ALTERNATIVE CONTAINERS to glass first developed in non-traditional wine-producing and consuming countries, especially Australia which was also one of the first countries to adopt alternative closures (screw caps and synthetic corks) for products destined to be drunk within a few months. In 1991 the sale of table wines in alternative materials to glass was allowed in Italy: polylaminate, PET (polyethylene terephthalate), bag-in-box® (BiB) and aluminium cans. Since 2008, also PDO wines can be packaged in BiB (used mainly when buying bulk wine), if permitted by the production

regulations. Also steel kegs (KEG) have been authorised by EEC regulation 822/07 for the sale of draught wine. In this case the container can withstand a pressure of up to 100 atm. In Italy, many everyday wines are packaged in polylaminate materials made of paper, aluminium and polyethylene, such as ‘Tetrapak’ or ‘Tetra Brik Aseptic’, and are well-accepted by consumers for this type of product. In France you can also find mid-range and AOC wines sold in ‘cartons’. These containers are eco-friendly, light and recyclable; the parallelepiped shape makes all the handling phases of the product easy, right up to

FERMENTATION CHARACTERISTICS

ORGANOLEPTIC CHARACTERISTICS

• Alcohol tolerance: up to 16 % vol. • Wide range of optimal temperatures: 20 - 35°C.

• Very low production of negative sulphur compounds (including SO2 and H2S) and of compounds binding SO2.

• Low nitrogen requirements.

• Masked perception of green characters.

• Moderate volatile acidity production.

• Aromatic freshness and expression of black fruit notes.

• Regular fermentation kinetics.

• Great smoothness of mouthfeel.

• Good malolactic fermentation compatibility.

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winemaking when it is consumed. There are different volumes (200, 250 up to 750 and 1000 ml) for different types of consumer. The material allows the wine to be preserved for even longer than 12 months (legal expiry date) and it is a good barrier against light and oxidation because of the lack of head space in the packaging (Baroni et al., 2013). Other rapidly-spreading forms of packaging, such as PET bottles and in particular Bag-in-Box, allow a much shorter shelf life of the wine, from two to nine months. The plastic materials used may release unwanted substances into the wine (migration) and can also modify the aromatic properties through ‘flavour scalping’, the absorption of volatile aroma compounds, in different ways depending on the characteristics of the materials and molecules involved (Lunardelli et al., 2009). Other factors may influence this phenomenon, such as the volume of the packaging in contact with the wine, the wine pH, the level of SO2 and the storage temperature. Another aspect to consider is the air permeability of the plastic materials, especially to oxygen, with the consequent deterioration of the product. The producer should check the potential evolution of their products in contact with these materials, depending on the expected storage time. To reduce the environmental impact of both packaging and transport, the solution adopted for higher-quality wines destined for ageing is the use of light-weight glass bottles. The most suitable choice of packaging always depends on the possible shelf life of the product and on the type of distribution and marketing foreseen.

BAG-IN-BOX This is a bag hidden inside a cardboard box, fitted with tap for serving and a handle for transport. The BiB was invented by the US chemist W. R. Scholle in 1955, and became the ‘Wine Box’ in 1965 thanks to the Tom Angove. The bag is made of a multi-layered flexible film, which must be physically resistant and a barrier against gases, made from polyester metalized with aluminium, plus a low-density polyethylene (LDPE) or ethylene-vinyl acetate (EVA) film in contact with the wine. The external cardboard must be resistant to internal pressure,

vertical compression, perforation and humidity; the tap must have a strong valve, with low permeability to oxygen. Also the convenient handle for transport has its own importance (Vimont 2014). The capacities used vary from three to 20 litres. The BiB, which accounts for 10% of the world wine market (Ducruet and Bach, 2014) and about 50% of Australian wine (Baroni et al., 2013), is spreading due to its numerous advantages. It is light and practical and the wine contained within can be consumed gradually as the residual product is protected from contact with the air. It allows wines to be preserved better for short periods (maximum 2-3 months), as observed by several authors. Depending on the type of BiB, humidity, temperature and preservation times, there are calculation models (Ducruet J., Bach B., 2014) that predict the quantity of oxygen that will reach the wine; this allows a better dosing of the level of SO2 to be added, remembering that it is necessary to minimise the contact of the wine with oxygen during all the production stages before packaging. In optimum conditions, the wines can be preserved for 6 months.

STUDIES, RESEARCH AND EXPERIMENTATION Experiments carried out in Switzerland (Ducruet et al., 2011) with Chasselas and Pinot Grigio white wines in 3-litre BiBs, showed that this packaging is interesting for selling earlydrinking wines (to be drunk within 2 or 3 months at most). In fact, their high permeability to gases does not protect from oxidation and, when preserved for more than three months, losses of CO2 were observed, the colour evolved towards intense yellow, oxidised notes were perceivable, the olfactory intensity and the floral and fruity notes were significantly less intense, as was the structure and length. It has been observed that it is necessary to minimise contact of the wine with oxygen during all of the production and packaging phases; moreover, the product should undergo sterile filtration and have high levels of free SO2. Oxygen also reaches the wine through the tap and the valve, as already observed by Fu et al., (2009); furthermore, the film may absorb volatile compounds responsible for aroma. It is advisable for BiBs to be stored in a healthy environment, free from foreign odours, at a temperature of 12-20 °C and humidity between 20 and 50%, to avoid damaging the cardboard. Hopfer et al., (2012) conducted a comparison test between

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March 2016 – Issue 626

different types of containers used to package Californian Chardonnay, preserved for 3 months at different temperatures (10, 20 and 40°C); it studied glass bottles with natural cork closures, screw caps, synthetic corks and two types of BiB, one packaged in a controlled atmosphere, the other in normal conditions, in the presence of oxygen. The temperature was the factor that most affected preservation, but an interaction between packaging and temperature was also observed; the wines packaged in BiB and preserved at 40°C showed a more intense colour, less fruity aromas and more oxidised notes and volatility than the samples in glass bottles. The volatile esters were lower, whereas some compounds typical of oxidised wines increased, such as 1,1,6-trimethyl-1,2-dihydronaphthalene, furfuryl ether. At 10°C no significant differences were observed between the wines. The samples in BiB preserved at 20°C showed lower levels of ethanol and fruity aromas than those in glass. It was observed that the presence of oxygen at the moment of packaging in BiB did not produce any significant effects. At the end of the three months, the evolution of the wine in BiB was different from that in glass, both from a chemical and sensory point of view. Also in studies by Revi et al. (2013), sensory assessment showed that the quality of the wines in BiB was acceptable if consumed within 3 months from packaging, compared to 6 months for glass bottles. In this case the experiment was carried out on a dry white wine from Crete, produced with Vilana grapes, preserved in dark glass bottles and in two types of five-litre BiB, one in low-density polyethylene (LDPE) and the other in ethylene-vinyl acetate (EVA), preserved at 20°C for 6 months. As in other previous experiments, a significant and consistent decrease in volatile compounds of the aroma of wines was observed, both due to absorption by the plastic material, especially the LDPE, and to the imperfect seal of the valve. The BiB sample in LDPE also had an aroma of plastic after 30 days. The wines in BiB were described as slightly oxidised after 90 days and “unacceptable” after 180 days of preservation. Besseas (2014) carried out a study on 74 samples of wine from the Loire Valley packaged in BiB and collected from large retailers. The study showed that 80% of samples had been preserved for less than 6 months; within three months of packaging the level of free SO2 halved and there were no discernible faults up to 102 days of preservation. 23% of the samples had faults, 50% traceable to oxidation, for wines packaged for more than 200 days, where free SO2 had reduced by 75% compared to the starting value. The hedonistic assessment of wines in BiB was lower than that of similar wines in glass bottles.

PET PET polyethylene terephthalate (a polyester commonly known as “plastic”) is a low-cost, light, transparent and resistant material that is widely used for food and drink packaging, also for early-drinking wines. It has a low resistance to heat and light and can be permeable to gases. PET bottles can be single-layer or multi-layer. Multi-layer PET bottles, more expensive and more difficult to recycle, have been developed to improve protection from oxygen. They are made up of a PET structure with three or five layers of resin, which can be made using copolymers of ethylene vinyl alcohol or Nylon MXD6.

STUDIES, RESEARCH AND EXPERIMENTATION Multi-layer PET bottles (OxSc-PET, i.e. barrier against oxygen) have proved (Mentana et al., 2009) to have a performance similar to glass and superior to single-layer PET bottles. The influence of these materials on Apulian red and white table wines with a shelf life of about 6 months, preserved for seven months at 15-18°C, has been studied and compared with glass bottles. The March 2016 – Issue 626

For further information, please contact Kauri AUS Tel: 1800 127 611 AUS Fax: 1800 127 609 Email: winery@kauri.co.nz

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winemaking OxSc-PET bottles, more expensive and more difficult to recycle, give more protection against oxidation, also on a sensory level, than the single-layer ones, especially for red wines. The same research group (Pati et al., 2010) compared the performance of PET bottles of different materials, closed with screw caps, on the packaging of a wine produced in Apulia with carbonic maceration, from Merlot (35%) and Montepulciano (65%) grapes. It studied PLA 7000D bottles (0.3 mm thick), i.e. polylactic acid, potentially more ecological than PET (single layer with a thickness of 0.3 mm) and glass. The samples were preserved for 4 months in the dark at 15-18°C. The PLA bottles caused a quicker loss of quality than PET and glass bottles. It was calculated that the quantity of oxygen that penetrated the wine in the four months was 9 times higher in PLA bottles than PET ones (98.4 ml compared to 10.7 ml). This meant a reduction in total SO2, wine browning, increased absorbance at 420 nm and an increase in volatile acidity. The differences on a sensory level were already clear after 2 months of preservation, but the wine was judged by a panel as still pleasant and drinkable up to 3 months. In light of the results, the PLA bottles allow a wine to be preserved up to a maximum of 3 months, with the advantage of being biodegradable and ecological. In PET bottles, phenomena of oxidation and “scalping” were observed, highlighted by absorbance at 420 nm and analysis of volatile compounds. However, there were no significant differences on a sensory level, for this reason this type of bottle can be a valid alternative to glass if wines have an expected shelf life of 4 months from packaging. Ghidossi et al., (2012) studied the evolution of the quality of some white and red Bordeaux wines (2008 vintage) packaged in different ways, for a period of 18 months. They used bottles of glass, single-layer PET (0.3 mm thick), multi-layer PET MXD6 (0.4 mm thick), with capacities of 75 cl and 18.5 cl, and 3-litre Bag-in-Boxes. For the white wine, the glass and multi-layer PET bottles proved to be the best barrier against the passage of oxygen, however, neither the single-layer and multi-layer PET bottles, nor the BiBs allowed adequate preservation of the wine after 12 months. For the red wine, on the other hand, differences were observed between the different containers also at the end of the test. Dombre et al., (2015) studied the evolution of the aromatic profile of a rosé wine bottled in glass, virgin PET and recycled PET and preserved for 5 months. The wines differed but only in some compounds. In the PET bottles there was a decrease in the compounds sensitive to oxygen, such as methionols, and the appearance of compounds typical of oxidised wine: ethyl pyruvate, furfural or dioxane compounds. Compared to tests in PET, those in recycled PET showed small differences. Loss of flavour was due to the chemical evolution of the wine rather than absorption by the PET. For the moderate permeability

to oxygen, the use of virgin and recycled PET bottles may be adopted for wines with short shelf lives, but can have a negative impact on quality, if the wine is not consumed within a short period. This article has been made available in cooperation between Corriere Vinicolo and Grapegrower & Winemaker. Corriere Vinicolo (corrierevinicolo.com), edited since 1928 by Unione Italiana Vini, is the most authoritative magazine of the Italian wine industry. Established in Milan in 1895, Unione Italiana Vini is the historical association of Italian wine firms: its core business, further to a lobbying activity, is focused on high quality services to the wine industry: analysis laboratories, supply chain checkup, SIMEI exhibition, sustainability program Tergeo. Articles shared between the two publications focus on technical and economic issues, in order to give each readership a broader vision both on Italy and Australia/New Zealand.

References:

Baroni M.R., Porta D., Torri L., 2013, Imballaggi e bevande. Artek snc. ISBN 978-88907159-4-5 (electronic version on freepress.foodpackaging. net) Besseas E., 2014, Zoom sur la qualité des vins du val de Loire commercialisés en BIB®. 17 April 2014: 7-10 (ww.techniloire.com). Dombre C., Rigou P., Wirth J., Chalier P., 2015, Aromatic evolution of wine packed in virgin and recycled PET bottles. Food Chemistry 176: 376–387. Ducruet J., Deneulin P., Riedo A., 2011, Conservation du vin en Bag-In-Box®. Rev. Suisse Vitic. Arboric. Hortic., 290, 43 (5): 290–295. Ducruet J., Bach B., 2014, Incidence des conditions de stockage des BIB®. Les clés pour optimiser la durée de vie d’un BIB® - 17 avril 2014: 22-24 (ww.techniloire. com). Fu Y., Lim L.-T., McNicholas P.D., 2009 Changes on Enological Parameters of White Wine Packaged in Bag-in-Box during Secondary Shelf Life J. Food Sci., (74, 8):608-618. Ghidossi R., Poupot C., Thibon C., Pons A., Darriet P., Riquier L., Revel G de., Peuchot M. Mietton, 2012, The influence of packaging on wine conservation. Food Control, 23: 302-311. Hopfer H., Ebeler S.E., Heymann H., 2012, The Combined Effects of Storage Temperature and Packaging Type on the Sensory and Chemical Properties of Chardonnay. J. Agric. Food Chem., 60, 43: 10743–10754. Licciardello F., Del Nobile M.A., Spagna G, Muratore G., 2009, Scalping of ethyloctanoate and linalool from a model wine into plastic films. LWT – Food Science and Technology, 42 (6):1065-1069. Mentana A., Pati S., La Notte E., del Nobile M.A., 2009, Chemical changes in Apulia table wines as affected by plastic packages. LWT - Food Science and Technology 42: 1360–1366. Pati S., Mentana A., La Notte E. , Del Nobile M.A. , 2010, Biodegradable poly-lactic acid package for the storage of carbonic maceration wine. LWT - Food Science and Technology 43: 1573-1579. Revi M., Badeka A., Kontakos S., Kontominas M.G. , 2014, Effect of packaging material on enological parameters and volatile compounds of dry white wine Food Chem., 152: 331–339. Vimont F., 2014, Les spécifications techniques de l’emballage BIB®17 avril 2014: 19-21 (ww.techniloire.com).

2016 Edition OUT NOW

PRINT & ONLINE Access via www.winetitles.com.au/widonline NEW 2016! CONTRACT WINEMAKERS To order your copy: Ph: +618 8369 9522 E: orders@winetitles.com.au Visit: www.winetitles.com.au 72 Grapegrower & Winemaker

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March 2016 – Issue 626

Supplier Update

Innovative systems offer peace of mind for winemakers THE EPA’S PROPOSAL to ban damaging hydrofluorocarbons (HFCs) in certain applications from 2016 onwards has been set in motion, seeing wine producers in the US reviewing their refrigeration methods in order to maintain compliance. Both the EPA and the European Union are pushing hard to drive down the use of harmful refrigerants in response to the Montreal Protocol, and it’s likely that Australia will soon follow suit and release further measures to restrict ozone-depleting substances. When these additional phase-down measures are rolled out in Australia, alternatives for R22 and R404A in new refrigeration systems will be required across the board to ensure wine producers are installing refrigeration systems that maintain meet local regulations. In many winery applications, CO2 or ammonia systems can offer a cost effective alternative to traditional refrigerants, and global refrigeration giant BITZER has a suite of products that fit the bill for wineries looking to modernise their equipment. BITZER’s Sydney and Melbourne based R&D teams work with consultants to design systems that are suitable

In many winery applications, CO2 or ammonia systems can offer a cost effective alternative to traditional refrigerants, and global refrigeration giant BITZER has a suite of products that ﬁt the bill for wineries looking to modernise their equipment. for wineries, using their extensive experience in the industry. The company’s newest CO 2 transcritical systems feature a compressor range enhanced by new two-cylinder and six-cylinder models, providing enhanced flexibility in system design. A number of thoughtful design tweaks have been made to the current models which were unveiled recently at BITZER’s technical roadshow, resulting

in intelligent refrigeration systems that promise reliable hassle-free operation and efficiency savings over the long term. The company is also kicking goals with its range of completely redesigned ammonia compressors. The OS95 ammonia compressor has a displacement of over 1000m³/hour at 50Hz: this compressor offers almost twice the refrigerant volume flow than the existing OS85 series compressor. To achieve this gain, the engineering team at BITZER’s German HQ completely redesigned the compressor with a new rotor profile to provide the increased displacement. The unit also features a slider control that provides feedback on the positioning and loading of the compressor. Such advances in product development translate to good news for wine producers, with the new innovations rolling out of BITZER ultimately resulting in both increased energy savings and less harm to the environment. For more information about custom designed refrigeration systems for your plant, contact your local BITZER office. P: +61 2 8801 9300 www.bitzer.com.au

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March 2016 – Issue 626

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Grapegrower & Winemaker

young gun

Clare Burder:

Ideas are nothing without action

Winemaker, educator, author and director of The Humble Tumbler, Clare Burder is passionate about covering every aspect of the wine game. The Victorian entrepreneur prides herself on tutoring young wine lovers in fun way- free of pretention and full of quirk. Emilie Reynolds reports. AT JUST 32 years of age, Clare Burder has already been involved in the wine industry for more than half of her life. Growing up on the family farm in Whitlands – the highest vineyard in Victoria at 878 metres above sea level – Burder got her start working for the Pizzini family when she was just 15-years-old. “I was in the vineyard mostly,” she said. “Then I moved around as the years went on.” Clearly developing a taste for the family business at a young age, Burder studied wine marketing at university. “I got in when I was a teenager working in the King Valley and never left,” she said. “I blame my dad and Fred Pizzini.”

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Burder said a few choice words of advice given from a wine producing friend inspired her to work towards a career in the wine industry. “He said being involved in the wine industry will mean you’ll drink the world’s best drinks, eat the world’s best food and meet the world’s most fascinating people. He also said you might never have any money but it seems like a fair exchange so far.” Since finishing her degree, Burder’s list of accomplishments has been remarkable. Her main point of call has been as director of multifaceted wine business The Humble Tumbler, a service which offers unique food and wine experiences with a dash of quirk and a www.winetitles.com.au

distinct lack of pretension. Along with running the business, Burder also head’s up her family’s wine label Eminence wines – a small batch boutique producer. “Eminence to date has always utilised contract winemaking and it’s important to disclose that,” she said. “I’m heavily involved though, and so together we try to make wines which taste like they come from our vineyard – and of course, we are still learning. “Even ‘The Assembly’, our sparkling, is definitely a ‘made’ wine but it still has a sense of origin. I’ve got no issues with doing it other ways, but it’s a privilege to have access to a great vineyard and to pursue that, to me – is the point of making wine.” March 2016 – Issue 626

Burder said she loves to be busy, and has to divide her time strategically between making wines at Eminence and running The Humble Tumbler. “I spend December to March at the farm mostly with Eminence, and the rest of the year in Melbourne with The Humble Tumbler – as we don’t host classes over summer. “And some travel in there somewhere too. In the end, I choose for my life to be in two places and deal with it as it comes. In fact I see it as the ultimate luxury – best of both worlds.” Burder said The Humble Tumbler was about reengineering the usual wine and spirit education experience, targeting younger consumers with a focus on teaching them how to taste and talk about what they’re drinking. “These consumers have disposable income, they buy a lot of wine, but they want to be able to sound knowledgeable,” Burder explained. “They have little regard for traditional ‘tasting note’ wine writing but when they believe a brand is authentic they will engage and even share the stories with their peers.” Burder said The Humble Tumbler delivered a mix of quality assessment, food matching, style categories, regions and varieties – but has also been about using great wines and telling the stories behind them. “The one-night format masterclasses are short, sharp, social and fun, the fourweek wine course is a bit more in depth – but still very interactive and relaxed,” she said. “I try overall not to talk down to people – it’s not an expert/amateur paradigm. These younger consumers want to feel smart – talking down to them is counterproductive. I can provide a framework and let them make their own conclusions.” As well as being a passionate advocate for wine, Burder teaches Japanese Sake classes along with lessons on vermouth, gin and whisky. “I co-host classes with my peers Caroline Childerley, a gin expert, and Fred Siggins, whisky expert,” Burder said. “Between us we also do plenty of corporate and private events in Melbourne. “Plus I have a handful of clients who I help manage their private cellars, tough! I write wine lists for, and provide wine training for venue staff. I host the occasional wine tour too.” Burder said she was inspired to educate young wine lovers after countless phone calls from friends who were at the bottle shop and wanted to know which wine to buy. As well as offering lessons, Burder March 2016 – Issue 626

took the opportunity to write a book called ‘Tipsy’, which noted wine writer Max Allen referred to as “a refreshingly accessible guide to booze appreciation”. “I wrote 42,000 words in 10 weeks – finishing that was like reaching the top of a mountain,” Burder said. The book, which was designed to echo The Humble Tumber’s vision of inspiring an appreciation of wine without getting too serious about it, covers everything from wine regions and styles to how to

He said being involved in the wine industry will mean you’ll drink the world’s best drinks, eat the world’s best food and meet the world’s most fascinating people. He also said you might never have any money but it seems like a fair exchange so far. buy the right wine and match it with food. “It’s been selling really well and was positively reviewed. Box ticked!” Remaining true to her love of keeping busy, Burder has also been involved with an initiative called ‘The Thursday Table’, a social group comprising of young guns in north east Victoria who share a passion for “eating, drinking, laughing and occasionally solving the world’s problems”. “The Thursday Table is a group of close friends who all have micro wine businesses,” Burder explained. “We are all based in north east Victoria but beyond that, it’s quite varied in terms of region, wine range and philosophy. “Together, we host consumer events and trade tastings with the view of building our brands, connecting with new consumers and getting some attention from the trade.” Burder said although it wasn’t a new concept, it has been working for them and the team planned on travelling up the east coast of Australia when their new website was developed. “We worked hard to get it off the ground and I feel really proud. Building something from the bottom up is challenging but that’s the trade off if you want to actually do things. Ideas are www.winetitles.com.au

nothing without some action.” There’s no doubt Burder’s life is action packed. As well as working non-stop, she has also been studying a diploma in Positive Psychology. “I find it fascinating,” she said. “I’d probably choose that if I had another lifetime.” With the time she does have available, Burder said she is keen to see some other big plans take hold. “I hope to open our [Eminence Wines] cellar door in the next couple of years and continue to build the farm to a point where it is environmentally and financially sustainable,” she said. “I want to make the wine myself but that’s a while away I think.” Burder said she was also planning to expand into more industry focused training. “Overall I’d like to be able to say I was part of a movement which put consumers at the centre of wine communication, rather than the opinions of experts,” she said. “I believe it needs to flatten out from the top-down model and the obvious catalyst for that is social media. We’re on the brink I think, it’s bloody exciting.” Although she has worked hard to build a successful career, Burder said her biggest challenge over the years has been self-doubt. “There is so much uncertainty, so many reasons not to do anything. It’s very public and so open for criticism,” she said. “I fail regularly – I hate it, but the work is too good just to be a spectator.” In terms of the Australian wine industry at large, Burder said the issues facing women in wine concern her the most. “The work done by Women in Wine Awards has been instrumental in bringing this into mainstream media attention,” she said. “The stats are woeful - the whole industry needs to work together and figure out ways to change.” To young grapegrowers and winemakers starting out in the industry, Burder summed up her advice in one word: “jump”. “Don’t wait until your idea is perfect because it will probably change anyway. Get a great accountant – you can’t do what you want to do in the long term without any money. Tick the legal boxes so they don’t bite you later. Enjoy the work, enjoy the people, enjoy the wines, and enjoy the landscapes. Show your gratitude to everyone who helps you; always return the favour. Don’t get caught up in thinking about what other people might think about you, it’s pointless. And – if you want to have an opinion, make sure you can argue for it.” Grapegrower & Winemaker

winemaking

The Jameson Cell: Technology to improve wine quality while and save energy, time and labour In 2015 Professor Graeme Jameson received the inaugural $250,000 Prime Minister’s Prize for Innovation from Prime Minister Malcolm Turnball for his flotation technologies inventions. Jameson’s invention, the Jameson Flotation Cells has huge potential for the Australian Wine Filtration Industry and Roger Boulton from UC Davis has long recommended its development for wineries. Ian Jeffery, a retired wine industry consulting engineer, suggests this could be a game-changer for the wine industry. POTENTIAL WINE QUALITY IMPROVEMENTS USING JAMESON CELLS THIS AUSTRALIAN invented, patented and manufactured flotation cell has been exported to 24 different countries for mineral processing applications (300 + installations worldwide, 100+ in Australia). Fine coal particles ‘retrieved’ by Australian Jameson Cell installations have produced $36 + billion of additional coal exports between 1990 & 2014. A great benefit of the Jameson cell will be the speed with which it clarifies juice. “By reducing clarification time, potential quality benefits may occur by preserving aromatic character and preventing the development of unwanted compounds,” Roger Lansing told the US Wine Business Monthly. “Oxidation may potentially be reduced compared with other clarification methods if flotation with compressed N2 is used to saturate the juice. On the other hand, research trials indicate that some varieties can benefit from hyperoxidation of the juice when compressed air is used for saturation, as it can improve colour and shelf life in the wine and precipitate phenolic compounds with negative sensory character.”

OTHER POTENTIAL WINEMAKING BENEFITS USING JAMESON CELLS The major benefits of Jameson cells will be savings in time, labour, and energy. Compared to traditional cold settling this flotation cell will reduce the time taken to settle by 80 to 90% and reduce the energy costs of settling by at least 80%, possibly 90%. It will also produce ‘cleaner’ juice, be compact with a small footprint and have a low capital cost. It has no moving parts; it will be highly reliability and have low maintenance costs. If your winery uses centrifuging, decanters, cross flow filtration or an existing flotation process you will have already achieved savings in time and energy use. Significant further reductions in time, labour and energy costs will be achieved installing a Jameson Cell.

DISCUSSION Flotation was introduced into the wine industry in the late 1970s. It appears to be a well-known and well-used process, although used more extensively in Europe than in Australia and New Zealand. The flotation process was independently invented in the early 1900s in Australia by Charles Vincent Potter and around the same time by Guillaume Daniel Delprat, according to online sources. Flotation Cells have been developed and manufactured

76 Grapegrower & Winemaker

in Australia for more than 100 years for mineral processing, though other sources state it was first used by BHP at Broken Hill in 1896. The Jameson Cell is the latest Australian invention in this area. It is an innovative design with significantly improved performance and fundamentally different to previous designs. “Jameson Cell technology was first introduced in the late 1980s to overcome the design and operating inadequacies of column and conventional flotation cells,” said Professor Roger Boulton, UC Davis. “From the first commercial base metals installation at Mt Isa in 1989 followed by the first coal installation at Newlands in 1990, it has been continuously developed and improved to make it more robust and easier to use.” Professor Jameson and the Newcastle University teamed with Xstrata Technology to research and develop the Jameson Cell to ‘commercial reality’. Xstrata has patented and currently manufactures and markets Jameson Cells to the worlds mining industry. (Xstrata is the mining arm of Glencore-Xstrata the large Anglo-Swiss commodity trader and mining group.)

JAMESON CELL PRINCIPLE OF OPERATION In a Jameson Cell feed slurry is first pumped through a restriction (the slurry lens orifice) to create a high pressure jet which then enters a cylindrical device called a downcomer. The jet of liquid first shears and then entrains air from the atmosphere. Removal of air into the jet causes a vacuum to be generated inside the downcomer. When a hydraulic seal is formed at the bottom of the downcomer, the vacuum causes a column of slurry to be drawn up inside the downcomer. The jet of slurry plunges onto the liquid surface and the high kinetic energy of the jet then disseminate the entrained air into very fine bubbles. In this zone, the high intensity of the system creates a very favourable environment for the bubbles to collide and attach. The air bubbles and mineral particles move continuously down the downcomer before exiting into the tank.

BUBBLE SIZE Bubble size is one of the most important factors in any flotation system as it has a strong influence over flotation kinetics. Fine bubbles increase the flotation kinetics across ALL particle sizes (Diaz-Penafiel & Dobby, 1994; Ahmed & Jameson, 1985). “The fine bubbles generated by the Jameson Cell (300-600 microns) explain why it can achieve faster flotation kinetics and has higher carrying capacity, and therefore productivity, when compared with the other cell types,” Boulton said.

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March 2016 – Issue 626

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winemaking JAMESON CELL PERFORMANCE Based on the performance of existing mineral processing Jameson Cells the following two statements are likely to hold true for Jameson Cells designed for wine juice clarification. The unsettled juice residence time in the downcomer is likely to be between five and 15 seconds. The residence time of both the “settled white juice” and solids containing foam is likely to be less than five minutes. The Jameson Cell forms a raft of bubbles that entrap solid particles between each layer of bubbles. The probability of particle-bubble contact is “virtually 100%” with a slurry residence time in the downcomer of five to 10 seconds according to a report from Xstrata Technology. This raft of foam bubbles in the downcomer is about 50-60% air. This foam is rapidly and continuously discharged. Small tank volumes means very short residence times in the tank (typically one-to-three minutes) so changes made, whether they are deliberate or from normal plant fluctuations, are observed almost instantly.

JAMESON CELL CONTROL SYSTEM The highest quality and volume of ‘clean juice’ will be achieved by operating a Jameson Cell at a constant rate. This is achieved by installing a three-term control system with a feedback loop and recirculating 30 to 50% of the ‘clean juice’ back through the cell. The winemaker sets the desired flow-rate, a controller adjusts the must pump speed , a flow meter measures the cell output and sends a feed-back signal back into the control system to fine tune it. (An advantage is 30 to 50% of the ‘clean juice’ is processed twice, further increasing its quality.)

FLOTATION GAS, ENZYMATIC DEPECTINISATION, FLOCATION ADDITIVES Traditional winery flotatiion has used a variety of gases for flotation, depectinisation prior to flotation and additives to improve flotation efficiency. It has been reported by DSM Food Specialties that four gases have been used in flotation and three additives are commonly used to improve flotation efficiency. The four gases used in flotation cells are CO2, Oxygen, Nitrogen & Compressed Air. Air and Nitrogen appear to be the most commonly used; oxygen is used sometimes because it produces smaller bubbles. Some winemakers use air to facilitate phenolic removal. Three additives used to improve flotation efficiency are, Gelatin (three to 10 g/hl), Bentonite (20 to 40 g/hl) and Silica Gel (10 to 30 g/hl). Additives influence traditional wine flotation efficiency by flocculation speed, final turbidity, volume of foam and floc size. Must depectinisation is necessary prior to flotation to reduce must viscosity and assist migration of particles to the must/ juice surface where they are removed. The minimum time required for depectinisation is between two and three hours. Some winemakers add depectinisation enzymes at the crusher.

JAMESON CELL FLOTATION GAS, ENZYMATIC DEPECTINISATION, FLOCATION ADDITIVES A Jameson cell in a winery could use any gas desired. Air (aspirated atmospheric air) or nitrogen is the most likely. Air may be used to reduce/remove phenolics. Different gases may be used for different varieties etc. It is anticipated must depectinisation will be necessary prior to Jameson Cell flotation. It is envisaged practices very similar to traditional wine flotation practices will be used for depectinisation. A literature search hasn’t revealed if Gelatin, Bentonite and Silica Gel will be needed as additives in a winery Jameson

78 Grapegrower & Winemaker

Cell. My short answer is I don’t know. Thinking about the fast capture of particles in the Jameson downcomer and the raft of small bubbles the cell produces my assessment is Jameson Cells will use no more additives than current winery flotation systems and probably less. Literature search reveals little on the high solids discharge streams and how to handle them. About 20 years ago, Wayne Falkenberg said the lees produced during flotation represented 13–18% of the processed juice, depending on the initial juice solids content. And juice that contains more than 11% suspended solids is difficult to float as flow rates are considerably reduced. Lees from wine flotation has been handled using ‘high solids centrifuges’ or rotary vacuum drums. Abeve claim their Rocket high solids crossflow filter will handle flotation lees (as well as ferment lees and tank bottoms etc.). The Abeve design is based on rotating ceramic discs. Other cross flow filter manufacturers are also likely to have high solids crossflow filters that will handle flotation lees (for example, the Della Toffola OMNIA Series). One recent crossflow development that has been taken up by a number of wineries is an Australian designed and manufactured sintered titanium cross flow filter ‘element’, manufactured by AMS (Advanced Metallurgical Solutions). It will most likely outperform even high quality zirconia cross flow filter ‘elements. Wineries are also adopting AMS sintered titanium cloths for RVD’s. This fine aperture high performance cloth eliminates the need for diatomaceous earth with most winery RVD applications. In 12 months, two years at the outside, the research, development, pilot plant trials and manufacture of a wine industry Jameson Cell could be achievable. The aim could be to patent and manufacture these cells firstly for Australian Wineries and then for the Worlds wine industry. Based on the published paybacks of some of the 77 Australian coal industry Jameson Cell installations return on investment is likely to be quite quick (i.e. one or two vintages).

THE WAY FORWARD A specialist in commercialising technologies approached me recently (November 2015) about potential acceleration commercialisation of winery Jameson Cells. Work is being done to obtain Commonwealth Government and venture capital funds for the accelerated commercialisation of two winemaking innovations. I estimate the Jameson Cell could take two years, maximum three, to commercialise. More than 12 months ago I had a discussion with Professor Graeme Jameson about researching, developing and manufacturing Jameson Cells for the wine industry. Professor Jameson’s response has been he sees real potential in developing a version of the Jameson Cell for use in the wine industry. He suggested recruiting an experienced PhD chemical Engineering Researcher with relevant experience to work on the R&D of a Jameson Cell for winery applications. Also he suggested he could provide this researcher with some mentoring and support. I envisaged the Jameson Cell for white juice clarification will be one of the innovations that will be manufactured in Australia. While these innovations will lead to improvements in wine quality the primary aims are to reduce energy water and chemical use, reduce green house gas emissions, reduce wine losses, reduce waste water production and produce more benign waste water and to increase productivity.

WINE INDUSTRY ACTION In December 2015, Prime Minister Malcolm Turnbull announced ‘innovation policies’ including potential tax breaks for venture capitalists and investors to fund start-up companies,

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March 2016 – Issue 626

as well as encouragement for the world’s brightest technologists to set up in Australia. The Australian wine industry needs a fair share any funding available for the accelerated commercialisation and manufacture in Australia of innovative winemaking technologies It is critical that the Australian wine industry retain its focus on original research (i.e. the existing original research that AGWA, AWRI etc. are involved in). What I recommended is not a change in direction, but an expansion in delivery of sustainability to our wine industry. A one-off injection of Commonwealth Government money to accelerate the commercialisation of a number of innovative technologies in winemaking. The proposed strategy is to fund the progressive commercialisation of these technologies, patent as many as possible and manufacture them locally. Existing car component manufacturers looking for future work are potential manufacturers of this technology and they are likely to already have the management ‘know how’ and workforce skills. The whole Australian wine industry needs to unite, and speaking with one voice, support Tony Battaglene, Paul Evans etc. in lobbying Canberra for support and funds to ensure our industry a sustainable future. The lobbying needs to be directly to Malcolm Turnbull and Barnaby Joyce now, while the $1 billion plan is fresh in their minds. The Jameson Cell, a proven technology across two decades would be a great launching pad, especially with the high achievement of Professor Graeme Jameson winning the inaugural Prime Ministers prize for innovation in late 2015.

CONCLUSION The introduction of Jameson Cells for white juice settling to Australian wineries will improve both sustainability and profitability. A major benefit will be savings in time, labour, and energy. Compared to traditional cold settling this cell will reduce the time taken to settle by 80 to 90% and reduce the energy costs of settling by at least 80%, possibly 90%. It will also produce ‘cleaner’ juice, be compact with a small footprint and have a low capital cost. It has no moving parts; it will be highly reliability and have low maintenance costs. A very strong case exists to research, patent and manufacture the Jameson Cell in Australia for our wine industry.

REFERENCES

The Chemical Engineering of Sustainable Winemaking, a three day course given by Professor Roger Boulton at the University of Melbourne, in December 2013. Flotation Can Expedite Juice Clarification, Improve Quality, R. Lansing, Wine Business Monthly, Oct 2012. Two decades of Jameson Cell installations in coal, D. Osborne, L. Huynh, I. Kohli, M. Young, & F. Mercuri, XVII International COAL Preperation Congress Oct 2013. Prediction of bubble size distribution in Mechanical flotation cells, F. Sawyerr, D.A. Deglon & C.T. O’Connor, The Journal of The South African Institute of Mining and Metallurgy, 1998. Design and performance aspects of coal flotation – experiences with the Jameson Cell, L. Huynh, I. Kohli, D. Osborne, H. De Waal and C. Walstra, Xstrata Technology. Flotation, Wine Ingredients News, DSM Food Specialities. Designing Wineries for Sustainable Practices, Roger Boulton, International Conference – EcoSostenible Wine, Forum Berger Balguer, Vilafranca del Penedes, 27/11/2008. UC DAVIS experimental super winery has opened its door for business, L. Cutler, Australian & New Zealand Grapegrower & Winemaker, June 2014. Juice Clarification by Flotation, Wayne Falkenberg , Southcorp Wines. Fundamentals of Jameson Cell operation including size-yield response, B.W. Atkinson, C.J. Conway & G.J. Jameson, Sixth Australian Coal Preparation Conference 1993. Flotation cell design – experiences with the Jameson Cell, G.J. Jameson & E.V. Manlapig, Extractive Metallurgy Conference, 1991. Brain gain: $1 billion plan to lure world’s best innovations to Australia, S. Benson, The Daily Telegraph, 6 Dec. 2015.

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March 2016 – Issue 626

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Grapegrower & Winemaker

winemaking Product Update

Bio-protection with Viniflora® wine cultures PROTECTING FERMENTING WINE from spoilage microorganisms, from freshly-crushed grapes through to the final depletion of fermentable sugars, is an age-old requirement of good winemaking. The Viniflora® range of wine cultures is an effective and natural tool to help winemakers achieve this, especially in conditions where sulfites have limited effectiveness or there is a requirement to reduce levels of these. Controlling the numbers of spoilage microbes early is important; if these can be kept low during fermentation, they are much less likely to be problematic further along the process. Viniflora® NoVA™: NoVA™ is a revolutionary new wine culture, designed to complete MLF in juice or must in a twoto-three day timeframe, removing the need to run MLF after alcoholic fermentation. The speed of MLF and the bright fruit profile that NoVA™ imparts are not the only strengths of the culture. NoVA™ also gives a very high degree of bio-protection through the competitive inhibition of acetic-acid bacteria and moulds. Viniflora® Non-Saccharomyces yeasts: Chr. Hansen is the leader in commercialising non-Saccharomyces yeast species. The three single strains in this range, FrootZen™, Concerto™ & Prelude™ are all isolated from fermenting wine, and are useful tools to protect must and juice being held cool before primary fermentation. An example of this would be when cold-soaking red varieties. The must is protected by the combination of

Non-Saccharomyces yeast and a low temperature, and once the must is heated the primary fermentation starts gently, due to the relatively slow kinetics of these species. Viniflora® MLF Bacteria: The Viniflora range of Oenococcus MLF cultures are the most active available, ensuring MLF completes both quickly and cleanly. Part of this effectiveness is down to the inhibition of spoilage organisms such as Brettanomyces, as detailed below.

Concentration of two ethyl phenols after MLF. The wine used was a 2014 Merlot from Bordeaux (pH 3.5, Alc 13.5%), which has undergone MLF with two different Viniflora cultures (Oenos and CH11), against a spontaneous control.

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March 2016 – Issue 626

Science applied to winemaking WHEN YOUR COMPANY is usually associated with PostIt™ notes and stationery, it can be hard to get recognition for the innovative work being done with cutting-edge filtration for wineries. But that is exactly what the purification division of 3M is driving with its High Flow Sanitary Housing (HFS) throughout Australia and beyond. Brendan Rumbel, the company’s Australia and New Zealand marketing operations manager, said HFS has been developed as a result of 3M Purification’s extensive experience across the Australian and New Zealand’s wine industry. Rumbel said it was also designed in Australia for local conditions by the 3M engineering team. “Designed for both wine and water applications in the winery market, it has proven effective in export loading, high speed bottling and high volume process water,” Rumbel said. “With a complete sanitary design the housing is fabricated from 316 stainless steel and the cartridge is constructed from polypropylene, which is approved by the US Food and Drugs Administration (FDA) for use in the food and beverage market.” The HFS offers a number of advantages over traditional ‘candlestick’ filtration including: • A compact housing means a smaller footprint within the production facility; • High dirt loading capacity for longer cartridge life; • High flow rates means less cartridges required and quicker change out times; and • Absolute rating guarantees 99.9% particle removal at specified sizes. The high flow cartridge is specifically designed to deliver high flow rates per cartridge. While flow rates will depend on the level of filtration required, our 30kl/hr at 1µ per 60” cartridge commonly provides pre-filtration significantly reducing the load on downstream filters. Rumbel said a ‘twist to lock’ motion ensures a positive seal is achieved at installation and makes changing the cartridge a simple process. He said cartridge change-outs can be made by one person without tools or lifting equipment in less than five minutes. “Having the housing in a horizontal orientation ensures that any potential OH&S risks are minimised,” Rumbel said. “The housing itself can be connected through either a 3” or 4” tri-clover connection. With the optional connection kits, including gauges, a turnkey solution is available. The Sanitary High Flow is also provided with both forklift tine pockets and lifting points making it a mobile solution for filtration wherever it is provided on site.”

There is now a 10” version providing flow rates up to 6kl/ hour is available providing pre filtration for smaller packing lines as well as a broad spectrum of other applications. For more information contact Brendan Rumbel from 3M Purification: E: brumbel@mmm.com P: 1300 367 362

The clear choice in filtration

Rumbel said field trials have provided up to a 30% reduction in overall filtration costs in the applications of: • Water filtration – the High Flow has been used in place of larger automated systems, greatly simplifying the process and removing the need for costly maintenance and membrane replacement; • Pre-filtration to existing bottling and export loading facilities – in one export loading application the overall cost waving was in excess of 30%; • Tanker loading/unloading; • DE removal – 100% removal with a 5µ cartridge at 30,000l/ hour; and • Tartrate crystal removal. March 2016 – Issue 626

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Grapegrower & Winemaker

winemaking Supplier Update

Top tanks for Yabby Lake THE PURITY OF THE WATER from high quality steel water tanks has played a major part in the purchasing decisions for a distinguished Victorian winery. The Yabby Lake winery, located at Tuerong in the northern part of Victoria’s Mornington Peninsula, was established in 1998 and with 45 hectares now under vines has, over the past decade, built a reputation for single vineyard Chardonnay and Pinot Noir of great purity and character. The company only produces vine from its own estate vineyards and the vines are irrigated from a 60 megalitre dam. The owners of the vineyard say that their vision and dedication has led to some exciting accolades in recent years, including the history-making Block 1 Pinot Noir - which was the first Pinot Noir ever to win the revered Jimmy Watson Trophy, after 52 years of the award. The winery has been recently undergoing renovations to its facilities. The conversion of a house on the property has turned it into the cellar door and restaurant, and construction of the main winery building is well under way with completion expected during 2016. A crucial part of the building program has been the installation of water tank storage and Tom Carson, Yabby Lake’s general manager and chief winemaker, said there was extensive research into the options before specifying the tanks. It was important that the water tank installation met the high standards required by a winery of this stature. Part of the negotiation for the right tanks was through the builder Tim Skate Constructions at Coldstream, Victoria, who oversaw the construction of the new building. The positioning of the tanks was part of the winery design. “We were looking for quality versus delivery time and, of course, the price,” Carson said. They now have seven high quality steel water tanks all installed by Tankworks Australia; five tanks are each 99,000 litre capacity for capturing rainwater and two 135,000 litre tanks are for fire services, being filled from the farm’s dam. The tanks have now been in for over 12 months. The Tankworks tanks are constructed from Z450 galvanised walls incorporating heavy duty geo-fabric at the base, and with a seven layer heavy duty polypropylene liner. They are available in a wide range

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Tom Carson, Yabby Lake’s general manager and chief winemaker, and the newly-installed water tanks

of colours and Yabby Lake specified a Colorbond match to the winery building itself. Luke Noble working for Skate Constructions is the site supervisor for the construction of the winery building, and before that the renovation of the house to turn it into the cellar door and restaurant. The building started in May 2014 and he has been involved from the start. “The two tanks for filling from the dam were installed first and Tom Carson specified Tankworks. It all went together pretty well and according to plan,” Noble said. Carson said the tank installation process was “quick and efficient” and the suppliers were “good people to deal with”. “Tankworks could meet our delivery times based on the construction of our new winery building and the price was competitive,” Carson said. “The important thing is – after 12 months – they don’t leak. “With the roof area involved we knew the expected volume of water www.winetitles.com.au

and we specified the tanks to fill the space available for the diameters of the 99,000 litre tanks. The two larger tanks were governed by the fire regulation requirements.” The tanks are all located close to the winery building and because the rainwater is used in the winery production process, Carson said that they needed a ‘neutral’ tank. “Cleaning and rinsing of the equipment needs to be as pure as possible. We host tours from the wine media and international visitors and the aesthetics were important for us – we wanted to match the cladding on the building. The release of future vintages will be done in the building which is still being developed. “I’d recommend Tankworks to anyone.” For more information: www.tankworks.com.au/rural-watertanks E: email rural@tankworks.com.au P: 1300 826 548 March 2016 – Issue 626

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business & technology Bright, shiny new Sunshine Creek winery Benjamin Roberts, the Sunshine Creek marketing manager, shares the latest news of a state-of-theart Yarra Valley development.

When did the project start? Benjamin Roberts: Initial talks with architects began in early 2013, these concept designs from architects were shown and spoken about at length with owner James Zhou and Chief Winemaker Mario Marson. Once the concept design was approved by James Zhou, the architect had detailed discussions with the chief winemaker as to the layout of the winery. After the design was approved, the first sod was turned (groundbreaking) in September, 2013. Was everything completed in time for this vintage? BR: The main winery will be functional for the 2016 vintage, with the building fully completed later this year. Can you tell us about any clever design features? BR: From a design perspective, the Sunshine Creek logo is featured in the winery. The three cellar vaults represent the rolling hills of the Yarra Valley vineyard, while the immense semi-circle doors at the opening of the winery signify the sun. Architect Nicholas Childs with Mario Marson began concept designs of the winery and barrel storage areas keeping in mind the natural environment. The whole building has been designed to conserve and save energy. The production hall has double skin panel walls totally separated from each other preventing any thermal connection between them. It has also been lined with cool room panels, so totally in effect it is a building within a building. The south facing wall has thermomass panels up to three metres high, this is a sandwich construction of two concrete panels with high performance extruded polystyrene in between. Above this are two skins of 16mm Danpalon polycarbonate sheeting that allow natural light into the building, but not the heat. Once finished we will have industrial extraction fans through the ceiling to work in conjunction with automatically operating windows for natural ventilation when sensors are activated. Both ends of the vaults have vents for crossflow when needed and all waste is treated and contained on site organically. It has

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not been designed for gravity flow, but certainly for minimal handling. The barrel storage areas comprise three vaults about 18 metres across and around 30-40 metres long. They have concrete framing, then two layers of high density polystyrene, then a layer of geofabric covered by around 500mm of light weight soil. The completed centre barrel vault has been planted out with around 6000 Dianella plants, with the other two vaults to follow. This was overseen by our vineyard manager and viticulturist Andrew Smith. This planting over the single vault took a crew of nine two and a half days to complete. As Andrew says it’s one of those jobs you don’t want to do all the time! All of this aids the insulation process. How much f loor space is now available? BR: The winery area is 1600 square metres and the three barrel vaults total 1940 square metres. Mario wanted a large open space for flexibility so if he sees good reason to move things to make the winemaking process more efficient or if the need for more equipment is required, he can. How many tonnes will be crushed this vintage? BR: We will crush close to 250+ tonnes, with a maximum capability crush of around 275 tonnes. How involved was the winemaking team been in the design and fit-out? BR: The design and fit-out was the brain child of Mario Marson. www.winetitles.com.au

The barrel storage vaults maintain a naturally cool environment to aid wine maturation and this has been influenced by the many European wineries that have underground cellars. With the usual delays that can be expected with a project of this size, Mario and winemaker Chris Lawrence are ecstatic about finally moving in, and relieved because its right on vintage time, but also a little anxious that it will all work well. It really is a pivotal moment for us, it is a huge part of the Sunshine Creek story and has involved so much work, so there really is mixed emotions everywhere. Who has helped deliver the project? BR: Building and construction credit goes to Tim Skate from Skate Constructions and his whole team. Coordinating the building and design has been a complex process, that is – incorporating the design of the three vaults and our viewing platform has been challenging at times. This platform will allow people to look into and through the winery across to our enormous entrance gates which when are open you have a view from the bottom of our vineyard all the way up to the hills and beyond. It’s actually quite holistic. Skate Constructions have worked well with our team to accomplish a great feat and we couldn’t be happier. We are now in talks about the development and construction of our cellar door and function-only restaurant which will give us a retail headquarters and in turn attract more people to the region. March 2016 – Issue 626

sales & marketing Rainbow celebration bottle from Yellowglen THE POP AND FIZZ for celebrating with pride, Yellowglen’s iconic Yellow Brut Cuvée has been released with some extra flair. Released at the end of February, Yellowglen’s limited edition ‘rainbow celebration pack’ features the bold rainbow stripes of the LGBTI (lesbian, gay, bisexual, trans, and/ or intersex) pride flag. Yellowglen’s Rainbow Celebration Brut Cuvée is the perfect bubbles for marking a special milestone or toasting family, friends and community. The release date appears to have been strategically planned for the days leading up to the Sydney Mardi Gras parade which took place on March 5. The brand already has a close connection with coloured labels, but has so far matched the colour descriptor to the style of wine – as with the Yellow, Pink, White and Red labels. Yellowglen Creative Director, Samantha Wills, championed the introduction of this limited edition sparkling. “Yellowglen is an icon of Australian celebration, a brand that stands for joy and

March 2016 – Issue 626

www.winetitles.com.au

This limited edition is a bright and colourful reflection of our values and our celebration of equality and inclusion.

empowerment and has inspired generations of Australians with its approachable, fun-loving style.” “This limited edition is a bright and colourful reflection of our values and our celebration of equality and inclusion,” Wills said. The Yellowglen Rainbow Celebration Brut Cuvée is described as a “crisp and refreshing style of sparkling with dry, refined flavours” and it will be released with a recommended retail price of $12.99.

Grapegrower & Winemaker

sales & marketing

The future of ‘Who Makes My Wine?’ BACK IN 2010, Sarah Collingwood was fed up with the number of big corporation ‘in-house’ wine brands taking up valuable shelf space in retail outlets. Brands like Daybreak Estate, Amiri and Baily & Baily that looked the part of small, independent wineries were in fact mass produced by supermarket empires Coles and Woolworths, who have been notoriously averse to publicly disclosing their ownership. To raise awareness among consumers about the sheer volume of private label wines produced by Coles and Woolworths, Collingwood created the website whomakesmywine.com. It served as a space to continually update the list of wine labels owned by the two retail giants. For five years, Collingwood dedicated her own time and resources into maintaining the website. She was passionate about championing ‘the little guy’ in the wine world and earned praise from the Australian wine industry for her work. A few months ago, Collingwood announced she would be shutting down the website. “I found that publishing a website isn’t like printing a book, people expect that

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the information will continue to be kept up to date,” Collingwood explained. “My energies were being consumed by a young family, running our business and working on fun new side projects such as The 4-Tonne Shiraz [a fundraising initiative between three wineries for Canberra’s Companion House] so I figured it was time to let the hosting lapse.” Collingwood said she initially started up the website after a Women in the Wine Industry conference identified a major issue among consumers was an inability to identify between local brands and big business ‘home brands’. “The website could help consumers make up their own mind about the wine that they are buying,” she said. According to IBISWorld, Woolworths’ market share has increased from 15 per cent to 40 per cent in the past decade, while Coles, the third biggest wine retailer behind Metcash, has an estimated 19 per cent of the market, taking their combined stake to almost 60 per cent. In a recent Australian Financial Review article a senior liquor executive, who worked for Woolworths but requested to remain anonymous, said private labels were incredibly attractive to the major retailers because they could generate about double the profit of a branded wine www.winetitles.com.au

bought from a winery. This insider said there was a firm push from the big retailers to lift private label to as much as 40 per cent of their overall sales. “If you cut out the middle man you save quite a lot. You can get a better deal for yourself and for your customer,” the executive told AFR. “You can sell a Barossa Shiraz or a Margaret River Chardonnay for 20 per cent less [than the winery’s brand] and no one can compete with you. And you make more profit.” Independent retailers argued that the huge profits major chains made from private label wines allowed them to discount more aggressively on branded products. They argued that it made them less competitive. Taking this into account, Collingwood handed the Who Makes My Wine? baton over to Huon Hooke who has the list permanently published on his website. Hooke wrote an article addressing the importance of the list and reached out for solutions about how to ensure the information was regularly updated. One popular suggestion put forward by From The Producer founder John Cameron was to create an interactive “wiki” page that could be updated by March 2016 – Issue 626

Photo credit: Satina, 123RF.COM

many people in the industry. “I know a fair bit about wikis as I am a regular poster to the biggest wiki of them all – Wikipedia,” Cameron said. “Posting the Who Makes My Wine list on Wikipedia is a possibility - I might be able to make that happen but it depends on whether it can be presented in a manner that satisfies the Wikipedia guidelines for articles. “However, if Wikipedia does not think it is a suitable article, I would be willing to create a special wiki just for Who Makes My Wine?. I already host a number of personal wikis - so adding another one would not cost me anything.” Cameron said wiki’s were the ultimate tool for allowing many people to collaborate. “That is exactly what we need,” he said. “It is too much work for just one person to manage this list.” Cameron said the continuation of the list should be a community lead project - where anyone could contribute. “Wiki’s also have built in support for resolving differences of opinion and protecting against vandals and hackers,” he said. Cameron said he would be happy to create and host the wiki, but only with the support of Huon Hooke. “It is great that Huon has revived the list as he is a real asset to the industry,” Cameron said. “I would not want to proceed with the wiki idea without Huon’s support. “But if Huon is supportive, I would be willing to donate my time and effort to getting the list up on Wikipedia, or a March 2016 – Issue 626

Sure, everyone loves a bargain, but when we see wine sold for $6 or less and you don’t know who owns it you have to ask who wins? separate wiki.” Paul Evans, Winemakers’ Federation of Australia chief executive, said consumers have a right to know who makes their wine and this list was an important reference tool for consumers to make informed choices about their wine purchases. “WFA is lobbying government to end the WET rebate on bulk wine which will ensure these labels compete fairly with known brands in the future,” Evans said. “Ideally, this list would appear on a consumer-facing phone app so consumers would know and could access the list when in store.” “Having this resource is important when we start to look at the labels sold at different outlets, the shelf space given to home brands compared to private labels, and what discounting behaviours there are. “Sure, everyone loves a bargain, but when we see wine sold for $6 or less and you don’t know who owns it you have to ask who wins?” Evans said at the end of the day, www.winetitles.com.au

ingrained discounting behaviour of the home brands- underwritten by the current WET rebate being applied to bulk and unbranded wine supplied to the major retailers and their wineriesimpacts the hard-won brand equity of regional winemakers and distorts consumer expectation about price and product quality. “The products owned by the retailers also set the floor price for all wine and alcohol, dragging the entire retail pricing structure down,” he said. “In turn, margins for both winemakers and grapegrowers suffer.” Evans said WFA was pushing for Coles and Woolworths to label their wine as ‘retailer’s own brand’, a proposal that was echoed in a recent report from the Senate Committee into the state of the Australian Grape and Wine industry (which you can read more about on Page 18 and 19). One of the 12 recommendations from the report suggested “the Government amend labelling requirements so that wine labels must declare whether wine is produced by an entity owned or controlled by a major retailer”. “Do we need Who Makes My Wine – absolutely! Of course consumers will continue to demand value and the odd bargain. But here in Australia our community also wants to be informed and see a fair go for suppliers. “Wine lovers want to see a sustainable industry. With that in mind, having more information out there on who is behind the label can only be a good thing,” Evans said. Grapegrower & Winemaker

calendar

looking back We step back in time to see what was happening through the pages of Grapegrower and Winemaker this month 10, 20 and 30 years ago. 1986: Winemaker Wolf Blass promised to jump off the Glenelg jetty at the 1987 Birdman Rally using a giant replica of a bow tie as wings. The promise came after UFS winegrape executive, David Dean, handed over the outsized mock-up of the famous Blass bow tie which angry grapegrowers had threatened to burn after a misunderstanding over the method of payment for 1986 vintage grapes.

1996: On a tour of some of Australia’s wine regions, a group of 20 US retailers got a taste of what it’s like to live in Australia – complete with bothersome flies. But, one local winemaker, who unsurprisingly wished to remain anonymous, was only too keen to offer some advice to the group who had no idea how to deal with these pesky insects and offered the following words of wisdom: “If the flies bother you, cut a hole in the back of your pants… at least they’ll be behind you!”

2006: Vintage started for the Adelaide Hills on the 24th of February which is very close to last year’s starting date. Sparkling base Chardonnay and Pinot will be the first to be picked as usual. We’re expecting slightly above average yields for all whites including Pinot Noir. One exception will be Sauvignon Blanc which looks to be in perfect balance. Red yields look to be slightly below average.

Australia & New Zealand March 17-19 Fine Food Western Australia Perth, WA. www.finefoodwesternaustralia.com.au 19 A Day on The Green McLaren Vale, SA. www.adayonthegreen. com.au/catalogue/219/annies-lane-sa

20 Waipara Valley Wine & Food Festival Waipara, NZ. www.waiparawineandfood.co.nz 25 Easter Performances @ Sinclair's Gully Nortin Summit, SA. www.sinclairsgully.com 26-27 Brown Brothers Easter Festival Milawa, VIC. www.brownbrothers.com.au

19-20 Pyrenees Petanque Club Avoca Triples Tournament Avoca, VIC. www.avoca.vic.au

26-27 Campbells Easter Picnic Rutherglen, VIC. www.campbellswines.com.au

19 Telltale and Vine McLaren Vale, SA. www.foxcreekwines.com

27 Pizzini Wines Easter Sunday Family Day King Valley, VIC. www.pizzini.com.au

April 1 Griffith La Festa - Faces of Australia Griffith, NSW. www.lafesta.org.au 2-3 Harvest Festival at Shaw Vineyard Estate & Flint at Shaw Vineyard Murrumbateman, NSW. www. shawvineyards.com.au 3 Anderson's Mill Festival Smeaton, VIC. www.andersonsmillfest.org.au

7 Pinot & Duck Wine Dinner Melbourne, VIC. www.weteachme.com/ winetastingevents/1010887-pinot-and-duckwine-dinner 8-9 Coonawarra After Dark Weekend Coonawarra, SA. www.coonawarra.org 8-17 F.O.O.D Week (Food of Orange District) Orange & surrounding Shires, NSW. www.orangefoodweek.com.au

International March 15-16 WiVi - Central Coast Wine Industry Conference and Trade Show California, USA. www.wivicentralcoast.com

18-20 Salon Vins et Terroirs Toulouse, France. www.salon-vins-terroirs-toulouse.com

17-19 VIINIEXPO 2016 Helsinki, Finland. www.messukeskus.com/ sites2/Viiniexpo/en

29 March-1 April Shanghai International Wine & Spirits Exhibition 2016 Shanghai, China. www.winefair.com.cn

April 4-7 Salón de Gourmets - International Fine Food & Beverages Fair Madrid, Spain. www.gourmets.net/salon

7-9 14th Seoul International Wine & Spirits Expo South Korea. www.wineinternationalltd.com

5-7 ExpoVinis Brasil 2016 Sao Paulo, Brazil. www.expovinis.com.br

10-13 Vinitaly International Wine & Spirits Exhibition Verona, Italy. www.vinitaly.com

5-7 SIAL Brazil Sao Paulo, Brazil. www.sialbrazil.com

JD = judging date CD= closing date

For a comprehensive list of events, visit www.winetitles.com.au/calendar

Winetitles Calendar Australia’s most comprehensive wine industry related local and international events and courses – available online! Search for conferences, trade shows, competitions, courses, festivals & Australian & international wine shows.

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March 2016 – Issue 626

industry profile

Marty Smith Absolute Viticulture Tasmania Manages more than 500ha, including 4ha of Smith family vines Tell us about your current role: I’m a viticulture consultant, project manager and vineyard owner. I work closely with around a dozen Tasmanian vineyards and wine businesses providing a wide range of support services covering all facets of viticulture and vineyard management. Over the past 18 months I have also been directly involved with around 100 hectares of new vineyard development and including project managing the second largest single-year vineyard development in Tasmania’s history, planting is set to commence in September this year. During vintage I keep myself busy by running my own contract machine harvesting operation around the state.

Can you tell us more about your career in the industry so far? I spent eight years with Taltarni/ Clover Hill in Tasmania and Victoria whilst doing my viti degree through CSU via distance education. I moved to SA in 2009 to work as the viticulturist with Bleasdale Vineyards. Then moved back to Tasmania in 2013 to start my own viticulture consultancy and vineyard March 2016 – Issue 626

management business. In late 2015 my wife and I bought a property on the east coast of Tasmania and are in the process of developing a small vineyard of our own.

What are you most proud of? Re-working and re-trellising old vines in Langhorne Creek with Bleasdale and turning D-grade blocks into A-grade with a bit of love. One particular highlight was re-working a 30 year old box pruned Shiraz block and turning it into a cane pruned VSP vineyard that has provided a single-vineyard wine (Bleasdale Powder Monkey) and received a score of 98 from James Halliday. Successfully starting my own business in 2013 is a definite achievement and watching my clients receive accolades along the way is always rewarding. Being nominated for the ASVO ‘viticulturist of the year’ was a proud moment and I’m also very excited about the future of our own vineyard and the journey ahead.

What are the current challenges you are facing? One of my biggest challenges is to find ways to increase production on a number of client vineyards so they can meet market demand for their wine, and also finding suitable land and willing land www.winetitles.com.au

owners to plant more vineyards around the state. The little piece of water between Tasmania and Victoria is also a huge logistical and economic challenge. The cost of moving goods in and out of Tasmania is astronomical.

Where do you go for support on these issues? We are lucky in Tasmania to be well supported by industry organisations such as WFA and AWRI and also larger wine companies like Brown Brothers, Yalumba, Accolade, TWE, who are all investing in Tasmania and helping us build our image. There is also some local government talk about the freight issues between us and mainland Australia, but this will be a slow burner.

How important is the Grapegrower & Winemaker magazine a source of information: Extremely important! One thing I have noticed when moving back to Tasmania is that it’s easy to get disconnected from the greater wine industry and get stuck in our own little bubble. G&W also puts time into articles that are practical for vineyard owners and viticulturists, something we can actually use in the field and I can pass onto my clients. Grapegrower & Winemaker

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March 2016 – Issue 626

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