7 minute read
Family Wineries
Family ties
As Don Corleone (Marlon Brando in The Godfather) once said “you don’t go against the family”. In Australian wine, you can’t bet against family wine producers either, as Andrew Graham discovers.
Despite years of consolidations, mergers and private equity buyouts, family wineries still make up five of the 10 largest wine producers in the country (by total wine productions, Winetitles figures). On a broader scale, most of the 2,257 wine producers in the country are small, family-owned operations, which makes wine production very much a family business.
What’s interesting is that some of the most successful family wineries in Australia are also notably dynamic, which flies in the face of a reputation for conservatism.
A fortified vat at Patritti
But life isn’t always straightforward for family wine producers either, with internal politics, declining domestic wine consumption and the changing nature of the industry all presenting hurdles.
For this article, we checked in with some of Australia’s best-known family producers in a bid to find out how they stay ahead – particularly in a market dominated by multinational wine companies.
DE BORTOLI GETS BIGGER
Like a few of the producers surveyed for this article, De Bortoli has been on the acquisition trail of late, buying Rutherglen Estates late last year. As third generation family member and Managing Director Darren De Bortoli explains, the 185 hectares of vineyards and processing facility offer a great resource.
Generations of the De Bortoli family
“(The Rutherglen Estates acquisition) is one of the key planks in our future plans to drive the growth of premium Australian wine around the world,” he said.
More than just a handy resource (with a “great water supply”), it also helps De Bortoli consistently produce more full-bodied reds, and helps fulfil the wineries’ aim of producing more than seven million bottles of premium Victorian wine by 2025.
De Bortoli’s La Bohème
The other key element that De Bortoli credits for its ongoing success is its commitment to innovation. Late last year, De Bortoli was awarded the inaugural ‘Winery Innovator of the Year’ trophy at the 2018 International Wine and Spirit Competition (IWSC) in London for the unique packaging on the Rosé Rosé. The wine itself has already won two trophies and two gold medals to reinforce that there is more to successful wines than a good concept.
THE BROWNS BANK ON BUBBLES
On the trail of newer styles and varieties, one of Australia’s other powerhouse family wineries – the newly renamed Brown Family Wine Group (BFWG) – is banking on the domestic and export success of one newish category – Prosecco.
CEO Dean Carroll explained to National Liquor News: “While the Prosecco juggernaut is recognised, we still feel it is underdone in terms of actual share of wine in comparison to overseas markets.”
The Brown family see their home region as key to this growth.
“We are working with our colleagues in the King Valley to ensure the home of premium Prosecco in Australia is in the North East of Victoria.”
But more than just bottles of fizz, BFWG sees alternate packaging options as the future too, with the Prosecco Spritz and Innocent Bystander cans released last year enjoying a strong customer response.
“Being recognised as an innovative wine company is important to us, so it’s fair to say all aspects of NPD including pack formats are on the table at BFWG.”
PATRITTI’S PLANS
The Patritti family have been making wine in South Australia since the 1920s, when founder Giovanni Patritti arrived in Australia from Italy and started making ‘European style’ reds.
Now, the Patritti family are working on the rejuvenation and expansion of their old Grenache vineyard at Tatachilla in McLaren Vale, as Marketing Manager Kyla Schmidt explains.
A party at the Patritti winery
Patritti’s James Mungall (r) with guests at the winery
“The original vines were planted by the Patritti family in the 1960s, completely dry grown. Some of the gnarly old vines were underperforming and needed some work to reinvigorate their growth. We also took cuttings which have been planted in a new section in preparation for future production needs,” she said.
“We see Grenache as a varietal that will continue to grow both domestically and internationally and we want to make sure we’re in a position to be a leader in this category.”
Schmidt believes that family wineries have an advantage too.
“Because not all the focus is on shareholders and dividends, the company tends to be more flexible and innovative,” she said.
“Management tends to be more willing to try new things, winemakers can explore varieties, techniques or whatever else takes their fancy (our winemakers have done some weird things over the years), marketers can be more creative and generally this creates an environment where business is more willing and able to overcome challenges as they arise.”
CASELLA HITS 50 NOT OUT
This year marks a milestone for our largest family winemaker too, with Casella Family Brands celebrating 50 years of wine production in Australia. Like De Bortoli and BFWG, Casella has been on the acquisition trail in recent years, purchasing Peter Lehmann, Morris and Baileys of Glenrowan.
But what’s really moving for Casella is the new Magic Box range. Targeted at Harry Potterloving millennials, this new range is Casella to the core – with playful names and bright packaging. Enjoying double-digit month-onmonth growth (according to IRI data) and positioned in the all-important $10-$15 price segment (the number one price segment by value), it is key for growth.
Although when you’re already one of the country’s biggest winemakers, the hurdle is just how much more you can grow.
YALUMBA GOES BACK TO ITS ROOTS
While Casella is targeting the wannabe magician wine lovers, Australia’s 13th largest winemaker Yalumba has embraced its roots, releasing a brand new range that celebrates the winery’s founder Samuel Smith.
Named Samuel’s Collection, this new product line features seven wines that ‘celebrate Yalumba’s heartland, its heritage, longevity and estate’, including classic Barossan styles like Shiraz and Bush Vine Mataro, as well as classic Yalumba styles like Eden Valley Viognier. There’s even a new Yalumba Clocktower icon on the label, which will shortly feature across all the Yalumba brand material.
For Yalumba, this embrace of traditional varieties is true to form – a subtle evolution, rather than a revolution. But is it enough for a wine world obsessed with ‘the next big thing’? Or is it a masterstroke from a winery keenly aware of its history?
THE MCWILLIAM’S (RE)INVENTION
Life has been a little less rosy for 11th largest winemaker McWilliam’s Wines, after losing $5.5 million in 2017-2018. But a cash injection from Peter Fogarty (owner of a suite of wineries including Deep Woods, Lakes Folly and Smithbrook) has helped stabilise the business and provide a springboard for the future.
As CEO David Pitt explained in an interview recently, McWilliam’s made the mistake of focusing too much on sub $10 wines which weren’t profitable. But with a suite of new labels just released geared towards a younger audience, including McW, Off the Press and On The Grapevine, Pitt believes the future is looking more positive.
The McW label, in particular, has already proven successful.
“We are continuing to build on the great strides our contemporary McW brand has seen within the market and share with consumers styles of wine that can offer a diverse option for enjoyment across wine drinking occasions,” Pitt said.
Still, the challenge of McWilliam’s shows that even the most successful wine producers can have tricky periods. Especially with a winemaking history that spans 140 years.
As Pitt explains, such a long heritage is part of the appeal of family wine producers.
“(Family wineries) bring their proud history to the forefront through the decades of stories associated with their history, allowing a connection that can be told through the wines they are making.”
When your back catalogue includes iconic wines from legends like Maurice O’Shea, it’s not a hard story to tell either.
THE HENSCHKE VIEW
Finally, for a different perspective on family wineries we checked in with one of Australia’s most famous producers – Henschke.
Late last year the family celebrated the 150th anniversary of Henschke, and to mark the occasion they opened a new cellar door in the original 1860s Grain Barn – built out of field stone and mud by first generation winemaker Johann Christian Henschke.
Family is important at Henschke
Like many of the more dynamic modern Australian wine producers, Henschke’s continuing focus is on sustainability, which fifth generation Henschke winemaker Stephen Henschke sees as a key element.
“Family wineries are about having an environmental and sustainable focus in the vineyard and winery, as we are really farmers at the end of the day,” he said.
“Henschke is about striving to be better rather than bigger. We reinvest everything back into the business, whether it is improvements in technology, or research and development. It’s about focussing on the quality in the bottle rather just on the bottom line.”
As Henschke notes, the benefits of family wineries go beyond just making wine too.
“Family wineries are important for the future of Australian wine regions – if we lose family businesses, we lose the heart and soul of our wine community.”
A fortified vat at Patritti
