SOUTH AUSTRALIA: A STATE OF HERITAGE AND INNOVATION

A state of heritage and innovation

Seamus May looks at how drinks producers in South Australia are defying the weight of history to still produce impressive new products while maintaining the region’s longstanding industry reputation.

Given that it’s one of Australia’s most historic and productive drinks regions, retailers might think they’re familiar with everything that South Australia has to offer.

Yet, changing trends, mirrored by unparalleled brand stories, provide diverse and interesting ways to form renewed connections with both consumers and producers.

Old vines and old yarns

South Australia provides about 50 per cent of all wine grapes grown in the country. As grapes in the region largely avoided the phylloxera blight of the late 19th century, it is home to some of the world’s oldest plantings, particularly of Shiraz.

For Allister Ashmead, Co-Managing Director of Elderton Wines, it is these ancient vines that set South Australia apart.

“Old vines really are special, and at Elderton we have a plethora of them going back to the 1894 planted Command Shiraz Vineyard,” Ashmead says.

“The thing I love about the Barossa and our wines is that they do not try to be anything other than the best of Barossa and as such are completely impossible to replicate anywhere else. There is always great generosity in all the wines of the Barossa, which mirrors the way the local community operates.”

Angus Lilley, General Manager ANZ and Global Channels for Treasury Premium Brands (which owns South Australian wine brands such as Wynns Coonawarra Estate, Wolf Blass and Pepperjack), strikes a similar chord when discussing the quality of South Australia’s Cabernet.

“Cabernet can grow in many places around the world, however there are only a few locations that can make exceptional Cabernet that sits comfortably in the company of the great Grand Cru wines,” he said.

And as Lilley explains, the roots of Treasury’s brands run deep, quite literally.

“Wynns is fortunate to be the largest single vineyard holder in Coonawarra with vineyards that sit across the best parts in the heart of the terra rossa. We look after some of the oldest own-rooted Cabernet in the world, and Wynns wines are regarded as benchmarks of the district,” he said.

Alongside these historic grapes, Ashmead believes that the stories behind brands and wineries offer perfect opportunities for retailers to connect consumers with South Australian wine.

Yalumba

“My belief is that drinkers want to hear stories about families that make great wine,” Ashmead said.

“They want to know about the good and the tough times, the quality and pedigree of the wines, and sustainability is also at the forefront of many consumers’ minds.”

This was an aspect of South Australian wine that Tahnee Bishop, Brand Manager for Yalumba was keen to stress too, while also illustrating that the region’s longevity depends upon sustainable practices.

“We use our experience from 172 years of family winemaking to our advantage. Since 1849, we have led the way in sustainable winemaking, not because it is on trend, but to ensure the longevity and survival of Yalumba and the wine industry,” Bishop says.

Tim Dolan, Senior Winemaker at Peter Lehmann Wines, agreed that the combination of ancient rootstock and arresting brand backgrounds provides South Australian wine with a winning formula.

“There has been a real focus on celebrating these old, ancient, and ancestor vineyards, which has been awesome,” Dolan said.

Wolf Blass

“What fascinates me is the stories behind why these vines are so old, who the growers were, and the wines that have been made from each parcel over the years.

“Some of these vineyards have survived through three centuries, and it’s now up to us to share their story because with that story inevitably comes an insight into our ancient soils, climate and passion for growing and making some of the world’s greatest wines.”

Growing varietals present new opportunities

While South Australia is famed for its older, established grape varietals, several brands that National Liquor News spoke to described the potential of the region’s alternative grape strains.

“Alternative varieties play an important role in the Australian wine industry. Although Shiraz, Cabernet Sauvignon and Chardonnay are our biggest varieties, consumers are more willing to try something new and exciting,” Ashmead says.

“There has never been a better time to check out Eden Valley Riesling, or perhaps some of the Barossa's super tasty Grenache based wines.

“These will become more and more important and relatable to wine drinkers in Australia, as they provide real drinkability at a remarkably great prices. As some say around these parts, ‘Grenache delivers on what Pinot promises’.”

Ashmead’s sentiments are echoed by Jonathon McNamara, General Manager of Insights and Innovation for Samuel Smith & Son.

“The interest in approachable red wines such as Grenache will continue and complements the more established, fuller-bodied varietals, contributing to South Australia’s diverse wine offering,” McNamara says.

“The balance of new and emerging producers with long established icons presents opportunities for new wine drinkers to engage with and explore the rich history of winemaking in South Australia.”

Wynns Coonawarra Estate is one brand taking an innovative approach to these varietals, producing the Reframed series of blends.

“We’ve challenged ourselves to turn the traditional Wynns approach on its head in search of fresher styles that remain true to their region,” Lilley says.

The series includes a Coonawarra Shiraz Riesling blend, with Lilley explaining that “Wynns’ oldest Shiraz vineyards originally had some mistaken cuttings mixed in with the planting material that resulted in the occasional flash of white grapes at crushing.

“It’s a part of Wynns’ history, re-created with purpose, that echoes that Rhone tradition of adding a small percentage of Viognier for enhancing aromatics and bringing a softer texture to structural Shiraz.”

It’s not just market forces driving these trends, with the increase in alternative varietals partly a response to the changing South Australian climate.

“Climate change is forcing us to rethink what best suits our regions,” says Adrienne Renton, Senior Brand Manager for Peter Lehmann.

“Fiano, Grenache, Mataro, and Nero D’Avola appear to grow well even in the harshest summers.”

The local spirit to succeed

Two of the biggest recent spirits trends have been a move towards premiumisation and increasing consumer preference for locally made spirits. Jon Lioulios, Director of 36 Short, believes both these patterns are at play in the South Australian spirits category.

“Supporting local plays such an important role within South Australia and we’re finding that customers really enjoy experimenting and finding new ways to drink premium Australian spirits with their friends and family,” Lioulios says.

This local support extends from drinkers too, encapsulating producers from different categories working together for a mutual benefit. 36 Short has an eye-catching array of spirits in its portfolio, including rakia – a product that makes use of the abundance of local grapes.

“In 2014, we obtained our distilling licence and released Australia’s first rakia, made from premium local Shiraz grapes, and then distilled with star anise. This 150 year old family recipe that Dad brought with him from Macedonia,” Lioulios says.

According to Sean Baxter, Co-founder of Never Never Distilling Co, this kind of unique spirit production is part of a growing trend.

“Absinthe, aquavit, genever, amaro, pisco, rakia, ouzo, the list goes on. There are currently a range of different spirits and liqueurs made in SA that go against the usual trend of spirit production,” Baxter says.

“These products are born out of exciting collaborations and appeal to new demographics of spirit consumers looking for new and different creations.”

Never Never has engaged in similar collaborations itself, as Baxter outlines.

“We’ve always had a deep love for South Australia’s wine regions. To create our Ginache, each year we source some of the best Grenache fruit from McLaren Vale – the home of Australian Grenache. We’ve worked with local growers and wineries such as our friends at Chalk Hill Wines and Dogridge Wines,” he said.

“We are in a great place in SA, producing amazing and high quality produce. It completely makes sense that this bounty of amazing produce has become a focus for local producers.”

-Stuart Morrow, Spirits Innovation Manager and Ambassador 78 Degrees Distillery

Stuart Morrow, 78 Degrees Distillery’s Spirits Innovation Manager and Ambassador, explained how his brand has also worked with the local wine industry.

“Many of the whisky producers seem to be focusing on local casks from our great wine regions, along with local grain, and many of the gin producers seem to be focusing on tying in local produce into their botanical makeup,” Morrow says.

“We are in a great place in SA, producing amazing and high quality produce. It completely makes sense that this bounty of amazing produce has become a focus for local producers.”

Prohibition Liquor Co has also engaged with South Australia’s grape and wine industry, as Hugh Lumsden, Head Distiller, outlines.

“Barossa Valley grape-based spirit is a strong definer of South Australian gins. Neutral grape spirit from one of Australia’s great wine regions is commonly used by SA gin brands, giving a strong local story to the base of the product,” Lumsden says.

“Our Shiraz Barrel-Aged Gin barrels have started their lives in Kentucky, ageing bourbon, before heading to Scotland to age whisky and finally to the Barossa Valley to age Shiraz, before we re-cooper them to 100 litres and re-char each barrel back to life.

“Our continued relationship with our cooper and the wineries is one which maintains the constant supply of these barrels at reliable and consistently high quality.”

Craft beer creates community

South Australia hosts a burgeoning craft beer scene, as Michael ‘MC’ Cameron, Co-founder and Brewing Director of Pirate Life Brewing, explains.

“South Australian craft beer is in a fantastic place. If we reflect on when we started here in Adelaide back in 2015, there were about 17 breweries - now that’s probably closer to 50,” Cameron said.

“Each is pivotal, not only to the industry, but their communities as well.”

“I think that’s what really excites me about the future - brewing is only limited by the imagination.”

Michael Cameron Co-founder and Brewing Director Pirate Life Brewing

It’s this sort of community that is growing in South Australia, according to Corinna Steeb, Co-founder of Prancing Pony Brewery.

“New breweries and brands are popping up every week or month. They’re setting up near existing breweries to establish a bit of a beer hub and leverage that,” she said.

Steeb explained that the increase in breweries means that tap space in the on-premise is at a premium, perhaps presenting an opportunity for retail.

“Craft beer is represented more broadly in liquor stores, including the big chains, however, tap space is becoming exceedingly difficult to gain,” Steeb explained.

“Smaller producers have a fast route to market. We don’t steer a 100 tonne tanker, we are agile. We connect with the retailer more frequently, and we listen to their needs.”

For Michael Shearer, General Manager of Coopers Brewery, the growth in craft beer is being driven by South Australian consumer preferences as well.

“The beer market is evolving in line with the tastes and preferences of local drinkers as well as the popularity of craft style beer,” Shearer says.

In response to the ongoing popularity of craft beer, Coopers is adding a new 3,200 litre microbrewery to its Regency Park site, which will be used to develop further craft-beer styles.

As Cameron explains, this craft movement is pushing innovation in the South Australian beer category.

“We continue to develop products like it’s going out of fashion. We’ll knock out close to 120 new beers this year,” Cameron says.

“There’s a lot of creativity throughout the team and a lot of excitement every week at our NPD (New Product Development) meeting.

“I think that’s what really excites me about the future - brewing is only limited by the imagination.”

‘Better for you’ beer reflects wider trends

The impact of the wider ‘better for you’ trend is being felt across South Australian drinks, including the beer category.

Cameron said: “There’s a lean towards lighter-bodied, lighter flavoured beers - I guess you could say ‘healthier’ beers. We’re seeing a big push on zero alc, low carb, low cal, those sorts of products.”

Meanwhile, Shearer thinks that the inherent characteristics of the Coopers Brewery and brand allow the company to maintain its strong position in the market and respond to new trends.

“Authenticity, high quality, originality, local provenance and Australian owned – these values are our comparative advantage and why large numbers of new and existing customers are attracted to our brand,” he said.

The qualities Shearer identifies are applicable to South Australian drinks as a whole, as the state continues standards it has set for generations, while fostering dynamism across all three major categories. Collaboration is clearly a key factor of drinks-making in South Australia, with the final result impressive and innovative products that respond to history, place and modern palates.

A landmark year for Coopers

It would be impossible to discuss beer in South Australia without acknowledging Coopers, with the family owned brewery now into its 160thyear of operation.

Shearer explains that the company is continuing to innovate and plan for the future, noting: “This s a milestone year for Coopers Brewery. While the 160th is a reason to celebrate the past, and we have done with a series of industry events across the country, the brewery remains focussed on the present and future.”

As Shearer outlines, Coopers has announced plans to invest $50 million in the construction of a new visitor centre, microbrewery and whisky distillery at its Regency Park site.

“This exciting expansion is part of a long-term vision for the brewery,” Shearer says.