focus on australia

Eight talking points for Australian wine

David Williams takes stock of a country which sometimes gets taken for granted in the UK, but where climate, viticultural choices and consumer trends are all gradually reshaping the landscape

1. La Niña cuts the 2022 vintage down to size

After years in which drought, heat and fire were the abiding concerns for Australian producers, both the 2021 and the 2022 vintages were very much shaped by a La Niña weather pattern, which brought abundant spring and early-summer rain and generally cooler temperatures across the country’s main growing regions. The 2021-2022 growing season was the more challenging of the two, with the wettest November in Australia since records began (in 1900) contributing to a much lower crop than the bountiful 2020-2021: at an estimated 1.73 million tonnes, the crush was down by 13.5% on 2021, and by 2% on the 10-year average. According to Wine Australia, the lower yield wasn’t all about the weather, however. “Restricted winery tank capacity, together with reduced global demand and prices for red wines may have resulted in wineries and growers reducing overall production and/or intake of grapes,” the organisation said in its vintage report.

2. Exports take a knock, but there’s a silver lining

“It will come as no surprise to many of you”, said Wine Australia chair, Louise Allan, in her introduction to the 2021-2022 Wine Australia Annual Report published back in September 2022, “that the Australian grape and wine sector has faced continuing unprecedented challenges throughout 2021-22.” Some of those challenges are far from being unique to Australia, notably the lingering effects of Covid 19, the war in Ukraine, and rising inflation, although the sheer distance to its main markets has meant the country has suffered more than most from the stillongoing global freight crisis. What is unique to Australia, however, is the punitive tariffs imposed on Australian wine exports to mainland China (up to 218.4% on bottled wine) which have had a predictably dire effect on sales in one of the country’s main markets, and which have sent total Australian wine exports tumbling 19% in value to A$2.08bn. On the bright side, value is actually up by 5% if you strip out the Chinese market; and the depreciation of the Australian dollar has made it much easier for Australian producers to compete on price. 3. Could the trade deal boost sales in the UK?

At first glance, the numbers don’t look all that good for Australian wine over the past year in the UK: according to Wine Australia, shipments to the UK were down by 14% to in value to A$395m and by 12% in volume to 222 million litres. That many Australian exporters don’t seem unduly concerned by the dramatic drop – and had, in fact, been anticipating it – is down to two factors. First, many importers stocked up on Australian wine during the transition period after the Brexit vote and ahead of the official departure date on December 31, 2020. Second, Australia, which sells most of its wine in the UK through the off-trade, was one of the biggest beneficiaries of the swing from on- to off-trade during the pandemic.

As life in the UK turned to its post-Brexit, post-pandemic “new normal”, a correction was inevitable. The hope is that the absence of wine tariffs in the post-Brexit UK-Australia trade deal signed in July 2021 will provide a boost to both sales and the number and range of Australian producers present in the UK market in the next few years.

4. The rise of Australia’s natural wine fringe

According to the influential Australia-based wine writer, Max Allen, “the number of producers who today identify as natural or are a bit natural-ish or tick a lot of the natural boxes is uncountable” in Australia. Allen is one of many Australian wine observers who believe the anarchic movement, which began to emerge Down Under in the late 2000s, has been an overwhelming net positive, injecting some much-needed creativity and wildness into an Australian wine scene that had, with some noble exceptions, become aridly corporate and big brand-oriented. It took a while for the fruits of the Aussie natural scene to arrive on these shores – and much of it is still consumed via domestic cellar doors and wine bars. But the best – including Jauma, Luke Lambert, Koerner and Charlotte Dalton – have done an enormous amount to pep up Australia’s image in the UK and surely represent an even bigger share of its future.

Continues overleaf

Australia leads ‘rest of the world’

5. Sales are growing on the secondary market

While the arrival of the new, natural (and naturalish) wave of producers has offered a challenge to Australia’s established top fine wines at home, those same top wines still have the feel of being insurgents on the international fine wine scene. Progress, however, is palpable, with Australia’s finest now significant players in the world’s auctions and secondary markets. According to Livex, the country remains the leader of what it calls the “Rest of the World” secondary market, which is effectively wines from outside the dominant trio of France, Italy and California. In 2021 it had 36.2% of the RoW wines traded on the Liv-ex platform, putting it ahead of Spain (26.1%) and Germany (16.5%). And while China’s punitive tariffs affected fine-wine trading as much as the rest of Australian wine sales, Liv-ex singled out Henschke Mount Edelstone, Jim Barry The Armagh Shiraz, Clarendon Hills Australis and Torbreck The Laird as wines with a rapidly growing secondary market following. Meanwhile, the biggest Australian name of all, Penfolds Grange, has cemented its reputation as one of the world’s most in-demand wines. The bottle of 1951 bought by a Sydney collector in 2021 for A$142,131 was, at time of writing, the most expensive bottle of Australian wine ever sold.

6. Old vines are a trump card for Australia

Old vines are a big deal at the moment. Some serious momentum is building behind initiatives such as Old Vines Conference, the international campaign dedicated to recognising, logging, understanding and protecting what the trade now understands is among its most precious resources. And there’s a real sense that consumers have grasped the idea of vieilles vignes as a quality cue. It’s hard to think of a country better placed to take advantage of this trend than Australia, which has long been setting the pace when it comes to looking after its old-vine heritage. Introduced in 2009, the Barossa Valley’s Old Vine Charter has set the template for much of what is happening elsewhere in the world by organising the region’s quite astonishing collection of old vines into four distinct categories: old vines (35 years old or more), survivor vines (70+ years old), centurion vines (100+ years old) and ancestor vines (125+ years old). With similarly old stocks producing some of the best wines in, among other places, Eden Valley, McLaren Vale and Clare Valley in South Australia, Rutherglen, the Goulburn Valley and the Grampians in Victoria, the Hunter Valley in New South Wales and the Swan Valley in Western Australia, this is one area in which Australian wine trumps Europe for historical depth.

Mount Edelstone fetches impressive prices

Penfolds Grange has cemented its reputation as one of the world’s most in-demand wines. The bottle of 1951 bought for A$142,131 was the most expensive bottle of Australian wine ever sold

Old vines in the Barossa Valley

THE WINEMAKER FILES // Wendy Stimpson

Passel Estate Margaret River

We didn’t expect to buy the vineyards. It was more of a look-see, but we fell in love and made the decision to buy. I’m from England and my husband is from South Africa’s Cape winelands. We dreamt of making our own wine. We were maybe a little crazy, opening our cellar door at the same time as we launched our inaugural 2015 vintage, before we had sold a single bottle.

We currently have 6.8 hectares of

vineyard, a handful of miles from the ocean, which brings important cooling breezes. Our viticulturalist, Andy Ferreira, describes the vineyards as having “Christmas cake” soils: a reference to the gravelly/loam surface, clay, and granite underneath.

It was our rockstar winemaker, Bruce Dukes, who suggested Ferreira to us.

Bruce is just brilliant. He has experience of making world-class wines in Napa Valley and Australia and is extremely passionate. He loves the soils at Passel and knows this is the starting point for great wines. He is a humble and simply fabulous person.

We work sustainably and currently have winery certification, with vineyard

accreditation coming soon. We also have a conservation project that’s very dear to us. The western ringtail possums are an at-risk species that we’re working

Chardonnay 2018

A near perfect vintage with a long, warm ripening season. The Chardonnay is a stunning reflection of the year with voluminous white orchard fruit, toasted nuts, and pristine acidity.

Silver medal, Decanter World Wine Awards 2022; Silver medal, International Wine Challenge 2021 hard to protect. We’ve installed soft release enclosures alongside the creek line, to enable the possums’ successful rehabilitation at the property. Our vineyards are surrounded by jarrah, red gum, peppermint, and ancient grass trees. Here the possums find shelter and have a chance to thrive. We love our local possums, and they are not a threat to the vines. We’re more likely to lose fruit to birds and kangaroos.

If it needs saying, it is the western ringtail possum that has inspired the winery name.

Our philosophy is to make wines that are the purest expression of our

“passion paradise”. We make elegant, balanced, fruit-driven, single-variety wines that reflect both their terroir and the individuality of the vintage.

We have historically used Syrah on the Reserve wine label and Shiraz on

the Estate. However, moving forward both wines will be called Syrah, to reflect their elegant Margaret River, and Rhôneinspired, style.

Cabernet Sauvignon 2017

The team did well to hold their nerve in this challenging vintage. The fruit has fantastic concentration and balance. Pristine red fruits lead to a savoury palate laced with graphite, blueberries and cedar.

Gold medal, Decanter World Wine Awards 2020; Gold medal, Australia & New Zealand Boutique Wine Show 2021 Passel: The collective noun for the Australian possum. It is also the name of an exciting young Margaret River estate, whose wines are arriving in the UK for the first time, imported by Frederick’s Wine Company. www.frederickswine.com.

For the future we are making plans for a traditional-method sparkling Chenin

Blanc. It’s a few years away yet, but an exciting part of our ideas for expansion.

Margaret River’s terroir isn’t just about the soil beneath out feet, it’s also the

local community. We are blessed to be in an area where the quality of the wines is so high. We’ve had a good deal of support from our neighbours, including some of the more famous estates. Our wines are beautifully made and have elegance and purity. We are something of a hidden gem, a small, family-owned winery with a passion for our single-variety Margaret River wines.

Lot 71 Reserve Syrah 2017

From select rows of hand-picked fruit. Tense and brooding. Red cherries, anise, and savoury spice. The wine has a bristling structure and texture, awash with minerality and eastern spices.

Silver medal, Decanter World Wine Awards 2022; Silver medal, Australia & New Zealand Boutique Wine Show 2021

Australia’s new wine frontiers

Vineyards in the Riverland

7. Grenache can stand the heat

One variety that has benefited from the interest in old vines is Grenache, which was among the first varieties planted in the early days of Australian wine, and which accounts for some of the oldest working vines in Barossa and McLaren Vale. After years in which plantings declined dramatically, it has returned to popularity in the past decade. And while it still only accounts for some 1.1% of the total Australian vineyard (1.7% of total reds), its renewed reputation is reflected in the price per tonne of grapes, which went from A$577 in 2014 to $986 in 2019, with the average price of McLaren Vale Grenache actually eclipsing that of Shiraz for the first time in 2020.

The fashion for Grenache is partly explained by its ability to make fragrant, Pinot-esque wines in extreme heat; it’s also a key ingredient in the increasingly popular GSM blend – although intriguingly the name behind the “S” is not quite as predictable as it once was. While many merchants (and supermarket buyers) insist that Aussie Shiraz remains as popular as ever, it’s a curious fact that many Australian producers are switching to Syrah on their labels to signal a more northern Rhône-like, cooler-climate style.

8. The rise of the Riverland

The Riverland is to Australia what the Languedoc-Roussillon is to France: the unglamorous hot heartland of production that tends to get overlooked when the quality hierarchy is drawn up. But while Riverland remains at the heart of most South East Australia-labelled brands, accounting for 30% of the annual Aussie crush (versus the 4% of the Yarra and the 2% of the Barossa), it’s also, like southern France, home to some of the country’s most creative and inventive producers, many of them working with unusual varieties (Nero d’Avola, Lagrein, Vermentino, Zibibbo) and natural (or naturalish) techniques. Brash Higgins, Deliquente and Unico Zelo are among the names to look out for from this “new Riverland”.

While the Clare Valley is quite a small region, it has a very diverse and wide-

ranging microclimates, largely due to the huge diurnal temperatures. With desert to the north and the ocean to west, the north-south valleys forged by the three ranges create unique pockets of weather and temperature, due to elevation, sun exposure, orientation and location in the valley. The sub-regions of the Clare Valley are often talked about, but they have never been ratified even though within these areas there is a lot of diversity.

Kilikanoon was founded on ripe and concentrated styles of wine that showed bold and structured varietal

expressions. We enjoyed a lot of success with these wines and won many accolades. As Kilikanoon has grown, we have focused our energies in the Clare Valley and diversified our plantings. Kilikanoon has maintained its tradition of full and rich wines while paying attention to the modernising palate of wine lovers by developing more flowing styles – focusing more on the fruit and the unique place it is from. Each of the wines crafted has a distinct personality, one which is reflective of the season, the vineyard and the Kilikanoon style.

“Powerful elegance” is a phrase

often heard at the cellar door. This contradiction in terms for me talks to the evolution that Kilikanoon is continually going through. Maintaining such a high standard of quality while transitioning the house style, and still paying homage to the vineyards, is a difficult balancing act – but one that is at the core of our winemaking.

The winemaking world is a small place that is amazingly interconnected.

Sharing wines and ideas is the best way to inspire and open your eyes and palate to what is possible and what may be

Killerman’s Run Shiraz

Crafted from parcels of Shiraz from the length of the valley, displaying fruit concentration from slow-ripening grapes due to our warm growing days and very cool nights. The rich variety and balance achieved from using different vineyards creates a wine that is softly layered with a rich depth of fruit; complex without being challenging.

interesting to further experiment with. The Kx range is the “sandbox” for this purpose. The true value of this sandbox is that if one of our visions is able to be created, then replicated and then celebrated, it will transition to find a home within the Kilikanoon core stable.

Climate change is very evident in the

Clare Valley. Drought years in 2019 and 2020 saw harvest commence in early February and we had to get the fruit picked before the rapid ripening of the grapes spoiled the season. In 2022, with a prolonged, cooler summer and higher than average rainfall, the harvest began three weeks later, with many of the traditionally later-ripening red varieties stalling in their sugar production and having to be picked with lower than usual Brix/baume.

Kilikanoon has engaged in numerous sustainability practices over the

previous decade which has positioned the company well, as it is now a member of the Sustainable Winegrowing Australia group, which is regulated and furthered by the Australian Wine Research Institute. The winery has highly efficient solar collection, and collects all of its wastewater, and treats it before it’s used to irrigate the vineyards.

The Clare Valley, and Kilikanoon, is

renowned in Australia for Riesling. It also produces some of the most highly scored and acclaimed reds that often go unsung. With famed traditional varietals and icon blends originating from this small region for many years, there has been a true utilisation of the region’s diverse climate, soil and aspects to plant more emerging varieties that have found a home in the Australian wine lover’s consciousness. From soft and supple Grenache to varietal spiced Mourvèdre, the region is using its uniqueness to craft wines with their own identity. Kilikanoon is a very much part of this, and as we continue to push the style of our wines we hope to educate and show people at home, and abroad, the beauty and potential of the Clare Valley.

Mort’s Block Riesling

One of the pillars on which Kilikanoon was built. Situated next to the winery, this vineyard is closely monitored throughout the season. Bunches ripen slowly on the west-facing slope. There’s a purity of fruit that retains a bright tension from a natural mineral acidity that carries the complementary flavour long on the finish.

Peter Warr

Kilikanoon Clare Valley

Kilikanoon was founded by Kevin Mitchell in 1997 in the hamlet of Penwortham. Its wines are loved for their power, elegance, generous fruit, excellent acid structure and exceptional length. Imported by Mentzendorff mentzendorff.co.uk

Prodigal Grenache

With some of the widest plantings of Grenache in the valley, this utilises some of our finest fruit. A true expression of what the variety can do in the cooler, higher altitude vineyards. Blue fruits are at the core of wine. An alluring softer and supple style of Grenache that is finding a lot of favour among critics and consumers.

Winetraders UK: Everything but the Boot

The importer will be marking its 30th anniversary with a tasting that offers a glimpse of everything but Italy, the country with which it is most associated.

Winetraders has worked to champion undiscovered, artisan winemakers and signed up producers from Spain, Australia, Germany and Peru.

Names such as Cornelissen, Miani, Inama and Massa have all been introduced to the UK market by the company.

RSVP to info@winetradersuk.com.

Monday, January 23 67 Pall Mall London SW1Y 5ES

Vin French Wines Tasting

Vin is a new French wine tasting covering all the appellations from Champagne to Corsica, the Loire to Provence and everywhere in between.

More than 45 French producers will be showcasing their wines at this event, which will be a great opportunity to try wines seeking UK representation and also talk to the producers who already have wines in the UK market.

For more details contact pandora. mistry@businessfrance.fr.

Thursday, February 2 Lindley Hall Royal Horticultural Halls 80 Vincent Square London SW1P 2PB

Louis Latour Agencies Tasting

This is the importer’s 34th tasting and, as always, an illustrious line-up of wines will be on show.

These include offerings from SimonnetFebvre, Banfi, McHenry Hohnen, Pyramid Valley, Smith & Sheth and Champagne Gosset, along with Cognac Frapin and Cobalte vodka.

A Vidal-Fleury masterclass with Antoine Dupré will highlight developments since he took over as winemaker. This will be followed by a Cognac Frapin masterclass with Thomas Soret, who will be joined by tea specialist Jameel Lalani.

Email marketing@louislatour.co.uk.

Jascots Portfolio Tasting

The team will be pouring over 200 wines from their premium list of producers from around the world, many of whom will be there on the day.

The tasting will be divided into morning and afternoon sessions.

Jascots made its name as an independent supplier to the London on-trade, including a number of top restaurants. Now, as part of the Freixenet Copestick group, it is broadening its horizons into the specialist end of the off-trade and building its business with independents.

To register for the tasting or classes, email a.waldburg@jascots.co.uk.

Wednesday, January 25 The Haberdashers’ Hall 18 West Smithfield London EC1A 9HQ Tuesday, February 7 Westminster Chapel Buckingham Gate London SW1E 6BS

Austrian Trade Tasting

The Austrians are back in London and will be showcasing wines from more than 100 wineries.

This walk-around tasting will be a chance to revisit familiar names already available in the UK and discover those seeking representation.

There will be four masterclasses, though details of the themes were not available as The Wine Merchant went to press.

To register, for more information or to book a place on a masterclass, contact Victoria Medved. Email: event@ austrianwine.com.

Monday, February 6 Illuminate,The Science Museum Exhibition Road London SW7 2DD

Anyone who stocks French wines can make new discoveries at Vin on February 2

New Zealand Winegrowers Top Selection Portfolio Tasting

Annual Tasting More than 250 wines will be poured at this year’s event, which will feature This is the largest selection of New some newcomers to the London-based Zealand wines to taste under one roof. importer’s portfolio.

There is as always a wide range of Top Selection sources its wines from varieties and regions to discover, as well as smaller, family-owned wineries across the latest releases. Europe and the new world.

This year’s event will also feature wines These include Weingut Egon Muller, that made the cut in The Wine Merchant’s named best fine wine producer in Europe New Zealand Top 50, as listed in the at the inaugural Golden Vines Awards; supplement published with the January Charles Krug in the Napa Valley; Saintedition. Émilion Grand Cru Estate Château Trianon;

To register, email sarahs@nzwine.com. and boutique Tuscan winery Villa Saletta. Register at events@topselection.co.uk.

Tuesday, February 7 Lindley Hall Royal Horticultural Halls 80 Vincent Square London SW1P 2PB Tuesday, February 7 IET London 2 Savoy Place London WC2R 0BL

Fells Annual Portfolio Tasting

Fells predicts its 2023 portfolio tasting will be “one of the most exciting ever”, with a record number of its familyowned wine producers attending.

These include Philippe Guigal, Rupert Symington, Miguel Torres, Robert HillSmith, Jean-Frédéric and Charlotte Hugel, Francesco Ricasoli, Ricardo Tedeschi, Bruce Tyrrell, Eric Wente and Mike Ratcliffe of Vilafonté.

In addition to two masterclasses – one hosted by Robert Hill-Smith of Yalumba and Mike Ratcliffe – the tasting will include a number of food matching partnerships including Henriot Champagne with oysters; Barbadillo Manzanilla sherry with acornfed, dry-aged Jamón ibérico, provided by Brindisa; Pastel de Natas matched with Graham’s 20 year old Tawny; and Rococo dark chocolate truffles matched with Graham’s Six Grapes.

To register, visit fells.co.uk/events2023/.

Tuesday, February 21 IET London 2 Savoy Place London WC2R 0BL

Enotria&Coe Portfolio Tasting

The E&C tasting is always a big draw for

independents. This year’s event features a panel discussion co-hosted with the Sustainable Wine Roundtable.

For more information contact ej.bailey@ enotriacoe.com.

Monday, February 27 The Brewery 52 Chiswell Street London EC1Y 4SD