Wine Marlborough 2020 Annual Report

Page 1

AnnualReport WINE MARLBOROUGH

2020

EDUCATE

|

GROW

|

PROTECT

|

CELEBRATE

wine-marlborough.co.nz


Purpose | Why we exist Proudly standing up for, and building, the reputation of Marlborough’s wine region Beliefs | What we stand for Providing leadership in times of opportunity, challenge and success Future proofing the success of our members Supporting members to gain and retain new talent Being a window for the world to fall in love with Marlborough Actions | How we deliver our plan EDUCATE - Provide leadership for a sustainable winegrowing environment GROW - Leverage strong relationships to benefit our members PROTECT - Create and sustain workforce availability CELEBRATE - Share the Marlborough Wine Story Vision | What we are going to achieve Marlborough will be the world’s greatest wine region Cover | Windrush Organic Vineyard 2020 harvest captured before Covid-19 Alert Level 4 Photo | Richard Briggs


From the Chair & General Manager TOM TROLOVE & MARCUS PICKENS

Tom Trolove. Photo by Jim Tannock

OUR YEAR, like that of most organisations and industries, was shaped significantly by Covid-19. Throughout 2020, and especially in these challenging and unprecedented times, it was a relief to turn back to our strategic goals as a guide. Our purpose is to ‘proudly stand up for, and build, the reputation of Marlborough’s wine region’. The strategy was built by the Marlborough Winegrowers Board and Wine Marlborough staff in 2018, facilitated by external consultant Jamie Fitzgerald, of Inspiring Performance. We revisited it in September 2020, in order to check its relevance in this changeable landscape. We received funding to conduct this latest round of work, which was one of a number of grants received this year. Notably, the strategic goals and objectives remain unchanged and our focus remains steady in the core areas. During the recent review, the board decided it was timely to reconsider our focus challenges, dropping two outright from the six, as they have either been achieved or wrapped into a business as usual framework. The four objectives that remain for the organisation to focus on are: 1. Provide leadership for a sustainable winegrowing environment 2. Advance and leverage strong relationships to benefit our members 3. Create and sustain workforce availability 4. Celebrate and share the Marlborough wine story Some of the language used to articulate our objectives should excite our members and demonstrate our focus. When we promise to celebrate and share the Marlborough wine story, in action this means we will celebrate member behaviour that’s consistent with our region’s strong reputation, and design or enhance events to help members shine, sell and create relationships, among other objectives.

Under our challenge of create and sustain workforce availability, we will undertake activities such as helping members stay ‘match-fit’ by supporting their resilience and wellbeing, and growing Marlborough’s wine industry workforce by guiding and influencing employers, educators, gatekeepers and government, amongst other objectives. The four challenge areas and their activities are the focus of board meetings, with outputs reported to ensure a focussed team and board. We see this as essential to enable efficient and streamlined work within the board and the small team at Wine Marlborough. For any member who wants to learn more about our purpose and challenges, speak to any member of your board or the Wine Marlborough team.

“We will undertake activities such as helping members stay ‘matchfit’ by supporting their resilience and wellbeing.” Tom Trolove The Marlborough Winegrowers Association passed an important milestone this year, being 40 years since it was incorporated on 11 June, 1980, a few months after a meeting to discuss forming such an organisation. We hope those initial members would be proud of where their organisation has led their members. This year there were some solid achievements made that are notable mentions for this report. Wine Marlborough Annual Report 2020 / 1


When Covid-19 lockdown loomed, the industry held its breath. And when we were thrown a lifeline of ‘essential status’, our industry problem-solved to implement the special requirements. Meanwhile, the Wine Marlborough organisation worked very closely with New Zealand Winegrowers to design a new operating manual for the immediate period, while problem-solving challenges that were flying at us in every single way. The team quickly established their home offices and set about writing social media guidelines, checking social media postings, relaying intelligence, speaking with media, communicating with members, appearing in front of parliamentary select committees, mapping out the impact on our seasonal and permanent workforce, and sharing news and developments with our industry, among other things. While the workflow was intense and uncertain, sense was made and order was maintained. I am sure the value of our regional and national bodies was recognised by all at this incredibly stressful and uncertain time. The Covid-19 situation has again cemented the importance of a strong relationship with our national body and key funder, New Zealand Winegrowers. This is an important relationship that is not without its challenges, given their broad representation and our single-minded purpose and focus. We collaborate well and need to have

“While the workflow was intense and uncertain, sense was made and order was maintained.” Marcus Pickens

Marcus Pickens. Photo by Richard Briggs

2 / Wine Marlborough Annual Report 2020

Neal and Judy Ibbotson

communication flows working well at all levels to help problem-solve and help both parties make the best decisions for the wine industry here. The board farewelled both Stuart Dudley and Jack Glover this year, each having served two three-year terms. Tracy Johnston stood for her second term as a grower and was joined by Anna Laugesen. Gus Altschwager was elected as the wine company candidate to replace Jack Glover to fill our 10 board member positions. The board also sought advice about the longstanding practice of having three of our 10 board members as the directors of Wine Marlborough Limited, ultimately concluding that it was fairer that all board members become directors of the trading company, where almost all of the activities reside and staff are employed. The organisation maintains sufficient association liability cover to protect members and the organisation, but there was no disagreement that shared accountability was the best way forward. We farewelled Harriet Wadworth to a new role in the industry this year, after four and a half years with us. We thank her and wish her well. Sarah Linklater joined the team as our Marketing and Communications Manager the week of the Marlborough Wine & Food Festival, and went straight off the bat with the Covid-19 situation gaining rapid momentum. We also farewelled Event Manager Georgie Leach on maternity leave, who went on to relocate to Sydney, and have welcomed Loren Coffey into the role. Earlier this year we were also required to consult on and ultimately disestablish the long-standing seasonal labour coordinator role, filled for some time by Nicolette Prendergast, due to declining flows of workers seeking our assistance and more web-based tools available in this space. The marketing and communications space is an area that we will be focussing on significantly in the coming year, with all our platforms assessed in a special and focussed marketing review. Sarah has already launched a new Wine Marlborough website (winemarlborough.nz) and several of our other websites, such as marlboroughwineshow. co.nz, have been refreshed. Our efforts in social media are being assessed and measured to allow us greater impact in this important space. Winepress continues to provide the


most relevant and up to date information to our members and is highly regarded. I am sure it connects and binds the industry together well. Thank you to our editor, Sophie Preece, our long-standing sponsor TasmanCrop, printers Blenheim Print, and all advertisers. Thanks also to regular photographers Jim Tannock and Richard Briggs, for shining such a great light on our industry. The Wine Marlborough Lifetime Achievement Award carries significant status for the organisation. There was a wonderful reaction from all as we awarded this to Neal and Judy Ibbotson at the 2020 Marlborough Wine Show Celebration, for their wonderful and long lasting contribution to the Marlborough wine industry, as early growers, winemakers, wine marketers, members of the early grape growing association, and wine festival organisers. Neal and Judy are also passionate believers in the potential of Sauvignon Blanc via single vineyard expressions and their dedication and exploration of this, especially in newer areas such as Dillons Point, has changed the profile of our signature variety. Thanks are also owed to Jack Glover - who has recently relocated to Sydney - for chairing the Marlborough Wine Show for the first two shows delivered by Wine Marlborough. We are very pleased with the progress the show has made under our ownership. While we managed to hold our regular important events, the year has disrupted many of our plans at a personal and business level. Covid-19 has forced exceptional decisions to be made by many, including the Marlborough Winegrowers Board, which cancelled the Marlborough Wine & Food Festival for the first time in its 35-year history. This decision was not taken lightly, with the board assessing five criteria: health and safety, financial risk, community impact, reputation, and only being able to stage the event in an Alert Level 1 environment. The organisation was fortunate to receive confirmation (but not payment of) a significant grant from the Domestic Events Fund that would have mitigated approximately 40% of the financial risk. We felt we could provide thorough health and safety advice and instructions to attendees to reduce the risk of exposure to Covid-19, but it was agreed it would be irresponsible to bring up to 8,000 people together just prior to harvest. With a well thought through and prepared communications plan, the decision was greeted with 100% support from site holders, sponsors, suppliers and the small number of pre-purchased ticket holders. The Silver Secateurs viticulture event was held successfully in 2019, with a record number of entrants, but support from a smaller pool of Recognised Seasonal Employer (RSE) scheme employers. The event was effectively ‘on notice’ for review prior to the 2020 event, but Covid-19 stymied plans to deliver it again this year. No decision has been made about its future. The New Zealand Young Winemaker of the Year event was finally brought into the fold of New Zealand

Rhys Hall

Winegrowers and delivered by them for the first time in 2019. Regional organisations, including Wine Marlborough, are responsible for the regional event delivery, and we congratulate Matua’s Production Winemaker Peter Russell for taking the Marlborough title in 2020, and going on to represent the region at the national Tonnellerie De Mercurey Young Winemaker of the Year 2020 competition. We hope that this competition, established and managed for the first five years by Wine Marlborough - both regionally and nationally - will continue to thrive and reach similar levels as the New Zealand Young Viticulturist of the Year event. Congratulations also to Indevin’s Bankhouse Estate Assistant Manager Rhys Hall, who took out the regional young viticulturist competition for 2020, then went on to win the national title of Corteva New Zealand Young Viticulturist of the Year 2020. We are proud to be involved with both of these competitions, to give profile and knowledge to younger participants of the industry. Thank you to the generous local sponsors who support these people and our organisation. Wine Marlborough led the response to the Marlborough Environment Plan, as you can read in the Protect section (page 13), where we outline advocacy initiatives. There have been many notable achievements in this area, including passing the first hurdle in seeking to protect the status quo for permitted irrigation draw from the major rivers and related aquifers. This decision, in support of the Marlborough District Council, has been challenged to the Environment Court by other parties. We will now focus our efforts in supporting the council on this matter. Significant effort and resource has been put into many other advocacy areas, including measuring winery cellar hand pay rates, assessing work pressure for winemaking and cellar staff, working on seasonal and permanent job shortages, and many other compliance issues. Thank you to Vance Kerslake for his efforts throughout the year. We would like to thank our board members, the team at Wine Marlborough and our members for the opportunity to lead this organisation and represent your interests. Tom Trolove Chair, Marlborough Winegrowers Association Board Marcus Pickens General Manager, Wine Marlborough Wine Marlborough Annual Report 2020 / 3


Treasurer’s Report

Ben Ensor

BEN ENSOR

Marlborough Winegrowers Association 2020 Result THE FINANCIAL year ending June 2020 has been a strong one for Wine Marlborough. Gross profit for the 2020 year increased by 7% from a similar total income in 2019 to $1,309,036 this year. This was achieved from improvements in profit from activities such as the Marlborough Wine Show, sponsored by QuayConnect, in our second year of ownership, Winepress Magazine and other events such as the Corteva Marlborough Young Viticulturist of the Year and Silver Secateurs. The Marlborough Wine & Food Festival was again a large part of our profit for the year, returning consistent surpluses for the past two years. The organisation was able to carry over a surplus of $144,031 into the new financial year, resulting from both good management and activities that were deferred into the new year. As a result of this, retained earnings have improved by 14% with this increase of cash on hand, held in revolving term deposits that allow us to access funds if required, while still seeing a small return. Investment in other types of asset classes is not feasible with members’ money. Overall it has been another well managed financial result by the management team. Well done to Marcus Pickens, our General Manager, and his team. The focus now turns to the current year and, with the recent decision to cancel the 2021 Marlborough Wine & Food Festival, the financials will of course be affected. The festival produces a profit of around $140,000 per annum, but this is considered minimal when you contemplate the cost to our industry and community if an outbreak of Covid-19 were to occur that close to harvest. The decision in the end was an easy one, but it was preceded with significant work to reduce the risk to the organisation and attendees if the decision was made to proceed. Grant funding was promised by the Government’s Domestic Events Fund, which would have reduced our overall exposure and offset some cashflow in the early stages of event delivery. A cashless payment system was budgeted for to eliminate the need for cash handling and ensure efficient transactions on the site, sponsorship agreements were reviewed with clauses added to specify what the obligations were if the event was cancelled, and commercial contracts were reviewed to reduce our upfront

4 / Wine Marlborough Annual Report 2020

commitments in an uncertain operating environment. You can read about other non-financial reasons for cancelling the event on page 7. It is anticipated we will be able to mitigate this loss in income to some degree, with a closer look at other investments planned for this year which could be deferred if necessary. However, there are still commitments being undertaken.

“Our commitment to the Marlborough Environment Plan remains.” Ben Ensor Wine Marlborough remains in a strong position with good cash reserves in excess of $1.17 million, which can be used if required to bridge any cashflow issues this year. Our commitment to the Marlborough Environment Plan remains, with a decision by the hearings panel to retain the status quo in our major area of focus (irrigation water from our major rivers) being well received by our members and ourselves. Expenditure on this has now spanned two financial years at a cost, in its entirety so far of $72,017. With parts of the plan, and particularly the water for irrigation chapter, being challenged through to the Environment Court, expenditure will continue and a provision has been made for this, although hearing dates have not been set. We are preparing for this now in a supporting role to the Marlborough District Council, who are the primary party, with items such as an economic assessment of the contribution of wine and viticulture to the Marlborough economy being refreshed to demonstrate what value irrigation brings to this economy as a whole. With the challenging landscape impacting us all, you can be sure that your regional wine and grape growers association will manage our resources as best we can for maximum benefit for all. Thank you to my fellow finance committee members, Beth Forrest, Nick Entwistle and Tom Trolove. Ben Ensor is Treasurer for the Marlborough Winegrowers Association.


Chief Judge Ben Glover at the 2020 Marlborough Wine Show Celebration Long Lunch Secrets of Sashimi Masterclass at the 2020 Marlborough Wine & Food Festival

The Feelers at the 2020 Marlborough Wine & Food Festival

Chef Peter Gordon in the 2020 Marlborough Wine & Food Festival Culinary Pavilion

Brent Marris and Emma Marris receiving the QuayConnect Champion Wine of the Show for Leefield Station Pinot Noir 2019 Panel Leader Helen Morrison at the 2020 Marlborough Wine Show judging.

The new Food Truck Alley at the 2020 Marlborough Wine & Food Festival

Wine Marlborough Annual Report 2020 / 5


COVID-19

Working through the challenges of Covid-19

Covid-19 webinars – 2020, 2021

Throughout the year, Wine Marlborough has worked closely with members, New Zealand Winegrowers and Government to mitigate the impact of the global pandemic on Marlborough’s wine industry. Here are some of the initiatives undertaken:

Two webinars in July outlined the challenges wineries will face recruiting cellar hands for vintage 2021. Three workshops were held with wineries to identify specific actions to assist wineries to attract, recruit and train staff for vintage 2021. Priority actions for Wine Marlborough, NZW, training providers and wineries were identified.

Vintage workers Hundreds of cellar hands were left stranded in Marlborough without work, when the Government refused further flexibility with their visas. More than 200 vintage cellar hands stuck in Marlborough packed the Marlborough Convention Centre on June 17 to hear about their options. Wine Marlborough worked incredibly hard to get the Government to change the rules around working visas, including repeated pleas to senior officials, Government ministers and Parliamentary Select Committee appearances. Short-term changes for temporary work visas, announced by the Government in July, did little to help vintage cellar hands stuck in Marlborough. We continue to advocate for these members of the Marlborough wine community until they can return home, and are working with the Red Cross to make sure they are aware of the welfare support available. Pruning solutions Covid-19 restrictions meant Marlborough lost a number of its normal winter workforce. Wine Marlborough approached the Primary ITO to develop an online module to provide a foundation training course. Funding for the course came from Wine Marlborough, New Zealand Winegrowers (NZW) and New Zealand Master Contractors. Wine Marlborough co-funded a video on spur pruning with the Bragato Research Institute (BRI) that was released late April and through our work with NZW, BRI released information about different vineyard management and pruning options to consider.

6 / Wine Marlborough Annual Report 2020

TEAM Economic Recovery Plan The Marlborough District Council developed an economic recovery plan with Marcus Pickens, General Manager of Wine Marlborough, on the steering group and Wine Marlborough involved in the wider consultative group. The plan was an opportunity to influence things such as regional workforce redeployment, regulation relaxation, or targeted government financial support. The plan was the first regional plan released in the country. Cellar door support Covid-19 slammed the door shut on wine tourism, but Wine Marlborough worked with cellar doors, Destination Marlborough and NZW to support wine businesses opening to locals and domestic visitors, and to think of “new ways Argentinian Pablo Cordero spent vintage at New Zealand Wineries, then went to work in Constellation’s vineyards, thanks to industry collaboration. Photo Jim Tannock.


to work”. Regular Zoom meetings enabled wine companies to seek or give advice, and as soon as it was safe to do so, bi-monthly group meetings were set up. Wine Marlborough has created a ‘visit’ page on its website, providing up to date information on opening hours to local operators. Collaboration will be key to reviving cellar door operations and a new committee has been formed to collectively work together. Marlborough Wine & Food Festival 2021 | Cancelled On Thursday September 17 it was announced that the Marlborough Winegrowers Board had decided to cancel the Marlborough Wine & Food Festival 2021 event. The decision was not made lightly. While there is funding available to mitigate the financial risk of staging the event, Chair Tom

The Marlborough Wine & Food Festival. Photo Richard Briggs.

Trolove explained that the board wanted to do everything it could to mitigate risk for the Marlborough wine industry and Marlborough’s economy. “The Marlborough Wine & Food Festival celebrates our industry on the cusp of our harvest, and that’s a risk.” Marlborough represents 77.7% of all grapes harvested in New Zealand and accounts for at least 80% of all exports, which are worth $1.923 billion, to the year ending June 2020. “We have to do all we can to protect the health of our people, and the economic lifeblood of this region,” said Tom in announcing the cancellation. Wine Marlborough will be utilising resources normally invested in the festival full-time for three months to grow other areas of the business and mitigate other industry challenges.

Tonnellerie De Mercurey Marlborough Young Winemaker of the year 2020 runs as socially distanced event

Covid-19 – A Timeline 2020 was certainly a year to remember, with a sensational vintage in the strangest of times. Here are a few of the memorable moments. Jan 30 Feb 19 Late Feb Feb 28 March 2 March 13 March 19 March 21 March 23 March 23 March 25 March 25 March 27 May 1 June 8 June 17 Aug 12 Sept 16 Sept 17

World Health Organisation declares Covid-19 (then called 2019-nCoV) a global health emergency. ProWein in Düsseldorf postponed. Sparkling harvest begins for some Marlborough producers. New Zealand's first confirmed case of Covid-19 reported to Ministry of Health. People arriving from northern Italy and South Korea told to self-isolate for two weeks. Framingham Harvest Concert cancelled. New Zealand's borders closed to everyone except New Zealand citizens and residents. Alert Level 2 in place, in the midst of Marlborough’s Sauvignon Blanc harvest. Alert Level 3 in place. Ministry for Primary Industries recognises grape and wine industry - and all parts of the supply chain - as essential businesses, contingent on very strict criteria being met. Alert Level 4 from 11:59pm. State of National Emergency declared to fight Covid-19. Safe Harvest hotline established. Sauvignon Blanc Day rolled out as virtual campaign. New Zealand steps down to Alert Level 1 from 11.59pm. Wine Marlborough’s Temporary Vintage Workers Seminar attracts more than 200 stranded cellar hands and winemakers from overseas. Auckland goes into Alert Level 3 lockdown and the rest of New Zealand into Level 2. Tonnellerie De Mercurey Marlborough Young Winemaker of the year 2020 runs as socially distanced event. Marlborough Winegrowers Board decides to cancel 2021 Marlborough Wine & Food Festival to safeguard the harvest, industry and economy.

Wine Marlborough Annual Report 2020 / 7


EDUCATE Cellar Operations training

Pruning solutions

Nelson Marlborough Institute of Technology (NMIT) began to deliver new Cellar Operations training in August. Level 3 Cellar Operations has been designed for new entrants to the industry, or those with minimal experience. There is a part-time option to minimise the disruption to workplaces and a “just in time” option, running from January 2021 until vintage. There is also a Level 4 Cellar Operations course available part-time or as a block course.

Covid-19 restrictions meant Marlborough lost a number of its normal winter workforce. Wine Marlborough approached the Primary ITO to develop an online module to provide a foundation training course. Wine Marlborough also cofunded a video on spur pruning with the Bragato Research Institute (BRI) that was released late April. See page 6.

AIPs and Essential Skills Visas There was a great turnout for the vintage staff – AIPs & Essential Skills visas session with Immigration NZ (INZ) and Ministry of Social Development (MSD). This was a good opportunity for INZ and MSD to hear about the challenges and frustrations experienced by members in navigating the AIPs and Essential Skills visas. Wine Marlborough also assembled a vintage information pack with INZ to assist with processing AIPs and Essential Skills visas. Achieving a clarification on the stand-down period for Essential Skills work visas was a successful outcome of some of this work. INZ confirmed that vintage is an anomaly and three years is to be interpreted as 36 months, based on total time of visas issued rather than a calendar year. The clarification is a great example of industry working collaboratively with a Government agency, to ensure intents and outcomes are aligned.

Mark Allen gives guidance on how to prune using the four-cordon, long-spur method. Photo Jim Tannock

8 / Wine Marlborough Annual Report 2020

Covid-19 webinars – 2020, 2021 Two webinars in July outlined the challenges wineries will face in recruiting cellar hands for vintage 2021. Three workshops were held with wineries to identify specific actions to assist wineries to attract, recruit and train staff for vintage 2021. Student Wine Class at Marlborough Wine Show, sponsored by QuayConnect | October 2020 This addition to the wine competition was initiated in 2019, and rolled out again at the 2020 Marlborough Wine Show. NMIT students were encouraged to enter their own wines in the student wine class, resulting in 10 entered in this year’s show. The top scoring wine has been presented with a trophy by NMIT.


Peter Russell, Matua

Emma Marris, Marisco Vineyards

Dan Warman, Constellation Brands

Young Viticulturist of the Year 2020 Competitors

Wine Marlborough Annual Report 2020 / 9


GROW Election | 2020

Corteva Marlborough Young Viticulturist of the year 2020 | July 2020

There was no election in the grower category as the two vacancies (seats) up for re-election were sought by only two candidates. Tracy Johnston was automatically re-elected and we welcome fellow grape grower and new board member Anna Laugesen of Craiglochart Vineyard in the Waihopai Valley. They join Ben Ensor, Callum Linklater and Kirsty Harkness as your Grape Grower Representatives. Our independent trustee has confirmed Gus Altschwager of A&K Wines the successful candidate for the vacant wine company board seat. He joins Tom Trolove, Beth Forrest, Nick Entwistle and Jamie Marfell as your Wine Company Representatives.

The Corteva Marlborough Young Viticulturist of the Year celebrated its 15th year in 2020, and showcased some remarkable talent, ambition and passion for Marlborough’s wine industry. Eight contestants gathered at the Giesen house on Stump Creek Rd, to be tested on all aspects of viticulture, including trellising, pruning, nutrition, machinery, pests and diseases, irrigation and budgeting, as well as interview and speech components. The evening celebration was sold out, and was one of the first dinner events many people attended since lockdown restrictions lifted. The Marlborough contestants delivered strong speeches on the night. Rhys Hall from Indevin came in first place at the regional competition and went on to win the national final, held in conjunction with the 15-year celebration.

Anna Laugesen

Rhys Hall

Four decades of Winegrowers Association

Gus Altschwager

The Marlborough Winegrowers Association passed an important milestone this year, being 40 years since it was incorporated on 11 June 1980. Bill Walsh was inaugural Chair and Phil Rose, Vice Chair of the association. The first meeting, held in May 1980, covered spray regulations, grape prices and the risk of phylloxera. By the second meeting in June, the opportunity for a Marlborough Wine Festival was raised by Hamish Young. Phil says that led to various scenarios trialled over several years, including one at Waterlea Racecourse and another that moved around wineries. Founding members Phil and Chris Rose.

Staff Loren Coffey was appointed in a permanent contract as the Events Manager and Sarah Linklater joined the team in the Marketing and Communications Manager role. The long-standing Seasonal Labour Coordinator role was disestablished. 10 / Wine Marlborough Annual Report 2020


Marlborough Wine Show Fund | October 2020 Wine Marlborough continues the Marlborough Wine Show tradition of selling the remaining wines from the 2020 show, sponsored by QuayConnect, and ring-fencing the funds for supporting people or organisations within the industry doing industry-good projects. Although we ask for the minimum requirement, there are always some wines left over from entries. The funds go into the Marlborough Winegrowers Association Incorporated Future Leaders Account. New Zealand Wine Centre In late July 2020, the Provincial Growth Fund awarded $3.79 million towards creating Te Whare ā Waina Aotearoa – the New Zealand Wine Centre. The Marlborough Research Centre (MRC) is funding another $3.79m towards the development, which will be built on the existing shared campus of the MRC and Nelson Marlborough Institute of Technology (NMIT) and will integrate with the Bragato Research Institute (BRI), which opened its research winery in February, as well as existing NMIT and MRC facilities. The funding boost cements Marlborough’s place as the epicentre of the New Zealand wine industry, and we are proud to be located among the best wine industry research and innovation.

Representatives from Wineworks attended the 2020 Marlborough Wine Show Sponsors Judging Workshop

Winepress Magazine Winepress continues to be one of our most well received and best read forms of communication. Each month 900 copies are printed and sent to Marlborough growers, wine companies and key industry personnel across the country. Many of our advertisers have placed ads in Winepress since the first edition, and many new advertisers have come on board over the years. The scale of advertising allows us to publish more articles for you.

Tonnellerie De Mercurey Marlborough Young Winemaker of the Year 2020 | September 2020 The Tonnellerie De Mercurey Marlborough Young Winemaker of the Year 2020 competition was held on September 16, while the country was in Alert Level 2. It took place between the Nelson Marlborough Institute of Technology (NMIT) campus, Marlborough Research Centre, and Bragato Research Institute. In a normal year, the speech module is presented at the evening event, but due to Covid-19, speeches were held via a live Zoom feed at lunchtime, replacing the “Vin Olympics” module. This had a great success rate, with more than 50 virtual attendees at the speeches and awards ceremony. The judges were impressed by the calibre of all contestants and were excited to see such passionate young winemakers emerging to continue growing New Zealand’s wine industry into the future. After competing in the competition for the last few years, Peter Russell from Matua went on to represent Marlborough at the national event in early November. Wine Marlborough Annual Report 2020 / 11


PROTECT Winemaker survey A survey in November and December of 2019 looked into the work life balance of Marlborough winemakers and elicited responses from 99 winemakers in just a few days. There was plenty of positive feedback about the industry and region and love of the job. Less positive was feedback about the annual workload and winemakers’ inability to retain a work life balance. Thirty of the respondents worked 85 to 96 hours a week over the vintage period, while another 16 worked more than 96 hours, with a handful toppling into 100 plus.

vintage workers to stay on for winter pruning and requested information about pruning options. Smart+Connected - Labour & Skills Wine Marlborough was heavily involved in the establishment of the Smart+Connected - Labour & Skills programme and currently chairs the steering group. At the national Economic Development New Zealand conference in October 2019, Marlborough Smart+Connected was selected as the overall winner. Interim Regional Skills Leadership Group Wine Marlborough’s Advocacy Manager, Vance Kerslake, was appointed to the Marlborough interim-Regional Skills Leadership Group (i-RSLG). The purpose of the group – one of 15 nationwide - is to identify the workforce and skills

Six-day vintage week A seminar was held in July 2020 in response to the Winemaker Survey, and involved speakers from three different wineries sharing their experience of running sixday or seven-day vintage rosters, with a scheduled day off. They identified benefits, including fewer sick days and near misses, better decision-making and enhanced succession training. “We wanted to help create a work life balance for our team so that we are an attractive employer,” noted one winery representative. needs and priorities in the region, both now and in the future, and advise Government on actions to cultivate these. The interim groups will provide a focus for drawing together labour market information and offer valuable labour market intelligence to central Government and regions to support the Covid-19 response. Education to Employment Broker Wine Marlborough, through the Smart+Connected - Labour & Skills programme, assisted the Chamber of Commerce in a successful application for an Education to Employment Broker. This position liaises between schools and employers to highlight local job opportunities. Recognised Seasonal Employer scheme (RSE) Labour governance The Marlborough Labour Governance Group (MLGG), chaired by Marlborough Winegrowers’ grower representative Guy Lissaman, worked tirelessly to ensure that Marlborough had the workforce needed for winter pruning. They lobbied the Government and advocated for sensible, pragmatic decisions, working closely with Immigration New Zealand, the Labour Inspectorate and the Ministry of Social Development. The group closely tracked Recognised Seasonal Employer scheme (RSE) worker numbers and location, identified opportunities for displaced Kiwis to work in the industry, lobbied for flexibility for 12 / Wine Marlborough Annual Report 2020

The RSE cap increase for 2020 was announced last year. However, the industry needed to demonstrate that it is making the industry more attractive to locals, the scheme’s employers need to show they are building accommodation, and the whole industry needs to take responsibility for its supply chains, to ensure there is no worker exploitation. Wine Marlborough represented the wine industry on the RSE Cap Working Group. Ultimately this became a moot point due to Covid-19 and borders closing. Harvest remuneration Thirty-one wineries took part in the annual Harvest Remuneration Survey during June and July 2020. At the


three workshops held to assist wineries to attract, recruit and train staff for vintage 2021, one of the priorities wineries identified was to benchmark pay rates and benefits and make sure all companies are aware. Wineries felt that understanding pay rates and benefits would assist the whole industry in managing the challenge of vintage 2021. The wineries who took part in the annual Harvest Remuneration Survey generously agreed to share the anonymised information on hourly pay rates and benefits with other wineries. Environment Plan The Marlborough Environment Plan decisions were released over several days in late February 2020. Marlborough Winegrowers joined as a Section 274 party against a number of appeals by Fish & Game, the Environmental Defence Society, and by Te Rūnanga o Kaikōura and Te Rūnanga o Ngāi Tahu, who are appealing parts of the Marlborough District Council’s (MDC) decisions on the proposed Marlborough Environment Plan. The Environment Court process is likely to take several years. Water The Government’s revised water regulations package is less onerous to low-impact sectors like viticulture than some of the initial burdensome and expensive regulations proposed. The Ministry for the Environment released the revised $700 million Action for Healthy Waterways package in May 2020, after receiving more than 17,500 submissions, including from Wine Marlborough. Grape growing has not contributed to the degradation of waterways, with 98% of Marlborough’s rivers and 100% of our lakes deemed swimmable. Winery waste The situation with grape marc has improved significantly, and the MDC reported improved management and awareness of grape marc storage. Wine Marlborough hosted a well-attended field trip to the Yealands Estate composting facility. Two-dozen members travelled out to Seaview to hear about the advantages of composting. Pacific Rim Environmental established a grape marc drying plant (Winepress June 2019) where we held a second field trip in November. The PacRimEnviro drying plant field trip was well attended, with lots of questions and a bit of sniffing and tasting of the dried marc. Through collaboration, sharing knowledge and fronting up to the challenge, the industry has turned things around in one vintage – no prosecutions, no negative headlines, no harm to Marlborough’s reputation. The environmental challenge for next vintage is winery wastewater. The fact that most wineries that discharge wastewater to land are non-compliant has flown under the radar. Submissions Wine Marlborough submitted on Government’s migrant exploitation proposals, which could see members held liable

if a contractor breaches employment laws in a vineyard or winery. With no Labour Inspector based in Marlborough, we recommended Immigration New Zealand resource and enforce the rules they have, rather than creating new ones. Labour Coordinator A change to the typical sources of seasonal labour, and to the ways employers source workers, led Wine Marlborough to disestablish the Labour Coordinator position. General Manager Marcus Pickens says fewer visitors to New Zealand were accessing the Working Holiday Visa Scheme, and the Work the Seasons website (worktheseasons.co.nz) provides a channel for employers to advertise directly to seasonal workers. “The macro labour environment, operating environments and labour governance requirements have all changed in the last few years.” He says it was a difficult decision, and acknowledged Nicolette Prendergast’s contribution to the organisation over the past six years. “We wish her all the best for the future." Housing Good news from the National Science Challenge for Housing. Wine Marlborough supported two proposals and both Affordable Housing and Thriving Regions received funding. Economic development Wine Marlborough represented the industry at sessions for the Te Tauihu Intergenerational economic development strategy for the top of the South, being led by Wakatū Incorporation. Sustainability Wine Marlborough was part of the Sustainable Winegrowing New Zealand (SWNZ) CCA Post Working Group, which produced guidelines for the storage and disposal of copper, chromium and arsenic treated posts. The guidelines have been designed to help ensure stockpiles of vineyard posts are stored appropriately and to try and minimise any impacts to soil or people. Wine Marlborough co-hosted a business luncheon on sustainable value with the Marlborough Chamber of Commerce and KPMG. Wine Marlborough Annual Report 2020 / 13


CELEBRATE Cellar Door of the Year | November 2019 This annual event celebrates the people and places that offer such a warm welcome to Marlborough’s wine country. All cellar doors on the wine trail map were automatically entered in 2019, followed by two rounds of mystery shopping by Customer Care in late October and very early November. Their experiences, measuring a range of parameters, determined the finalists for the Cellar Door Personality of the Year. They also established the top cellar doors for the final round – a quick fire buzzer quiz in front of their peers. Congratulations to Cloudy Bay, the winners of the Marlborough Cellar Door 2019/20. The Marlborough Cellar Door Personality of the Year joint winners were Nina Huria-Bryce from Yealands Estate Wines, and Blair Macdonald from Bladen Wines.

Nicky Hewett and Joyce Tang from Cloudy Bay

Marlborough Wine & Food Festival 2020 | February 2020 The 2020 Marlborough Wine & Food Festival was jam packed with excellent wine, tasty food and vibrant music, making for a great day out in Marlborough. The iconic event attracted more than 7,000 people, with Nelson and Marlborough locals making up 40% of the audience, and visitors from Auckland (16%) and Christchurch (15%) the next largest categories. International visitors made up 12% of the audience at the 2020 event, where the region showcased 46 winery stands, 26 food stands, two master classes, a redesigned culinary pavilion and the all new Food Truck

Alley. The VIP passes were once again a sell-out, whipped up within eight weeks of tickets going on sale, and a record number of Platinum packages ($1500 per couple) were purchased. The Marlborough Wine & Food Festival 2020 reinforced the event’s status as one of New Zealand’s best wine and food festivals and “Marlborough’s best day out”. #SauvBlancDay | May 2020 Friday May 1 marked the 11th annual International Sauvignon Blanc Day, and Wine Marlborough looked outside the square to ensure a physically distanced but socially connected celebration. This event is a highlight on Wine Marlborough’s calendar, because it brings our wine community together in celebration of Marlborough’s flagship variety. That’s normally done with events planned across the globe in recognition of this delightful and zesty varietal. But during the Covid-19 climate of 2020, our objective for #sauvblancday was re-imagined to support the industry by creating a wealth of online shareable material. We collaborated, created and commissioned copy and videos to tell our uniquely Marlborough story and hosted this on sauvblancday.nz. We may have been stuck in our homes, but there was no keeping the cap on Sauvignon Blanc celebrations. The 2020 Marlborough Wine Show, Sponsored by QuayConnect | October 2020 Judging for the Marlborough Wine Show, sponsored by QuayConnect, took place over October 15 and 16, with the Celebration Long Lunch on October 30. The show, now in its 10th year, is owned by Wine Marlborough and is the largest regional wine competition in New Zealand. This

The Judging team at the 2020 Marlborough Wine Show, sponsored by QuayConnect.

14 / Wine Marlborough Annual Report 2020


year it attracted a total of 604 wines, including 10 from students of NMIT and the 69 wines that made up 23 entries in the Legacy Award. There were 49 Gold Medals awarded, with 12 of those going to Pinot Noirs from 2019 and nine to Sauvignon Blancs from the 2020 vintage. Judges included Marlborough Winemakers Ben Glover (Chief Judge), Helen Morrison, Wendy Stuckey, Abigail Maxwell, Jeremy McKenzie, Pierre Vinnings, Stu Marfell, Nikolai St George, Nick Entwistle, Kyle Thompson, Natalie Christensen, Peter Russell, Emma Marris, Veronica Williams and Andy Petrie. Guest judges included Sophie

Lifetime Achievement award for their services to the Marlborough wine industry. The QuayConnect Champion Wine of the Show went to Leefield Station Pinot Noir 2019, which Chief Judge Ben Glover describes as a wine that “dances on the palate.” It was an undisputed winner, he says. “It was the most preferred wine from the first round of Pinot Noir judging through to trophy and champion wine of the show. It is an exceptional wine full of bright fruits, really vibrant palate, and lovely length.” And oh so Marlborough, he notes.

Panel Leader Jeremy McKenzie

Anton Rasmussen, Brent Marris, Emma Marris and Sebastien Bouchut

Lifetime Achievement Award | October 2020 Parker-Thomson and Emma Jenkins MW. Ben says the quality of the wines entered was outstanding. “They were pretty awesome to be honest, off the back of two excellent years, 2019 and 2020.” The wines and the founders of Saint Clair Family Estate shone at the wine show, with results announced at the Celebration Lunch on Friday October 30. Saint Clair took out the Pinot Gris Trophy with Saint Clair Godfrey’s Creek Reserve Pinot Gris 2018 and the Champion Other White Varietal Trophy with their Saint Clair Pioneer Block 5 Bull Block Grüner Veltliner 2020. The Wairau Reserve Sauvignon Blanc 2020 was awarded The Coterie Wine of Provenance, which recognises the best single vineyard current release wine from any class. Meanwhile, the Marlborough Museum Legacy Award for wines with pedigree was awarded to Saint Clair Omaka Reserve Chardonnay for three wines produced over the last 10 years, (2007, 2013 and 2016). On top of that, founders Neal and Judy Ibbotson were awarded the Wine Marlborough

Neal and Judy Ibbotson from Saint Clair Family Estate were acknowledged as the 2020 recipients of the Wine Marlborough Lifetime Achievement Award at the Celebration Long Lunch, after 42 years involved in the region’s wine industry. The award is presented each year to someone the board of the Marlborough Winegrowers Association believe has given extensively to the industry during their lifetime, and Wine Marlborough General Manager Marcus Pickens says the Ibbotsons have been integral in all aspects of Marlborough’s burgeoning wine industry. They were one of the first nine property owners to become contract growers for Montana, back in 1978. In 1994 they made the decision to establish their own label, Saint Clair Family Estate, and since then the company has grown to be one of the largest private family-owned wine companies in New Zealand. Neal and Judy Ibbotson

Saint Clair Family Estate

Wine Marlborough Annual Report 2020 / 15


Marlborough Winegrowers Association Board Retiring Board Members Jack Glover jack.glover@accolade-wines.co.nz Stuart Dudley (Deputy Chair) stuartd@villamaria.co.nz

Marcus Pickens General Manager marcus@winemarlborough.nz

Loren Coffey Events Manager events@wine-marlborough.co.nz

Vance Kerslake Advocacy Manager advocacy@winemarlborough.nz

Sarah Linklater Marketing & Communications Manager sarah@winemarlborough.nz

Joanna May Finance Administrator accounts@wine-marlborough.co.nz

Sophie Preece Winepress Editor Sophie@sophiepreece.co.nz

Current Board Members Ben Ensor ben@mcdonaldtextiles.co.nz Beth Forrest Beth@forrest.co.nz Callum Linklater callum@csviticulture.co.nz Jamie Marfell Jamie.Marfell@pernod-ricard.com Kirsty Harkness kirsty@mountbase.co.nz Nick Entwistle nick@wairauriverwines.com Tom Trolove (Chair) tom.trolove@framingham.co.nz Tracy Johnston Tracy@dayvinleigh.co.nz Newly Elected Anna Laugesen Anna.Laugesen@xtra.co.nz Gus Altschwager gus@akwines.net

12 / Wine Marlborough Annual Report 2020


Marlborough wine companies were counting their luck, after harvesting the 2020 vintage amidst a national lockdown. But the vintage will be remembered for more than winery bubbles and Covid-19 precautions, with a benign season delivering excellent fruit.

Vintage 2020 MARLBOROUGH KEY FACTS

The season was drier for longer than the previous year.

Growing degree days were well above average, but lower than the previous two years.

March was slightly cooler than average.

Bunch numbers were down this year, due to cool temperatures when the bunches were initiated.

Pinot Noir and Pinot Gris volumes were back up to average and Sauvignon Blanc was at average yields, or above average on some blocks.

TO TAL VOL UME OF GR A PE S H A R V E S TED

TO NNES P R O DUCED BY V AR IETY SAUVIGNON BLANC (86%)

REST OF NEW ZEALAND

295,301 TONNES

22.3%

PINOT NOIR (5.8%)

98,604 TONNES (SURVEY TOTAL)

20,027 TONNES

113,964 (ESTIMATED INDUSTRY)

PINOT GRIS (3.9%)

MARLBOROUGH

441,640

13,495 TONNES

77.7%

(SURVEY TOTAL) 457,000

CHARDONNAY (2.8%)

343, 036 TONNES (SURVEY TOTAL)

(ESTIMATED INDUSTRY)

9,793 TONNES

RIESLING (0.7%) 2,246 TONNES

OTHER VARIETIES (0.6%) 2,175 TONNES

2 0 2 0 VS 2019 TO NNE S P R OD U C E D

% CHANG E 2020 V S 2019

+12% 343,036 TONNES

2020

MARLBOROUGH 514 (74%) = 10

REST OF NZ 180 (26%)

+62%

+55%

SAUVIGNON BLANC

PINOT NOIR

+27%

-10%

305,467 TONNES

2019

% O F TOTAL GR A P E GROW ERS

+8%

% OF TO TAL W INE C O MP ANIES

MARLBOROUGH 158 (22%) = 10

REST OF NZ 559 (78%)

PINOT GRIS CHARDONNAY

RIESLING

TO TAL P R O DUCING AREA

MARLBOROUGH 27,808 HA 70%

REST OF NZ 12,127 HA 30%

Source: New Zealand Winegrowers Vintage Survey 2020



Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.