Fabian Yukich

The Future of the New Zealand Wine Industry

The Challenges for Winery Engineers

Introduction

• Objectives of NZWG• Value of NZ Wine Industry • Key drivers of our success• Role of winery engineering• Competitive advantage • The way forward

Objectives of New Zealand Winegrowers

To Create Value for our members

To support the profitable growth of

the industry

To protect the competitive

position of NZ wine

• Over 70% exported

• Over $1.3b in sales, from $100m in 1999

• Represents over 1000% growth <15 years

• Achieved through the quality of our wines

• Building reputation as a sustainable producer

New Zealand Wine Today

The Future for New Zealand Wine

• $2 billion dollars by 2020• Expansion in vineyard & winery development• Consumers will want to know more• Trends …lower alcohol lower calorie wines• Quality will still be the key driver for success

Our Reputation Matters

“…Without an ongoing strong international reputation NZ wines risk becoming a commodity…”

“ …We do not have the economies of scale or proximity to our markets for long term financial viability based on commodity pricing”

1. The Quality of Our Wine

• Foundation for NZ’s export wine industry

• Unique aromas and flavours

• Maritime Climate, Regional Diversity

• Not just Marlborough Sauvignon Blanc

Engineering Impacts on Quality

Starts in the

vineyard

Winery Processes

Bottling Technologies Storage &

Transit

2. Culture of Innovation

• Uptake of Technologies

• Refrigeration

• Stainless Steel

• Mechanical Harvesting

• Screw caps

Engineering Facilitates Innovation

Trails & TestingCapturing opportunities

Ideas & Concepts

Trials & Testing

Making it

work

3. Leaders in Sustainability

• It’s the Right thing to do• Customers want it• Competitive Advantage

Engineering Sustainability

Vineyard Winery Bottling & Storage

Investment for Long Term Benefit

Competitive Advantage

• Marlborough Sauvignon Blanc sets benchmark

• 1st Mover on Sustainability

• 20 years of building the foundations

• Serious risk of losing the advantage.

• Need to lead

Risk of Complacency• Quality parameters always moving upwards

…Reputational risk

• Rapid changes in all sectors of the industry

…Requires adaptation

• 20 year Sustainability Journey…

…Others are moving into this space

Future economic strength of wine industry…

…depends on being world leaders

The Role of Winery Engineering

Costs of Production

Health & Safety

Innovation Sustainability

Quality

Impacts on

Reducing Costs of Production

Affected by :

…Relative small scale & distance to market

Look for adding value & reducing costs

• Technology improvements

• Systematic preventative maintenance

• Asset management

• Lean thinking of processes

Health & Safety• Increased size & speed of operation• Risks around machinery, heights and confined spaces• April 2015- biggest shift in H&S legislation in 20 years• Move from hazard management to risk management• Need for positive and proactive reaction• Engineering has major role to play

$2 Billion by 2020 - How?

• No Compromise on Quality

• Innovate to stay ahead

• Leaders in Sustainability

• Best of technologies/lean business

• Look after our people

• Listen to the Customers

The Way Forward

• Objectives of NZWG

• Achievements to date

• Goals for the future

• Risk of Complacency

• Quality, Innovation and Sustainability

• Role of Winery Engineering

Summary