vine cuttings. indesign. georgette march

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Plastic bottles set to offer an environmentally conscious option with no impact on taste.

CAMPAIGN COPS CRITICISM

REBECCA GIBB

DECANTER

An online petitioncalling on Australians to

drink local has been ac-

cused of protectionism.

Producer Stephen

Pannell has launched a

website, allforonewine.

com.au, urging Austra-

lians to drink Australian

wine in January 2011.

The petition, which

has attracted more than

500 signatories in the

rst ve days including

winemakers Vanya Cul-len, Jeffrey Grosset, has

Stephenpannell, founderofallforonewine.com.au

attracted a good deal of

criticism.

There has been con-

siderable debate amongst

bloggers and on Twitter,

with claims it is protec-

tionist and jingoistic.Pannell said he was

Blass: Fantastic plastic packaging

Fosters rolls out the wine barrels

BRIDGET CARTER

THE AUSTRALIAN

Global liquor giant Fosters GroupLtd says Australias wine industry ismoving closer to the end of an over-supply of grapes and wine.

Though clearly still in an oversup-ply situation, we expect the Australianindustry will move to a balanced po-sition in the next few years as it hasin earlier oversupply periods, said DrStuart McNab, director of Treasury

Wine Estates - Fosters wine arm.

The new electronic

tongue is a portable

device created by Bar

celona Institute of Mi

croelectronics professorJimnez-Jorquera.

The invention is in-

tened to detect frauds

committed regarding the

vintage year of the wine

or the grape varieties

used.

The International Or

ganisation of Wine andVine (OIV) conrmed

that the global area under

vines has decreased by

70 thousand hectares.

OIV director, Fed

erico Castellucci, said

In comparison to las

years production, world

wine production this year

recorded a level 10.7

million hectolitres (-4%)

lower.

CRAIG NESBITT

THE AUSTRALIAN

Wolf Blass islaunching two wines in

plastic bottles next week

the rst 750ml plastic

bottles in Australia.

Fosters Group is

launching the AUS$17

Green Label wines - a

crisp dry white blend

and a Shiraz Cabernet

Sauvignon which it

says have major environ-

mental credentials.

A study by CSIRO

shows the wines pro-

duced 29% less green-

house gas emissions than

wine packaged in glass

bottles.

Wolf Blass global

brand director, Oliver

Horn says consumers

need not be concerned

about a change in taste.

Laboratory trials have

recorded no difference.

Your auStralianwine induStrYnewS Volume one, iSSue one, noVember 30, 2010Vine Cuttings

A woman is suing UK

supermarket Asda afterbuying a bottle of wine

from the supermarke

which allegedly con

tained a frog.

Asda said it was tak-

ing the case really very

seriously.

Its only 26 days of

drinking Australian wine

Im not asking people

to drink ve litres of Yel-

low Tail or donate a kid-

ney.

The petition has also

been criticised overseas

notably in New Zealand,

for which Australia is the

biggest export market.

Philip Gregan, CEO

of New Zealand Wine-

growers, questioned the

campaigns motives.

There is room for all

of us. Where would the

Australian industry be if

a similar campaign start-ed in the USA?

simply trying to celebrate

Australian wines. Aus-

tralian wine is not travel-

ling well even in our own

market. Theres almost a

cultural cringe about our

wines but we should havepride in them he said.

Barossa winemakers online petition receives more hits than expected...

wolf blaSS goinggreen

cellarSarefulltooVer-

flowingwithStock

vinecuttings.com.au

The end is in sight for the oversupply situation, claims industry giant

Continuespagethree...


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grapesofWrath

Why are Rosewor-

thy and Waite Colleges

taking in larger groupsof students when there

is not enough work for

those who are already

qualied?

Angry, VIC

Beat at our oWn

game

Sure we have had a

run of bad luck with the

aussie dollar affecting

our exports.Its not all

about mar-

kets. The

truth is,

our woes

are mostly

self-gener-

ated. Weve

trashed their own brand.

The biggest problem is

that Australia has made

itself synonymous in the

minds of many drinkers

with cut-rate, genericwines. Because we have

ooded the planet with

our discount juice and

now countries like Ar-

gentina (who are closer

geographically to our

major importers) are un-

dercuting us!

Onlooker, NSW

Vino Disgusto

I recent-

ly paid a

visit to my

local First

C h o i c e

liquor store

and was very

disgusted to

nd 750ml

bottles of shiraz selling

for $1.99! It is publicity

stunts like these made

by big businesses that

are pushing us little guys

out. They are hurting ourindustry.

Small player, SA

paCkage profits

We have closed down

our glass bottling plant

and moved to a tetra-pak

alternative. I just wanted

to tell your readers how

much we are saving on

transportation costs!

Ms. Thrifty, SA

sayWhatyoumean

If Fosters is so sure

the wine surplus will sub-

side, why was it so quick

to demerge the wine por-

tion from its business

into a separate entity?

Concerned, VIC

Closure DeBate

I dont understand

why this debate about

screw caps and corksis still going on. Corks

are so archaic. Its time

to move on to a closure

which is more cost ef-

cient and doesnt require

the consumer to have a

bottle opener on them to

enjoy your product. Get

with the times people!

Capper, SA

the eDs reply:

Dear Capper,

The reason why the

debate is still continu-

ing is due to the lim

ited amount of oxygen

a screw cap lets into thebottle during the cellar

ing process versus the

original cork closures.

There is still debate in

the wine industry abou

the amount of oxygen to

allow into the bottle.

For now, the trend has

been to move to screw

caps. But corks still do

have their place on the

market.

Georgette March

The Community Grapevine:

The over-supply issueWhat to do when we have too much of a good thing

The 2010 vintage has been an very

difcult one indeed. In most cases, it

has been diffcult for growers to make

ends meet. The global nancial crisis

combined with the strong australian

dollar has greatly diminished our ex-port sector. The US, UK and NZ are

turning to their local wines.

Aspiring winemak-

ers are in abundance.

However, with so many

producers, there are

too many vines and not

enough drinkers. An

oversupply.

For wine marketers,

this has been a disaster. In 2008, sales

to the US declined 15%, yet the net

yield of litres for 2009 exceeded thatof 2008. The sector is trying to grow

despite a shrinking export market.

In over-supply, growers are ght-

ing to sell their produce by constantly

undercutting prices. As a result, shelf

prices are hugely undervalued.

So what lies in the future for Aus-

tralian wine and winemakers?

We can try to pierce other markets

such as China and India as the Ag-

ricultural Minister Michael OBrian

advises. Or we could look to secur-ing a bigger share of our own local

markets.

Winemakers such as

Peter Lehman and Kat-

nook are turnng to trans-

forming their wineries

into event venues. This

October, both hosted A

Day on the Green music

festivals to boost their lo-

cal identity. Sales from a single event

were said to be in excess of $400,000.

Lateral thinking and strategicmarketing is the key to riding out

the oversupply. But undervalue your

wine, and chances are you will nd

yourself squeezed out of the market

by bigger players

GEORGETTE MARCH, EDITOR

picturebYJohnnicholSon, reSidentcartooniSt

Lateral thinking

and strategic

marketing is

the key

Vine Cuttings: The Over-supply Issue Volume One, Edition One, 30 November 2010 page two

The truth is,

our woes are

mostly self-

generated

thedebateliVeSon: corkSorScrewcapS?


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Oversupply forces newmarketing strategiesAgricultural minister calls for vinters to branch into emerging

markets and defend existing market share.

Dr McNab said re-cent Australian Bureau of

Statistics data suggested

the total planted area ofvines had fallen by about

8,000 hectares, or about

ve per cent, and about

10,000 hectares had been

left unharvested over the

2010 vintage.

So I think we could

say that we are moving

towards balance, but we

still have some way to

go, he told investors at

a TWE brieng day in

Sydney on Friday.Dr McNab said the

total industry crush was

starting to trend down-

wards as vines were re-

moved and grapes left

unharvested.

He said factors such as

water availability would

also drive change.

The commercial sup-

ply of grapes is actually

relatively balanced, he

said.

The real oversupply

is in mid-level-quality

grapes. Luxury grapes

and wine are always in

demand.

In terms of demand,

exchange rates will con-

tinue to impact demand.

Imports like New

Zealand sauvignon blanc

are still very strong, but

the average price there is

weakening.

Dr McNab said TWE

was in balance after the

2010 vintage as a result

of active management of

its surplus bulk wine.

We are now in a very

exible position to source

grapes or bulk wine a

market prices to meet ourdemand, he said.

The surplus posi

tion has steadily moved

towards decit in the

last few months and this

reects a recent trend o

increasing demand for

our Australian-sourced

wine.

Winemaker for Chain

of Ponds Graeme Th-

redgold thinks the issue

is being played down by

Fosters.

We have just pulled

out 3 hectares of Char

donnay vines and will no

plant our Sangiovese this

season he said.

AMANDA DEBORTO

ABC NEWS

Australias wine industryneeds to show a more united

front to defend market share

and create opportunities in

emerging markets, South Aus-

tralias Agriculture Minister

Michael OBrien says.I think we have debased

and debauched the Australian

brand in the UK market - with

the two-for-one offers and all

the rest of it. We dont want to

make that mistake in the rest of

the world.

The wine industry is second

only to the mining industry as

a key contributor to the states

economy, generating more than

$2.15 billion for South Aus

tralia in 2008-09 according to

records from the Australian Bu-

reau of Statistics.

The industry is going

through a difcult period of

structural adjustment as it tack

les oversupply, with maturing

markets and increased com

petition particularly from newworld competitors, Mr OBrien

said.

The challenge now is to

re-focus on defending marke

share and generating invest

ment for new growth opportu

nities, he said.

We have to show a unied

front on getting into new mar-

kets such as China he added.

Fosters rolling out the barrels

Fostersisconvincedouroversupplyisonlytemporaryandduetoexchangerates.

Our industry mega-power says the grape surplus actively declining

Vine Cuttings: The Over-supply Issue Volume One, Edition One, 30 November 2010 page three


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In the limelight:Grant Burge of the Barossa Valley96/100

89/100

Grant Burge is a fth-generation Barossan vigneron and

winemaker. Grant Burge Winery again impressed nationally

acclaimed winetaster James Halliday this year. In his 2010 wine

companion, Halliday awarded the winery rating of ve stars.

Their 2010 vintage was a top performer, with 5 styles achieving

ratings of over 95 (out of a possible 100).

98/100

92/100Vine Cuttings: The Over-supply Issue Volume One, Edition One, 30 November 2010 page four

2010 Vintage

Tasting Selections

95/100

vine cuttings. indesign. georgette march

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