Industry strategy focuses on wine to China

LOOKING NORTH: Margaret River Wine Industry Association president Nigel Gallop and CEO Nick Power.

THE Margaret River wine industry expects benefits to flow from a state-wide three-year industry strategy plan focused on developing export markets in China, Hong Kong, Singapore, Japan and South Korea.

And, as the state’s main wine exporter, the region also expects its fair share of $377,000 announced last week by Food and Agriculture Minister Terry Redman to help implement the strategy plan.

Chief executive officer of Margaret River Wine Industry Association, Nick Power, who attended last Wednesday’s funding announcement and strategy plan launch at Parliament House, said there would be benefits for the "Margaret River brand" in a co-ordinated focus on developing China and South-East Asian markets.

"It (strategy plan proposals and new government funding) will definitely boost our marketing and promotion in major developing export markets close to home," he said.

While details were still being worked out, Mr Power said it was envisaged that under the strategy plan there would be "three or four events" aimed at specifically promoting Margaret River wines. These will include "hosting in-bound buyer visitations" to the Margaret River region, with the visitors coming principally from China and South-East Asia, and, to a lesser extent, from Canada and the US, he said.

There might also be some "seed funding" to help Margaret River wine producers explore export markets through promotional activities, mainly in China, but also in South-East Asia, Mr Power said.

MRWIA president Nigel Gallop said that while the strategy plan development over the past 10 months was a "big part" of the association’s activities, he stressed that it was only one part of what it was doing to promote the region and its wines.

Wine Industry Association WA was commissioned by the Agriculture and Food Department to come up with the strategy to counter wine exports declining in volume and value over the past five years.

Its research identified a "cheap and cheerful image" of Australian wines generally on international markets impacting on WA’s "brand image", the global financial crisis, high Australian dollar making exports less competitive, a lack of consistent marketing messages about premium WA wines and "lack of a concerted industry approach" as contributing factors.

The strategy identifies primary wine export markets for WA wines as China, Hong Kong, Singapore, Japan and South Korea, and secondary markets as UK and Ireland, US and Canada and "selected" European Union countries.

Initiatives proposed for the first year of the strategy include collating promotional resources across the nine WA wine regions to ensure a "consistent" message, translating promotional materials at state level, in-bound Asian buyer visits during WA Wine Month in October, funding participation at the Hong Kong Wine and Spirits Fair in November and the Asian Wine and Spirits Fair next March.

Funding for WA to participate in the Wine Australia Regional Heroes promotional programs, a regional wine masterclass roadshow to visit three Chinese cities and ongoing lecturer and sommelier engagement program and in-bound visitor program for trade and media delegations are also proposed.

The WA wine industry has committed $770,000 over the three years to fund strategy initiatives.

Mr Redman said his department had been working with WIAWA, the Margaret River and Great Southern wine associations and overseas trade offices for two years to develop "an acceptable" international marketing plan.

"Our marketing edge and our point of difference is the production of high quality, distinctive regional wines," he said.

"While we produce less than one per cent of Australia’s wine exports by volume, we double this by value, evidenced by wine from leading producers gracing the wine lists of leading restaurants around the world.

"I’m confident this collaboration will bear valuable fruit over the next three years and beyond."

The farm gate value of wine in WA is estimated at $91 million, representing 24 per cent and the highest valued sector of the state’s horticultural industry, WIAWA research indicates. The wine industry’s contribution to the state’s economy is about $380 million, representing 34 per cent of the horticulture industry and again, its highest valued sector.

Direct employment in the industry, mainly in regional areas, has grown from an estimated 3890 people in 2000 to 6000 last year.