Developed by Grape & Wine Australia, in collaboration with Wine Australia, this strategy goes beyond the immediate and massive challenges posed by forest fires, smoke and COVID-19.
‘Excellent superior cultural potential’
Australia’s wine sector grew strongly from 1991 to 2007: more than tripled from less than 400 million liters to 1.2 billion liters and total revenues of $ 5 billion in 2007. Export value, meanwhile, grew from $ 212 million to $ 3.04 billion.
Since 2007, the sector has had to face a number of challenges – the global financial crisis, the appreciation of the Australian dollar, and increased competition from other wine exporting countries such as Italy, Spain, Chile, Argentina and South Africa.
Recently, forest fires and COVID-19 have hit the sector. Meanwhile, climate change, extreme weather events, and an increasingly competitive beverage market (consumers are willing to try new drinks rather than traditional ones) will all continue to present challenges in the coming years.
But there are also opportunities for the industry to build its reputation for quality; further developing wine tourism and its relationship to food; and grow exports.
“To meet these opportunities and threats, the wine sector must be profitable, so that businesses can invest in research, development and adoption (RD&A) and attract the skilled people and capital needed to make this sector innovative and entrepreneurial,” Take note of the strategy.
“While facing these challenges and trying to take advantage of opportunities, the Australian wine sector, in essence, has a number of unique attributes that enable it to produce quality wines across the spectrum of consumer demand.
“We also have a lot of land, various climatic conditions and the ability to move production areas. This extraordinary cultural potential will help us in the future. “
Purpose: ‘Have a profitable, tough and sustainable wine and wine business’
The essence of this strategy is to grow the industry in a way that is profitable and sustainable. In 2019, total wine making revenue is $ 6.28 billion; the target for 2050 is $ 15bn. Today’s total economic contribution from the Australian wine sector to the economy is around $ 45 billion: the target is to increase to $ 100 billion.
Exports are the main focus of Australian wine – 63% of the wine produced in the country is exported to 119 countries. While the value of exports has increased over the past few years, this strategy wants to increase this further by turning Australian wine into a no. 1 value product in its top market (currently Australia is ranked No. 3 in China, No. 4 in the US and No. 3 in the UK).
The strategy sets five pillars for growth over the next 30 years.
Pillar 1: ‘Sustainable value growth to drive profitability’
“The 3% annual growth in unit value targets is ambitious but achievable,”Said the strategy. “Projections by Australian Wine for the period 2018-19 to 2028-29 show a combined annual growth rate of 3% (CAGR) in unit values that can be realized through a 2% growth in unit values in premium wine and 1% growth in commercial wines”
Highlighting the quality and identity of Australian wine will be the key to increasing value.
“There will be a focus to improve Australia’s image as a good wine producer to increase the price of Australian wine in all categories – in a relentless effort to increase the unit value of all Australian wines.”
Pillar 2: ‘Innovative culture that encourages excellence from wine to consumers’
“Innovation and education are crucial for the success of any industry,” Said the strategy.
“Although the Australian wine and wine sector is proud of its history, this sector is not trapped by tradition. This has enabled us to become a global leader in offering innovative, high-quality products in a variety of styles through new packaging and distribution channels to benefit consumers and improve business continuity.
“Innovation is also important to overcome significant challenges to grape growth, including climate change and variability, reduced water availability at cost-effective prices, reduced access to plant health products and agrochemicals, and the threat of biosecurity. Underlying our world-leading winemaking and winemaking in the world is a world-class education system.
“We must continue to push for further progress in our education system and the skills of researchers and practitioners produced, so that it becomes the most innovative wine producer in the world.”
Pillar 3: ‘Assessed as an important part of Australia’s lifestyle and culture and our trusted guardian of the environment’
The industry is targeting zero waste and producing zero emissions for 2025: fighting for ‘a sector that promotes and adopts healthy environmental practices’.
“To succeed and prosper, our main goal is to be respected and trusted for the way we do our business,”Said the strategy.
“In an increasingly complex world, the wine and wine sector must demonstrate the value it contributes to our nation – in the use of our natural resources cleverly and meticulously, in working proactively with governments and the health sector to demonstrate the credentials of our products, and through contributions to minimize the hazards associated with alcohol, and in making a real commitment to the economic and social welfare of rural and regional Australia, especially through providing employment and service opportunities. “
Pillar 4: ‘Australia’s employment choice sector’
“The wine business finds it difficult to recruit and retain workers from vineyards to underground operations,”Said the strategy.
“As demand for higher skills in the wine sector increases, supply and registration of tertiary courses decline.
“The skill base needed in this sector is also changing rapidly. In addition to winemakers, wine experts and agricultural workers, those who have skills in fields such as finance, marketing, exports, data management, design, and social media are also becoming more important .
“Progressively, skills in artificial intelligence, big data and precision agriculture and other fields not yet thought of, will also be important.”
Pillar 5: ‘Diverse sectors, united by achieving excellence’
“The strength of the Australian wine sector is its diverse geographical environment, soil and climate, which allows a variety of grapes to be produced,”Said the strategy.
“Historically this has produced a large number of wine industry bodies at the national, state and regional levels, each of these resources either through fees or membership fees.
“Although there are many ‘voices’, it is very important that they all move in one direction to show an integrated focus to the government, customers, consumers and sector participants. Critically, this sector needs financial resources to support joint RD&A [research, development and adoption], marketing, regulation, policy development and other activities. It will be creative in how to find these funds and also transparent and fair in how to spread them for the good of the sector as a whole. “
Vision Strategy 2050 can be found here.