Newsletter - 29 March 2016 - South Australian Wine Industry

Newsletter - 29 March 2016 - South Australian Wine Industry Association
FEATURE ARTICLES
PDF Version
Adelaide – A Great Wine Capital of the World
STOP THE PRESS: $$$ to help small wine businesses – More funding secured
Wine Industry Salary and Benefits Survey – Participate and save $$$
Excellent visitor survey results
INDUSTRY & GOVERNMENT
SAWIA strongly represents wine industry in Liquor Licensing Act review
Electricity tariff impact research to involve wineries
EMPLOYEE RELATIONS & WORK HEALTH SAFETY
Do you have payroll issues this vintage?
Share in $20,000 to improve women's health and safety at work
Industry consultation: Occupations for State-nominated skilled migration
Protect your Hostplus super and win
SALES MARKETING & PROMOTION
Australian Wine Flavours Card now available
Workshop on label design and production
Wine Island 2016
Winestate Tastings - Merlot & Bordeaux / Cabernet / New Release
SUSTAINABILITY & WATER
SAWIA takes lead role on fracking
Murray Darling Basin Plan Inquiry Reports released
OTHER
Wine Grape Growers Summit
Small Business Workshops
State of Australian Wine report highlights increased production sales
Research updates – Vintage Compression / Dry Climate Wines
SAWIA’s Wine Industry Partner to merge
SA Growers Encouraged to Share ‘Vinnovations’
Australian wine sector contributes $40.2 billion to Australian economy
Dates for your diary
Message from the Chief Executive
Expressions of Interest and applications are still welcome for the Agribusiness Growth Program given
the great news that the program will also now be offered next financial year! Refer to the Feature
Article below for details of how your business can benefit.
Adelaide – South Australia has taken up membership as a Great Wine Capital of the World. Refer to
the Feature Article below for details.
SAWIA appeared before the Hon Tim Anderson QC, making a strong submission on behalf of members as
part of the Liquor Licensing review. SAWIA addressed the key issues and provided workable solutions,
drawing on valuable input from members who had shared their stories, experiences and day to day
operational issues. Refer to the article in the Industry & Government section for details.
There is still no news about the South Australian Cellar Door Sales Subsidy proposition for consultation
that PIRSA lead in July 2015. Despite raising concerns with government about the lack of information for
companies currently working on budgets, the silence is deafening!
Industry organisation reform discussions continued during March with a further meeting of the working
group scheduled for mid-April. SAWIA is encouraging better communication with industry so members
understand activity being undertaken and implications for the organisations that you support. All of this
work will be further considered by an industry reference group about mid-2016, with the broader industry
then having a chance to be involved and influence future direction.
The State Government’s Shandong China trade mission currently has 27 South Australian wineries
travelling in early April with wine business activity scheduled in Jinan, Qingdao and Yantai. The State
Government has also released an updated strategy for the India market with a mission scheduled in early
August.
Wine will also feature in the State Government’s proposed international business mission to South-East
Asia, focusing on the Philippines, Indonesia and Vietnam from 26 May to 5 June 2016. Expressions of
interest for the South-East Asia mission are now open, and will close in late April.
We were delighted that Penfolds has been named the world’s most admired wine brand by Drinks
International. Recognising outstanding performance by Australian wineries, Yalumba (19), Brown Brothers
(28), Jacob’s Creek (33), Wolf Blass (39), Lindeman’s (42) and Hardy’s (44) all made the top 50.
FEATURE ARTICLES
Adelaide – A Great Wine Capital of the World
On 18 March the Premier of South Australia, the Hon Jay Weatherill, announced that Adelaide – South
Australia has been formally recognised as A Great Wine Capital of the World. Adelaide joins an exclusive
group of internationally renowned wine regions including San Francisco/Napa Valley (US), Bordeaux
(France), Bilbao/Rioja (Spain), Capetown/Cape Winelands (South Africa), Mainz/Rheinhessen (Germany),
Mendoza (Argentina), Porto (Portugal) and Valparaìso/Casablanca Valley (Chile).
As members may be aware, SAWIA had been working with Primary Industries and Regions SA (PIRSA) for
quite some time evaluating the benefits of membership of the Great Wine Capitals Global Network
(GWCGN). In December 2015 SAWIA’s Executive Committee made the decision to actively and willingly
work with PIRSA, the State Government and other stakeholders to progress membership. A collaborative
approach led to agreement on roles, responsibilities and financial commitments, with the founding partners
of Adelaide's membership in the GWCGN being SAWIA, PIRSA, South Australian Tourism Commission
and Brand South Australia.
For more information about GWCGN membership and what it means for the South Australian wine
industry, SAWIA members should refer to the Noticeboard of the Members’ Home page of SAWIA’s
website or contact Brian Smedley on 8222 9274 or [email protected].
STOP THE PRESS: $$$ to help small wine businesses – More funding secured
SAWIA has successfully secured substantial new funding for the next financial
year for the Agribusiness Growth Program! As a result, further Expressions of
interest and applications are welcomed for the program that will help small wine
businesses in South Australia accelerate business growth through expert business
evaluation and coaching services.
The program delivers a comprehensive business evaluation of your current
business position and growth plans setting out recommendations for
improvement (value up to $10,000 free to your business). If you decide to
pursue the recommendations, one-on-one business coaching (in the areas of
improvement needed for growth) will be offered (capped at $10,000) with
businesses to contribute a minimum 25% of the total cost of coaching.
SAWIA is delivering the Agribusiness Growth Program for the wine industry on behalf of the South
Australian Government through Primary Industries and Regions SA. The number of evaluations and
coaching sessions is limited by the availability of funding, with funds available beyond 30 June 2016.
If your business has a turnover between $300,000 and $1,500,000 and you want to grow, this program
could be an excellent way to take the next steps.
Program guidelines, flyer and application form are all available here. The first step is to complete the
Expression of Interest section on the bottom of the flyer, and return it to SAWIA on 8222 9276 or
[email protected].
There has already been strong interest in this program, but there is still room for more participants – if you
act quickly. For more information, contact Brian Smedley on 8222 9277 or [email protected].
Wine Industry Salary and Benefits Survey – Participate and save $$$
Wine businesses are invited to participate in SAWIA’s 17th annual Wine
Industry Salary & Benefits Survey. Participants receive a significant
discount on the cost of the published survey results, so this is your
chance to participate and save.
The 2016 survey covers 58 positions across winemaking, viticulture,
warehouse, sales, accounting, marketing, human resources and administration
– typically those positions not covered by any industrial award. In addition to
job salary information, the survey covers matters such as how pay is reviewed,
when it is reviewed, salary movement percentages (actual and forecast), pay
policy and practices, superannuation benefits, employer provided car
practices, “at risk” incentive payments and share schemes. To help smaller
businesses understand and apply the results, the 2016 report will also include
a supplement setting out salary data for small businesses.
To order and/or participate in the survey, or to obtain more information, click here or contact Egon
Schwidder on 8222 9273 or [email protected].
Excellent visitor survey results
International visitors’ expenditure in South Australia has reached an all-time high according to the
December 2015 International Visitor Survey results. Year-on-year expenditure in South Australia is up 26%,
climbing to $897 million, visitor nights are up 14% to 9.8 million and visits are up 9.6% to an all-time high of
408,000.
Good year-on-year growth has been registered from a range of key markets, with the 10-year growth
pattern dominated by very strong growth from China and the rest of Asia. For more information, including
international visitor nights by region, click here.
The latest National Visitor Survey results were also very strong, with interstate visitors to South
Australia in the 12 months to December 2015 reaching an all-time high of 2.2 million visits, up 14%.
Interstate nights have also reached the highest level in 11 years, up 8.2% to 10.1 million nights.
For more information about the latest National Visitor Survey results, and insights for your specific region,
click here.
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INDUSTRY & GOVERNMENT
SAWIA strongly represents wine industry in Liquor Licensing Act review
SAWIA strongly represented the views of members when it appeared on 16 March before the Hon. Tim
Anderson QC, the independent reviewer of the Liquor Licensing Act appointed by the State Government.
SAWIA’s appearance followed the lodgement of our submission in January – one of 86 submissions
expressing a range of views from various interest groups.
In SAWIA’s appearance, we responded to a number of queries raised by the reviewer including a review of
the objects of the Act, responsible service of alcohol, responsible persons, signage, the “needs” test, who
should be allowed to sell alcohol and any limitations, the process of licence lodgement, right to appeal an
application, the role of councils and police and hours of trading. We also commented on the way the Act
could be structured to respond to and support city vibrancy and the South Australian government’s strategic
priority of premium food and wine from our clean environment.
In response to a question from the reviewer, SAWIA recently emailed members seeking further input about
the interaction of the producer’s licence and the issuing of a limited licence. SAWIA will provide this
feedback to the reviewer.
A report is to be finalised by 30 June 2016, with the State Government expected to consider the findings
and then introduce a Bill into Parliament setting out the proposed changes to South Australian laws.
For more information, SAWIA members can contact Brian Smedley on 8222 9274 or
[email protected].
Electricity tariff impact research to involve wineries
SAWIA has been helping with a Business SA research project (funded by Energy Consumers Australia)
that is investigating the potential impact of SA Power Networks’ electricity pricing proposal on small to
medium sized businesses. The results of the study will help inform SAWIA’s upcoming submission to the
Government’s decision making process.
As SA Power Networks moves toward “cost-reflective” (i.e. demand based) tariffs, there is a need to ensure
that it does not unnecessarily impose further costs on small business. As a result of SAWIA’s involvement,
several of our members from a wide range of operations have been invited to participate in the interview
process. This will help SAWIA to gain clearer insight into the specific impacts on wineries, and facilitate
stronger representation of our industry.
For further information, please contact Mark Gishen on 8222 9278 or [email protected].
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EMPLOYEE RELATIONS / WORK HEALTH & SAFETY
Do you have payroll issues this vintage?
Are your employees working evenings and nights? Do you know whether
those hours are shiftwork or overtime? When does it matter, and what
happens, if an employee works evenings and nights for more than 4
weeks?
Do you need a definitive answer on shift work or any of the other ‘grey’ spots around how to manage
working hours, rostering, meal breaks (paid or unpaid?), overtime and penalty rates, or perhaps some help
with performance managing your casual workforce during vintage? Knowing how to manage these
issues can save you money and time. It can also reduce the risk of employee dissatisfaction or
business disruption – the last thing you need when you are working to get production rolling along
smoothly.
Whether your business payroll is done weekly, fortnightly or monthly, being a member of SAWIA means
your payroll issues can be quickly and easily resolved by just picking up the phone or sending us an email.
It is the smart way to ensure you keep your staff paid on time and on budget!
For quick, clear and industry specific advice, contact Egon Schwidder, Henrik Wallgren or Sarah Hills on
8222 9277 or email [email protected], [email protected] or [email protected].
Share in $20,000 to improve women's health and safety at work
If you can help improve the health and safety of women working in South Australia,
SafeWork SA encourages you to apply for the Augusta Zadow Awards.
$20,000 is available for initiatives that will make a positive impact on women’s safety at
work by addressing a work health and safety issue, or through research or further
education.
For more information, click here.
Industry consultation: Occupations for State-nominated skilled migration
The South Australian Department of State Development has commenced its annual labour force analysis to
determine the occupations in which skills shortages could benefit from migration under the skilled Regional
(Provisional) visa (subclass 489) and the Skilled Nominated visa (subclass 190).
The viticulturist and winemaker occupations were added to the list of skilled occupations last year for the
first time, as a result of successful advocacy by SAWIA on behalf of members.
We are now seeking industry feedback on wine industry specific occupations that should be made available
for State-nominated skilled migration in 2016. Any of the 651 skilled occupations listed in the Consolidated
Sponsored Occupation List can potentially be added to the list of skilled occupations in demand in South
Australia.
Please provide your feedback by 11 April 2016 to Henrik Wallgren on 8222 9270 or
[email protected].
Protect your Hostplus super and win
Under government legislation, inactive or lost superannuation accounts will be closed
and balances transferred to the Australian Tax Office (ATO). If you have, or ever had
an account with Hostplus, the good news is, you can opt out of any automatic transfer
to the ATO and ensure your money remains in your Hostplus account.
By opting out, you will also enjoy the peace of mind of knowing that even if your circumstances change,
your super will stay in your Hostplus account. That means you will continue to enjoy all the benefits of being
a Hostplus member.
If you opt out before 29 April 2016, you will be entered into the draw to win one of five HOYTS VIP Black
Cards which gives you a free movie ticket to any session at any HOYTS cinema in Australia – up to five
free movies a day, for an entire year.
The trustee of Hostplus Superannuation Fund is Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No.
L0000093, RSE No. R1000054, MySuper No. 68657495890198.
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SALES MARKETING & PROMOTION
Australian Wine Flavours Card now available
The Wine Australia-produced Australian Wine Flavours Card is now available
and wine businesses are encouraged to register and receive a free copy.
The Australian Wine Flavours Card is a tool based on research by the
University of South Australia. It helps wine businesses identify descriptors for
Australian wine that are easily understood by Chinese customers.
The Card can be used at cellar doors or anywhere where wine businesses guide their Chinese customers
through the tasting process, as it links an English sensory term to the equivalent identified by the Chinese
consumers in the research project.
Using the identified terms, the Card will help Australian wine businesses engage more effectively with
Chinese customers. In allowing these businesses to talk about their wines in a more relevant way to
Chinese customers, it will make drinking our wines even more enjoyable.
To register your interest for a free copy of the Australian Wine Flavours Card click here.
Workshop on label design and production
Wine packaging: how to overcome common issues, increase sales and reduce costs of production is the
topic of a Wine Communicators of Australia webinar on 12 April. The webinar will look at issues around
wine label design and production to help you save money and "sell from the shelf".
To register or obtain more information, click here.
Wine Island 2016
Applications for “Wine Huts” for wineries at Wine Island 2016 (Clark Island
– Sydney) are now open. The 2015 event sold out in 2 hours, with a short
video available here.
A number of improvements have been made for the 2016 event (10-13
November), including greater capacity. For more information, SAWIA
members can visit the News section of the Members’ Home page of
SAWIA’s website.
Winestate Tastings - Merlot & Bordeaux / Cabernet / New Release
Upcoming Winestate Magazine tastings include:
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

Merlot & Bordeaux Varietals (Merlot, Cabernet Franc, Petit Verdot, Malbec)
Cabernet Challenge (Cabernet Sauvignon or Cabernet predominant blend
New Releases.
All of these tastings are for the July/August edition of the magazine. To submit your wines, click here or
contact the Winestate Tasting Coordinator on 8357 9277 or [email protected].
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SUSTAINABILITY & WATER
SAWIA takes lead role on fracking
SAWIA has taken a lead role in coordinating a wine industry submission to the Senate’s Select Committee
on Unconventional Gas Mining. The position taken was that the industry did not believe unconventional gas
mining could coexist within or near the winegrowing regions of Australia because of the risks it posed to
water resources and our international reputation, and that it appears to be inadequately regulated.
The submission was supported and developed with the input of another eight wine industry organisations
from around the country as well as a number of wine companies.
Submissions can be downloaded from the Committee’s website.
For more information, please contact Mark Gishen on 8222 9278 or [email protected].
Murray Darling Basin Plan Inquiry Reports released
The Senate’s Select Committee has recently released its report which provides support for “the
overarching principles” of the Murray Darling Basin Plan, however SAWIA remains concerned about some
of the recommendations for improvement and their implementation. It also should be noted that there were
four dissenting reports from groups within the Committee, highlighting a significant divergence of views.
As reported in previous newsletters, SAWIA made a submission and appeared before the Senate’s Select
Committee Inquiry into the Implementation of the Murray Darling Basin Plan. In our submission, SAWIA
reiterated support for the Plan and the current review intervals in the interest of maintaining this essential
resource over the long term.
For more information, SAWIA members can contact Mark Gishen on 8222 9278 or [email protected].
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OTHER
Wine Grape Growers Summit
The third annual SA Wine Grape Growers’ Summit – Helping Winegrape Growers Plan
will be held in Adelaide on 17 June. The program includes:
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2016 vintage outcomes: price and supply analysis
Varietal demand breakdown – what’s hot, what’s not
Expert panel: innovating for vineyard profitability
Latest outlook for water pricing and availability.
To register or obtain more information, click here.
Small Business Workshops
The Department of State Development has launched a series of Business Profitability and Business Growth
workshops being delivered across metropolitan and regional South Australia.
The half-day Business Profitability workshops will help businesses operate more effectively by applying key
business fundamentals to their day-to-day operations. Each workshop will focus on an area such as
marketing, staffing, cash-flow/profitability/budgets, business planning for established firms or digital
business.
The four two-day Business Growth workshops will help small and medium businesses take advantage of
business opportunities and accelerate growth by entering into new markets. Workshop topics include
tenders, exporting, understanding new markets and business planning for growth.
Workshops are delivered by professional trainers that have extensive experience working with small
businesses. Half-day workshops cost $50, while the two-day workshops cost $190. To register or obtain
more information, click here or phone 1300 142 820.
State of Australian Wine report highlights increased production sales
The State of Australian Wine report, recently released by Wine Australia, provides a concise summary of
wine production, inventory and domestic sales for the year to June 2015.
The survey showed that total wine production in Australia increased by 0.4% to 1.19 billion litres over the
previous 12 months. White wine production grew by 2.7%, while the production of red wine remained stable
at around 580 million litres.
The value of domestic sales increased by 3.8% to $2.78 billion despite volume declining 0.6% to 456
million litres.
Research updates – Vintage Compression / Dry Climate Wines
A number of Australian research papers have recently been released that may be of particular interest to
SAWIA members:
Quantifying the advancement and compression of vintage found that from 1995 to 2014 there was not
only a significant advancement in maturity, but also that in many regions the later ripening varieties were
advancing in maturity at a faster rate than earlier ripening varieties. The compressed vintage is placing
increasing pressure on vineyard and winery infrastructure.
Getting a taste for dry climate wines tested 150 different varieties that are not currently planted in
Australia and identified 6 whites and 11 reds with commercial potential that could survive and thrive in
warmer conditions. Each variety does well in hot conditions and has the potential to extend the season
given the increasing problem of compressed vintages.
SAWIA’s Wine Industry Partner to merge
The Business Advisory team of Moore Stephens Adelaide, SAWIA’s Wine Industry Partner, has announced
that it is merging with Bentleys SA. The merged firm will bring more resources while continuing the high
quality accounting, strategic business and added-value services that members have come to trust and rely
on.
For more information about the merger, or how the merged firm can help your business, click here or
contact Tim Siebert on 0417 802 654.
SA Growers Encouraged to Share ‘Vinnovations’
Entries are now open for the 2016 Vinnovation Award, which promotes and rewards the sharing of
innovative ideas and practices to enhance vineyard production.
The Vinnovation Award seeks to promote the sharing of new ideas which could be a machinery
modification, change in practice, enhanced monitoring or a new way of doing business. The 2015 winner
was a bin trailer with built-in scales and automatic readout to ensure high accuracy of bin weights, reduce
handling and remove the risk of overloading.
To enter or obtain more information, click here or contact Peter Hackworth of the Wine Grape Council of
South Australia on 8351 4378.
Australian wine sector contributes $40.2 billion to Australian economy
The Australian wine sector (defined as wine grape growing, wine making and wine tourism) contributes
$40.2 billion in gross output to the Australian economy, according to independent economic research
commissioned by Wine Australia. This includes $10.4 billion in wages and salaries spread across more
than 172,000 full and part time jobs, with most of these jobs located in regional Australia.
The report notes that “great food, wine, local cuisine and produce’ is the third most important factor
influencing holiday decision-making (after ‘a safe and secure destination’ and ‘a destination that offers
value for money’ but ahead of ‘world class beauty and natural environments’). Tourism Research Australia
estimated that in 2014-15 there were 15.8 million domestic visitor nights and 44.2 million international
visitor nights associated with Australian wineries. Overall wine related visitor expenditure totalled $9.2
billion.
Clearly, the Australian wine sector makes a very important contribution to the Australian economy. For
more information, the 30+ page report is available here.
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Dates for your diary
2016

12 April, Wine Packaging Workshop, Webinar

12-15 April, Prowine Asia, Singapore

3-5 May, Wines Unearthed (London Wine Fair), London

20-22 May, Interwine China –Spring/Summer Edition, Guangzhou

14-16 June, 16th China International Wine & Spirits Exhibition, Shanghai

15-17 June, TopWine China, Beijing

17 June, SA Winegrape Growers Summit, Adelaide

28 June – 1 July, World Wine Meetings, Singapore
29 June - 1 July, China International Wine & Spirits Exhibition, Guangzhou

23-28 July, Australian Wine Industry Technical Conference / Outlook Conference, Adelaide

10-13 November, Wine Island 2016, Sydney
INDUSTRY PARTNERS
SPONSORS
www.winesa.asn.au
Contact Information
South Australian Wine Industry Association
ABN: 43 807 200 928
phone 61 8 8222 9277
fax 61 8 8222 9276
© South Australian Wine Industry Association
1st Floor Industry Offices
National Wine Centre
Botanic Road,
Adelaide SA 5000 Australia
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