Australia's largest wine companies including Brown Family Wine Group, Casella Family Brands, Treasury Wines Estate, and Pernod Ricard came together to address the current challenges faced by the sector at an in-person summit hosted by Wine Australia.
The statutory authority said concern about the state of the industry was the catalyst for it hosting a round table discussion with the CEOs and managing directors of the country’s largest wine companies.
“Building on a number of calls together over the past year, this is the first time we have come together in person…to focus on how we can collectively address the challenges faced by our sector,” WA said.
In the last month, Accolade Wines said it was looking to sell its House of Arras business and Treasury Wine Estates said divestments were on the table as part of a business restructure to compensate for flagging Commercial wine sales.
WA said years of accumulating challenges including inflationary pressures, significant tariffs, shipping delays, an imbalance in supply and demand, and Covid had impacted the sector.
The group accepted it had a collective responsibility to lead the changes required to address the current state of the industry, with “transparent and candid conversations” on four themes to address the issues.
- Future proofing our supply base;
- enhancing the quality, value, and image of our wines;
- meeting the requirements of our markets for environmental, social, and corporate governance (ESG) standards; and
- meeting the needs of our consumers through product innovation.
WA added the summit attendees were, “very optimistic about the opportunities available to our diverse and talented sector”.
“As the first meeting of its kind, there is still much work to be done. However, as a first step we have committed focus, effort, and resources to supporting three initiatives,” WA said.
- Adopting a sector-wide approach to our ESG standards and highlighting the role Australian vineyards and landscapes can play in emissions management.
- Taking a united, collective approach to building brand Australia with respect to wine and creating a mid-strength category, aligned to market and consumer trends.
- Building a shared data platform that will improve transparency and aid timely decision making for stakeholders across the sector.
Initially the three initiatives would have a small group of members from those at the summit to ensure the right focus, effort, and resourcing is applied to bring the action to life.
“Most importantly, we are all aligned on the importance of taking shared responsibility for driving the health of our sector, so we will continue to come together to ensure these conversations turn into tangible actions,” WA said.
The statement was signed by:
- Andrew Calabria, Calabria Family Wines
- Bob Berton, Berton Vineyards
- Dean Carroll, Brown Family Wine Group
- John Casella, Casella Family Brands
- Darren De Bortoli, De Bortoli
- Andrew Forbes, Zilzie Wines
- Tim Ford, Treasury Wine Estates
- Bryan Fry, Pernod Ricard Winemakers
- Craig Garvin, Australian Vintage Limited
- Karl Martin, Hill-Smith Family Estates
- Bill Moularadellis, Kingston Estate Wines
- Brigid Nolan, The Wine Group
- Ed Peter, Duxton Vineyards
- Martin Cole, Wine Australia
- Lee McLean, Australian Grape & Wine
- John Hart, Australian Grape & Wine
