Listen to our conversation

Left click on the file name to listen, or right click on the file name to download the podcast.

What do you think of this podcast? Send us a comment

The Wine Industry Tasmania Podcast
Stuart_Conversation_part1.mp3 (12.5mb 18:16 min duration)	In this part of our conversation we hear how Wine Industry Tasmania (WIT) was formed and why it exists, we discuss how Tassie can emulate NZ and its marketing prowess and we finish by discussing progress on some specific issues facing the industry.
Stuart_conversation_part2.mp3 (8.15mb 11:52 min duration)	In the second part of our conversation we explore the boundary between what WIT does in terms of promotion and what should be done by the individual vineyards and wineries, we find out how WIT intends to retain it's membership or even expand it during these tough economic times.  To finish we discuss what the future holds for the Tassie wine industry.

Wine Industry Tasmania - Tassie wine's peak body.

 Winepunters.com tries to cover all aspects of the Tasmanian wine industry so we thought it was about time to hear a little about how the industry deals with political, economic and other industry wide issues. This meant going along to see Stuart Nettlefold - the Executive Officer of Wine Industry Tasmania (WIT) - and conducting a 'grown up' interview.  We also wanted to prove to you all that we were capable of more than the usual unrestrained silliness we display.

Our conversation with Stuart started with us trying to understand how and when WIT was formed. WIT was created in late 2006 after the dissolution the Vineyards Association of Tasmania and reflects the changing nature of the Tasmanian wine industry.  The early emphasis for people involved in the industry was improving viticultural practices thereby improving the quality of the fruit.  This has certainly been achieved but at the same time the industry had become larger and more sophisticated.  As a result it faced issues that could not be addressed through a volunteer vineyard focused organisation. 

  WIT differs from the Vineyards Association in that it has staff as well as volunteers and a board that includes both wine industry and other business representatives.  At it's heart WIT is responsible for promoting the Tasmanian wine industry both domestically and internationally.  Marketing Tassie wine has become a major focus and it is starting to pay dividends.  As an example WIT, in conjunction with the Tasmanian Government, organised a promotional roadshow event called Tasmania Unbottled which involved taking 28 Tasmanian wine brands to Sydney and Brisbane to "get people there excited about what is happening down here with varieties like pinot".  

This is good to hear as the New Zealand wine industry has been doing this sort of thing for a while and frankly they know a thing or two about promoting wine.  Their success is such that New Zealand Sauvignon Blanc has almost become a sub-variety in it's own right.  Since Tasmania and New Zealand compete head to head on a few cool climate wine varieties we were keen to get Stuart's opinion on the New Zealand marketing machine and what Tassie needs to do to match the popularity of New Zealand wine. 

In response Stuart mentioned a range of sensible steps like more roadshows and targeting the 'right' wine shows to win medals and gain additional recognition but our favourite was "continually wooing wine writers".  Being a kind of wine writer ourselves we were in furious agreement and look forward to being "wooed" especially if this involves the provision of free wine or all expenses paid trips (oops, looks like we revealed our cunning and formerly secret plan- Ed).  

 Actually the conversation about New Zealand went on for a while and we were particularly keen to learn if Tassie understood why and how New Zealand have been able to succeed so well in marketing their country as well as their produce.  In Stuart's opinion behind all the slick marketing it is the focus on quality that has driven New Zealand's success and he believes that Tasmania must follow suit.

The focus on marketing and the active lobbying of government were the sort of things we expected to hear from Stuart but what surprised us was the emphasis WIT places on research. Stuart is keen on using research to not only improve the quality of Tassie wine but also build expertise.  He is proud of the fact that a research consortium has been formed to look into improving viticulture associated with pinot and sparkling wine varieties.  His goal is to set up a cool climate research institute in Tasmania in the future.

Moving on we wanted to explore some specific issues that effect or are being dealt with by WIT.  

Tasmania is sometimes too famous for its parochial nature (we have been on the receiving end of it! - Ed) and we were curious whether Stuart had noticed it in the wine industry.  He agreed that it can happen but said that currently the emphasis was on the Tasmanian wine brand as a whole.  However in the future this may change so that the individual regions (for example the Coal River valley or Tamar valley) become more prominent.

Part of the price of a bottle of wine comes from the imposition of the Wine Equalisation Tax (WET) which is designed to make sure that wine is not too cheap because oh my god people might actually drink less beer and bingo bango Australia becomes a smoking ruin and the laughing stock of the world (is that a rant, it looks like a rant, yep it's a rant - Ed). 

We have become aware that the social improvers in the Federal Government want to make us drink less overall and so are thinking about changing the WET so it applies on a volume basis.  As Stuart points out this would significantly disadvantage some smaller wine producers and WIT along with the rest of the wine industry has been trying to point this fact out to our parliamentarians.  The issue has gone quiet of late probably due to the impact of the global financial crisis.  Lets hope the gaze of the social improvers goes onto, and stays with, people who really need help.

Our last issue touches on the use of chemicals in the industry and the changes to regulations covering how, when and where vineyard owners can spray.  Urban sprawl has meant that some vineyards, Moorilla and Darlington spring immediately to mind, are located in or near suburbs.  The State Government has proposed changes to regulations covering chemical spraying that could prevent some vineyard owners from using any chemical sprays.

WIT has made representations to the Government on this issue and hopefully a position can be reached that addresses any real health issues such spraying may raise without forcing vineyards to close.  Stuart is expecting to hear more on this issue later in the year.

 

Given the prominence of the global financial crisis we wanted to explore how WIT operates in a deteriorating economic environment.  

To start with we wondered where WIT's marketing efforts ended and those of the individual vineyard or winery began.  Stuart pointed out that WIT operates at the state level and produces overall marketing products like the State Wine Brochure but that specific marketing of an individual brand rests with that business.

We then wanted to know how WIT maintains its membership and remains relevant as producers are forced to examine all their expenditure more closely. Stuart is already dealing with this issue and is well aware of the difficulty his organisation faces. As Stuart said "if you put your fees up too far some members will not renew ... yet you have to remain financially viable".  According to Stuart the best hope WIT has in the future is to deliver against its strategic plan and this will demonstrate to its members and other industry participants that WIT continues to be a necessary part of the industry.   

 

Since we thought Stuart was in a great position to talk about it we wanted to know what he saw as the opportunities and challenges that lay ahead for the Tassie wine industry. He talked about the aspects of the industry that he believes will help to secure its future.  Stuart argued that Tasmania has to continue to build on its current emphasis on quality by positioning itself as a 'super premium' cool climate producer.

In addition he stated that the planned research projects will deliver real benefits in the future.  To help ensure this WIT has planned an event to present the findings of the current $1.8 million research project around pinot and sparkling wine. This presentation will take place in 2011 and will be part of a wider cool climate conference with participants from all regions throughout the world.  The intention is to also incorporate a major food and arts festival to widen it's appeal and impact.  

While it meant finishing the conversation on a sombre note we did want Stuart to discuss the major threats to the industry in the future. Naturally he identified the next 12 months as shaping up to be particularly difficult.  Stuart stated that so far the traditional on-premise market isn't hurting too bad but the expectation is that we will see a down turn in the restaurant trade in the new year (2009).  Given the emphasis that many Tassie wine producers place on this trade, this could cause real problems for them.

The other area being watched closely is tourism. So far tourist numbers have held up reasonably well particularly compared with areas such as far north Queensland (the interview happened prior to their recent floods - Ed). However the impact of current events, whether positive or negative, won't really be apparent until April this year which is the traditional start of the quiet season in Tasmania.

As always we have enjoyed another conversation about wine and the industry. We continue to be impressed with the people we meet and Stuart was no exception. We also hope that the combination of this article and the podcast of our conversation with Stuart was both interesting, educational and proved our credentials in the 'grown up interviewing' caper.

What do you think? Send us a comment