Wine Tasmania Strategic Plan 2021-23
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STRATEGy 2021–2023 RELEASED: APRIL 2021 OUR VISION: To build Tasmania’s reputation as a cool wine region like no other on the planet, with demand for its wines continuing to exceed production. Contents Introduction.................... 3 Our strategies................ 7–9 Measures of success............. 4 About Wine Tasmania............ 10 About the Tasmanian Key stakeholders............... 13 wine sector..................... 5 Managing Wine Tasmania Why is Tasmania so awesome?..... 6 successfully................... 14 INTRODUCTION The Tasmanian wine sector is a significant and growing contributor to the state’s economy, regional employment, agriculture, manufacturing, tourism, hospitality and the overall Tasmanian brand. Wine Tasmania’s Strategy 2021-23 is focused on maximising the opportunities for Tasmanian wine producers, driving the demand, value and increasing price points of Tasmanian wine, and supporting the profitability of individual wine businesses. While always maintaining a long-term focus, Covid-19 has negatively impacted the Tasmanian wine sector. Wine Tasmania’s Strategic Plan therefore reflects changing priorities to best support wine producers to recover and contribute to future success. OUR Strategies 1 >> Proactively pursue opportunities to communicate, position and promote the unique Tasmanian wine story and drive market-led growth. 2 >> Progress Tasmania’s reputation as a differentiated wine producing and visitor destination. 3 >> Inspire, support, educate and assist Tasmanian wine producers to grow their business performance. 3. MEASURES OF SUCCESS Measure1 2018 2019 2020 2021 2022 2023 Average value of $22.62 $22.44 sparkling +5% +5% +5% Tasmanian wine wine - $26.00 PER BOTTLE all wine - (domestic off-premise)* $22.00 (Australian average) ($11.48) ($8.13) ($12.00) Average value of $13.66 $14.39 $16.12 +5% +5% +5% Tasmanian wine PER LITRE (export) (Australian average) ($5.48) ($5.63) ($7.08) Average value of $2,977 $2,827 $3,037 +3% +3% +3% Tasmanian wine grapes PER TONNE (Australian average) ($609) ($664) ($694) Availability of Tasmanian 1,172,283 1,240,778 889,000 +5% +5% +5% wine dozen dozen dozen (5 year average) (886,900) (1,039,456) (1,072,656) Tasmanian vineyard area 1,800ha 1,890ha 1,955ha N/A N/A N/A - bearing (non-bearing) (137ha, 7.6%) (225ha, 11.9%) (203ha, 10.4%) Visits to Tasmanian 296,400 279,139 N/A 20% 25% 30% cellar doors of all of all of all visitors visitors visitors (% of all visitors) (23%) (21%) Average spend $2,618pp $2,846pp N/A +5% +5% +5% – cellar door visitors (all visitors) ($1,850pp) ($1,903pp) N/A N/A N/A N/A VinØ Program 23 members 25 members 22 members 63% 70% 76% of of of (% of production) (40%) (52%) (55%) production production production VinØ Program score 2.44 2.45 2.37 2.5 2.75 3.0 Visits to Wine Tasmania 156,477 160,000 170,000 180,000 190,000 200,000 website * Note, this is based on available off-premise data, and does not capture the retail value of Tasmanian wine, such as sales through cellar door and direct. 1 Sources: Wine Tasmania, Wine Australia, IRI MarketEdge, Tourism Tasmania 4. ABOUT THE TASMANIAN WINE SECTOR The Tasmanian wine sector conservatively contributes more than $200M to the state’s economy, placing it in the state’s top ten sectors. The sector’s contribution encompasses agriculture (vineyards), manufacturing (wineries) and tourism (cellar door and wine tourism expenditure by inbound visitors). The wine sector directly supports 2,063 Full Time Equivalent positions, which represents 10% of total employment in the agriculture, forestry and fishing sector in Tasmania2. The Tasmanian wine sector is leading the country’s wine regions in terms of positioning, value and reputation. The 2020 Tasmanian vintage report (available at www.winetasmania.com.au/vintage2020), highlights this focus on quality and value in the national context. All Tasmanian wine produced is in the niche premium wine sector retailing above $15 equivalent. This segment represents just 7% of Australia’s total wine production, but 28% of its value. Prices for both Tasmanian grapes and wine are some of the highest nationally. The growing global thirst for key cool climate varieties and styles, such as Pinot Noir, sparkling wine, Chardonnay and Riesling, provides significant opportunity for Tasmania to grow its wine consumer base. Tasmania’s talented wine producers continue to attract global attention and recognition for their outstanding and distinctive wines. This recognition has led to some of the highest prices in the country being paid for Tasmania’s wines and wine grapes, ensuring that Tasmanian wines continue to be in strong demand, and resulting in increased visitation to Tasmania and its cellar doors (notwithstanding the impacts of Covid-19). Importantly, the strong interest in Tasmanian wine is encouraging ongoing investment and growth by both new entrants and existing Tasmanian wine businesses. Even while experiencing the impacts of Covid-19, growth has continued during 2020 through new winery and cellar door facilities as well as vineyard plantings. As shown in the figures above and chart below, the Tasmanian wine sector’s vineyard area has been steadily growing at approximately 7% annually, although Tasmania’s cool climate results in significant variability of wine grapes harvested and the resultant availability of Tasmanian wine produced, also shown. TONNES HECTARES 18000 3500 17180 16280 16000 3000 14000 13197 2500 12308 12000 10000 2000 1955 1890 1800 8000 1739 1500 6000 1000 KEY 4000 Tonnes 11.9% 10.6% 10.4% 500 Bearing Area 2000 7.6% % Non Bearing 0 0 Area 2017 2018 2019 2020 2 Economic impact of the Tasmanian wine industry 2018, Professor John Mangan, University of Queensland 5. Why is Tasmania so awesome? Tasmania Australia Bottles of wine produced – 2020 vintage 889,000 dozen 109,000,000 dozen Tasmania’s share of total volume 1% 100% Tasmania’s share of total value 4.2% 100% Wine sold above $15 per bottle 100% 7% Wine sold below $15 per bottle 0% 93% Average value of bottled wine sold in Australia in 2020 – all wine $22 per bottle $12 per bottle – sparkling wine $26 per bottle $12 per bottle Average value of bottled wine sold internationally in 2020 $18.21 per litre $7.34 per litre Average value of wine grapes in 2020 $3,037 per tonne $694 per tonne Updated: December 2020 Sources: Wine Tasmania, Wine Australia, Australian Grape & Wine / Centaurus Partners 6. OUR STRATEGIES 1 >>> Proactively pursue opportunities to communicate, position and promote the unique Tasmanian wine story and drive market-led growth. • Lead and position the Tasmanian wine story, with a constant focus on differentiation • Deliver dedicated social campaigns to tell the Tasmanian wine story, profile its producers and encourage referrals to them and their websites 2 >>> • Consistently tell the Tasmanian wine story Progress Tasmania’s through a targeted communication program, promotional activities, events, trade and reputation as a differentiated media engagement, social campaigns and partnerships, including through innovative wine producing and visitor technologies, collaboration and experiences destination. • Encourage wine producers to adopt the Tasmanian wine story and share their own • Ensure Tasmanian wines are preferred across a story within this collaborative framework range of styles and price points in key markets, • Support Tasmanian wine lovers (public & wine with a focus on driving value and market-led trade) to share and tell the Tasmanian wine growth story in their own words • Challenge traditional solutions to facilitate, We will achieve this by telling the Tasmanian wine communicate and promote Tasmanian wine and story at EVERY touchpoint with consumers, media wine tourism demand and experiences and trade: • Benchmark the Tasmanian wine sector and • Executing dedicated social campaigns its wines, with a focus on its sustainability • Continuing to refine our communications to credentials and leadership in initiatives to reflect brand imagery and language, encourage address impacts of a changing climate and recognise members doing the same • Identify, incentivise, reward and build our • Developing a suite of collateral to tell the community of global Tasmanian wine lovers Tasmanian wine story and share with trade, and ambassadors media, consumers and media • Educate, encourage and reward key wine trade • Developing targeted material and supporting Tasmanian wine communications program for VinØ • Support and promote the development • Driving regular, targeted promotional of unique and high value wine tourism campaigns, including via social, online, virtual experiences, aligned to the Tasmanian wine and other platforms story • Developing partnerships to broaden • Drive targeted visitation to Tasmanian cellar communications reach, including with other doors and key wine-related events complementary Tasmanian products, people, • Develop measures to benchmark wine sales, organisations and stories tourism insights and results 8. We will achieve this by developing and promoting • Facilitate information, resources, training, Tasmanian sustainability initiatives, wine workshops, business tools, research and ambassadors, growing wine trade listings, cellar extension to support the knowledge, door visits and consumer engagement: benchmarking and decision making of • Setting targets for carbon emissions, Tasmanian wine producers, with a focus on proactively identifying on-brand solutions longer term opportunities and risks, including to offset emissions, and leading targeted market diversification