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BUILDING a PATHWAY to PREMIUM WINE MARKETS and CONSUMERS FINAL; November 2016; V1.00 INHERENT LIMITATIONS FUNDING

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BUILDING a PATHWAY to PREMIUM WINE MARKETS and CONSUMERS FINAL; November 2016; V1.00 INHERENT LIMITATIONS FUNDING BUILDING A PATHWAY TO PREMIUM WINE MARKETS AND CONSUMERS FINAL; November 2016; v1.00 INHERENT LIMITATIONS FUNDING This work was commissioned by Wines of Western Australian and e. any Coriolis Commentary accompanying the Coriolis document Part of the funding for this research came from Royalties for prepared by Coriolis. This work is based on secondary market is an integral part of interpreting the Coriolis document. Regions Grower Group R&D Grants Program, a component of the research, analysis of information available or provided to Coriolis Consideration of the Coriolis document will be incomplete if it is Agricultural Sciences R&D Fund Royalties for Regions program by our client, and a range of interviews with industry participants reviewed in the absence of the Coriolis Commentary and Coriolis managed by the Department of Agriculture and Food, Western and industry experts. Coriolis have not independently verified this conclusions may be misinterpreted if the Coriolis document is Australia (DAFWA). information and make no representation or warranty, express or reviewed in absence of the Coriolis Commentary. implied, that such information is accurate or complete. Coriolis is not responsible or liable in any way for any loss or Projected market information, analyses and conclusions contained damage incurred by any person or entity relying on the information herein are based (unless sourced otherwise) on the information in, and the Recipient unconditionally and irrevocably releases The remainder of the funding came from the wine industry of described above and on Coriolis’ judgement, and should not be Coriolis from liability for loss or damage of any kind whatsoever Western Australia, through their industry body, Wines of WA. construed as definitive forecasts or guarantees of future arising from, the Coriolis document or Coriolis Commentary performance or results. Neither Coriolis nor its officers, directors, including without limitation judgements, opinions, hypothesis, shareholders, employees or agents accept any responsibility or views, forecasts or any other outputs therein and any liability with respect to this document. interpretation, opinion or conclusion that the Recipient may form as a result of examining the Coriolis document or Coriolis Coriolis wishes to draw your attention to the following limitations Commentary. of the Coriolis document “Building a pathway to premium wine markets and consumers“ (the Coriolis Document) including any The Coriolis document and any Coriolis Commentary may not be ACCESS & ACCESSIBILITY accompanying presentation, appendices and commentary (the relied upon by the Recipient, and any use of, or reliance on that Coriolis Commentary): material is entirely at their own risk. Coriolis shall have no liability Coriolis seeks to support the widest possible audience for this for any loss or damage arising out of any such use. research. This document has been designed to be as accessible to a. Coriolis has not been asked to independently verify or audit the as many users as possible. information or material provided to it by or on behalf of the Client This Coriolis document was produced solely for the use and benefit or any of the parties involved in the project; of our client and cannot be relied on or distributed, in whole or in Any person – with or without any form of disability – should feel part, in any format by any other party. The document was free to call the authors if any of the material cannot be understood b. the information contained in the Coriolis Document and any completed in October 2016 and Coriolis accepts no liability for and or accessed. Coriolis Commentary has been compiled from information and has not undertaken work in respect of any event subsequent to that material supplied by third party sources and publicly available date which may affect the document. We welcome opportunities to discuss our research with our information which may (in part) be inaccurate or incomplete; readers and users. Any redistribution of this document requires the prior written c. Coriolis makes no representation, warranty or guarantee, approval of Coriolis and in any event is to be complete and Unless otherwise noted, all photos used in this discussion whether express or implied, as to the quality, accuracy, reliability, unaltered version of the document and accompanied only by such document were purchased by Coriolis from a range of stock currency or completeness of the information provided in the other materials as Coriolis may agree. Responsibility for the photography providers. Our usage of them complies with their Coriolis Document and any Coriolis Commentary or that security of any electronic distribution of this document remains the various license agreements. reasonable care has been taken in compiling or preparing them; responsibility of our client and Coriolis accepts no liability if the document is or has been altered in any way by any person. d. the analysis contained in the Coriolis Document and any Coriolis COPYRIGHT Commentary are subject to the key assumptions, further qualifications and limitations included in the Coriolis Document and Unless otherwise stated, copyright ©Wines of WA or Coriolis Coriolis Commentary, and are subject to significant uncertainties Australia Pty. Ltd. and contingencies, some of which, if not all, are outside the control of Coriolis; and 2 EXECUTIVE SUMMARY How can the WA wine industry work together to improve its export Case studies on the Napa, Barossa and Central Otago provide a performance? deeper examination of this process in practice. In each case, the result highlights slight variations in focus. The result is a coherent This is the key question driving the research. The answer is multi- three pointed summary of the foundations of regional brand that faceted. A review of peer regions provides many examples of the supports the high value region. levers and tactics employed by others in building and supporting a wine industry and regional brand. In most cases this converts to high Successful regions and businesses do the following: value, profitable export sales at a business level. – They tell a consistent regional story – as regions, as The key in making sense of these myriad tactics and levers is to first producers and this story is supported by other regional provide a template that guides development and implementation by partners such as tourism organisations and businesses. Western Australian regions and producers. – They work together – wine, food and tourism industries work together to promote the region. The desired outcomes of the project are organised to clarify thinking – A clear regional hero. Most regions have a single hero around how regions can improve brand development and regional variety/style to engage the market. Some have a white and activity. This ‘”tool-kit” synthesises observed actions (tactics and red, but no more than that. levers), from across 80 wine regions, into three broad categories – marketing, promotion and product. Within each category, tactics The final rule for success is “Region first”. and levers are further defined (e.g. “successful regions have a clear vision and message” etc.). Specific regional wine examples provide Larry Jorgensen detail on the implementation of the levers and tactics. Chief Executive Officer Wines of Western Australia 3 CONTENTS Project Objectives, Overview & Executive Summary Situation/Challenge/Problem we are trying to solve Stage I – Peer Assessment Summary Findings (80 regions) Stage II – Complete Findings - Peer Evaluation - Toolkit Stage III – Case Studies - Napa, Barossa, Central Otago Appendix: Peer Assessment Details (Stage I) 4 Why did Wines of WA undertake this project? Wines of WA is the peak industry body representing the wine industry in Western Australia. It’s purpose is to provide support to WA producers, growers and regional associations in the development of their region. Core question that Western Australia has built a strong, diverse wine industry – Coriolis were made up of a range of regions and producers – that is achieving critical recognition and winning awards. The engaged to address: industry emerged from almost nothing in the early 70’s and achieved strong growth. What lessons can WA learn from However, the Western Australian wine industry has successful wine struggled to create growth over the past decade for a range regions elsewhere of reasons, particularly since the Global Financial Crisis for application at (GFC). Specifically, WA is achieving little to no export home? growth. At the same time other wine regions similar to Western Australia are growing. 5 This project has clear questions, methodology and desired outcomes; it also has a tight scope KEY QUESTIONS METHODOLOGY DESIRED OUTCOMES - How can the Western Australian wine - Analyse peer wine regions to determine 1. Identification of specific actions taken by industry work together to improve its export activities and strategies utilised to assist successful wine regions performance? export growth 2. Toolkit of activities available to regions - How are other wine regions succeeding in - Apply a screening process to analyse export markets? successful wine regions 3. In-depth analysis of three succeeding regions to provide direction for Western Australia - What lessons can we learn from winning - Identify levers, activities and strategies regions? undertaken by regions that assist growth 4. Concrete, real world recommendations for Western Australia - How can we apply these lessons to Western
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