BUILDING A PATHWAY TO PREMIUM MARKETS AND CONSUMERS FINAL; November 2016; v1.00 INHERENT LIMITATIONS FUNDING

This work was commissioned by 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 (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 , 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. 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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. 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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 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 - 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 Australian regions? 5. Proven pathway to driving collective success in key export markets

IN SCOPE OUT-OF-SCOPE

1. Evaluating high growth wine regions - Assessment and review of existing WA wine industry, including wine quality, cost of production, labour rates/issues and pricing 2. Activities of successful wine regions - Investment/ownership models 3. Strategies of successful wine regions - Roles and responsibilities of WA wine industry bodies

4. Industry structures (Stage 3 case studies) - Strategies of WA wine industry bodies, at regional or state level

5. Creating ‘toolbox’ of lessons, that holds relevancy - Recommendations/implementation of findings/ strategy development for the different WA wine regions

6 This project has been guided by a broad based advisory group

INDUSTRY ADVISORY GROUP STEERING GROUP Sandy Hallett, Larry Jorgenson, CEO, Jeff Burch, Burch Family Wines Wines of WA

Cameron Murphy, Estate Director, Cape Mentelle Glynn Ward, Project Manager and Jeff McWilliam, Chairman, McWilliams Wine, DAFWA Matthew Byrne, Senior Winemaker, Evans & Tate NATIONAL COLLABORATION Andrew Blythe, Sales & Marketing Manager, Ferngrove Brett House, Managing Director, Flying Fish Cove Andreas Clark, CEO ( office), Wine Australia (AGWA) Redmond Sweeny, Co-owner, Snake and Herring Luke Skeer, Senior Winemaker, Devil’s Lair, Treasury Wine Group CONSULTATION Angus McPherson, Treasury Wine Group Ali Lockwood, Manager Stakeholder Lloyd Constantine, Marketing and Business Development Manager, engagement, Wine Australia Chris Furtado, General Manager, Aaron Ridgway, Head of Market Americas, Jeff Dewar, Owner, Willow Bridge Wine Australia Andrew Bonner, Toi Toi Wines, Central Otago

COLLABORATORS James Dicey, President, COWA

Annabel Mugford, Strategic Operations, BGWA Dr John Gates, CEO, Great Southern WP John Griffiths, President (Faber winemaker), Swan Valley RWMA Nick Power, CEO, Margaret River WA CORIOLIS TEAM Cath Oates, (Oates End), Margaret River WA Virginia Wilkinson, Research Director Paul McArdle, (CEO, Fraser Gallop), Margaret River WA Tim Morris, Director, Retail & FMCG Simon Holthouse, President (Moojelup Farm), Geographe WP Nicki Hall, Consultant f 7 This project used a three stage screening process regularly interwoven with stakeholders engagement

OVERVIEW OF PROJECT STRUCTURE Model; 2016

STAGE I: PEER STAGE II: PEER STAGE III: PEER RESULTS SYNTHESIS: ASSESSMENT EVALUATION UNDERSTANDING DIRECTIONS FOR WA 80-100 REGIONS 20 REGIONS 3 REGIONS

STAKEHOLDER RANKING & NEXT STEPS INTERVIEWS SELECTION WORKSHOP WORKSHOP

8 RECOMMENDATIONS We make the following recommendations to the wine regions of Western Australia

- Successful wine regions excel at making a great wine (product), getting it tasted (promotion) and wrapping it in a story (marketing)

- Present a clear story - Push the ‘hero variety’; Central Otago is indelibly linked with , with Shiraz and Napa Valley with - Make distinctive wine; Central Otago has overcome its small size and lack of funding by making a distinctive wine

- Execute on a consistent marketing program - Excel at telling your story; “The Barossa Chapters” gives consistent structure and themes while allowing individuality and interest, Napa Valley is consistently on message

- Optimise in-region activities - Generate interest in the region through constant events; Napa Valley’s exclusive events raise the prestige of the region and its wines - Strategically target influencers; Napa Valley offers “educational” experiences, differentiating from run-of-the-mill wine region visits - Collaborate within the region; Barossa wine, food and tourism industries work together to promote the region - Leverage the region’s other attractions; Central Otago make good use of the steady stream of tourists the region receives

- Organise out of region activities - Sell the region first; Barossa and Napa Valley go to key world wine events under their regional banner - Develop a clear market strategy; Barossa makes it very easy for government to assist them with funding and marketing programs - Ride the coattails; Central Otago leveraged the fame of Marlborough to get its wines some attention initially

- Continuously improve product, skills and experience - Collaborate to collectively improve and wine making skills - Work collectively to deliver industry relevant science and innovation - Develop industry, business and marketing skills targeted at growing exports

9 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)

10 Western Australia is the fourth largest wine producing state in Australia

TOTAL AUSTRALIAN WINE AREA BY STATE WESTERN AUSTRALIAN WINE GRAPE AREA BY REGION Hectares; 2014-15 Hectares; 2014-15

SA 66,912 50% Swan Districts 723 8%

Margaret River 4,874 54% 121 1% Peel 37 0% Manimup 54 1%

WA 9,013 7% Pemberton 342 4% TAS 1,505 Other 256 3% 1% 307 3% VIC 23,088 17%

NSW 34,024 25% Geographe 351 4%

Great Southern 1,950 22%

ACT 93 0%

TOTAL = 135,178 hectares TOTAL = 9,013 hectares

Source: Australian Bureau of Statistics (1329.0.55.002); note Wine Australia Annual Report 2012-13 (p96) gives larger numbers; Coriolis analysis 11 Western Australia is generally recognised as one of Australia’s premium wine producing regions

LANGTON’S CLASSIFICATIONS: WA VS. REST OF AUSTRALIA “Much to the chagrin of winemakers in the rest of the Percentage; Langton’s Classification VI; 2014 country, Western Australia attracts a disproportionate amount of media attention for a state that possesses just 7% of Australia’s .” 9% 8% WA 14% The Sotheby’s Wine Encyclopedia, 2005

“Not the first in importance of Australia’s wine regions, with less than 5% of the country’s wine output, but in quality terms very near the top, with a distinctive lightness of touch combined with ripeness of fruit – an unusual combination in Australia.”

The World Atlas of Wine, 7th ed, 2013 91% 92% Rest of AU 86% “Western Australia, the country’s largest state, with its most isolated wine area — in the southwest corner — makes little wine compared to [other] states, but quality is high. The warm, dry Swan Valley is the state’s historic center of wine production, but two cooler climate regions have become more important: Margaret River and Great Southern.”

Wine for Dummies, 4th ed., 2006 Exceptional Outstanding Excellent

Source: Langton’s Classification; Coriolis from various sources 12 Western Australia has an established wine industry spread across nine regions

Source: Wines of Western Australia website; regional association websites; Coriolis analysis 13 Western Australia’s wine regions range in size

BRIEF PROFILE OF WESTERN AUSTRALIAN WINE REGIONS 2016 or as available

Area # of agricultural Tonnes crushed Region (ha) businesses # of wineries (t) Regional Body Margaret River 4,874 209 120 25,414 Margaret River Wine Association

Great Southern 1,950 61 53 6,202 Great Southern Wine Producers Association

Swan Districts 723 69 30 5,883 Swan Valley and Regional Winemakers Association

Geographe 351 45 31 1,728 Geographe Wine Industry Association

Pemberton 342 20 15 1,967 Pemberton Wine Region Association

Blackwood Valley 307 21 14 1,629 Blackwood Valley Wine Industry Association

Perth Hills 121 29 19 305 Perth Hills Vignerons’ Association

Manjimup 54 5 8 237 Manjimup Wine Region Association

Peel 37 6 8 30 Peel Wine Association

Other 256 22 60 940

Source: ABS Vineyard Estimates 1329.0.55.002; The Australian and Industry Directory 2016; Coriolis from a range of sources 14 Margaret River and Great Southern stand out as the leading regions at this time

WINE GRAPES PRODUCED BY REGION: # OF AGRICULTURAL BUSINESSES VS. TONNES PRODUCED/AGRICULTURAL BUSINESS Tonnes; agricultural businesses; 2014-15

AREA = Total tonnes of wine grapes produced 122

102 98

85

Tonnes of 78 wine grapes produced per agricultural business

47 43 38

11 5 Pemberton Valley Blackwood Manjimup Peel Margaret River Great Southern Swan Districts Other Geographe Perth Hills

Number of agricultural businesses

Source: Australian Bureau of Statistics (1329.0.55.002); Coriolis analysis 15 The Western Australian wine industry is reasonably consolidated

WESTERN AUSTRALIAN WINE PRODUCTION BY SELECT FIRMS AND OTHER Percentage; 2012

Top Three Producers - Accolade Wine Holdings Australia 40% - Fogarty Wine Group - Ferngrove Wines

All other firms 45%

15% Next Five - Vasse Felix - Burch Family Wines - Cape Mentelle - -

Source: Wines of Western Australia “Western Australian Wine Industry Strategic Plan 2014-2024”; Coriolis analysis 16 Following a period of strong growth, Western Australian wine grape area has been declining since the GFC

GRAPE OR WINE GRAPE AREA IN WESTERN AUSTRALIA Hectares; 1954-2015 GFC

14,000

12,000

10,000

Not bearing

8,000

6,000

Includes Excludes table table Bearing 4,000

2,000 1958 1965 1967 1972 1976 1977 1979 1987 1995 1997 1955 1956 1957 1959 1962 1963 1973 1975 1978 1983 1985 1992 1993 2000 2001 2010 2011 2004 1980 1960 1990 2014 1981 1961 1991 2008 2006 2009 1984 1964 1994 1970 1988 1971 2002 1968 1986 1989 1998 2007 1966 1969 1996 1999 2005 2012 1974 1954 2015 2003 2013 - 1982

Source: wide range of ABS publications; Coriolis estimates and analysis 17 The decline in area planted is across regions and affects both red and wine grapes

WINE GRAPE AREA IN WESTERN AUSTRALIA WINE GRAPE AREA IN WESTERN AUSTRALIA Hectares; 2008 vs. 2015 Hectares; 2008 vs. 2015

14,000 14,000

12,000 12,000

10,000 10,000

Other Swan 8,000 8,000

South Coast White 6,000 6,000

4,000 4,000

South West Red 2,000 2,000

- - 2008 2015 2008 2015

Source: wide range of ABS publications; Coriolis estimates and analysis 18 Western Australian wine exports are flat-to-declining over the past decade

VALUE OF WESTERN AUSTRALIAN WINE EXPORTS A$m; 1999-00 to MAT Apr 2016 GFC

$53 $51 $49 $49 $46 $46 $44 $43 $42 17y average $41m $41 $39 $37 $35 $35 $36

$28

$19 2011-12 2013-14 2014-15 2000-01 2008-09 2012-13 2009-10 2004-05 MAT 4/16 2003-04 2007-08 1999-00 2006-07 2005-06 2001-02 2010-11 2002-03

Source: DAFF Australian Food Statistics (table 5.8; various years); ABS.Stat database; Coriolis analysis 19 Western Australia exports wine predominantly to the Anglo countries (UK, US, Canada & NZ), Singapore and Greater China (China, HK, Macau & Taiwan)

WESTERN AUSTRALIAN WINE EXPORT VALUE BY DESTINATION A$; YE April 2016 TOTAL = $42.4m

$0.8 $6.9 $9.8 $1.1 $1.3 $5.6 $16.9 Other E Asia $0.2 $1.2

NZ $0.4

USA Singapore $4.8 UK $3.9 $7.2 Other $1.1 UAE $1.3 Greater China $15.6

Pac. Is. Malaysia $0.4 Denmark $0.4 Germany$0.6 $0.1 Canada $2.1 Other SE Asia Other Europe $1.3 $1.9

Other NA/ME/CA

NZ/PI $0.0NA/ME/CA Americas Europe Other SE Asia E Asia

Source: ABS.Stat database; Coriolis analysis 20 Western Australian is struggling to regain lost ground in the Anglo/European world following the GFC; Greater China the main bright spot

WESTERN AUSTRALIAN WINE EXPORT VALUE BY DESTINATION Global A$; YE 6/97 to YE April 2016 financial crisis $53.2

$50.7 10y $49.8 $4.6 $49.1 CAGR $2.8 -1.8% $2.3 $2.2 $1.6 $46.5 $45.8 $1.4 $1.5 $0.2 $1.7 $0.2 $1.2 $0.2 $1.3 $1.5 $0.1 $1.4 $1.1 $44.0 $1.2 $0.8 $1.1 $1.6 $0.8 $5.6 $42.7 $42.4 $0.1 $3.5 $3.7 $1.0 $3.3 $0.7 $2.9 $0.1 $0.2 $0.9 $1.4 $39.5 $2.3 $0.4$0.1 $0.6$0.2 $1.3 $0.4 $0.4 $0.6 $0.2 $0.2 $0.4 $0.9 $37.5 $36.9 $0.3 $0.7 $1.4 $5.1 $35.9 $1.2 $5.2 $6.8 $3.8 $34.6 $34.8 $1.5 $3.1 $8.2 $18.2 $15.6 Greater China $0.7$0.1 $0.6 $0.1 $7.0 $0.6 $19.1 $1.3 $1.7 $1.4 $1.6 $13.9 $0.5 $2.3 $1.2 $1.0 $1.7 $0.1 $1.1 $1.7 $2.1 $1.3 $9.8 $28.3 $5.0 $0.5 $10.4 $13.1 $1.3 $1.0 $1.0 $3.5 $0.7 $1.4 $1.2 Japan $0.3$0.1 $12.1 $1.5 $0.2 Other E Asia $0.2 $1.0 $3.9 $1.3 $1.1 $0.9 $0.8 $0.1 $1.3 Other SE Asia $2.1 $0.6 $0.1 $0.2 $0.9 $0.4 Malaysia $14.3 $13.4 $1.4 $1.3 $1.4 $0.0 $13.1 $0.1 $0.9 $0.6 $0.2 $0.6 $0.5 $0.2 $0.8 $2.3 $1.6 $1.1 $1.2 $0.1 $3.9 Singapore $0.3 $1.0 $13.4 $0.4 $0.6 $4.2 $3.6 $3.8 $0.7 $18.8 $0.1 $0.0 Other NA/ME/CA $3.0 $3.6 $2.8 $1.3 UAE $0.6 $3.9 $11.2 $0.0 $0.0 $0.0 $12.2 $3.1 $1.2 $0.7 $3.6 $0.8 $1.1 Other $1.3 $0.6 $0.1 $0.4 $0.0 $1.1 $0.3 $0.9 $0.8 $0.4 Other Europe $0.2$0.3$0.1 $0.8 $0.2 $0.3 $2.0 $0.0 $1.9 $0.3 $0.2 $2.9 $1.1 Germany $1.5 $2.6 $0.6 $2.8 $0.1 $2.1 $2.3 $0.8 $0.6 Denmark $13.9 $0.0$0.5 $4.0 $4.9 $0.2 $0.9 $0.6 $2.7 $0.1 $0.4 $0.8 $0.9 $1.0 $1.0 $0.1 $6.8 $0.6 $0.9 $3.1 $0.0 $3.3 $6.9 $0.5 $0.3 $0.1 $4.3 $0.6 $1.3 $1.3 $3.5 $0.7$0.1 $7.2 United Kingdom $9.6 $0.6 $0.6$0.3 $0.0 $6.7 $6.2 $8.0 $1.0 $1.3 $6.7 $7.2 $0.5 $0.8 $15.3 $5.6 $0.3 $11.9 $2.5 $5.2 $1.0 $1.3 Other Americas $0.2$0.1 $6.0 $0.6 $0.7 $11.2 $10.7 $0.0 $2.1 Canada $0.4$0.3 $0.5 $9.4 $7.5 $0.0 $0.0 $0.0 $0.0 $1.9 $0.6 $0.6 $5.0 $8.4 $0.0 $0.0$0.1 $0.2 $1.8 $2.0 $2.1 $0.7 $0.3 $7.7 $2.4 $1.8 $0.4$0.3 $0.5 $6.5 $3.3 $0.0 $4.8 USA $0.3 $3.7 $4.2 $3.0 $3.5 $0.3 $3.1 $2.7 $2.9 $2.9 $2.5 $1.4 $0.2 $0.3 $2.1 $0.3 $0.4 Pac. Is. $0.0 $1.0 $1.0 $0.3 $0.5 $0.2 $0.4 $0.4 $0.5 $0.3 $0.2 $0.4 $0.4$0.1 $0.0$0.1 $0.1 $0.1 $0.4$0.1 $0.8 $0.6 $0.7 $0.9 $0.6 $0.5 $0.2$0.3 $0.3 $0.3 $0.3 $0.4 $0.5 $0.4 NZ Jun-1997 Jun-1998 Jun-1999 Jun-2000 Jun-2001 Jun-2002 Jun-2003 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Jun-2008 Jun-2009 Jun-2010 Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 Jun-2016

Source: ABS.Stat database; Coriolis analysis 21 Over the past decade the growth of Greater China has been offsetting declines elsewhere

WA WINE EXPORT GROWTH MATRIX: ABSOLUTE GROWTH VS. RATE OF GROWTH VS. VALUE A$; YE 6/97 to YE April 2016

20% Greater China

15% Primarily South Africa & ships stores

Other 10%

5%

10y UAE CAGR Singapore 06-16 0% Other SE Asia Pac. Is.

Japan Other E Asia

-5% Canada UK Malaysia NZ

Denmark -10%

USA Bubble size = export value in 15; $5 Other Europe a bubble this size =

Germany Other NA/ME/CA -15% $-10 $-5 $0 $5 $10 $15 10y Absolute growth (06-16)

Source: ABS.Stat database; Coriolis analysis 22 Competitors, such as New Zealand and , have recovered from the GFC in key Anglo countries

WINE EXPORT VALUE TO KEY ANGLO COUNTRIES: NZ VS. USA VS. WA USA/NZ (US$; m; 2005 vs. 2015); WA (A$; m; YE 6/06 vs. YE 4/16)

$423

$302 $283 $265 $251

$150 $134 $113 $90 $74 $70

$13 $13 $4 $4 $11 $5 $7 $5 05 15 05 15 $2 06 16 USA UK Australia Canada UK Australia Canada USA UK Canada

NEW ZEALAND WESTERN AUSTRALIA

Note: WA uses A$ (performance is worse in US$) Source: UN Comtrade database; DAFF Australian Food Statistics (table 5.8; various years); ABS.Stat database; Coriolis analysis 23 A wide range of other countries are growing wine exports

SELECT COUNTRIES WINE EXPORT GROWTH MATRIX: ABSOLUTE GROWTH VS. RATE OF GROWTH VS. VALUE IN 2015 US$m; 2005 vs. 2015 25% Lithuania China Mozambique

20%

Czech

Namibia 15%

Canada NZ Argentina

10y CAGR Estonia Israel export value; 10% USA US$; 05-15 Slovakia Latvia

Chile

Lebanon Austria Slovenia Switzerland 5% Serbia Italy Germany Spain Belgium Macedonia Turkey France Georgia Hungary Romania Greece South Africa 0% Morocco

WA Australia

-5%

Bulgaria Bubble size = export value in 15; $500 a bubble this size = Moldova -10% $-500 $0 $500 $1,000 $1,500 $2,000 $2,500 10y absolute growth in export value; US$; 05-15 Note: WA uses A$ (performance is worse in US$); Austria uses 04-14 Source: UN Comtrade database; DAFF Australian Food Statistics (table 5.8; various years); ABS.Stat database; Coriolis analysis 24 As these examples clearly show, other countries and regions are winning at export where Western Australia is not; why?

VALUE OF WINE EXPORTS: WA VS. SELECT PEERS US$m or A$m; 1996 to 2015

$1,200

New Zealand $1,000

$800

$600

$400

$200 Austria

Canada WA $- 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Note: WA uses A$ (performance is worse in US$) Austria 2015 is a Coriolis projection based on trend Source: UN Comtrade database; DAFF Australian Food Statistics (table 5.8; various years); ABS.Stat database; Coriolis analysis 25 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)

26 This project uses a three stage screening process to identify best fit peer regions for evaluation and in-depth case studies

SIMPLIFIED DIAGRAM OF SCREENING PROCESS USED IN THIS PROJECT Model; 2016

Stage I – Peer Assessment Assess 80 wine regions to select 20 for further evaluation - Defining regions - Regions showing attractiveness across range of metrics - Two-page summary and assessment

Stage II – Peer Evaluation Evaluate the 20 regions in order to distill lessons and determine the 3 regions for in-depth case study - Regions that demonstrate greatest success in growing exports - Identification of actions and strategies - Project stakeholders rank for impact and ease of implementation

Stage III – Peer In-depth understanding Project stakeholders select 3 regions for in-depth case study - Deep dive analysis of regions - Identification of successful strategies that led to export growth - Quantitative/qualitative

27 Western Australia has a large number of peer group wine regions that could provide lessons

Herault Albacete Cuenca Puglia Badajoz Aude Sud-Est Gard Toscana Alto Tras-Os_Montes Valencia Emilia-Romagna Vaucluse Del Maule Charente Charente Maritime O'Higgins Murica Zaragoza Ribatejo e Oeste -Viticole Abruzzo Var Sud-Vest Oltenia Orientales San Martin M Tarragona Nord-Est Niederosterreich San Joaquin Sud-Muntenia Rheinhessen Galicia Rhein-Pfalz Campania Lombardia Navarra Barcelona Sonoma Kunsag Valladolid Alentejo Krasnodar Krai Maine et Loire Riverina Riverland Yugoiztochen Friuli-Venezia Giulia Drome Gers Rhone Sardinia Marlborough Napa Yuzhen Tsentralen Stellenboasch Marche Paarl Lazio Burgos Fresno Beira Interior Baden Rivadavia Trentino-Alto Adige/Sudtirol Monterey Loire Atlantique Beira Litoral Alicante Mendoza Entre Douro e Minho Madera Malmesbury San Rafael Robertson Burgenland Lujan De Cuyo Saone et Loire Maipu Dordogne Lavalle Alava Zamora Madrid Breedekloof Umbria Metropolitana Leon Ardeche Bouches du Rhone Junin San Luis Obispo Wurttemberg Ningxia Indre et Loire Cadiz Olifants River Calabria Barossa Valley Cote d'Or Santa Rosa Huesca, Yeruel Haut Rhin Avila, Palencia, Salamano Mosel-Saar-Ruwer Tupungato Cananrias Worcester Valparaiso Kern Murrary Darling Cordoba Peloponissos Tunuyan Kriti Chautauqua- Erie Girona, Lleida Loir et Cher Sacramento Tarn Yonne Corse Sarmiento Bas Rhin Almenria, , Jaen Lot et Garonne Ege Nord-Vest Mayo Mendocino Murrary Darling Santa Barbara McLaren Vale Dytiki Ellada Sterea Ellada La Rioja Matra Ontario Franken Tokaj Coonawarra Langhorne Creek Severoiztochen Severozapaden Caucete Attiki Eger Yakima Valley Lot Centru Molise Orange River Valais Padthaway Gansu Hawke's Bay Basilicata Clare Valley Merced Rostov Oblast Yantai Horse Heaven Hills Yolo Kentriki Makedonia Huelva Nahe Rhone-Alpes Cher British Colombia Tarn et Garonne Swan Hill Severen Tsentralen Steiermark Adelaide Hills Caceres Vaud Finger Lakes Midi PyreneesYugozapaden Notio Aigaio Hunter Tulare Del Bio Bio Thessalia Mudgee Slavonija Balatonboglar Podunavlje Xinjiang Lake San Juan Istra Stanislaus Beijing Rheingau Columbia Valley Srednja Juzna Dalm Little Karoo San Martin Great Southern Wahluke Slope Vest Aquitaine Villany Salta Tolna Yarra Valley Ionia Nisia Vorreio Aigaio Sjeverna Dalmacija Szekszard Pocito Yamhill County Catamarca Balatonfured-Csopak Julio Coquimbo Gisborne Guadalajara Landes Dytiki Makedonia Malaga Hajos-Bajai Eden Valley Sopron Orta Dogu Poitou-Charentes Canterbury/Waipara Angaco Marmara Etyek-Budai Neuquen Rio Negro Badacsony Goulburn Valley Nievre Zala Neszmely Orta Guney Orange Illes Balears Liguria Central Otago Csongrad New York Cowra Savoie King Valley Vendee Geneva Rawson Zagorje-Medimurje Amador Tasmania Heathcote Anatoliki Mak., Thraki Solano Castellon Geographe Alameda Vienne Algarve Ticino Bukk Balatonfelvidek San Benito Polk County Adelaide Plains Pyrenees Currency Creek Wellington/Wairarapa Rutherglen Madeira Kushiro Nelson Prigorje-Bilogora Swan Districts Pecs Nagano Mornington Peninsula Guipuzcoa, Vizcaya Mor Alpine Valleys Albardon Saale-Unstrut Contra Costa Washington County El Dorado Marion County Pays de Loire Rattlesnake Hills Colusa Robe Wien Yamanashi Pemberton Pannonhalma Kings Zurich Columbia River Santa Clara Dalmatinska Zagora Nagy-Somlo Neuchatel Ipeiros Ahr Shanxi Auckland Jackson County Sichuan Ullum Walla Walla Valley Red Mountain Grampians Centre Hilltops Schaffhausen Limestone Coast Mt Lofty Regs Aosta Valley Sachsen Plesiviva Mitterlrhein Burcuresti-Ilfov Guney Dogu Orta Kuzey Indre Graubuden/Grisons Hessiche-Bergstrasse Southern Fleurieu Gundagai Tianjin Aargau Yamagata Canberra Strathbogie Ranges Douglas County Lane County Riverside Granite Belt Glenn Swan Hill Perth Hills Snipes Mountain Thurgau Lower Murray Tumbarumba Calaveras Blackwood Valley Upper Goulburn Upper Goulburn Bern South Burnett West Plains Gippsland Mount Benson Moslavina Macedon Ranges St. Gallen Hrvatsko Primorje San Bernardino Glenrowan Southern Highlands Queensland Fleurieu Henty Southern Flinders Manjimup Acores Josephine County Santa Cruz Nevada Columbia Gorge Benton County W.Valley Waikato/Bay of Plenty Northern Slopes Sunbury New England Feiburg Bassel-Landshaft South Coast Lake Chelan Peel Asturias The Peninsulas Barossa Kangaroo Island San Diego Puget Sound Placer Port Phillip other Shandong Marin Tehama Butte Beechworth Sutter Cantabria Trinity Pokuplje Lucerne Shasta Yuba Schwyz Humboldt San Mateo Akdeniz Eastern Plains Hunter Valley Mariposa Ventura Hasting River Jura Araucania Atacama Tuolumne Siskiyou De Los Lagos Aisne Alpes de Haute Alsace Auvergne Bourgogne Lorraine Seine-Et-Marne

28 The initial list of wine regions fed into Stage I of the process came from a wide range of sources

Renowned wine regions of the world as Discussions with the project’s Industry defined by the “industry bibles” Advisory Group

Emphasis on, but not exclusive to, , up-and-coming , premium regions and those showing growth

The point is not to find regions that that are an exact match with Western Australia, but ones that demonstrate growth and innovation

29 This process identified the following eighty wine regions which were fed into Stage I of the process

THE 80 WINE REGIONS ANALYSED IN STAGE I 2016

Argentina La Rioja Austria Wachau New Zealand Nelson Mendoza Canada Peninsula (ON) Wellington/Wairarapa Salta Okanagan Valley (BC) Portugal Alentejo San Juan Chile Aconcagua Valley South Africa Breedekloof Australia Canberra District (NSW) Colchagua Valley Paarl Hunter Valley (NSW) Maipo Valley Robertson Mudgee (NSW) China Ningxia Stellenbosch Orange (NSW) France Swartland Perricoota (NSW) Burgundy Worcester Riverina (NSW) Champagne Spain Priorat Adelaide Hills (SA) Rhone Valley Rias Baixas Barossa Valley (SA) Germany Mosel Ribera de Duero Clare Valley (SA) Pfalz Rioja Coonawarra (SA) Rheingau Switzerland Valais Eden Valley (SA) Rheinhessen Vaud Kangaroo Island (SA) Greece Crete United States of Lodi (CA) America Langhorne Creek (SA) Peloponnese Napa Valley (CA) McLaren Vale (SA) Hungary Tokaj Paso Robles (CA) Padthaway (SA) Italy Friuli-Venezia Giulia Santa Barbara (CA) Riverland (SA) Piedmont Sonoma County (CA) Tasmania Sicily Finger Lakes (NY) Mornington Peninisula (VIC) Trentino-Alto Adige/Sudtirol Columbia Gorge (OR) Pyrenees (VIC) Tuscany Willamette Valley (OR) Rutherglen (VIC) New Zealand Canterbury/Waipara Texas Hill Country (TX) Yarra Valley (VIC) Central Otago Walla Walla Valley (WA) Austria Kamptal Hawke's Bay Yakima Valley (WA)

Kremstal Marlborough 30 The eighty identified wine regions come from across the globe

LOCATION OF WINE REGIONS ANALYSED IN STAGE I Location of regions; 2016

OLD WORLD (26)

NORTH AMERICA ASIA (1) (13)

AUSTRALASIA SOUTH SOUTH (27) AMERICA AFRICA (7) (6)

31 The first stage of the project evaluated eighty peer group regions to identify those with the best possible lessons for Western Australian wine regions

SIMPLIFIED DIAGRAM OF SCREENING PROCESS USED IN THIS PROJECT Model; 2016

Stage I – Peer Assessment Assess 80 wine regions to select 20 for further evaluation - Defining regions - Regions showing attractiveness across range of metrics - Two-page summary and assessment

Stage II – Peer Evaluation Evaluate the 20 regions in order to distill lessons and determine the 3 regions for in-depth case study - Regions that demonstrate greatest success in growing exports - Identification of actions and strategies - Project stakeholders rank for impact and ease of implementation

Stage III – Peer In-depth understanding Project stakeholders select 3 regions for in-depth case study - Deep dive analysis of regions - Identification of successful strategies that led to export growth - Quantitative/qualitative

32 Each of the eighty regions were evaluated in a two page profile

SEE APPENDIX FOR TWO PAGE PROFILES FOR ALL 80 REGIONS MAP

DESCRIPTION KEY VARIETIES QUAL SCORECARD

QUANT HISTORY REVIEWS SCORECARD ASSOCIATIONS FAMOUS WINERIES

METRICS

PRICE POINTS GLOBAL PRESENCE

33 A scorecard was developed and the eighty regions scored on whether they “a relevant source of lessons for WA regions?”

EXPLANATION OF STAGE I SCORECARD CRITERIA DEVELOPMENT IS IT A RELEVANT SOURCE OF Model; 2016 LESSONS FOR WA REGIONS? QUALITATIVE

Therefore criteria to scorecard Similar age of industry to WA regions !$ Characteristics of the wine regions of Western Australia “Is the identified region…”

- Young wine industry that really only emerged in the 1970’s Similar varieties - Of a similar age of industry to WA regions to WA regions !$ - Lacks thousands of years of wine history; industry still growing

- Variety of climatic regions from temperate through to hot and dry - Able to produce similar varieties to WA Robust & collaborative #$ - Flexible, new world producer; not trapped in tradition or rules regions regional activity - Western Australia is the size of Western Europe; it is a region of regions - Conducting robust and collaborative Recognised globally #$ - The WA wine industry is made up of six regions and strong personalities activity that is creating results - There is a recognised need for more collaboration where it makes sense Comprehensive #$ - Western Australian wines win awards and are recognised at home tourism tie-in - Recognised globally - However WA wines underperform in key global markets Currently considered "$ “up-and-coming” - Wine is at the heart of creating a strong regional identity - Delivering a comprehensive tie-in of wine - WA recognised that stronger synergies with wine can be created and tourism QUANTITATIVE - Wine has a strong fashion element (What’s hot? What’s not?) - Currently considered “up-and-coming” Similar # of wineries - WA regions were “hot” though the late 90’s; need to regain that sizzle to WA regions !$ - Demonstrating growth in grape area - Industry growth has slowed and exports have stalled for a decade Similar vineyard area - The wine regions of WA individually and collectively are not large - Similar number of wineries to WA regions to WA regions !$ - Similar vineyard area to WA regions Demonstrating growth #$ - WA wineries perform well at the cellar door and in WA; average-to- in grape area poorly in Eastern Australia; and are difficult to find in key global markets - Achieving shelf presence in the UK - WA share of the UK & US markets is low and falling market Achieving shelf presence in UK market #$ - The UK market is seen as a leading global “taste maker” market globally

OVERALL "$

HIGH ! MEDIUM " LOW #

34 The scorecard triaged the eighty regions into “good, better and best” in terms of their likelihood of having lessons for Western Australian wine regions; twenty regions were delivered into Stage II of the process

SEE APPENDIX FOR RESULTS OF EIGHTY PEER GROUP REGIONS AGAINST “LESSONS” SCORECARD Subjective force ranking; 2016 DETAILS OF SCREEN

BEST (Score 12+) BETTER (Score 9 11) GOOD (Score under 9) – Niagara Peninsula (ON, CA) Clare Valley (SA) Piedmont (IT) Willamette Valley (OR, US) Wellington/Wairarapa (NZ) Alentejo (PG) Central Otago (NZ) Adelaide Hills (SA) Canberra District (NSW) Barossa Valley (SA) Coonawarra (SA) Columbia Gorge (OR, US) Marlborough (NZ) Eden Valley (SA) Mosel (GR) Yarra Valley (VIC) Lodi (CA, US) Padthaway (SA) Walla Walla Valley (WA, US) Maipo Valley (CL) Pyrenees (VIC) Yakima Valley (WA, US) Sonoma County (CA, US) La Rioja (AR) Hawke's Bay (NZ) Texas Hill Country (TX, US) Rias Baixas (SP) Hunter Valley (NSW) Trentino-Alto Adige/Sudtirol (IT) Tokaj (HN) Finger Lakes (NY, US) Mornington Peninisula (VIC) Bordeaux (FR) McLaren Vale (SA) Friuli-Venezia Giulia (IT) Burgundy (FR) Napa Valley (CA, US) Okanagan Valley (BC, CA) Riverina (NSW) Paso Robles (CA, US) Santa Barbara (CA, US) Champagne (FR) Rioja (SP) Nelson (NZ) Rhone Valley (FR) Swartland (SA) Worcester (SA) Ribera de Duero (SP) Tasmania (TAS) Kremstal (AS) Vaud (SW) Wachau (AS) Robertson (SA) Ningxia (CN) Colchagua Valley (CL) Canterbury/Waipara (NZ) Paarl (SA) Mendoza (AR) Mudgee (NSW) Salta (AR) Orange (NSW) Crete (GC) Kamptal (AS) Rutherglen (VIC) Stellenbosch (SA) Kangaroo Island (SA) Aconcagua Valley (CL) Pfalz (GR) Langhorne Creek (SA) Rheingau (GR) Priorat (SP) San Juan (AR) Twenty move into Tuscany (IT) Sicily (IT) Breedekloof (SA) Rheinhessen (GR) Stage II of the process Riverland (SA) Peloponnese (GC) Valais (SW) Perricoota (NSW)

Score is calculated from aggregate qualitative ranking converted to qualitative score (high = 2; medium = 1 and low = 0) and summed 35 The twenty regions delivered to Stage II were the highest scoring across qualitative and quantitative criteria

#$ LOW SEE APPENDIX FOR FORCE RANKING OF IDENTIFIED 20 WINE REGIONS "$ MEDIUM Relative scale DETAILS OF SCREEN !$ HIGH CRITERIA Niagara Peninsula Willamette Valley Central Otago Barossa Valley Marlborough Yarra Valley Walla Valley Yakima Valley Hawke's Bay Hunter Valley Finger Lakes McLaren Vale Napa Valley Paso Robles Rioja Swartland Tasmania Wachau Colchagua Valley Mendoza

QUALITATIVE

Similar age of industry to WA regions !$ !$ !$ #$ !$ !$ !$ !$ "$ "$ "$ #$ "$ "$ #$ "$ !$ #$ "$ #$

Similar varieties to WA regions "$ "$ #$ "$ "$ !$ "$ "$ "$ "$ "$ "$ !$ "$ "$ "$ "$ "$ "$ "$ Robust & collaborative !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ "$ "$ regional activity

Recognised globally "$ !$ "$ !$ !$ #$ #$ #$ #$ !$ #$ "$ !$ #$ !$ #$ #$ "$ #$ !$

Comprehensive "$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ "$ !$ !$ !$ tourism tie-in Currently considered !$ "$ "$ #$ #$ #$ "$ "$ #$ "$ !$ #$ #$ "$ "$ !$ "$ "$ !$ !$ “up-and-coming”

QUANTITATIVE

Similar # of wineries to WA regions !$ "$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ #$ !$ #$ "$ !$ !$ "$ #$

Similar vineyard area to WA regions !$ !$ !$ !$ #$ !$ !$ "$ !$ !$ !$ !$ #$ !$ "$ !$ !$ !$ "$ #$ Demonstrating growth !$ !$ !$ !$ !$ !$ "$ !$ !$ #$ "$ !$ !$ !$ !$ "$ !$ "$ !$ !$ in grape area

Achieving shelf presence in UK market "$ "$ !$ !$ !$ "$ "$ "$ !$ "$ #$ "$ !$ #$ !$ "$ #$ "$ !$ !$

OVERALL !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$

36 The wine regions identified as strong peers for WA are clearly over-weighted to successful New World regions

LOCATION OF WINE REGIONS ANALYSED IN STAGE II 2016

Yakima Valley Walla Walla Valley Wachau Willamette Valley Niagara Peninsula Finger Lakes Rioja Napa Valley Paso Robles

Colchagua Valley Mendoza Swartland Hunter Valley McClaren Vale Yarra Valley Barossa Valley Hawkes Bay Tasmania Marlborough Central Otago

37 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)

38 STAGE II The second stage of the project provides a toolbox for regions, distilling lessons from the twenty wine regions identified in Stage I

SIMPLIFIED DIAGRAM OF SCREENING PROCESS USED IN THIS PROJECT Model; 2016

Stage I – Peer Assessment Assess 80 wine regions to select 20 for further evaluation - Defining regions - Regions showing attractiveness across range of metrics - Two-page summary and assessment

Stage II – Peer Evaluation Evaluate the 20 regions in order to distill lessons and determine the 3 regions for in-depth case study - Regions that demonstrate greatest success in growing exports - Identification of actions and strategies - Project stakeholders rank for impact and ease of implementation

Stage III – Peer In-depth understanding Project stakeholders select 3 regions for in-depth case study - Deep dive analysis of regions - Identification of successful strategies that led to export growth - Quantitative/qualitative

39 STAGE II: PEER EVALUATION Successful regions undertake a range of activities which can be grouped under three broad areas

1. MARKETING Wrapping it in a story

2. PROMOTION Getting it tasted

3. PRODUCT Making great wine

REQUIRED COORDINATION

40 1. MARKETING Wrapping it in a story

2. PROMOTION Getting it tasted

3. PRODUCT Making great wine

41 1. MARKETING 1. MARKETING Wrapping it in a story Achieving cut through in the crowded wine world requires clear cohesive messaging

1.1 Successful regions have a clear vision and message to consumers – Present a coherent, unified identity – Define a unique point of difference/unique selling point – Develop and repeat a clear slogan or tagline

1.2 Successful regions have a strong name, brand and image – Encourage the protection of names and regions – Develop and use a strong regional brand; allow others to use

1.3 Successful regions have strong marketing programs – Execute a rich, robust and modern marketing campaign – Present a full range of marketing collateral and material across all touch points – Develop a strong and relevant consumer-focused website; keep it up-to-date

42 1. MARKETING 1.1 Successful regions have a clear vision and message to consumers Wrapping it in a story

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Present a coherent, unified identity - Central Otago (NZ) “Home to some of the world’s best Pinot Noir.” Part of the great Central Otago Story “A World of Difference” with associated marketing and collateral; www.aworldofdifference.co.nz - Austria (AS) strong identity based on three pillars of tradition, modern/lifestyle and sustainability - Hawke’s Bay (NZ) “New Zealand’s Premium Region”; “…all regional promotional material to ensure a consistent and cohesive story is told.” - Rioja (SP) DOCa status and controlling body gives region clear identity

Define a unique point of difference/ - Ontario (CA) “Our story: A Cool-climate wine region” unique selling point - New Zealand (NZ) “Certified Sustainable” over 94% of vineyards - Barossa (SA, AU) “Old Vines” - McLaren Vale (SA, AU) “Scarce Earth” - Paso Robles (CA, US) Western heritage

Develop and repeat a clear slogan or - Napa Valley (CA, US) “Cultivating Excellence” tagline - Hunter Valley (NSW, AU) “” - Walla Walla Valley (WA, US) “Real people, making great wine” - Austria (AS) “7 elements of Uniqueness” - Rioja (SP) “Vibrant Rioja” for USA market - Willamette Valley (OR, US) “Drink Pinot Think Oregon” - Yakima Valley (WA, US) “Walking the Vines”

Own a position - Niagara Peninsula (ON, CA) Icewine - Hunter Valley (NSW, AU) Semillon - Barossa (SA, AU) Shiraz - Napa Valley (CA, US) Cabernet Sauvignon - Willamette Valley (OR, US) Pinot Noir - Mendoza (AR) - Marlborough (NZ)

Source: various websites; annual reports; Coriolis analysis 43 1. MARKETING 1.1 Oregon and in particular Willamette Valley’s messaging constantly reinforces Pinot Noir Wrapping it in a story

WILLAMETTE VALLEY WEBSITE INTERNATIONAL PINOT NOIR CELEBRATION 2016 Held in Willamette Valley

OREGON PINOT CAMP Held in Willamette Valley

Source: www.willamettewines.com; www.oregonpinotcamp.com; www.ipnc.org; Coriolis analysis 44 1. MARKETING 1.2 Successful regions have a strong name, brand and image Wrapping it in a story

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Encourage the protection of names and - New Zealand (NZ) Introduction of “Geographical Indications” using names and places based on where wines regions are from; drives the wine story and protects NZ wines - Swartland (SA) Swartland Independent Group established certification rules around origin, varieties, production; South Africa has a wider “Wine of Origin Scheme” defining production areas - Napa Valley (CA, US) “Napa Valley” name law established 2006 gains GI status in China (2012), Korea and Singapore added (2016) - Willamette Valley (OR, US)“Willamette Valley” expands 29sqm in 2016 to include King Estate - Hunter Valley (NSW, AU) HVWTA’s mandate includes protection of GI as premium wine growing region - Rioja (SP) Denominacion de Origen Calificada provides recognised legal protection to the region

Develop and use a strong regional brand; - Marlborough (NZ) develops “Only Marlborough” “Unique to the world” brand in 2014 to develop the allow others to use Marlborough Story; www.onlymarlborough.co.nz, Wine is a part of this story www.wine-marlborough.co.nz - Hunter Valley (NSW, AU) Brand Hunter Valley encompasses visual, photographic and written tool set; guidelines for members; 2016/2017 Marketing Prospectus - McLaren Vale (SA, AU) marketing toolbox; logo and branding guidelines - Barossa (SA, AU) wine, food, tourism all under same Barossa brand

Source: various websites; annual reports; Coriolis analysis 45 1. MARKETING 1.2 “Wine Marlborough New Zealand” messaging is reinforced by multiple agencies and Wrapping it in a story others encouraged to use the branding material

EXAMPLE: ONLY MARLBOROUGH REGIONAL BRANDING WINE MARLBOROUGH NEW ZEALAND SITE 2016 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.onlymarlborough.co.nz; www.wine-marlborough.co.nz; Coriolis analysis 46 1. MARKETING 1.3 Successful regions have strong marketing programs Wrapping it in a story

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Execute on a rich, robust and modern - New Zealand (NZ) 7th annual “International Sauvignon Blanc Day”; #SauvBlanc; international events to raise marketing campaign awareness of NZ's Sauvignon Blanc - Paso Robles (CA, US) strong links between regional identity and wine industry - Barossa (SA, AU) “Barossa. Be consumed”; increased cellar door activity - Austria (AS) Wine Marketing Board has strategic and modern marketing campaign to promote

Present a full range of marketing - Oregon (US) - Official Touring guide 2016-2017 (84 pages) collateral and material across all touch - Ontario (CA) “Our story: A Cool-climate wine region” multi-language presentations available for download points and hardcopy - Central Otago (NZ) Detailed map of Bannockburn wine subregion (typical of maps in EU premium regions), useful for wine enthusiasts, educators, wine writers (part of GI application) - Austria (AS) AWMB produces brochures, tasting lists, educational, culinary pairings as well as exhibitors’ wine catalogues for wine shows

Develop a strong and relevant - Paso Robles (CA, US) extremely detailed and informative website; www.pasowine.com consumer-focused website; keep it up- - Walla Walla Valley (WA, US) clear, concise, user-friendly, interactive website www.wallawallawine.com, to-date linking to other events - Hunter Valley (NSW, AU) comprehensive website covering wine, food, accommodation, activities, events, weddings, business functions, press kits, booking facilities, tourism trade www.winecountry.com.au - Barossa (SA, AU) MOU signed with BGWA, Tourism Barossa and Barossa Food to have all encompassing consumer focused website for the region with unified branding - Rioja (SP) Country specific websites; local events, contacts, online sales

Source: various websites; annual reports; Coriolis analysis 47 1. MARKETING 1.3 Austria “Taste of Culture” has developed an extremely comprehensive strategy, Wrapping it in a story campaign and supporting promotion program

Source: www.austrianwine.com; Coriolis analysis 48 1. MARKETING Wrapping it in a story

2. PROMOTION Getting it tasted

3. PRODUCT Making great wine

49 2. PROMOTION 2.1 PROMOTION – LOCAL/REGIONAL Getting it tasted Local and in-bound promotional activity creates constant excitement and “new news”

2.1.1 Successful regions have well-presented cellar doors and developed wine trails – Audit and quality assure best cellar doors for tourists – Present distinct and unified regional signage for wine trails and cellar doors (link with 1.1 & 1.2) – Develop informative wine trail maps; deliver in multiple forms (e.g. online, physical)

2.1.2 Successful regions have a constant, regular calendar of events that generate interest – Develop and run conferences, workshops, and “boot camps” – Organise visits from key influencers – Support and fund regional events

2.1.3 Successful regions have a comprehensive tie-in with local tourism and regional identity – Collaborate and co-ordinate with wider regional tourism activities – Support emergence of distinct regional food and wine identity; embrace culinary tourism – Provide robust and comprehensive information for regional tourist information centres

2.1.4 Successful regions develop and promote their own awards

50 2. PROMOTION LOCAL/REGIONAL Getting it tasted 2.1.1 Successful regions have well-presented cellar doors and developed wine trails

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Audit and quality assure best cellar - Central Otago (NZ) Cellar Door Network - provides training for messaging and tourist interaction doors for tourists - Barossa (SA, AU) Barossa Trust Mark, recognises excellence in food, wine and tourism offerings; 5 criteria, independent panel - Barossa (SA, AU) Cellar Circle Awards for best cellar door of the year - Central Otago (NZ) cellar door training and promotional seminars - Yakima Valley (WA, US) Tasting Room Guild; quarterly gatherings to tour wineries, network with other staff and discuss best practices for tasting rooms

Present distinct and unified regional - Paso Robles (CA, US) clear road signage signage for wine trails and cellar doors - Hawkes Bay (NZ) wine trail signage part of 10 day tour - Tasmania (TAS, AU) wine trails marked with distinctive, uniform signage

Develop informative wine trail maps; - Ontario (CA) “Wine on Tour” digital wine route planner - routes, information; www.wineontour.ca deliver in multiple forms (e.g. online, - Hunter Valley (NSW, AU) maps, apps; www.winecountry.com.au/plan/apps physical) - Yarra Valley (VIC, AU) interactive map on association website with range of filters, printed touring map www.wineyarravalley.com.au/map/ - Tasmania (TAS, AU) wine trail maps, with listed events, mixed dozen freight program members and seafood trail included; distinctive signage; www.winetasmania.com.au - Willamette Valley (OR, US) interactive online and paper map of wineries, restaurants, activities; www.willamettewines.com

Source: various websites; annual reports; Coriolis analysis 51 2. PROMOTION 2.1.1 Hunter Valley makes it easy to find vineyards and travel around the region Getting it tasted

HUNTER VALLEY INTERACTIVE TRIP PLANNING 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.winecountry.com.au; Coriolis analysis 52 2. PROMOTION LOCAL/REGIONAL Getting it tasted 2.1.2 Successful regions have a constant, regular calendar of events that generate interest

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Develop and run conferences, - Napa Valley (CA, US) Symposium for Professional Wine Writers - education, building skills, debating, workshops, and “boot camps” networking with industry - Napa Valley (CA, US) Wine Educators Academy “educate the educator”; “Trade Boot Camps”; Master Napa Valley - multiday immersion program for Advanced Masters and Master

Organise visits from key influencers - Yarra Valley (VIC, AU) Yarra Ranges Tourism brings range of media personalities from various countries to the region, promoting their wines - New Zealand (NZ) Off-shore wine professionals brought to NZ to tour “Family of 12” wineries - Finger Lakes (NY, US) “Finger Lakes Immersion Experience” 3 day tour and seminars for & buyers - Tasmania (TAS, AU) annual trade visitation program of buyers and retailers - Austria (AS) AWMB invites 200 wine professionals to “Weingipfel” wine summit - Yakima Valley (WA, US) Hosted 61 trade and media representatives in 2015 Support and fund regional events - Hawke’s Bay (NZ) and symposium - Willamette Valley (OR, US) “31st International Pinot Noir Celebration” based in Willamette, B2C, 4 day event, including seminars, tastings, tours; www.ipnc.org - New Zealand (NZ) “Pinot Noir NZ” annual 3 day event combining, tastings, international speakers, workshops, for media, trade, wineries; www.pinotnz.co.nz - Niagara Peninsula (ON, CA) Niagara Icewine Festival; series of events over three weeks celebrating icewine - Ontario (CA) Ontario Wine Awards, industry website includes awards and awarded wineries; www.winecountryontario.ca/media-centre/wine-awards - Hunter Valley (NSW, AU) and Food Festival; searchable calendar for all events in region - McLaren Vale (SA, AU) McLaren Vale Sea & Vine festival showcasing region’s attractions - Central Otago (NZ) Coordinated calendar for all organisations and industries to complement activities and prevent overlaps - Walla Walla Valley (WA, US) “Celebrate Walla Walla Valley Wine” - Cabernet Sauvignon exploration - comparing Bordeaux, Napa, Millahue (Chile) wines - special tastings, dinners panel discussion; www.celebratewallawalla.com - Paso Robles (CA, US) Wine Country Alliance have budget to support local wine programs that draw media and tourist attention to Paso

Source: various websites; annual reports; Coriolis analysis 53 2. PROMOTION 2.1.2 Napa Valley has an on-going program of events for wine professionals Getting it tasted

NAPA VALLEY TRADE PROGRAMS 2016

- Invite only - Napa Valley - Education program on Napa - Master Napa Valley - Tool kit for trade grand tasting and auction Valley - Sommelier Napa Valley - Feb - Fast facts, posters, power - B2B networking - Tasting templates - Experience Napa Valley - Apr, point presentations - Includes presentations, videos Jun - 4 languages - Wine Educators Academy - May - Trade Boot Camps - Aug - Steakhouse Summit - Oct

Source: www.napavintners.com/trade; Coriolis analysis 54 2. PROMOTION LOCAL/REGIONAL Getting it tasted 2.1.3 Successful regions have a comprehensive tie-in with local tourism and regional identity

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Collaborate and co-ordinate with wider - Marlborough (NZ) International Sauvignon Blanc Celebration day to link with World of Wearable Arts regional tourism activities (WOW) linking creativity and the arts - Hawke’s Bay (NZ) Bridge Pa Wine Festival (bus, music, gourmet food, tasting, master classes - around 8 wineries) - Paso Robles (CA, US) Strong links with tourism - western themed “Best Wine Country Town” award - (www.pasowine.com) - Central Otago (NZ) “A spectacular landscape and sophisticated tourist culture.” - New Zealand (NZ) NZ vs. England bubbly competition during Cricket World Cup - Colchagua Valley (CL) Modern wine making facilities built with tourism in mind “Chile’s Napa Valley” “One of the world’s premier tourist destinations”, www.visitcolchaguavalley.com - Napa Valley (CA, US) Best of Awards part of “Great Wine Capitals Global Network”, www.greatwinecapitals.com, 8 regions benchmark for excellence in multiple categories - Napa Valley (CA, US) www.cellarpass.com; private promotion company; events, tours, tastings (39 events) Support emergence of distinct regional - Hawke’s Bay (NZ) F.A.W.C! Food and Wine Classic - 55 food and wine events over winter food and wine identity; embrace culinary - Ontario (CA) “Wine Country Ontario” “Restaurant Recognition” label at local restaurants (33 listed in tourism Toronto) - Oregon (US) A-List restaurant awards for best selection of Oregon wine; www.oregonwine.org/a-list/ - Hunter Valley (NSW, AU) Hunter Valley Wine and Food Festival; one association for region’s wine and tourism marketing - Yarra Valley (VIC, AU) Yarra Ranges Tourism joined Yarra Valley Wine Growers Association in the Yarra Valley Pavillion as part of TASTE - Barossa (SA, AU) Barossa Gourmet Weekend, Barossa, Baroque & Beyond - Austria (AS) Seasonal culinary themes, such as asparagus season wine recommendations - Napa Valley (CA, US) Gourmet Guide to Napa Valley - Rioja (SP) hosts a Rioja Wine and Tapas Festival in different USA cities each year during Rioja Week Provide robust and comprehensive - Oregon (US)“Oregon Wine Resource Studio” web-based sales and training resource for the wine industry information for regional tourist (maps, presentations, information) information centres - Hunter Valley (NSW, AU) Hunter Valley Magazine showcases the best food, wine and experiences in Hunter Valley; also available digitally

Source: various websites; annual reports; Coriolis analysis 55 2. PROMOTION 2.1.3 This early Central Otago five year strategy, developed over 9 months, identified key Getting it tasted areas food and wine could drive tourism to the region

CENTRAL OTAGO TOURISM STRATEGY 2007-2012

SECTOR BASED ALLOCATE TIMEBOUND RECOMMENDATIONS RESPONSIBILITY

STRATEGY DEVELOPMENT

1. Project Brief 2. Background data on tourism 3. SWOT - Gaps 4. Sector requirement meetings 5. Develop sector strategies 6. Submissions 7. Strategy finalised

Source: www.centralotagonz.com; Coriolis analysis 56 2. PROMOTION 2.1.3 Paso Robles embraces tourism with strong ties to its traditional western-themed Getting it tasted heritage, incorporating year round events for tourists with fine wine and food, with easy to navigate apps and an informative website

MAJOR TOURIST EVENTS IPHONE APP AWARDED

February 19-21

March 18-20

May 19-22 Sunset Magazine Award

October 14-16

Regular events throughout the year

Developed by Wine Country Alliance

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.pasowine.com; Coriolis analysis 57 2. PROMOTION LOCAL/REGIONAL Getting it tasted 2.1.4 Successful regions develop and promote their own awards

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Local wine Awards - New Zealand (NZ) “Bragato Wine Awards” recognition of viticulture excellence; high quality judges to educate and communicate; www.bragato.org.nz - Hunter Valley (NSW, AU) Hunter Valley Legends award for outstanding service to wine region; Hunter Valley Wine Show - McLaren Vale (SA, AU) McLaren Vale Wine Show; includes local wine dinners for consumers - Tasmania (TAS, AU) Tasmania Wine List of the Year Awards; Wine Tasmania and Tasmanian Hospitality Association; to recognise Tasmanian businesses promoting region’s wines - Napa Valley (CA, US) Winemaker Challenge International Wine Competition - Uco Valley, Mendoza (AR) Ucovin Uco Valley

Source: various websites; annual reports; Coriolis analysis 58 2. PROMOTION 2.1.4 McLaren Vale Wine Show hosts the regional wine awards supporting and awarding Getting it tasted excellence in the McLaren Vale

MCLAREN VALE WINE SHOW 2015

CHARACTERISTICS

Highly regarded by international and national wine media and trade

Attracts a panel of high-caliber wine judges

70 wineries; 650 wines; 24 trophies (2015)

Platform for presenting wines that demonstrate: - expression, - excellence in viticulture and production, - provenance and sub-regionality

Introduced food judging in 2014

“Consumer Dinner Series” included 2014 very successful

“One of the most significant regional wine shows in Australia” Includes “Silver Bullets” to judge varieties of particular influence and lead discussions at the dinner

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.mclarenvale.info; Coriolis analysis 59 2. PROMOTION 2.2 PROMOTION – IN-MARKET Getting it tasted Promoting a small wine region to a large global market requires focus and co-ordination

2.2.1 Successful regions plan export market development collaboratively – Achieve critical mass as a group in handful of markets (rather than scattergun approach) – Focus on markets one-at-a-time – Focus on selling the region first, brand second – Agree to present together under regional marketing platform (see 1.1 - 1.3) at international events

2.2.2 Successful regions target key in-market influencers to raise their profile in select target market – Target critics, key influencers and media – Engage distributers, wholesalers and other chain participants – Create awareness among retail and on-premise decision makers – Run educational sessions in-market to raise profile

2.2.3 Successful regions create a “Pathway to Engagement” for outsiders with the region – Supply information to create region awareness with the consumer (in-market) – Facilitate opportunities for product tasting and evaluation (in-market) – Create a desire for an immersive regional experience (at home)

60 2. PROMOTION IN-MARKET Getting it tasted 2.2.1 Successful regions plan export market development collaboratively

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Achieve critical mass as a group in - New Zealand (NZ) “Family of 12” joint events and roadshows in prominent markets; handful of markets (rather than www.familyoftwelve.co.nz scattergun approach) - Finger Lakes (NY, US) New York Wines SaRL 2012; 3 wineries in Finger Lakes launch an EU-based importing company; www.newyorkwines.eu - Barossa (SA, AU) Strategic approach to achieving growth in North America as region - Mendoza (AR) Part of Argentina’s national plan

Focus on markets one-at-a-time - Tasmania (TAS, AU) Clear strategy identifying top three priority markets in order for its promotional activities - Barossa (SA, AU) Barossa China Ready Program; network and insights - Central Otago (NZ) Focus on select markets (e.g. USA) and do not get distracted

Focus on selling the region first, brand - California (US) “Discover California” second - Barossa (SA, AU) Emphasis on stories and history of region, old vine shiraz; Wine Chapters Auction in market - Rioja (SP) DOCa status and a legislated body keeps the region front and centre in all activities - Central Otago (NZ) Develop a regional story and message

Agree to present together under - New Zealand (NZ) Showcased NZ leading brands in NZ Pavilion at Chengdu Tangjiu Fair - invites in Chinese country/regional marketing platform - New Zealand (NZ) Substantial itinerary of shows, fairs and events; China “Pure Discovery Roadshow” (see 1.3) at international events expanded to include food and tourism; guided wine tastings, regional themes, masterclasses, food exhibitors, cooking demonstrations; www.nzwine.com/events/ - Swartland (SA) Attended the Chengdu food and wine expo to promote and educate major Eastern clients - South Africa (SA) “SudAfrika Weinshow” in Frankfurt; for trade, gastronomy, press and bloggers - California (US) Wineries attend shows under “Discover California” wine banner - Barossa (SA, AU) ProWein attended under Barossa banner - Argentina (AR) Wines of Argentina has Loyalty Rewards Program to encourage wineries to participate in marketing events

Source: various websites; annual reports; Coriolis analysis 61 2. PROMOTION 2.2.1 Californian wine regions (e.g. Napa Valley, Sonoma, Santa Barbara, Paso Robles, etc.) Getting it tasted work on export campaigns with the Wine Institute under “Discover California”

WINE INSTITUTE EXPORT PROGRAM 2016

CONSUMER FACING WEBSITE SOCIAL MEDIA CAMPAIGNS PRESENTATION TOOLS

GLOBAL BRANDING CAMPAIGN

- 8 languages - 16 countries - Editable Powerpoint presentation - www.discovercaliforniawines.com - China - Included virtual tastings, - 114 pages promo activities, ad placements, bus wraps, subway bulkheads and light boxes, and luxury shopping mall billboards

WINE EVENTS CHINA EXPORT EVENTS STRONG TOURISM TIE-INS

- Critical mass at wine shows - Vinexpo Asia-Pacific - Strong partnership with Visit - ProWein, 2015 - 35 delegates, 120 brands California to increase tourism to - 3 cities, 12 events wine regions - Annual focus regions (e.g. Sonoma) - www.visitcalifornia.com

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.wineinstitute.org; ww.calwinexport.com; www.discovercaliforniawines.com; www.visitcalifornia.com; Coriolis analysis 62 2. PROMOTION IN-MARKET Getting it tasted 2.2.2 Successful regions target key in-market influencers to raise their profile in select target market

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Target critics, key influencers and media - New Zealand (NZ) Levi Dalton US podcaster “I’ll Drink to That” presenting at “Pinot Noir NZ” event “new wave of wine communicators, embracing the social platforms to capture, educate, inform and entertain wine fanatics across all channels.” Plus Jancis Robinson OBE, UK wine critic and writer, Ken Ohashi, and sake expert - Marlborough (NZ) 20 global influencers to speak at inaugural International Sauvignon Blanc Celebration in Marlborough; 350 delegates; www.sauvignon2016.com - Central Otago (NZ) Sensory workshop run by Georg Riedel and development of Riedel glass for Central Otago Pinot Noir; Riedel supported youtube clip - Finger Lakes (NY, US) “The Wine Symposium of Finger Lakes” hosted 125 growers, writers, sommeliers and winemakers to events highlighting cool climate whites, reds; popular in the region - Rioja (SP) “Rioja Recognises” awards for 6 figures in UK wine world; gala in London to thank for support of Rioja region

Engage distributers, wholesalers and - South Africa (SA) South African High Commission “Wozani” event in London; 41 wineries other chain participants - Paso Robles (CA, US) “Grand Tasting Tour” tasting events B2B at key cities, then opened to B2C; Houston, Dallas, Oakland - Ontario (CA) “Tools for the trade” Ontario Wine Industry power point presentation, Our Story White book, Wine of Ontario course; www.winecountryontario.ca - Rioja (SP) Rioja 10 x 10 event for professionals; part of Rioja Wine Show in UK; 280 attendees

Create awareness among retail and on- - McLaren Vale (SA, AU) “Meet Your Maker” bringing restaurateurs and retailers from across Australia for premise decision makers tastings, master class, helicopter ride, etc. - New Zealand (NZ) “Sommit Scholarship” for AU Sommeliers to learn about NZ wine; www.nzwine.com/ sommelierscholarship/ - New Zealand (NZ) Offering UK independent retailers chance to win trip to Pinot Noir 2017 event by proving their Pinot promotion skills are market leading (must stock 3 Pinots from 2 regions) - Austria (AS) Austria Uncorked; New York’s Best Sommelier 2016 event

Source: various websites; annual reports; Coriolis analysis 63 2. PROMOTION IN-MARKET Getting it tasted 2.2.2 Successful regions target key in-market influencers to raise their profile in select target market…cont.

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers Run educational sessions in-market to - New Zealand (NZ) New Zealand Wine Intermediate Certificate (NZW +NZTE), tailored to Chinese raise profiles consumers; programme to help raise awareness and appreciation of NZ premium wines, in association with NZ School of Wines and Spirits; www.nzsws.co.nz - New Zealand (NZ) Master Classes in China utilise NZ and China experts (e.g. Xiao Pi founder of Aroma Republic) - New Zealand (NZ) Bob Campbell runs tastings and lectures for the trade and press across Asia; Taiwan, Korea, Japan, Thailand, HK - Barossa Valley (SA, AU) Barossa Grape & Wine Association with Wine Australia and Austrade hosted a Barossa’s Old Vine Heritage master class in Taipei - Finger Lakes (NY, US) Riesling Roadshow; wine education seminar dinner and tastings in high-potential markets

Source: various websites; annual reports; Coriolis analysis 64 2. PROMOTION 2.2.2 Rioja awards UK supporters with “Outstanding Contribution” awards at their inaugural Getting it tasted “Rioja Recognises” Awards in the UK

Rioja honoured 6 personalities based in the UK with “Outstanding Contribution’ awards”

- Olly Smith, Communicator of the Year - Jose Pizarro, On-Trade Personality of the Year - Beth Willard, Off-Trade Personality of the Year - Simon Jerrome, Distributor of the Year - Tim Atkin, Outstanding Contribution - Sarah Jane Evans , Outstanding Contribution

“Ongoing commitment and support of Rioja category, growing awareness and affinity for the region amongst consumers.”

Ricardo Aguirano, Marketing Director for Rioja

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.uk.riojawine.com; Coriolis analysis 65 2. PROMOTION IN-MARKET Getting it tasted 2.2.3 Successful regions create a “Pathway to Engagement” for outsiders with the region

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Supply information to create region - New Zealand (NZ) NZ Wine has mandarin website, www.nz-wine.cn awareness with the consumer (in- - New Zealand (NZ) NZ Wine Weibo account - 282m monthly active users in CN, 82% on mobile phones; market) similar to - South Africa (SA) Dedicated country websites; www.wosa.hk/hk - Yakima Valley (WA, US) Promotion and advertising generated over 63 million impressions in print, radio, television and online in 2015

Facilitate opportunities for product - Hawkes Bay (NZ) “Hawkes Bay Wine Celebration”; gathering of 38 wineries, tastings, master classes, tasting and evaluation (in-market) speakeasy; Wellington and Auckland - Tasmania (TAS, AU) Tasmania Unbottled roadshow; incorporates food, tourism - Rioja (SP) Tastings and events in-market in USA - Swartland (SA) SIP hosting Swartland Revolution wine tasting, cricket, auctions in Johannesburg and Pretoria - Argentina (AR) Wines of Argentina has upcoming tastings and events in Norway, Fuzhou and UK

Create a desire for an immersive - Barossa (SA, AU) Barossa Wine School; 3 levels from 2 hour to 6 day; first two levels held in Hong Kong and regional experience (at home) China; in Cantonese, Mandarin or English; final intensive 6 day course in Barossa - Argentina (AR) ‘Wine Guru’ virtual Facebook wine making game where players grow plots of different grapes in different regions, them, make wine, age it and do business with friends

Source: various websites; annual reports; Coriolis analysis 66 2. PROMOTION 2.2.3 Barossa Wine School achieves in-market consumer engagement with the Barossa story Getting it tasted while creating the desire to experience the region in the flesh to attain “Barossa Master”

BAROSSA WINE SCHOOL 2016

CONCEPT DETAILS

Barossa Wine School is a three Level 1: Barossa Enthusiast level certification program A two hour introductory wine course about Barossa; taste developed to enhance participants’ six wines; optional examination (25 multiple choice understanding of wine styles, questions; pass mark is 70%); certificate; offered in English, history, viticulture and Cantonese or Mandarin; in Hong Kong & China in Australia’s most famous wine region, Barossa. Level 2: Barossa Specialist An eight hour comprehensive wine course about Barossa; taste 24 wines; optional examination (40 multiple choice and 6 short answer questions; pass mark is 70%); MEASURE OF SUCCESS certificate; offered in English, Cantonese or Mandarin; in Hong Kong & China “It was very pleasing to see a demonstrable return from the investment in the Barossa Wine School program as the Level 3: Barossa Master successful bidders on a number of lots, including the imperial A six day intensive, professional immersion program in of Penfolds Grange, were Barossa Wine School alumni from Barossa; taste more than 100 wines; optional examination Hong Kong and China who had travelled specifically to attend (2 wines, 40 multiple choice and 8 short answer questions; the Auction and the Festival.” pass mark is 70%); certificate; offered in English only. Must have completed Levels 1 and 2 previously; in Barossa, South James March, BGWA CEO Australia

Source: www.barossa.com/wine/barossa-wine-school; BGWA Annual Report 2014/2015; Coriolis analysis 67 1. MARKETING Wrapping it in a story

2. PROMOTION Getting it tasted

3. PRODUCT Making great wine

68 3. PRODUCT 3. PRODUCT Making great wine Through making great wines and winning awards, successful wineries lift the profile of the entire region (i.e. it’s not a zero sum game)

3.1 Successful regions work collectively to continuously improve viticulture skills and grape quality – Provide targeted training programs to grape growers – Build strong linkages with regional universities and research organisations – Assist with securing research program funding – Develop and promote “Young Viticulturist of the Year” competitions

3.2 Successful regions work collectively to continuously improve wine making skills – Provide targeted training programs to winemakers – Formalise regional vintage barrel tasting and “improve the breed” activities – Work collectively to increase the distinctiveness of their flagship varieties – Facilitate mentoring programs with experienced regional heroes

3.3 Successful regions develop industry, business and marketing skills – Deliver short course executive development programs – Sponsor scholarships to recognised programs – Deliver one day seminars on key issues or challenges

69 3. PRODUCT 3.1 Successful regions work collectively to continuously improve viticulture skills and grape Making great wine quality

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Provide targeted training programs to - Paso Robles (CA, US) IGGPRA grower group runs seminars, events; “Sustainable Ag Expo” grape growers - Napa Valley (CA, US) Sustainability programs, “Napa Green” www.napagreen.org and “Landsmart”; www.landsmart.org/vineyard - California (US) CAWG annual meeting and speaker program - Central Otago (NZ) technical workshops - Ontario (CA) Marketing and Vineyard Improvement Program (MVIP) to promote Ontario VQA and support vineyard production improvements - South Africa (SA) Winetech Technical Yearbook 2015 - Oregon (US) Oregon Wine Research Institute; targeted seminars; www.owri.oregonstate.edu - McLaren Vale (SA, AU) Sustainable Australia Winegrowing (SAW) program to improve viticulture practices, fruit quality and financial viability; now available country wide - Tasmania (TAS, AU)Technical Committee holds workshops, field days on soils and water management

Build strong linkages with regional - South Africa (SA) Winetech; www.winetech.co.za; network of expertise and technology in the SA wine universities and research organisations industry supported by “Institute for Grape and Wine Sciences” and Universiteit Stellenbosch University; aim to promote world class teaching, research and technology transfer in the SA wine industry - Australia (AU) Wine Australia; invests in $8.5m in 12 R&D projects; e.g. consumer perceptions research at University of South Australia; www.research.wineaustralia.com - Hawkes Bay (NZ) Wine Science and Viticulture program; diploma, bachelors of viticulture, wine science; www.eit.ac.nz - Marlborough (NZ), Sauvignon Blanc aroma research part of Wine Science programme at University of Auckland; www.winescience.auckland.ac.nz; also work with Plant and Food Research, Lincoln University - Central Otago (NZ) viticulture programme at Otago Polytechnic located in Cromwell, Central Otago in the heart of wine country - Finger Lakes (NY, US) location of new centre for Cornell Cooperative Extension and Finger Lakes Community College to conduct research add pursue hands on training - Oregon (US) Oregon Wine Research Institute; targeted seminars; www.owri.oregonstate.edu - Austria AWMB has 50% stake in Austrian Wine Academy; 900 seminars for 17,000 participants per year

Source: various websites; annual reports; Coriolis analysis 70 3. PRODUCT 3.1 Successful regions work collectively to continuously improve viticulture skills and grape Making great wine quality…cont.

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Assist with securing research program - Ontario (CA) Ontario Government helping grape growers and individual wineries make improvements to funding grape production, winery operations, and better market Ontario’s world-class VQA wine; $4m over two years to help investment in vineyards - Oregon (US) Oregon Wine Board funds targeted technical research projects relevant to Oregon; often provided by the Oregon Wine Research Institute - Tasmania (TAS, AU) Dr Don Martin Sustainable Viticulture Fellowship; grant of $10,000 for study-based travel or research projects

Develop and promote “Viticulturist of - New Zealand (NZ) “Young Viticulturist of the Year” competition supports training and increasing knowledge the Year” competitions in the industry - prizes include travel scholarships; final held in conjunction with “Bragato Wine Awards” - Australia (AU) ASVO Viticulturist of the Year and Awards for Excellence

Facilitate mentoring programs with - Barossa (SA, AU) Barossa Mentoring Circle for young grape growers and viticulturists experienced regional heroes

Source: various websites; annual reports; Coriolis analysis 71 3. PRODUCT 3.1 Winetech operates as a network of institutions to improve the competitive position of the Making great wine industry

WINETECH R&D INSTITUTE (SOUTH AFRICA) 2016

Six objectives: - To support the wine industry with expertise - To support the training and education of individuals for the industry - To establish a culture of technological innovation - To facilitate the development of resource poor and previously disadvantaged producers - To establish world leadership in selected niche areas of the wine industry to commission relevant and thoroughly planned research, technology development and technology transfer

Members: - Wine Cellars South Africa (WCSA) - VinPro - Black Association of the Wine and Spirit Industry (BAWSI) - National African Farmers’ Union of South Africa (NAFU) - South African Liquor Brandowners’ Association (SALBA)

Research Partners - Agricultural Research Council - University of Stellenbosch - University of Cape Town - University of Pretoria

Publishes Technical Yearbook for industry

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); www.winetech.co.za; Coriolis analysis 72 3. PRODUCT 3.2 Successful regions work collectively to continuously improve wine making skills Making great wine

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Provide targeted training programs to - Tasmania (TAS, AU) secures funding from GWRDC to provide workshops, pinot noir master classes for new winemakers winemakers - Napa Valley (CA, US) Wine Academy; www.napavalleywineacademy.com

Formalise regional vintage barrel tasting - New Zealand (NZ) “Family of 12” R&D sharing sessions with production teams and “improve the breed” activities - Finger Lakes (NY, US) Twice a year wine makers convene to openly discuss wines in hyper critical constructive manner - Tasmania (TAS, AU) conducts range of benchmarking workshops and wine tastings both within Tasmania and against global regions; focus on Pinot Noir (Avery Pinot Noir Forum) and sparkling wine

Work collectively to increase the - Central Otago (NZ) Hosted Climats of Burgundy delegation for a week of cultural exchange and celebration distinctiveness of their flagship varieties - Oregon (US) “Steamboat Conference” 3 day gathering of Pinot winemakers, wine tasting, problem solving, share learning, increase knowledge; www.steamboatpinot.com - Barossa (SA, AU) Barossa Grounds Project to study and record the range of that makes Barossa Shiraz so complex and unique - Barossa (SA, AU) Eden Valley Riesling Tasting for members only - Hawkes Bay (NZ) Research group used to maintain and increase wine quality - Swartland (SA) Certification programme established by Swartland Independent Producers for “naturally produced” and correctly aged wines from region; list of recommended varieties, minimum of 90% locally grown grapes in wine

Facilitate mentoring programs with - McLaren Vale (SA, AU) McLaren Vale Mentoring Circle has 7 young winemakers in peer group support experienced regional heroes mentoring with winemaker and former GWRDC CEO.

Develop and promote “Young - New Zealand (NZ) “Young wine-maker competition”; discover and develop young talent Winemaker of the Year” competitions

Source: various websites; annual reports; Coriolis analysis 73 3. PRODUCT 3.2 Regional winemaker symposiums aimed at “Improving the Breed”; honesty and Making great wine confidentiality are key aspects

STEAMBOAT PINOT NOIR (OREGON) PINOT MASSIF () 2016 2015

EVENT DETAILS PURPOSE EVENT DETAILS PURPOSE

- Established 1980 - Share knowledge, learnings - Established 2001 - ‘Improve the breed’ of Pinot - 3 day event, every July - Improve Pinot Noir - 2 day event, November Noir production in Victoria - Winemakers only - Honest discussions, feedback - Victorian Pinot Noir producers - All facets of Pinot Noir styles - Global representation - Best practice - Blind tastings, laboratory respected - Fly fishing lodge in Oregon analysis, viticulture and vinous - Honest discussions, feedback - Limited to 56 tasters provenance - Best practice - Families welcome - Confidential

PROGRAM PROGRAM

- Panorama tasting - global Pinot Tastings and discussion - Australian Wine Research Institute presentation of tannin research

- Formal tasting - from each attending winery with discussion, lab - Formal blind tasting - from each attending winery with discussion, lab analysis analysis

- Vintage tastings 2012 - discussion - Trial sessions, workshops

- Informal tastings - discussion - Burgundy tasting hosted by James Halliday

Source: www.steamboatpinot.com; www.pinotmassif.com.au; Coriolis analysis 74 3. PRODUCT 3.3 Successful regions develop industry, business and marketing skills Making great wine

IDENTIFIED REGIONAL ACTIVITIES 2016 Detail Examples from peers

Deliver short course executive - Finger Lakes (NY, US) Digital Marketing Workshop development programs - Barossa (SA, AU) “Next Crop” leadership programs for young grape growers - Walla Walla Valley (WA, US) Institute for Enology and Viticulture courses include marketing - Yakima Valley (WA, US) Behind the Label; networking and training on creating winery story and incorporating it within the Yakima Valley AVA story

Sponsor scholarships to recognised - New Zealand (NZ) Wine sponsor second year Bachelor of Wine student to study wine making in Italy programs

Deliver one day seminars on key issues - Barossa (SA, AU) Hosted Finlayson Wine Roadshow on generational succession or challenges - Yakima Valley (WA, US) Sponsored “Selling to the Wine Trade” seminar for members

Develop and provide technical - Tasmania (TAS, AU) records all enquires, provides database of land and vineyard prices, liaises with relevant information to potential investors government agencies to promote investment; named as one of two top wine investment locations in world in 2012 by The Drinks Business - Mendoza (AR) produces reports to encourage investment in the wine industry

Source: various websites; annual reports; Coriolis analysis 75 3. PRODUCT 3.3 Barossa encourages the next generation of industry leaders through a range of business Making great wine development activities

“THE NEXT CROP BAROSSA” 2016

THE NEXT CROP BAROSSA

- Intake of around 20 young grape growers

- 9 month course

- Designed to “better equip the region’s grapegrowers with the skills and confidence to take on leadership roles in their family and other business, and in the wider Barossa community”

- Participants work on projects that reflect group’s mission; “Through leadership over the next five years, develop and grow strong industry networks within the region, building upon our Barossa heritage of fine wines using sustainable practices”

- Alumni of 2011 group was recipient of Barossa Grape & Wine Association Services to the Industry Award 2015

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa Dirt website; BGWA Annual Report 2014/2015; Wine Australia; Coriolis analysis 76 CO-ORDINATION Co-ordination – between wine, tourism and government agencies – is required to generate optimum results

1. MARKETING Wrapping it in a story

2. PROMOTION Getting it tasted

3. PRODUCT Making great wine

REQUIRED COORDINATION

77 CO-ORDINATION Co-ordination is well recognised, as an effective way to utilise slim resources

“The MOU between the food, wine and “Co-ordination is key. Everyone running tourism agencies means we can more easily around with a different message doesn’t coordinate and plan our activities.” work, it dilutes the message.”

“Now that we are working with the Development Commission we can plan more efficiently and get access to funding.” “You see Barossa in-market and they are all there under one banner. They clearly work well with Wine Australia.” “We don’t have any money no wine region does. But when you have a clear strategy its easier to work in with government and access their funding.” “The Barossa achieved massive impact with their Barossa video. It really increased arrivals to the area.”

“When you all know your strategy and roles, you can focus on them. Split roles with other groups. There “The national and state agencies have funding. Give aren’t enough resources to doing everything. - Focus them clear messages, stories and images and work is so important.” with them and get them to promote the area.”

Source: Interviews 78 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)

79 In the third stage of the project, three identified peer group wine regions – Napa Valley, Barossa Valley and Central Otago – were developed as in-depth case studies

SIMPLIFIED DIAGRAM OF SCREENING PROCESS USED IN THIS PROJECT Model; 2016

Stage I – Peer Assessment Assess 80 wine regions to select 20 for further evaluation - Defining regions - Regions showing attractiveness across range of metrics - Two-page summary and assessment

Stage II – Peer Evaluation Evaluate the 20 regions in order to distill lessons and determine the 3 regions for in-depth case study - Regions that demonstrate greatest success in growing exports - Identification of actions and strategies - Project stakeholders rank for impact and ease of implementation

Stage III – Peer In-depth understanding Project stakeholders select 3 regions for in-depth case study - Deep dive analysis of regions - Identification of successful strategies that led to export growth - Quantitative/qualitative

80 There was strong, independent agreement among this group that Napa, Barossa and Central Otago were the regions with the most lessons for Western Australian regions

NAPA BAROSSA CENTRAL OTAGO

81 NAPA Summary: Napa Valley has one “key takeaway” and three further lessons for the wine regions of Western Australia

EXCLUSIVE EVENTS Exclusive Napa Valley events raise prestige of the region and its wines

EDUCATE INFLUENCERS Napa Valley target CONSISTENT STORY influencers by offering “educational” experiences Napa Valley excels at consistently telling their story

REGION FIRST The region is sold first at international trade shows and expos

82 BAROSSA Summary: The Barossa has one “key takeaway” and three further lessons for the wine regions of Western Australia

REGION FIRST The Barossa sells the region first in-market; allowing it to leverage the state’s tourism campaign

CLEAR STORY The Barossa tells a compelling story to its WORK TOGETHER consumers through “The The Barossa wine, food and Barossa Chapters” tourism industries work together to promote the region

CLEAR STRATEGY Barossa Grape and Wine Association has a clear market strategy; making it easy for Wine Australia to assist them

83 CENTRAL OTAGO Summary: Central Otago has one “key takeaway” and three further lessons for the wine regions of Western Australia

LEVERAGE TOURISM Central Otago’s stunning landscape and ski fields provide steady stream of tourists to cellar doors

RIDE THE COATTAILS Central Otago leveraged SINGLE CLEAR HERO the fame of Marlborough to Central Otago has Pinot Noir get its wines tasted as its single, clear “Hero Variety”

MAKE DISTINCTIVE WINE Small, remote regions can succeed in the shadow of larger, more well known “cousins” if they make distinctive wines

84 A1: NAPA The first case study looks at Napa Valley for lessons for the wine regions of Western Australia

NAPA BAROSSA CENTRAL OTAGO

85 NAPA Napa Valley has one “key takeaway” for the wine regions of Western Australia

CONSISTENT STORY Napa Valley excels at consistently telling their story

86 NAPA Beyond this, Napa Valley has three further lessons for the wine regions of Western Australia

EXCLUSIVE EVENTS Exclusive Napa Valley events raise prestige of the region and its wines

EDUCATE INFLUENCERS Napa Valley target CONSISTENT STORY influencers by offering “educational” experiences Napa Valley excels at consistently telling their story

REGION FIRST The region is sold first at international trade shows and expos

87 NAPA California accounts for 46% of the USA’s wineries and 87% of wine production

NUMBER OF WINERIES IN THE U.S. BY STATE U.S. WINE PRODUCTION BY STATE Units; as of July 2016 9L cases; m; as of July 2016 90% of exports from CA

All other states 6 2%

All other states 1,629 18% Ohio 1 0% Pennsylvania 1 0% Virginia 1 0% Ohio 180 2% Illinois 1 0% Pennsylvania 218 North Carolina 1 0% 3% Texas 2 1% California 4,077 Michigan 1 0% California Virginia 254 3% 46% Oregon 4 1% 281 Illinois 109 1% New York 12 4% 87% North Carolina 146 2% Washington 15 5% Michigan 149 2% Texas 286 3% Oregon 705 8%

Washington 736 8% New York 365 4%

TOTAL = 8,854 wineries TOTAL = 1,607 tonnes (000)

Source: Wines & Vines ; Coriolis analysis 88 NAPA Within California, Napa Valley is the third largest wine area, accounting for 9% wine grape area

WINE GRAPE AREA IN CALIFORNIA BY REGION Hectares; 2014

Other San Joaquin 40,053 29,822 20% 15%

Mendocino Sonoma 7,014 24,271 3% 12% Kern 7,221 4% Sacramento Napa export value of $240m 9,150 (2015)* 5% Napa San Luis Obispo 18,581 13,799 9% 7% Monterey Madera Fresno 18,535 14,850 17,554 9% 7% 9%

TOTAL = 200,851 hectares

Source: CDFA/USDA/NASS California Grape Acreage Report 2014 (latest available); * USA Department of Commerce; Coriolis analysis 89 NAPA Wine grape area in the Napa Valley started to grow in the mid-60’s, however growth has slowed since the Global Financial Crisis (GFC)

NAPA COUNTY WINE GRAPE AREA: BEARING & NON-BEARING Hectares; 1856-2014

20,000 GFC Cult wines 18,000 established

Phylloxera outbreak* 16,000 Opus One released mid 90s 1984 14,000 Paris tasting 1976

12,000

10,000

Mondavi 8,000 first winery 1966 Take-off starts here in mid 60’s 6,000

4,000

2,000 1880 1925 1927 1933 1935 1937 1941 1953 1955 1957 1973 1975 1977 2001 2011 1923 1890 1906 1981 1919 1961 1991 2009 1894 1949 1921 1886 1971 1951 1989 2007 2005 1969 1999 1931 1874 1947 1945 2003 1943 2013 1892 1858 1929 1987 1876 1985 1856 1967 1997 1979 1965 1995 1959 1983 1963 1993 1939 - 1872

* primarily Cabernet and Chardonnay replanted; Source: Coriolis from a range of sources 90 NAPA The number of vineyards in Napa has been increasing since the late 1960’s, which has resulted in the average vineyard size declining; signs of a stabilisation recently

NUMBER OF FARMS WITH VINEYARDS IN NAPA AVERAGE AREA OF EACH FARMS WITH VINEYARDS IN NAPA Units; actual; 1935-2012 Hectares/unit; actual; 1935-2012

25

1,400

1,200 20

1,000

15

800

600 10

400

5

200

0 0 1935 1935 2002 2007 2002 2007 1949 1949 1964 1964 1969 1969 2012 2012 1945 1945 1954 1954 1974 1974 1982 1982 1992 1992 1978 1987 1978 1987 1959 1959 1997 1997 1939 1939

Source: USDA Census of Agriculture (various years); Coriolis analysis 91 NAPA The Napa Valley produces a wide range of wines; red wines wines dominate (75% of area) while Cabernet Sauvignon is the largest (43% of area); Chardonnay (16%) and Sauvignon Blanc (6%) are the key white wines

NAPA VALLEY WINE GRAPE AREA BY VARIETY/COLOUR Hectares; 2014

Red 14,011 Other/unknown 75% 166 Other red 1% 1,978 Other White White 11% 329 4,403 2% Semillon 24% 76 0%

Cab Sav 7,958 Sauvignon Blanc 43% 1,082 6%

Chardonnay 2,916 16%

Zinfandel 599 Pinot Noir 3% 1,174 2,302 6% 12%

TOTAL = 18,581 hectares

Source: CDFA/USDA/NASS California Grape Acreage Report 2014 (latest available); Coriolis analysis 92 NAPA Napa area growth is coming predominantly from Cabernet Sauvignon and other red wines

NAPA VALLEY WINE GRAPE AREA BY VARIETY/COLOUR Hectares; 1992-2014

18,000 1,978 Other Red 1,666 16,000

1,254 14,000

7,958 Cabernet Sauvignon 12,000 7,369 683 845 5,209 10,000 3,187 3,602 8,000 843 2,751 2,822 2,302 Merlot 960 1,624 6,000 758 1,174 Pinot Noir 731 934 1,062 728 703 599 4,000 658 3,597 2,916 Chardonnay 3,111 2,948 2,716 2,000 1,024 Sauvignon Blanc 119 625 723 848 1,082 730 84 75 64 76 Semillon - 417 331 302 329 Other white 1992 1997 2002 2007 2014 Red as a 54% 64% 73% 78% 76% % of total

Note: Other/unknown not shown on this chart; Source: various CDFA/USDA/NASS California Grape Acreage Reports; Coriolis analysis 93 NAPA In leading markets, Napa Cabernet Sauvignon is beating Western Australia on the shelf in terms of (1) depth of range, (2) achieving super-premium prices and (3) range of prices (i.e. wines for more budgets)

# OF CAB. SAV. ON SHELF: SHELF PRICE OF CAB SAV. ON SHELF IN UK: SKU; actual; Oct 2016 GBP; Oct 2016

Bordeaux 43 Silver '11 £125.00

Napa 9 Montelena '00 £120.00 Italy 9 Silver Oak '11 £85.00 Other France 7

Stellenbosch 7 Caymus '13 £70.00

Other Australia 7 Duckhorn '11 £55.00 Argentina 6 Montelena '11 £47.00 Chile 5 Beringer '11 £28.00 Lebanon 4

Other S. Africa 4 Decoy '13 £27.00

Spain 3 Kuleto '13 £19.99 Other USA 2

NZ 1

WA 1 Vasse Felix '10 £62.00

Note: Decoy ‘13 also contains Sonoma; Silver Oak ‘11 #2 also contains Alexander Valley; Source: Coriolis from store checks 94 NAPA Collective action by Napa Valley can be organised into four broad areas; designed to maintain its status as one of the world’s greatest wine regions

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

95 NAPA First, Napa Valley presents a clear story

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

96 NAPA 1. Present a clear story Napa Valley tells an unique but simple story to the world’s consumers

1.1 Emphasising history and iconic figures a. Napa Valley has a long and rich history b. There are key defining events and figures in this history that differentiate the region c. These key events and figures are consistently repeated to tell a simplified but interesting history

1.2 Pushing the “hero variety” a. Napa Valley produces a range of grape varieties, Cabernet Sauvignon clearly dominates b. Napa Valley Cabernet Sauvignon grapes receive a premium c. There is wide agreement that Cabernet Sauvignon is Napa Valley’s “hero variety” d. Renowned Napa Valley wineries have Cabernet Sauvignon as their flagship wine

1.3 Defining what makes the region’s terroir unique a. Napa Valley’s terroir is complicated; the region contains 16 sub-regional American Viticultural Areas (AVA)… half of the world’s soil orders, 33 soil series, and more than 100 soil variations b. This is broken down to four main components for simplification c. The Napa Valley Vintners emphasise the terroir story to differentiate the region, telling it across multiple platforms d. The simplified terroir story – ‘Napa Valley grows perfect grapes’ – is told consistently across the region

1.4 Identifying the Napa Valley though consistent use of recognisable imagery

97 NAPA 1.1.a Napa Valley has a long and rich history

NAPA VALLEY TIMELINE 1839-2014; not to scale

1839 - George 1879 – Finnish Sea 1933 – Prohibition 1968 – America’s first 1981 – Napa Valley 2014 – 6.0 magnitude Calvert Yount Captain Gustave repealed; only 100 Agricultural Preserve becomes California’s earthquake strikes Napa first plants Niebaum establishes wineries remained protects Napa Valley’s first American Valley; strongest in 25 grapes Inglenook in USA vineyards Viticultural Area years for Bay

1862 – Jacob 1877 – 1944 – Napa Valley 1976 – Paris Tasting 1990s – Robert Parker Schram arrives in Napa Valley; Vintners forms results catapults Napa becomes increasingly establishes 80% of acreage falls through efforts of 7 Valley to world influential; key proponent Schramsberg victim vintners recognition of Napa Valley region

1861 - Charles Krug 1890 – Vineyard 1938 – Andre 1972 – Early Bordeaux 1981 – NVV hosts first 2014 – Napa establishes Napa acreage hits 18,000 Tchelistcheff arrives in pioneer Bernard Portet Napa Valley Wine Valley welcomes Valley’s first acres, with 200 Napa Valley for Beaulieu selects vineyard for Auction; to date $150m 3.3 million commercial winery wineries Vineyards Clos du Val given to charity visitors

1876 – Brothers 1919 – Volstead Act brings 1965 – 1979 – Historic partnership 1992 – Screaming Eagle Jacob and in Prohibition, outlawing leaves family owned between Robert Mondavi sells first release for $75 Frederick establish sale and production of Charles Krug to establish and Baron Philippe per bottle; becomes Cult Beringer alcoholic beverages Robert Mondavi Winery Rothschild forms Opus One Wine

Source: Napa Valley Vintner website; various websites; Coriolis analysis 98 NAPA 1.1.b There are key defining events and figures in this history that differentiate the region

NAPA VALLEY TIMELINE 1839-2014; not to scale

1976 – PARIS TASTING results catapults Napa Valley to world recognition. It was the brainchild of an English wine merchant, Steven Spurrier, who run wine shop in Paris. First growth and other classified growth red Bordeaux and white Burgundies were blind tasted against California Cabernet Sauvignon and Chardonnay by renowned French tasters. The results shocked the wine world, with the 1973 Stag’s Leap Wine Cellars S.L.V. Cabernet Sauvignon beating four top-ranked Bordeaux, including first-growths Château Mouton- Rothschild and Château Haut-Brion. The 1973 Chateau Montelena Chardonnay was the top of the white tasting. The sole journalist in attendance was George Taber writing an article for Time, and later a book on the topic. The Paris Judgement is credited with propelling Napa Valley into the ranks of the world’s best wine regions.

1938 – ANDRE TCHELISTCHEFF arrives in Napa Valley to become Beaulieu 1965 – ROBERT MONDAVI leaves family owned Charles Vineyards (BV) vice president and chief winemaker. Considered by many to Krug to establish Robert Mondavi Winery. He is be America’s most influential post Prohibition winemaker, he helped define a considered to be Napa Valley’s greatest marketer, putting style for quality Napa Valley Cabernet Sauvignon. He introduced and not only his winery but the region as a whole on the world developed new techniques in viticulture and winemaking, perhaps most wine map. He formed historic partnership with Baron importantly the ageing of wine in French oak barrels. He worked with the top to establish Opus One winery in wineries in the region and trained two generations of winemakers. Referred to late 70’s, one of the world’s greatest wines. He not only as the “Dean of American Winemaking”, “The Maestro” and “The pushed to improve quality of Napa Valley wines to equal Winemaker’s Winemaker” he firmly believed in the sharing of information and best in the world, he was pivotal in introducing wine teaching those who wished to make great wine. tourism to California.

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source; Napa Valley Vintner website); various websites; Coriolis analysis 99 NAPA 1.1.b The combination of passionate individuals and global recognition drove the regions story

“The Napa owes its reputation to the passion of Robert Mondavi. He was constantly seeking to make their wines better. He was relentless, confident and passionate. He shared all his viticultural knowledge to ensure everyone could improve their wines. He wanted to build on the foundation of premium.”

Wine Australia - Americas “The Judgement of Paris in 1976 followed by the partnership with Baron Rothcschild and the emergence of Opus One really put the Napa on the map. Opus One became a cult wine. More wineries emerged and the region gained scale and critical mass.”

Wine Australia - Americas

“A lot of time was devoted in the 70’s and 80’s to developing the Napa story. There was a lot of investing in wineries and new cellars were built. [60 to 120 in the 1980]. Today there are 700 wineries.”

Wine Australia - Americas

Source: Industry interviews; Coriolis 100 NAPA 1.1.c These key events and figures are consistently repeated to tell a simplified but interesting history

NAPA VALLEY VINTNERS NAPAVALLEY® THE WINE BIBLE

- Andre Tchelischeff “one of the great - Paris Tasting of 1976 “The sensation - Paris Tasting of 1976 “the state’s figures and mentors in the history of that was made when California’s fine wines were so good that French Napa Valley wine” offerings easily trounced the judges were left reeling” competition sent shockwaves - Robert Mondavi “Napa Valley’s throughout the wine industry, and - Robert Mondavi “Mondavi was a greatest marketer” changed the industry forever” tireless crusader for California’s place in the wine empyrean” - Paris Tasting of 1976 “If a single event can be credited with putting - Andre Tchelischeff “most famous Napa Valley on the map” United States wine consultant of the postwar era”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source; Napa Valley Vintners; NapaValley; The Wine Bible; Coriolis 101 NAPA 1.2.a Napa Valley produces a range of grape varieties, Cabernet Sauvignon clearly dominates

NAPA VALLEY GRAPE CRUSH BY VARIETY Tons; 2015 89,562 34,563

Cabernet Sauvignon Chardonnay 53,195 21,145

Merlot 14,027

Sauvignon Blanc Pinot Noir 10,938 6,248 Zinfandel 4,009 Petite Sirah 2,740 2,731 Semillon 1,985 713 1,745 Red other Malbec White other 1,497 1,386 1,767 Red Varieties White Varieties

Source: California Grape Crush Report 2015; Coriolis analysis 102 NAPA 1.2.b Napa Valley Cabernet Sauvignon grapes receive a premium over other varieties

GROWER RETURNS PER TON BY MAJOR GRAPE VARIETY US$/t; tons; delivered basis; 2015

$6,289 $6,065 $5,812

$4,991

$3,528 US$ per ton $3,390 delivered $3,234 $3,135

$2,713 $2,592 $2,436

$2,012 Cabernet Franc Petit Verdot Malbec Petite Sirah Zinfandel Syrah Semillon Cabernet Sauvignon Merlot Pinot Noir Chardonnay Sauvignon Blanc

Tons crushed

Source: California Grape Crush Report, 2015 Crop; Coriolis analysis 103 NAPA 1.2.c There is wide agreement that Cabernet Sauvignon is Napa Valley’s “hero variety”

“Although a number of grape varieties are grown in the valley’s vineyards, the area is “Napa Valley is most recognised for particularly known for its Cabernet Sauvignon. “Cabernet Sauvignon is king in Cabernet Sauvignon… The classic ‘Napa Cab’, the archetypal Napa Napa Valley” Cabernet Sauvignon wines from Valley wine is a rich, oak-aged red with Wine Institute Napa Valley are truly incredible” aromas of blackcurrant, boysenberry, Wine Folly liquorice, vanilla and smoky, bittersweet chocolate.” Wine Searcher

“Napa Valley certainly is remarkable. It’s “Napa’s Own Grape. Cabernet Sauvignon one of the world’s greatest wine regions. “For many wine lovers, Napa is the Napa Valley’s grape. In fact, Napa’s And, like France’s Bordeaux region to Valley is synonymous with best Cabernets are incontrovertibly some which it’s always compared, Napa has Cabernet Sauvignon” of the world’s most successful” staked its history and fortunes on Into Wine Cabernet Sauvignon.” The World Atlas of Wine Wine Enthusiast

Source: various published articles, magazines and books; various websites; Coriolis analysis 104 NAPA 1.2.d Renowned Napa Valley wineries have Cabernet Sauvignon as their flagship wine

SELECTED NAPA VALLEY CABERNET SAUVIGNON WINES US$; 2016

Montelena Estate Private Reserve Audentia Cabernet Sauvignon Cabernet Sauvignon Cabernet Sauvignon 2012 2011 2012 US$150 US$190 US$200

Napa Valley To Kalon Special Selection Cabernet Sauvignon Cabernet Sauvignon Cabernet Sauvignon 2011 2012 2011 US$110 US$300 US$200

Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes); various websites; Coriolis analysis 105 NAPA 1.3.a Napa Valley’s terroir is complicated; the region contains 16 sub-regional American Viticultural Areas (AVA)…

NAPA VALLEY AVA

- Situated within California’s North Coast AVA

- Contains 16 sub-regional AVA

- 18,200 hectares of vineyards

- 58 kilometres from Pacific Ocean

- Approximately an hour’s drive from San Francisco - 13th largest city in USA - Population of 864,816 - Real GDP of US$370,478m - Median household income of US$84,160

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Passport; 106 NAPA 1.3.a … half of the world’s soil orders, 33 soil series, and more than 100 soil variations

MAP OF NAPA VALLEY AVA SOIL SERIES 2003; Terra Spase Inc

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; Coriolis analysis 107 NAPA 1.3.b This is broken down to four main components for simplification

NAPA VALLEY ROCKS MODEL 2013; modified

Very diverse Volcanic valley SOIL TOPOGRAPHY

Cooling fog OCEAN INFLUENCES CLIMATE Mediterranean

Source: photo credit (PixaBay); (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; Coriolis analysis 108 NAPA 1.3.c The Napa Valley Vintners emphasise the terroir story to differentiate the region, telling it across multiple platforms

NVV WEBSITE DVD PRESENTATIONS MEDIA KITS

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; Coriolis analysis 109 NAPA 1.3.d The simplified terroir story – ‘Napa Valley grows perfect grapes’ – is told consistently across the region

SOIL TOPOGRAPHY CLIMATE OCEAN INFLUENCES

“Half of the soil orders on “The Napa Valley’s “Napa’s ‘Goldilocks’ climate “A confluence of morning earth are found in the Napa geography and geology reap is just right” fog, abundant afternoon Valley” immense diversity that is Doug Shafer, Shafer sunshine and breezes from The World Atlas of Wine reflected in its wines. the nearby San Pablo Bay…” Numerous benches, “Napa Valley enjoys a Trinchero Napa Valley “Of the 12 major oil series in terraces, canyons and fans temperate climate perfectly the world, 6 can be found in have been carved out or suited to the growing of fine “Cooled by winds and fog the Napa Valley, within pushed up from the valley wine grapes ” from San Pablo Bay” which there are more than floor” Corley Family Napa Valley The World Atlas of Wine 100 different soil variations” Wine Enthusiast Faith Durand, Kitchn “The Napa Valley climate “A key factor in Napa “St. Helena boasts a unique falls into that 2% of the County's success as a “The site’s diversity of soils topography, quite different world’s Mediterranean viticultural region is the and slopes translates from the surrounding areas, making it the perfect famous Bay Area fog and its directly into the layers of regions, that creates an place for a flourishing wine interactions with the Napa complex flavours in our optimal microclimate for industry” Valley” wines” growing cabernet sauvignon Churchill Manor Wine Searcher Chateau Montelena grapes” BKWine Magazine

Source: photo credit (PixaBay); Napa Valley Vintners website; Coriolis analysis 110 NAPA 1.4. Identifying with recognisable Napa Valley imagery through a consistent theme: grapes, hills, castle, iconic sign

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; wide range of Napa Valley winery and wine sites; Coriolis analysis 111 NAPA Second, Napa Valley executes on a consistent marketing program

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

112 NAPA 2. Execute on a consistent marketing package Napa Valley Vintners work constantly to maintain and improve the Napa Brand and its value to their producers

2.1 Promoting a strong, consistently used brand a. Napa Valley brand is the name, which is “synonymous with wine” b. Major producers in the region use ‘Napa Valley’ prominently c. Napa Valley Vintners work hard to protect their brand, achieving name protection assurance or GI status in fourteen countries to date

2.2 Using ‘common phrases’ or taglines across the region; Napa Valley Vintners has the tagline “Cultivating Excellence”

2.3 Encouraging Napa Valley wineries to execute on key elements of the marketing package…uptake across the region is strong

2.4 Encouraging press articles and trade materials to repeat the Napa Valley story

113 NAPA 2.1.a The Napa Valley brand is the name, which is “synonymous with wine”

GOOGLE SEARCHES “NAPA “ AND “MARGARET RIVER” Indexed; High = 100; 2004-2016

“Napa Valley is the heart and soul of the California wine industry.”

Sotheby’s Wine Encyclopedia Napa

“The Napa Valley name is synonymous with the world’s finest wines.”

Margaret River Napa Valley Vintners

“Napa Valley is California’s best-known and most renowned wine region.”

The Wine Bible

Source: Sotheby’s Wine Encyclopedia; The Wine Bible; Napa Valley Vintners website; Google analytics; Coriolis analysis 114 NAPA 2.1.b Major producers in the region use ‘Napa Valley’ prominently

SELECTED NAPA VALLEY PRODUCERS 2016

Advertising Bottle label Website

Advertising Bottle label Website

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Wine Enthusiast magazine; various websites; Coriolis analysis 115 NAPA 2.1.c Napa Valley Vintners work hard to protect their brand, achieving name protection assurance or GI status in fourteen countries to date

COUNTRIES RECOGNISING NAPA VALLEY NAME PROTECTION 2016

“NVV HAS ASSUMED THE DUTY OF PRESERVING THE NAPA VALLEY NAME FOR THOSE WHO HAVE EARNED THE RIGHT TO PUT IT ON THEIR LABELS”

EU South Korea Brazil Australia Taiwan

Turkey Singapore Thailand China New Zealand

Niger Israel Canada Norway

Source: Napa Valley Vintners; Wikipedia commons; Coriolis analysis 116 NAPA 2.2. Using ‘common phrases’ or taglines across the region; Napa Valley Vintners has the tagline “Cultivating Excellence”

NVV PRESS KIT/APPS TRADESHOWS/EXPOS HARVEST TSHIRTS

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; Poretta and Orr website; Coriolis 117 NAPA 2.3. Encouraging Napa Valley wineries to execute on key elements of the marketing package….

EXAMPLE: CLOS DU VAL WINERY USE OF ALL KEY ELEMENTS OF NAPA MARKETING PACKAGE 2016

Using Napa Valley brand Using recognisable imagery Using Napa Valley taglines

“Classic elegance from legendary vineyards”

Telling the terroir story Telling Napa Valley history Focusing on ‘Hero Variety’

The image cannot be displayed. Your computer may not have enough memory to open the image, or the image may have been corrupted. Restart your computer, and then open the file again. If the red x still appears, you may have to delete the image and “Clos Du Val wines brilliantly then insert it again. capture the terroir of three world-class Napa Valley appellations, delivering finesse, complexity and balance.”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Clos Du Val website; Coriolis analysis 118 NAPA 2.3. …uptake across the region is strong

EXECUTION OF MARKETING PACKAGE BY SELECTED NAPA VALLEY WINERIES 2016 CRITERIA Beaulieu Vineyard Beringer Cakebread Cellars Charles Krug Chateau Montelena Chimney Rock Clos Du Val Fairchild Napa Frog’s Leap Robert Mondavi Rutherford Hill Sequoia Grove Silver Oak Stags’ Leap Trinchero Napa Valley

Using Napa Valley brand "$ !$ "$ !$ "$ !$ !$ !$ "$ !$ !$ !$ "$ "$ !$

Using recognisable imagery "$ !$ !$ !$ !$ !$ !$ "$ !$ !$ !$ !$ "$ "$ !$

Using Napa Valley taglines "$ #$ #$ #$ #$ #$ "$ #$ "$ "$ "$ "$ "$ "$ "$

Telling the terroir story !$ "$ !$ !$ !$ !$ !$ "$ !$ !$ !$ !$ !$ !$ !$

Telling Napa Valley history !$ "$ !$ !$ !$ !$ !$ #$ "$ !$ !$ !$ !$ !$ !$

Focusing on ‘Hero Variety’ !$ !$ "$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$

OVERALL !$ "$ "$ !$ !$ !$ !$ "$ !$ !$ !$ !$ !$ !$ !$

Source: various websites; Coriolis analysis 119 NAPA 2.4. Encouraging press articles and trade materials to repeat the Napa Valley story

SELECTED EXAMPLES 2016

TRAVEL + LEISURE THE TELEGRAPH TOTAL WINE STORE

- Recognisable Napa Valley vineyard - Key event in Napa Valley history - Recognisable Napa Valley vineyard image story image

- History of establishments - Recognisable Napa Valley vineyard - Emphasis on ‘Hero Variety’ of image Cabernet Sauvignon

- Emphasis on ‘Hero Variety’ of Cabernet Sauvignon

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Travel + Leisure website; The Telegraph website; The Hour website; Coriolis analysis 120 NAPA Third, Napa Valley optimises in-regional activity for maximum impact

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

121 NAPA 3. Optimise in region activities Napa Valley focuses on three main areas to maintain its status as America’s premier wine destination

3.1 Executing on a very well developed wine trail a. Napa Valley has over 500 wineries within 50 km, creating an accessible cluster of cellar doors b. There is a wide range of well-presented cellar doors, catering to different consumer preferences c. They provide readily available information, itinerary planners and maps, in multiple formats

3.2 Generating interest through a constant calendar of events a. Individual wineries constantly host a variety of events, ranging in size and target audience b. Napa Valley Vintners and Napa Valley Grapegrowers host big, wine-focused events; for both consumer and trade c. Napa Valley Vintners host a range of events targeting different industry ‘influencers’ d. ‘Visit Napa Valley’ and private event companies run events that tie wine, food and tourism together in the region

3.3 Collaborating within the region to ensure a co-ordinated, world class experience for Napa Valley visitors

122 NAPA 3.1.a Napa Valley has over 500 wineries within 50 kilometres, creating an accessible cluster of cellar doors

NAPA VALLEY VINTNERS ONLINE WINERIES MAP 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners website; Coriolis analysis 123 NAPA 3.1.b There is a wide range of well-presented cellar doors, catering to different consumer preferences

SELECTED NAPA VALLEY CELLAR DOORS 2016

- Meet the winemaker

- Value for money

- Small, intimate tastings ‘Best kept secret’

- Famous landmark

- 13th century inspired Tuscan castle

- Tours of castle available as well as tastings ‘Must see’

- Historic building

- Famous Napa Valley wine brand

- High-end tasting experience ‘Napa establishment’

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Bach to Bacchus website; Castello di Amorosa website; Beringer website; Coriolis analysis 124 NAPA 3.1.c They provide readily available information, itinerary planners and maps, in multiple formats

PRINTED MATERIALS ONLINE RESOURCES VISITORS CENTRE

- Available to buy online - Filterable maps - 2,400 square foot centre in Napa

- Available from tourist information - Itinerary planners for range of - Mix of high-tech and traditional centres options resources

- Attractive and informative - Up-to-date, attractive maps - VIP Concierge services to help with wine tastings, itineraries, - Apps for phones and tablets accommodation, restaurants

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 125 NAPA 3.2.a Individual wineries constantly host a variety of events, ranging in size and target audience

Source: Napa Valley Vintners website; Coriolis analysis 126 NAPA 3.2.b Napa Valley Vintners and Napa Valley Grapegrowers host large, renowned, wine-focused events; for both consumers and trade

- Since 1981, first of its kind - Barrel tasting and auction - 550 guests; sells out each year

- Charity event for Napa Valley Non- - Unique wines made exclusively for - 150 Napa wineries involved Profits event - Proceeds to Napa Valley - Raised $150m to date - Industry professionals, winemakers Farmworker Foundation and winery owners only - Vertical collections, barrels and experiences offered for auction

Source: various websites; Coriolis analysis 127 NAPA 3.2.c Napa Valley Vintners host a range of events targeting different industry ‘influencers’; they have an ‘educational’ feel to them

NAPA VALLEY VINTNERS PROFESSIONAL DEVELOPMENT PROGRAMS 2016; scheduled

7

5 5

3

Sommeliers Wine Writers Trade Educators

Source: Napa Valley Vintners website; Coriolis analysis 128 NAPA 3.2.d ‘Visit Napa Valley’ and private event companies run events that tie wine, food and tourism together in the region

SELECTED EVENTS 2016

- Held during Cabernet - Ten day event - Music festival; big - Three scenic 15, 25 or 50 Season headliners mile courses - Performing arts festival; - Five days of “culinary music, dance and theatre - Three day festival - “Wind among the hills indulgence” and vineyards of the - Taste of Napa signature - On-site sommeliers and World Famous Napa - Local and celebrity chef event wine experts Valley” demonstrations - Includes some free - Art installations - Cycle for Sight Wine and - Winemaker workshops events Music Festival at - Culinary stage with conclusion - Grand Tastings - 100 wineries involved musicians and celebrity chefs - Wine tastings at Festival - Golf tournament and - Over 60 events dinner - Fundraising event

Source: Various websites; Coriolis analysis 129 NAPA 3.3. Collaborating within the region to ensure a co-ordinated, world class experience for Napa Valley visitors

Napa Valley Vintners advertise their online winery map and trip planner in Visit Napa Napa Valley Valley Guidebook Grapegrowers’ event Harvest Stomp is incorporated within the larger Napa Valley Harvest celebration

Visit Napa Valley, the official tourism marketing organisation for Napa Valley, lists Napa Valley Vintners as a partner

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 130 NAPA Fourth, Napa Valley organises out-of-region activities

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

131 NAPA 4. Organise out of region activities Napa Valley goes to market as a region, with a three pronged approach

4.1 Executing Napa Valley PR campaigns to raise awareness in-market

4.2 Hosting own Napa Valley events to create opportunity to experience wine

4.3 Entering Trade Shows and expos as a region to increase exposure and reputation

132 NAPA 4.1. Executing Napa Valley PR campaign to raise awareness in-market

STRATEGY EXPERTISE CAMPAIGN

- “Achieving greater global - Specialist PR companies contracted - Print advertising in key wine recognition” identified as top in-market publications priority in 2015-2017 Strategic Plan - Handle all public and industry - Television and online video ads - Dedicated International Marketing relations, including in-market events Marketing Manager and national media for that region - Media/education kits for key influencers - Napa Valley Vintners satellite - New York/East Coast and Canada offices in UK, Japan, China, Canada

Source: photo credit (purchased or fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners press releases; various websites; Coriolis analysis 133 NAPA 4.2. Hosting own Napa Valley events to create opportunities to experience the wine

SELECTED IN-MARKET EVENTS RUN BY NAPA VALLEY VINTNERS 2016

NAPA VALLEY SOMMELIER SCAVENGER HUNT/ SOMMS & SLIDERS HONG KONG

- Tailored trips to key target - 16 teams of Somms race - Partnering with Christie’s to markets across Toronto bring Premiere Napa Valley to Hong Kong in 2016 - China in September 2016 - 18 of New York’s sommeliers paired best - 25 lots of 60-120 bottles - Japan in January 2017 burger with Napa wine; each available for 2 weeks - Produced under Premiere - First time events held Napa Valley label, unique wines produced for event Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners Facebook page; various websites; Coriolis analysis 134 NAPA 4.3. Entering trade shows and expos as a region to increase exposure and reputation

VINEXPO HONG KONG 2016 VINEXPO BORDEAUX 2015 PROWEIN 2016

- Napa Valley Vintners host own - Napa Valley Vintners host own - Napa Valley Vintners own booth; pavilion pavilion beside California Wines Pavilion

- 29 wineries - Napa Valley Vintners celebrate 35th anniversary of Napa Valley - Co-branded with Discover California achieving AVA status at ProWein

- 28 wineries

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Napa Valley Vintners Facebook page; Poretta & Orr website; Enjoywine website; Coriolis analysis 135 BAROSSA The second case study looks at the Barossa for lessons for the wine regions of Western Australia

NAPA BAROSSA CENTRAL OTAGO

136 BAROSSA The Barossa has one “key takeaway” for the wine regions of Western Australia

WORK TOGETHER The Barossa wine, food and tourism industries work together to promote the region

137 BAROSSA Working together is engrained in the Barossa culture

“In 2007 we realised we had to work together to get funding in the Barossa. “The memory of working together runs through families. The culture of The Barossa Grape and Wine Association was formed with separate Grape and belonging to the community is passed down. There is an underlying Wine committees. This structure gave the groups a stronger voice and more assumption that people will work together. Intrinsically people understand the comfort. The industry was able to advance together. We ran successful events, benefit of working together.” got some runs on the board, and realised this would work. ”

Barossa Grape and Wine Association Barossa Grape and Wine Association

“There is a strong willingness to work together. A big part of this is having good wise leaders. The region recognises the value of leadership. Of course there are “We all know our roles and we don’t deviate or include ad hoc activities. competitive personalities but they trust each other. A good leader recognises Everyone follows their strategy and sticks to it.” they need help to challenge their ideas.”

Barossa Grape and Wine Association Barossa Grape and Wine Association

“The Barossa are really focused, they don’t deviate. They are not that well “The Barossa go to events with a clear message. They understand their selling resourced, but they are clever with their funds. Because their strategy is clear, points. They focus on key markets as a group - USA and China are the most they are easy to help.” important. ”

Wine Australia Wine Australia

Source: Industry interviews; Coriolis 138 BAROSSA Collaboration occurs at all levels

• BGWA1 (strong governance, strong strategy, dedicated staff) • Wine Australia (support)

INDUSTRY BODIES (State, National)

2 • PIRSA FUNDING • BGWA - subcommittee AMLR NRM3 ‘Voice’ and capability building • PROVIDERS GROWERS • • Ministry of Regional • Formal and informal communications Development (State, National) • Wine Australia BAROSSA WINE INDUSTRY

• BGWA - subcommittee • Cellar Door Network • MOU BGWA, Tourism ADJACENT WINERIES Events, in-market and home activities Barossa, Barossa Food AGENCIES • • Formal and informal communications • Website and digital (Food, Tourism) Respectful, with a sense of trust strategy •

1. Barossa Grape and Wine Association, 2. Department of Primary Industries and Regions South Australia, 3. Adelaide and Natural Resources Management; Source: Industry interviews; Coriolis 139 BAROSSA Beyond this, the Barossa has three further lessons for the wine regions of Western Australia

REGION FIRST The Barossa sells the region first in-market; allowing it to leverage the state’s tourism campaign

CLEAR STORY The Barossa tells a compelling story to its WORK TOGETHER consumers through “The The Barossa wine, food and Barossa Chapters” tourism industries work together to promote the region

CLEAR STRATEGY Barossa Grape and Wine Association has a clear market strategy; making it easy for Wine Australia to assist them

140 BAROSSA South Australia accounts for 50% of Australia’s grape area and 46% of wine grape production

AUSTRALIAN WINE GRAPE AREA BY STATE AUSTRALIAN WINE GRAPE PRODUCTION BY STATE Hectares; 2015 Tonnes; 000; 2015

QLD 541 0% QLD 1 0% WA 44 3% TAS 1,510 1% ACT 93 0% TAS 8 0% ACT 0 0%

WA 9,026 7%

VIC 319 20%

VIC 23,151 17%

South Australia South Australia 737 66,755 46% 50%

NSW 33,971 25% NSW 497 31%

TOTAL = 135,047 hectares TOTAL = 1,607 tonnes (000)

Source: ABS data; Coriolis analysis 141 BAROSSA Within South Australia, the Barossa region (including the Clare Valley) accounts for 18% of the wine grape area

WINE GRAPE AREA IN SOUTH AUSTRALIA BY REGION Hectares; 2016 Bordertown Limestone Coast other Mt. Lofty 1,254 2,161 Far North/Peninsulas 2% 3% 280 Wrattonbully 0% 2,673 Limestone Coast 4% Clare Valley Mt Lofty other 5,216 865 7% 1% Adelaide Hills Padthaway The Greater Barossa is 4,019 3,818 about 9% of 5% 5% Australia’s total wine Coonawarra area 5,823 8% Barossa Valley 11,372 15% Greater Barossa 13,652 18%

Eden Valley Riverland, etc. 2,280 21,039 3% 28% McLaren Vale 7,353 10%

Langhorne Creek 5,798 8% Fleurieu

Fleurieu other 1,907 3% TOTAL = 75,858 hectares

Note: Does not agree with ABS data due to differing methodologies; Barissa Valley includes Barossa zone other; Source: SA Winegrape Crush Survey State Summary Report 2016 142 BAROSSA Grape area in the Barossa District took-off in the mid-90’s, grew through 2008, and has been static since

BAROSSA DISTRICT GRAPE AREA BY REGION OR SUB-REGION Hectares; 1979-2016 GFC 14000 Barossa District By GI Bearing area Total area Eden Valley 12000 Barossa Zone

10000

8000 Take-off starts here in mid 90’s

6000

Barossa Valley

4000

2000

0 2004 2006 2008 2009 2010 1992 1993 1995 1997 2000 2001 1979 1983 1985 1987 2002 1980 1990 2014 2005 2007 2003 2016 1984 1994 2011 1988 1998 1986 1989 1996 1999 2012 1981 1991 2015 2013 1982

Source: ABS (various reports); SA Utilisation & Pricing Survey (various years); SA Winegrape Crush Survey Reports (various years); other SA publications; Coriolis analysis 143 BAROSSA The Barossa achieved continual growth in exports in the lead up to the GFC; exports and dollars per litre both showing steady recovery

BAROSSA VALLEY WINE EXPORTS BAROSSA VALLEY WINE EXPORTS A$m; 2000-2015 GFC A$/L; 2000-2015 GFC BGWA formed BGWA formed $90.0 $19.00

$80.0 $17.00

$70.0

$15.00 $60.0

$50.0 $13.00

$40.0 $11.00

$30.0 $9.00 $20.0

$7.00 $10.0

$0.0 $5.00 2011-12 2010-11 2012-13 2011-12 2014-15 2015-16 2013-14 2010-11 2012-13 2014-15 2015-16 2013-14 2001-02 2009-10 2000-01 2002-03 2005-06 2006-07 2007-08 2001-02 2003-04 2004-05 2009-10 2000-01 2008-09 2002-03 2005-06 2006-07 2007-08 2003-04 2004-05 2008-09

Source: WineAustralia; Coriolis analysis 144 BAROSSA While the Barossa Valley grows a wide range of grapes, Shiraz is the largest and only a handful of others have significant area

BAROSSA VALLEY WINE GRAPE AREA BY VARIETAL & COLOUR Hectares; 2016 6,869 1,542 669 349 364 379 256 172 102 103 84 50 56 65 63 38 30 26 27 22 16 21 15 13 13 11 9 5 5 Other Red Chardonnay Pinot Gris Muscadelle/Tokay Pedro Ximenez Other White Mataro/Mourvedre Malbec Petit Verdot Riesling Merlot Cabernet Sauvignon Cabernet Franc Sauvignon Blanc Pinot Noir Muscat APG Blanc Savignon Vermentino Semillon Unknown Zinfandel Shiraz /Petit Sirah

Source: SA Winegrape Crush Survey Report; Coriolis analysis 145 BAROSSA Growth has come from red wines, particularly Shiraz

BAROSSA VALLEY WINE AREA BY SELECT VARIETY/COLOUR SHARE OF WINE AREA BY GRAPE COLOUR: BAROSSA VALLEY Hectares; 1997-2016 % of hectares; 1995-2016

12,000 100%

90%

10,000 80%

70% 8,000

Shiraz 60%

Red 6,000 50%

40%

4,000 Other Red 30%

20% 2,000 Cabernet Sauvignon

10% Other White White Chardonnay - 0% 1997 2002 2009 2016 1995 1997 2002 2009 2016

Note: Barossa Valley colour share in 1995 includes Eden Valley; Source: ABS (various reports); SA Utilisation & Pricing Survey (various years); SA Winegrape Crush Survey Reports (various years); other SA publications; Coriolis analysis 146 BAROSSA In leading markets, Barossa Shiraz is typically in the top three on the shelf in terms of depth of range in the Shiraz/Syrah segment

NUMBER OF SHIRAZ/SYRAH ON SHELF: NUMBER OF SHIRAZ/SYRAH ON SHELF: SKU; actual; Oct 2016 SKU; actual; Oct 2016

South of France 29 Barossa Valley 424 Other Australia 422 Rhone 28 McLaren Vale 247 Clare Valley 106 Barossa 6 Coonawarra 84 McLaren Vale 5 Heathcote 81 France 64 Clare Valley 4 Grampians 50 3 Eden Valley 48 Margaret River 45 Chile 3 Hunter Valley 38 Adelaide Hills 28 Adelaide Hills 1 Langhorne Creek 26 Langhorne Creek 1 Great Southern 23 Yarra Valley 20 SE Australia 1 Beechworth 18 Victoria 1 Canberra District 15 Geelong 14 Argentina 1 Goulburn 14 Bendigo 11 Italy 1 New Zealand 11 New Zealand 1 Chile 7 Pyrenees 3 Portugal 1 Argentina 3 South Africa 2 Spain 1 USA 2 California 1 Greece 1 Romania 1 WA 0 Uruguay 1

Source: Coriolis from store checks 147 BAROSSA Barossa Shiraz has a demonstrated ability to command high price points at the top end of its range

TOP TEN SHIRAZ/SYRAH ON SHELF BY PRICE POINT: BAROSSA, MARGARET RIVER & GREAT SOUTHERN A$; actual; Oct 2016 $3,690 $3,500 $2,000 $1,500 $1,360 $1,300 $1,200 $1,200 $1,200 $1,199 $169.99 $80.00 $80.00 $74.99 $44.99 $44.99 $42.99 $42.99 $42.99 $39.99 $38.99 $34.99 $35.99 $29.99 $32.99 $33.99 $33.99 $24.99 $51.99 $22.99 3 3 3 4 4 4 10 10 10 8 8 8 6 9 6 9 6 9 1 1 1 2 2 2 7 7 5 7 5 5

Barossa Margaret River Great Southern

Source: Coriolis from store checks 148 BAROSSA The Barossa region focuses its energies on four key areas, which help maintain its reputation as Australia’s most recognised wine region

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

149 BAROSSA First, the Barossa presents a clear story

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

150 BAROSSA 1. Presenting a clear story Barossa structures its story around “Barossa Chapters”, covering four main elements

1.1 Emphasising history and iconic figures a. Barossa has a long and rich history as one of Australia’s oldest regions b. There are key defining events and themes in this history, allowing the story to be simplified c. This simplified history is consistently repeated d. The Barossa region emphases these aspects of its history through the “Generations” and “Old Vines” chapters

1.2 Pushing the “hero variety” a. Barossa Valley produces a range of grape varieties; Shiraz is clearly dominant b. Barossa Valley Shiraz grapes receive a premium over other varieties c. There is wide agreement that Shiraz is Barossa Valley’s “hero variety” d. Renowned Barossa wineries have Shiraz as their flagship wine e. Barossa Chapters include “Shiraz as Our Hero”, however hedge bets with a “Discovery” chapter to stay interesting

1.3 Defining what makes terroir unique a. Barossa GI Zone contains Barossa Valley and Eden Valley region; within Eden Valley is the sub-region of b. A lack of recorded terroir information led to the Barossa Grounds project c. The Barossa Grape and Wine Association provides collateral to assist producers tell the terroir story

1.4 Emphasising the region’s premium nature and strong food culture, with “Rare & Distinguished” and “Barossa Flavours” chapters

151 BAROSSA 1.1.a The Barossa region has a long and rich history as one of Australia’s oldest regions

BAROSSA TIMELINE 1836-2008; not to scale

1836 – George Fife 1847 – Bavarian Johann Gramp 1862– Johann Henschke 1936 – Roseworthy 1951 – Grange 2002 – Robert Parker Jr Angas, English plants first grape vines on banks purchases land in Keyneton Agriculture College Hermitage 1951 awards 1976 Penfolds shipping merchant, of Jacob’s Creek, creating first and plants vineyard with introduces Australia’s first introduces new style Grange 100 points (and founds Barossa commercial vineyard son; first vintage in 1868 Diploma of Oenonolgy of Australian red 2008 vintage in 2013)

1841 – Pastor August Kavel 1851 – Joseph Seppelt 1929 – Barossa 1947 – Colin Gramp 1980s – South Australia resettles his Lutheran flock purchases 158 acres produces 25% of makes Barossa’s first government introduces of Silesian peasant farmers and names it Australia’s total dry red second vine-pull scheme to and tradesmen Seppeltfield wine since 1860s counter over production

1839 – German 1849 – Samuel Smith and 1925 British Government 1941 – United Kingdom 1971 – David Wynn 2008 – Barossa mineralogist Menge son Sidney plants introduces Imperial places restrictions on invents first ‘bag- Grape & Wine recognises Barossa Valley’s vineyard; Yalumba Preference policy; wine imports during in-a-box’ wine Association fruit growing potential releases first wine in 1852 halving duty on fortified WWII container forms

1944 – Christopher 1859 – William Salter and 1936 – South Australia 1950 – Pensfolds blender 1990s – New style of full- Rawson Penfold son Edward plants 10 acres government introduces vine- Max Schubert travels to bodied Barossa Shiraz officially establishes of shiraz, establishing pull scheme after earlier Bordeaux, learning about emerges; high export Penfolds Saltram reducing export subsidy oak ageing demand

Source: Barossa website; various websites; Coriolis analysis 152 BAROSSA 1.1.a This history and culture defines the Barossa

“The sense of community and collaboration is what really sets the Barossa apart and makes it different. The Germans and Silesians were a hard working, religious group. They worked together to survive. There is a deep history and culture of farming and working for the greater good. This continues 170 years later. There is a sense of belonging.”

Barossa Grape and Wine Association

“Even the large firms in the region maintain the culture of working together.”

Barossa Grape and Wine Association

Source: Industry interviews; Coriolis 153 BAROSSA 1.1.b There are key defining events and themes in this history, allowing the story to be simplified

BAROSSA TIMELINE 1836-2008; not to scale

GERMAN INFLUENCES The Barossa Valley was settled by over 500 families of Silesian farmers and tradesmen fleeing religious persecution in Germany in the 1840s. George Angas promised Lutheran Pastor Kavel and his flock safe passage, and the South Australian Company chartered three ships to volunteers willing to establish the colony. This Germanic influence would shape the region and its wine industry. Riesling, a grape, was the early focus. The churches, schools and villages clearly show the region’s heritage. Picture: August Kaval

SIX GENERATIONS OLD VINE SHIRAZ Barossa families can claim up to six Barossa is one of Australia’s oldest wine regions and is home generations of grape growers and to some of the oldest continuously producing vineyards in the winemakers. This proud heritage is a world. South Australia escaped the ravages of Phylloxera that key defining characteristic of the devastated the Old World’s vineyards and forced replantings region and is oft repeated throughout in the early 1900s. While two separate vine pulling schemes both individual winery histories and the threatened the old vines, enough survived to become a region as a whole. defining feature of the region. Barossa Old Vine Charter was created in 2009 to protect the vineyards into the future.

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa website; various websites; Coriolis analysis 154 BAROSSA 1.1.c This simplified history is consistently repeated

WINE & SPIRITS WINE AUSTRALIA THE WORLD ATLAS OF WINE

- German Influences “Germanic - German influences “A profound and - German influences “Much in the specialties.” unique Silesian (German ) Barossa Valley, including a sense of influence.” community and an appetite for hard - Generations “Others are work and Wurst, is still Germanic to winemakers whose roots in the - Generations “In some families, there this day.” region go back seven or eight have been six generations of grape generations.” growers and winemakers.” - Generations “Most of these ancient vines have been farmed all their - Old Vines “…uses the oldest vines - Old Vines “Home to some of the lives by the same family.” from that site, planted in 1889…” oldest vines in the world.” - Old vines “region’s rich legacy of...vines of which 200 acres are over 100 years old.”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa website; The World Atlas of Wine; Coriolis analysis 155 BAROSSA 1.1.d The Barossa region emphases these aspects of its history through the “Generations” and “Old Vines” chapters

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa.com website; Coriolis analysis 156 BAROSSA 1.2.a Barossa Valley produces a range of grape varieties; Shiraz is clearly dominant

BAROSSA VALLEY GRAPE CRUSH BY VARIETY Tonnes; 2016 47,307 7,064

Chardonnay 2,416

Shiraz 32,533

Semillon 1,833

Riesling 840

Cabernet Sauvignon Sauvignon Blanc 7,273 502 Viognier 472 Grenache Muscat a Petit Grains Blanc 2,976 Merlot 336 1,463 Mataro Other white Tempranillo 995 Other red 549 665 1,518 Red Varieties White Varieties

Note: includes Barossa Zone – other; Eden Valley GI is not included. Source: 2016 South Australian Winegrape Crush Survey; Coriolis analysis 157 BAROSSA 1.2.b Barossa Valley Shiraz grapes receive a premium over other varieties

AVERAGE PURCHASE VALUE PER TONNE BY MAJOR GRAPE VARIETY AU$/t; tonnes; 2016 $2,121

$1,900 $1,886

$1,621 $1,573

$1,302 AU$ per tonne $1,083

$828 $800 $800 $678 $601 Muscat a Petit Grains Blanc Mataro Grenache Tempranillo Viognier Merlot Sauvignon Blanc Semillon Chardonnay Riesling Shiraz Cabernet Sauvignon

Tonnes crushed Note: includes Barossa Zone – other; Eden Valley GI is not included. Source: 2016 South Australian Winegrape Crush Survey; Coriolis analysis 158 BAROSSA 1.2.c There is wide agreement that Shiraz is Barossa Valley’s “hero variety”

“A new wave of smaller, local wineries, “The 2010’s Barossa Shiraz were just insane, typically started up in the 1980s by escapees “Barossa Valley, gazetted 15 August having lovely, elegant balance, and the best from the big companies (Peter Lehmann, St 1997, is the most internationally wines shone for control of power, with acidity Hallett, Rockford, Charles Melton et al) signalled recognised region in Australia, its and tannin working in harmony. They’re a resurgence of pride in the Barossa Valley, shiraz the focus of most attention.” exploiting their best asset, which is some of particularly in the big, bold style of Shiraz that is James Halliday the oldest Shiraz vines in the world. ” the valley's signature.” Brett Crittenden Jancis Robinson

“The benchmark Barossa Valley shiraz “Shiraz is quite the celebrity here. shows a typicity and style that can be “Today, shiraz wines from Barossa Valley The Barossa Valley created, and is compared to the best of France. are the region's most famous export.” still home to the greatest Shiraz in Some even resemble Burgundy with their Into Wine the world.” delicacy and freshness.” Vintage Cellars James Suckling

Note: Barossa Valley GI under discussion; Eden Valley’s ‘hero variety’ is considered to be Riesling. Source: various websites; Coriolis analysis 159 BAROSSA 1.2.d Renowned Barossa wineries have Shiraz as their flagship wine

SELECTED BAROSSA SHIRAZ WINES AU$; 2016

Penfolds Grange Hill of Grace Clos Otto 2011* 2010 Shiraz AU$749 AU$699 2009 AU$600

Medlands Vineyard Platinum Label The Laird Barossa Ranges 2010 Shiraz Shiraz AU$750 2007 2012 AU$750 AU$200

Note: Grange is multi-regional South Australia blend; Hill of Grace is sourced from Eden Valley within Barossa GI. Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; complete low resolution product); various websites; Coriolis analysis 160 BAROSSA 1.2.e Barossa Chapters include “Shiraz as Our Hero”, however hedge bets with a “Discovery” chapter to stay interesting

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa.com website; Coriolis analysis 161 BAROSSA 1.3.a Barossa GI Zone contains Barossa Valley and Eden Valley region; within Eden Valley is the sub-region of High Eden

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Wine Australia; Barossa Grape and Wine Association; Coriolis analysis 162 BAROSSA 1.3.b A lack of recorded terroir information led to the Barossa Grounds project

NEED AIM PROJECT

- “The Barossa Grounds project - “An ongoing journey to - Sensory data from annual began with an emerging investigate and articulate the tastings from 80 sites around realisation that for a world diverse characteristics of Barossa famous wine region with over vineyards in the… Barossa 160 years of continuous Valley.” - Mapping consistencies and winemaking – and a repository differences between the of some of the oldest vines in - Produce “a scientific record of ‘grounds’ in terms of soil type, the world – there was an the information that previously water holding capacity, apparent deficiency in only existed in growers’ and temperature, rainfall, elevation authoritative data about our winemakers’ heads for six landscapes, our soil types, our generations of Barossa grape - Winemaking trial across six meso-climates, and the impact growing and winemaking.” different ‘grounds’ of these factors on our wines.” - “Promote and distinguish the wine of the Barossa from others of its class.”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa Grounds Project; Barossa website; Coriolis analysis. Photo Credit: BGWA Annual Report 2014-2015 163 BAROSSA 1.3.c The Barossa Grape and Wine Association provides collateral to assist producers tell the terroir story

BAROSSA GROUNDS PROJECT 2016

BAROSSA WEBSITE VIDEO REPORT & BOOK TOOL KITS

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa website; Coriolis analysis 164 BAROSSA 1.4. Emphasising the region’s premium nature and strong food culture, with “Rare & Distinguished” and “Barossa Flavours” chapters

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa.com website; Coriolis analysis 165 BAROSSA Second, the Barossa executes on a consistent marketing program

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

166 BAROSSA 2. Executing on a consistent marketing program The Barossa constantly promotes “Brand Barossa”, ensuring their producers can realise its value

2.1 Promoting a strong, consistently used brand a. The Barossa brand is the name, which “sparks instant recognition” b. Major producers in the region use “Barossa” prominently c. Barossa Grape and Wine Association supplies wineries and marketing bodies with marketing support material to “drop into any market”

2.2 Using ‘common phrases’ or taglines across the region with history, terroir, hero variety and food themes

2.3 Encouraging Barossa wineries to execute on key elements of the marketing package; uptake across the region is strong

2.4 Encouraging press articles and trade materials to repeat the Barossa story

167 BAROSSA 2.1.a The Barossa brand is the name, which “sparks instant recognition”

“Like Bordeaux and the Napa Valley, the words Barossa Valley spark instant recognition overseas. It's both the engine room and the womb of Australia's wine industry.”

David Brookes

“The oldest and most important (in terms of familiarity) is the region of Barossa.”

Wine Folly

“A prestigious and internationally renowned region, it is not only home to some of the oldest vineyards and wineries in Australia but produces some of its most recognizable and sought-after brands.”

Wine Searcher

Source: various websites; Google analytics; Coriolis analysis 168 BAROSSA 2.1.b Major producers in the region use ‘Barossa’ prominently

SELECTED BAROSSA PRODUCERS 2016

Advertising Bottle label Website

Advertising Bottle label Website

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 169 BAROSSA 2.1.c Barossa Grape and Wine Association supplies wineries and marketing bodies with marketing supporting material to “drop into any market”…

EXAMPLE: BAROSSA TOOL KIT 2016

IMAGES LOGOS MAPS

VIDEOS POSTERS and BOOKLETS

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); BGWA website; Coriolis analysis 170 BAROSSA 2.2. Using ‘common phrases’ or taglines across the region with history, terroir, hero variety and food themes

“Elegant reds with big Barossan “Unearth the unexpected…” character” Rusden Glaetzer WInes “Faithful to taste, not convention since 1979” Peter Lehmann “Barossa. Be Consumed” “Fine Barossa Red Wines” SATC campaign Charles Melton “Love the discovery” Lambert Estate Wines

“Icon of the Barossa” “One family. Many stories” Chateau Tanunda “Home of what we believe is the world’s Yalumba oldest surviving Shiraz vineyard: The Freedom 1843” “The taste of happiness” Langmeil Kies Family Wines

“Here’s to the chase” Wolf Blass “Welcome to the Barossa “Pure Barossa” Valley” Schild Estate Barossa Valley Estate

“The land, the wine, our story” Hemera Estate “Birthed from the land, shaped by the “Our Barossa runs deep” people, inspired by the continent, made Grant Burge by Australia” Jacob’s Creek

Source: various websites; Coriolis analysis 171 BAROSSA 2.3. Encouraging Barossa wineries to execute on key elements of the marketing package….

EXAMPLE: GLAETZER WINES 2016

“Elegant reds with big Barossan character”

Using Barossa brand Using recognisable imagery Using Barossa taglines

“Ebenezer has a unique soil profile. The well-drained sandy clay loam over a solid limestone pan is perfect for growing Shiraz. The soil is 'mean' and encourages deep roots which helps produce hugely concentrated wines of great character.”

Telling the terroir story Telling Barossa history Focusing on ‘Hero Variety’

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Glaetzer Wines website; Coriolis analysis 172 BAROSSA 2.3. …uptake across the region is strong

EXECUTION OF MARKETING PACKAGE BY SELECTED BAROSSA WINERIES 2016 CRITERIA Barossa Valley Estate Bethany Wines Charles Melton Chateau Tanunda Glaetzer Wines Grant Burge Hentley Farm Langmeil Penfolds Peter Lehmann Rockford Seppeltsfield St Hallett Torbreck Wolf Blass Yalumba

Using Barossa brand !$ !$ !$ !$ !$ !$ !$ !$ "$ "$ !$ !$ !$ !$ "$ "$

Using recognisable !$ !$ "$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ #$ !$ !$ imagery

Using Barossa !$ #$ !$ !$ !$ !$ #$ !$ #$ "$ "$ !$ #$ #$ "$ "$ taglines

Telling the terroir !$ !$ !$ "$ !$ !$ !$ !$ !$ !$ "$ !$ !$ "$ !$ !$ story

Telling Barossa "$ !$ "$ !$ !$ !$ !$ !$ !$ !$ "$ !$ !$ "$ !$ !$ history

Focusing on ‘Hero !$ !$ !$ !$ !$ !$ !$ "$ !$ !$ !$ "$ !$ !$ !$ "$ Variety’

OVERALL !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ "$ !$ !$

Source: various websites; Coriolis analysis 173 BAROSSA 2.4. Encouraging press articles and trade materials to repeat the Barossa story

SELECTED EXAMPLES 2016

CORKTALK LIFESTYLE FOOD WINE ONLINE

- Recognisable Barossa vineyard - Germanic influences, generational - Recognisable Barossa vineyard image family wineries, old vines history image

- Germanic influences, generational - Recognisable Barossa vineyard - “Experience the Barossa Valley” family wineries, old vines history image tagline

- Terroir story told - Emphasis on ‘Hero Variety’ Shiraz

- Emphasis on ‘Hero Variety’ Shiraz

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 174 BAROSSA Third, the Barossa optimises in-regional activity for maximum impact

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

175 BAROSSA 3. Optimising in region activities The region focuses on three key areas to ensure the Barossa is the top wine destination in Australia

3.1 Executing on a well developed wine trail a. Barossa has over 80 cellar doors and 150 wineries within an hour’s drive of Adelaide, creating an accessible cluster of cellar doors b. There is a wide range of well-presented cellar doors, catering to different consumer preferences c. Readily available information, itinerary planners and maps exist, in multiple formats d. Signage in the Barossa region is consistent, containing the logo and reinforcing the brand e. The Barossa Trust Mark provides the consumer with a “guarantee of excellence”

3.2 Generating interest through a constant calendar of events a. The Barossa region has a regional events strategy, includes a situational assessment and case studies b. The region hosts a range of different sized events, aiming for a balanced “portfolio of products” for consumers c. The Barossa Grape and Wine Association hosts some purely wine focused events d. There is also a range of regional events tying together wine, food, music, sport and agriculture

3.3 Collaborating within region to promote Barossa as top wine, food and tourism destination

3.4. Collaborating with others to leverage existing funding and relationships

176 BAROSSA 3.1.a Barossa has over 80 cellar doors and 150 wineries within an hour’s drive of Adelaide, creating an accessible cluster of cellar doors

BAROSSA ONLINE WINERIES MAP 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa.com website; Coriolis analysis 177 BAROSSA 3.1.b There is a wide range of well-presented cellar doors, catering to different consumer preferences

SELECTED BAROSSA CELLAR DOORS 2016

- Meet the winemaker, family winery

- Quirky cellar door

- Small, intimate tastings

‘Best kept secret’

- Famous landmark

- 1890 Chateau and grounds

- Croquet green, conference and function facilities

‘Must see’

- Famous Barossa wine brand

- Barrel tastings, blending experiences

- Collection of every Black Label vintage since 1973 ‘Barossa establishment’

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 178 BAROSSA 3.1.c Readily available information, itinerary planners and maps exist, in multiple formats

PRINTED MATERIALS ONLINE RESOURCES VISITORS CENTRE

- Barossa maps, guides and - Filterable winery search feature - Visitor Centre in Tanunda magazines - Proposed itineraries with range of - Interpretive display about - Available free from wide range of options winemaking heritage establishments or online - Up-to-date, attractive maps - Assistance with booking - Attractive and informative accommodation and tours - Build your own itinerary planner - Barossa inspired and branded souvenirs

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 179 BAROSSA 3.1.d Signage in the Barossa region is consistent, containing the logo and reinforcing the brand

SIGNAGE DETAILS

- Partnership between: - The Barossa Council - Barossa Grape and Wine Association - Tourism Barossa - Regional Development Australia – Barossa - Light Regional Council

- State Government provided matched $50,000 funding

- 8 gateway signs “Welcome to the Barossa”

- 8 town information signs, with map of larger region

- Review of signage to the Barossa

- Sign style guide for gateway and information signs

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa Council Annual Report 2015; Coriolis analysis 180 BAROSSA 3.1.e The Barossa Trust Mark provides the consumer with a “guarantee of excellence”

- Established in 2013 - Awarded after rigorous independent judging - Ten license holders in first year process; high standard across five pillars - Offering meets a standard of excellence, - Grown to over 50 across food, wine and consumer can be sure the “holder will meet and - “It has origin – our sense of place in the tourism experiences exceed expectations” Barossa - It has been developed with integrity – our - Case study by PIRSA conducted in 2015; found - Collaboration between the Barossa’s three sense of purpose and authenticity lack of consumer testing and consultation with regional stakeholder groups; Barossa Grape and - The quality achieved has been ambitiously businesses biggest challenges Wine Association, Tourism Barossa, Barossa sought after – our sense of ambition and Food excellence - Found that “strong relationships, trust and a - The Barossa Trust Mark is founded on the united vision were essential to the regional - Not-for-profit incorporated body value of environment – our sense of collaboration” responsibility and sustainability - Funded through annual license fees; cash and in- - It belongs to a community – our sense of - Collective branding concept was leveraged in kind from Regional Associations, grant funding belonging and pride in the Barossa” ‘Barossa. Be Consumed’ campaign by South Australian Tourism Commission

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa.com website; PIRSA Case Study – Barossa Trust Mark; Barossa Living; Coriolis analysis 181 BAROSSA 3.2.a The Barossa region has a regional events strategy, this includes a situational assessment and case studies

PURPOSE AND VISION OBJECTIVES AND STRATEGIES IMPLEMENTATION

“To execute Brand Barossa with a total dedication “Five focused objectives are the key “Actions for each of the key objectives and to consumer intimacy: connecting people, produce measurements of success, which are underpinned strategies have been identified and depend on and heritage, through festivals & events.” by 9 supporting strategies.” resources. These can be progressed either with an investment in people with specific skills/roles, or “Become a leading event host destination in - Align stakeholders by implementing projects which build the event- Australia. Leverage Brand Barossa and develop - Deliver consumer focused calendar of ready capacity of the region. It is anticipated that a excellence in consumer intimacy to achieve events mix of both might be appropriate and achievable.” success by investing in the three horizons of - Re-establish hallmark event, Barossa growth.” Vintage Festival - Deliver consumer intimacy and connection - Deliver sustainable funding model

Source: Barossa Regional Events Strategy 2014-2016; Coriolis analysis 182 BAROSSA 3.2.b The region hosts a range of different sized events, aiming for a balanced “portfolio of products” for consumers

HALLMARK EVENTS REGIONAL EVENTS LOCAL EVENTS

Vine Vale Winemakers Inaugural Barossa Generations Lunch Shed Day

- Largest and longest running wine tourism event in Australia - Celebration of camaraderie of - “6 winemakers – 6 sheds – 1 road – 1 Barossa producers and community day only.” - Strategic review conducted of 2013 - Long table lunch - Winemakers without permanent festival cellar doors - Organised by Barossa Grape and - Includes Barossa Grounds Tour and Wine Association - Unique tasting experience, food and Barossa Wine Chapters Auction entertainment - Guest speakers, BYO bottle to share

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 183 BAROSSA 3.2.c The Barossa Grape and Wine Association hosts some purely wine focused events

SELECTED EVENTS 2016

- First held in 1977 - Over 20 different classes - Judged over three days - Gala dinner for presentation - Wines must have minimum of 85% Barossa grapes - Must be member of BGWA to enter - Guest judge position open for bidding during wine show dinner auction

- Inaugural auction held during 2015 Barossa Vintage Festival - Langton’s Fine Wines auctioneers - Live and online bidding - Vertical, large formats and rarities available - Premium wineries involved - Aim is to differentiate Barossa and tell the fine wine story

- Eden Valley Riesling tasting at Eden Valley Institute - Over 60 2016 vintage and older available to taste - Open to BGWA members and special guests - Barossa Wine School Level 3 participants attend as part of course TASTE OF SPRING

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa website; BGWA Annual Report 2014-2015; Coriolis analysis 184 BAROSSA 3.2.d There is also a range of regional events tying together wine, food, music, sport and agriculture

SELECTED EVENTS 2016

FOOD MUSIC/CULTURE SPORT AGRICULTURE/HORT

- Barossa Gourmet - Barossa, Baroque & - Barossa Marathon - Agricultural Shows Weekend Beyond - Seppeltsfield Road IMF - Barossa Rose & Flower - Farmers Markets - IMF Inspiration Night Fun Run Show

- Local’s Tuesday at - Outdoor cinema - Tour Down Under - Winery Open Gardens - IMF Family Day - Balloon rides - Salute to Bruce Thiele dinner and tasting - Concerts at wineries - Day at the Races

- Barossa Generations - Tour of Barossa Family Lunch Fun Day Cycling

- Barossa Aussie Icon Long Table Lundin

Source: photo credit (PixaBay); various websites; Coriolis analysis 185 BAROSSA 3.3. Collaborating within region to promote Barossa as top wine, food and tourism destination

WEBSITE EVENTS ENGAGEMENT/COLLATERAL

- “Our Collective Voice” - “Barossa Working Together” - Tourism Barossa, Barossa Grape & Wine Association, Barossa Food, - “a central communication - Tourism Barossa, Barossa Grape Regional Development Australia, platform of online digital and & Wine Association, Barossa Barossa Council and Light Regional social media for food, wine and Food, Regional Development Council, South Australia Tourism tourism.” Australia, Barossa Council and Commission Light Regional Council - Website Memorandum of - Barossa Touring map Understanding between - World Heritage Listing - Regional signage Tourism Barossa, Barossa Grape - Events strategy - Develop famils framework & Wine Association and Barossa - Barossa Trust Mark - Target key media Food - Barossa Vintage Festival - Be Consumed campaign support

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Barossa website; BGWA Annual Report 2014-2015; Tourism Barossa Action Plan 2014/2015; various websites; Coriolis analysis 186 BAROSSA 3.4. Collaborating with others to leverage existing funding and relationships

CHINA VINTAGE VISIT 2015 AUSTRALIAN SOMMELIER AU TRADE IMMERSION IMMERSION PROGRAMME PROGRAMME - $61,225 cost - $33,490 cost - $27,600 cost - 6 regions involved - 5 regions involved - 4 regions involved - Visitors with existing AU relationships - Nine sommeliers selected - Trade participants with outstanding results in the A+ - Selling premium AU wines Australian Wine one-day wine school selected - Willing to become ambassador for AU wines

- 43 new listings - 21 new listings - Multiple new listings

- 19 “education” sessions

- Ensure ongoing assessment post visit reports. Assess outcomes, impact, value and areas for improvement

- Ensure Programs match your strategy

Source: Wine Australia; Coriolis analysis 187 BAROSSA Fourth, the Barossa organises out-of-region activities

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

188 BAROSSA 4. Organising out of region activities The Barossa approaches in-market activities as a region, leveraging the greater recognition that this provides over individual brands (Penfolds being the exception)

4.1 Leveraging South Australian Tourism Commission’s Barossa marketing campaign to raise awareness in-market

4.2 Providing Barossa Wine School curriculum; ensuring quality wine education and creating future in-market Barossa ambassadors

4.3 Entering trade shows and expos as a region to increase exposure and reputation

189 BAROSSA 4.1. Leveraging South Australian Tourism Commission’s Barossa marketing campaign to raise awareness in- market

“BAROSSA. BE CONSUMED” CAMPAIGN 2013; kwp! Adelaide

- Part of AU$6m campaign to promote SA tourism by South Australian Tourism Commission

- Campaign launched June 2, 2013

- Television ad won Grand Prix at Cannes Corporate Media and TV Awards, as well as awards at around 10 other festivals

- Features song “Red Right Hand” by Nick Cave and the Bad Seeds

- Increased visitors to Barossa regional page on southaustralia.com by 60% in first four months

- Barossa.com website unique visitors increased by 66% in first year

- Controversial at release due to moody, dark feel

- "Two things set this region apart from all other wine districts. The people and the dirt. It's a very tight knit community of passionate wine and food artisans and their connection with the unique soil that combines to create such exceptional products. It's that relationship we wanted to capture.” - James Rickard, kwp!

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); South Australia Tourism Commission; Youtube; various websites; Coriolis analysis 190 BAROSSA 4.2. Providing Barossa Wine School curriculum; ensuring quality wine education and creating future in- market Barossa ambassadors

BAROSSA WINE SCHOOL PROGRAM 2016

BWGA leverage their strength in education by sponsoring the “Wine Australia China Awards”- “Barossa Wine School Educator Award”

LEVEL 1: BAROSSA ENTHUSIAST LEVEL 2: BAROSSA SPECIALIST LEVEL 3: BAROSSA MASTER

- In Hong Kong (AWSEC) and - In Hong Kong (AWSEC) and - Six day intensive, professional China (East Scent Wines) China (East Scent Wines) immersion program in Barossa

- Two hour introductory wine - Eight hour comprehensive wine - Taste over 100 wines course about Barossa course about Barossa - Optional examination - Taste six wines - Taste 24 wines - Certificate - Optional examination - Optional examination - Taught in English only - Certificate - Certificate - Must have completed Level 1 - Taught in English, Cantonese or - Taught in English, Cantonese or and 2 Mandarin Mandarin - Delivered by BGWA, 40 - 1,184 students by October, 2015 - 87 students by October 2015 students by October 2015

Source: BGWA Annual Report 2014-2015; various websites; Coriolis analysis 191 BAROSSA 4.3. Entering trade shows and expos as a region to increase exposure and reputation

VANCOUVER INTERNATIONAL WINE VINEXPO HK 2016 FESTIVAL 2015 PROWEIN 2015

- BGWA regional participation (15+ - Regional branding - Leading global trade show Barossa brands) - Barossa Wine Chapters Auction - AU had 252 Sqm space (120 AU - Focus on Shiraz (tastings, catalogue promoted brands); large representation from masterclasses) the Barossa - Barossa Old Vine Heritage Tastings - Shiraz based dinners - Conducted media tastings - Media engagement - Planning for Vinexpo Bordeaux - Peter Lehmann Private Cellar wines and Barossa Wine Chapters Auction Catalogue used as focus

- Barossa Materclasses

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); BGWA Annual Report 2014-2015; Images: Courtesy Wine Australia; Coriolis analysis 192 CENTRAL OTAGO The third case study looks at Central Otago for lessons for the wine regions of Western Australia

NAPA BAROSSA CENTRAL OTAGO

193 CENTRAL OTAGO Central Otago has one “key takeaway” for the wine regions of Western Australia

SINGLE CLEAR HERO Central Otago has Pinot Noir as its single, clear “Hero Variety”

194 CENTRAL OTAGO Beyond this, Central Otago has three further lessons for the wine regions of Western Australia

LEVERAGE TOURISM Central Otago’s stunning landscape and ski fields provide steady stream of tourists to cellar doors

RIDE THE COATTAILS Central Otago leveraged SINGLE CLEAR HERO the fame of Marlborough to Central Otago has Pinot Noir get its wines tasted as its single, clear “Hero Variety”

MAKE DISTINCTIVE WINE Small, remote regions can succeed in the shadow of larger, more well known “cousins” if they make distinctive wines

195 CENTRAL OTAGO Central Otago wine grape area was tiny for most of the 20th Century; the region took off in the mid 90’s, however growth appears to have leveled off around 2012

WINE GRAPE PRODUCING AREA IN CENTRAL OTAGO Hectares; 1921-2018f

2,000 Key events supporting and promoting industry

2011 started annual event “Central Crush” 1,500

2006 started annual event “E’Sensual”

1,000

2002 established “COPNL” 500 Marketing & Promotion Co 2000 started Central Otago “Pinot Noir Celebration” 1923 1932 1933 1961 1991 2005 1935 1937 1941 1953 1955 1957 1973 1975 1977 1981 2002 2003 2007 2011 1921 1971 1951 1940 2001 2010 1931 1980 1960 1990 1944 2014 1948 1984 2018 1946 1949 1964 1994 2016 1970 1950 2000 1988 1930 1968 1986 1989 1998 1966 1969 1996 1999 1924 1942 2012 1947 2017 1974 1945 2015 1954 2004 1934 1943 2013 1928 1982 1962 1992 1926 1929 1987 1978 1985 1958 1967 1997 1976 1979 1965 1995 1956 1959 2008 1938 1983 2006 2009 1963 1993 1936 1939 1922 1927 1972 0 1925 1952

Source: Statistics NZ; NZ Department of Agriculture; MPI; NZ Winegrowers (various reports); Coriolis estimates and analysis 196 CENTRAL OTAGO Central Otago is growing both its number of wineries and its wine grape production

NUMBER OF WINERIES IN CENTRAL OTAGO TONNES PRODUCED IN CENTRAL OTAGO Units; 1990-2016 Tonnes; 1990-2016

140

10,000

120

8,000 100 CAGR 13%

80 6,000 CAGR 24%

60

4,000

40

2,000 20

0 0 2010 2011 2010 2011 2004 2004 2000 2001 2000 2001 1990 1990 2014 2014 1991 1991 2008 2008 2006 2006 2009 2009 2016 2016 1994 1994 2002 2002 1998 1998 2007 2007 1996 2005 1996 2005 1999 1999 2012 2012 2015 2015 2003 2003 2013 2013 1992 1992 1997 1997 1995 1995 1993 1993

Source: NZ Winegrowers (various reports); Coriolis estimates and analysis 197 CENTRAL OTAGO This growth in wineries and area drove industry productivity growth through the mid 2000; since then, average area/winery has been declining and tonnes/winery has slowed dramatically

AVERAGE AREA PER WINERY IN CENTRAL OTAGO AVERAGE TONNES PER WINERY IN CENTRAL OTAGO Hectares; 1990-2016 Tonnes; 1990-2016

18 100

CAGR -0.4% 16 90 CAGR 2% 80 14

70 12 CAGR 13% 60 10 CAGR 50 16%

8 40

6 30

4 20

2 10

0 0 2010 2011 2010 2011 2004 2004 2000 2001 2000 2001 1990 1990 2014 2014 1991 1991 2008 2008 2006 2006 2009 2009 2016 2016 1994 1994 2002 2002 1998 1998 2007 2007 1996 2005 1996 2005 1999 1999 2012 2012 2015 2015 2003 2003 2013 2013 1992 1992 1997 1997 1995 1995 1993 1993

Source: NZ Winegrowers (various reports); Coriolis estimates and analysis 198 CENTRAL OTAGO Central Otago represents 20% of New Zealand wineries, 5% of total area planted and 2% of grape crush

PERCENT OF NZ WINERIES PERCENT OF NZ WINE AREA PERCENT OF NZ WINE GRAPE CRUSH % of operational units; 2015 % of ha; 2015 % of tonnes; 2015

Central Central Central Otago Otago Otago 20% 5% 2%

Other Other Other 80% 95% 98%

Source: NZW Annual Report 2016; NZW Vineyard Register Report 2015-2018; Coriolis analysis 199 CENTRAL OTAGO Relative to other key regions, Central Otago has a large number of small wineries and achieves relatively low yields

NZ: # OF WINERIES VS. TONNES PER WINERY NZ: AREA VS. TONNES PER HECTARE Units; t/unit; 2016 Hectares; tonnes/hectare; 2016

2,293 13.5 11.0

9.1 8.6 8.5

Tonnes Tonnes /winery /hectare 886 5.0 4.7 3.6 565

279 1.4

190 1.1 74 69 12 6 2 Gisborne Hawkes Bay Nelson Canterbury Wairarapa Northland Waikato Auckland Marlborough Gisborne Hawkes Bay Nelson Canterbury Wairarapa Otago Auckland Northland Waikato Marlborough Otago

# of wineries Area in grapes

Source: NZW Annual Report 2016; NZW Vineyard Register Report 2015-2018; Coriolis analysis 200 CENTRAL OTAGO Central Otago devotes 77% of planted area to Pinot Noir and accounts for 27% of New Zealand Pinot Noir area; Pinot Gris (11%) and Reisling (4%) are the other significant plantings

CENTRAL OTAGO GRAPE AREA BY VARIETY CENTRAL OTAGO AS A PERCENT OF NEW ZEALAND AREA Hectares; 2016 % of ha; 2016

Pinot Noir 27%

Chardonnay Riesling 11% 53 3% Gewurztraminer 17 1% Pinot gris 9% Riesling 82 4% Pinot Noir 1,502 Sauvignon blanc 41 77% 2% Other white 11 1% Gewurztraminer 7%

Pinot gris 225 11%

Chardonnay 2%

Other red 11 1% Sauvignon blanc 0.2%

All other 1.0% TOTAL = 1,943 hectares

Source: NZW Annual Report 2016; NZW Vineyard Register Report 2015-2018; Coriolis analysis 201 CENTRAL OTAGO Pinot Noir and Pinot Gris have driven area growth, with all other flat-to-declining

CENTRAL OTAGO GRAPE AREA BY VARIETAL CENTRAL OTAGO SHARE OF GRAPE AREA BY VARIETAL Hectares; 1998-2016 % of ha; 2016

2,000 100%

1,800 90%

1,600 80%

1,400 70%

1,200 60% Pinot Noir Pinot Noir

1,000 50%

800 40%

600 30%

Other Red Other Red 400 20% Pinot Gris Pinot Gris

200 Other white 10% Other white Sauvignon Blanc Sauvignon Blanc Riesling Riesling Gewurztraminer Gewurztraminer - Chardonnay 0% Chardonnay 1998 1999 2002 2003 2005 2006 2007 2008 2009 2012 2013 2014 2015 2016 1998 1999 2002 2003 2005 2006 2007 2008 2009 2012 2013 2014 2015 2016 2000 2000 2001 2010 2001 2010 2011 2004 2011 2004

Source: NZW Annual Report 2016; NZW Vineyard Register Report 2015-2018; Coriolis analysis 202 CENTRAL OTAGO Central Otago Pinot Noir is achieving shelf presence across key export markets

NUMBER OF PINOT NOIR WINES ON THE SHELF ACROSS SELECT RETAILERS: CENTRAL OTAGO, OTHER NZ AND ALL OTHER SKU; actual; Oct 2016

794 All Other

Other NZ

Central Otago

259

186

211 115 120

87 81 177 83 72 93 108 57 41 72 49 42 20 27 17 8 10 4 5 4 27 6 81

Central Otago 11% 6% 6% 4% 3% 2% 2% 1% share of total

AUSTRALIA UK USA

Source: Coriolis from store checks 203 CENTRAL OTAGO Central Otago Pinot Noir is achieving premium pricing on the shelf

RETAIL SHELF PRICE OF ALL AVAILABLE PINOT NOIR WINE FROM CENTRAL OTAGO & WESTERN AUSTRALIA GBP; actual including tax; Oct 2016

£47.50

£27.50

£22.00 £17.92 £15.95 £13.75 £14.25 £11.50

A B Yealands Carrick Wild Earth Amisfield Carrick Craggy Range

WESTERN AUSTRALIA CENTRAL OTAGO

Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Coriolis from store checks 204 CENTRAL OTAGO Collective action by Central Otago can be organised into four broad areas

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

205 A1: CENTRAL OTAGO First, Central Otago presents a clear story

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

206 CENTRAL OTAGO 1. Present a clear story Central Otago is a reasonably young region and is still developing its own story, outside that of New Zealand Wine

1.1 Emphasising history and iconic figures a. Central Otago wine region is very young, having only gained true momentum in the nineties b. There are still key defining events and figures in this history that differentiate the region c. These key events and figures are consistently repeated to tell a simplified but interesting history

1.2 Pushing the “hero variety” a. Central Otago utilises a range of grape varieties, Pinot Noir clearly dominates b. There is wide agreement that Pinot Noir is Central Otago’s “hero variety” c. Renowned Central Otago wineries have Pinot Noir as their flagship wine d. World famous maker Riedel designed the “perfect glass” for Central Otago Pinot Noir, a first for a New World region

1.3 Defining what makes the region’s terroir unique a. Central Otago is very isolated from major population centres, but is New Zealand’s most famous tourist destination b. The terroir story is simplified to three main points c. The difference between the sub regions is being increasingly emphasised d. Central Otago wineries often produce several distinctive single vineyard Pinot Noirs from the different sub regions

1.4 Identifying with recognisable Central Otago imagery though a consistent theme: grapes, lakes, snow covered Alps

1.5. Identifying Central Otago with a down-to-earth approach

207 CENTRAL OTAGO 1.1.a Central Otago wine region is very young, having only gained true momentum in the nineties

CENTRAL OTAGO TIMELINE 1864-2004; not to scale

1864 – Frenchman 1981 – Black Ridge 1983 – Alan Brady plants first 1996 – 11 wineries operate in Jean Feraud plants establishes pioneering commercial vineyard at Central Otago region; 4.6% of first grapes vineyard Gibbston Valley national total

1882 – Feraud sells Monte Christo 1973 – Bill Grant plants 1990 - Gibbston Valley 2004 – 75 wineries winery and moves to Dunedin, vines establishing William Winery was established with operate in region; 16.2% commercial winemaking ceases Hill Winery (Shaky Bridge) tasting room and restaurant of national total

1881 – Feraud’s ‘Burgundy’ 1972 – DSIR plants 1987 – Gibbston Valley 2000 – First Central wins Gold Medal in trial vineyard near winery release first Otago Pinot Noir Sydney Alexandra commercial vintage Celebration held

1895 – Romeo Bragato identifies 1975 – Experimental 1995 - largest in New region as “pre-eminently suitable” for plantings occur at Zealand created at Gibbston Valley winemaking Rippon Vineyard Winery; 1400 cubic metres.

Source: Otago website; various websites; Coriolis analysis 208 CENTRAL OTAGO 1.1.b There are still key defining events and figures in this history that differentiate the region

CENTRAL OTAGO TIMELINE 1864 - 2016; not to scale

1881 - First Gold Medal John Desire Feraud planted the first grape vines near Alexandra in 1864. Feraud was a French goldminer, striking it lucky at what is now known as Frenchman’s Point on the west bank of the Clutha River. Feraud bough 100 acres of land and planted trees, vines and plants in orchard and vineyard. By 1870 there was more than 1,200 vines and he was selling wine made in the stone winery at Monte Cristo locally. His ‘Burgundy’ won the region’s first Gold in Sydney wine show in 1881. However, trying to sell fine wine to young nation of beer drinking sheep farmers ended with Feraud selling in 1882 and moving on to Dunedin. The Monte Cristo stone winery and some original blue bottles remain.

1895 - Bragato Report 1987 - First commercial vintage Yugoslavian Romeo Bragato was a wine expert from Italy and Bordeaux who Alan Brady planted the first vines at Gibbston Valley in was a Consultant Viticulturist to the NZ Government late in the 19th Century. 1981, but it was not until 1983 that the first commercial "There is no better country on the face of the earth for the production of vineyard, ‘Home Block’, was established. Common Burgundy grapes than Central Otago...” Bragato returned to NZ in 1902 as Chief opinion thought it was too cold. Experimentation lead Viticulturist for Department of Agriculture and set up the experimental station to Pinot Noir being focus. The first commercial vintage at Te Kauwhata. He resigned in 1909 in despair at lack of funding and support of Central Otago was released in 1987. Alan Brady was from a government fixated on grassland farming. His contribution to the NZ recognised at the 2015 Air New Zealand Wine Awards wine industry is recognised with the Romeo Bragato Wine Conference and as a Fellow of New Zealand Winegrowers, New Bragato Wine Awards. Zealand industry’s highest award.

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); The Central Otago Wine Cellars website; Gibbston Valley Winery website; Coriolis analysis 209 CENTRAL OTAGO 1.1.c These key events and figures are consistently repeated to tell a simplified but interesting history

NEW ZEALAND WINE WINE SEARCHER TIM ATKIN

- Bragato Report “Historically noted as - Feraud “The first vines were planted - Feraud “The first winery was created by ‘pre-eminently suitable’ for winemaking” during this time by a French migrant, but a French “gold miner and agriculturalist” unlike in the Sierra Foothills region of called Jean Désiré Feraud as long ago as - Feraud “the region’s first Gold Medal California – where the European settlers 1864, but that was an aberration” was for ‘Burgundy’ in Sydney in 1881, provided a steady demand for wines – from vines planted in 1864 by the tough, transient Otago miners had no - Early Pioneers “The early pioneers – Frenchman Jean Feraud.” interest in drinking wine, preferring beer Pinckney, Alan Brady (Gibbston Valley), and spirits” Rolfe and Lois Mills (Rippon), Verdun - Early Pioneers “significant commitment Burgess (Black Ridge) and Bill Grant by the 1970s pioneers, whose efforts - Early Pioneers “although many thought (William Hill, now Shaky Bridge)” endure today in names such as Chard the region's viticultural pioneers to be Farm, Rippon, Black Ridge and Gibbston crazy” Valley”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); New Zealand Wine website; Wine Searcher website; Tim Atkin website; Coriolis analysis 210 CENTRAL OTAGO 1.2.a Central Otago utilises a range of grape varieties, Pinot Noir clearly dominates

CENTRAL OTAGO GRAPE VARIETY BY HECTARE Hectares; 2015 1,506 436

Pinot Gris 225

Pinot Noir 1,496

Riesling 86

Chardonnay 54

Sauvignon Blanc 41 Gewürztraminer White other Red other 17 12 11 Red Varieties White Varieties

Source: New Zealand Winegrowers Vineyard Register Report 2015-2018; Coriolis analysis 211 CENTRAL OTAGO 1.2.b There is wide agreement that Pinot Noir is Central Otago’s “hero variety”

“Central Otago wineries are famed “Of all the places that Pinot Noir is for Pinot Noir, and indeed, Central grown and made in the New World, “The pre-eminent new region for Otago Pinot Noir is often spoken none has lit the sky as brightly as Pinot Noir.” about as some of the best in the Central Otago in the last decade.” Risa Wyatt, Wine Enthusiast world.” Nick Stock Cellarmasters

“As a region our strategy is to attach “Central has grown from tiny beginnings ourselves to one variety- Pinot Noir. “In this, the most southerly grape- to become one of the most exciting wine People then have something clear to talk growing region in the world, pinot regions in the southern hemisphere, about, its more powerful. You drive the noir is the hero.” particularly for Pinot Noir.” “have you tried…” conversation. The Traveller other varieties can follow.” Tim Atkin James Dicey, President, COWA

Source: various websites; Coriolis analysis 212 CENTRAL OTAGO 1.2.c Renowned Central Otago wineries have Pinot Noir as their flagship wine

SELECTED CENTRAL OTAGO PINOT NOIR WINES NZ$; 2016

‘Tinker’s Field’ Block 5 Reserve Mature Vine Pinot Noir Pinot Noir Pinot Noir NZ$92 2014 2013 NZ$118 NZ$105

Long Gully RKV Reserve Sandstorm Reserve Pinot Noir Pinot Noir Pinot Noir 2013 2013 2012 NZ$110 NZ$120 NZ$85

Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Liquor Mart NZ; various websites; Coriolis analysis 213 CENTRAL OTAGO 1.2.d World famous wine glass maker Riedel designed the “perfect glass” for Central Otago Pinot Noir, a first for a New World region

RIEDEL HEART TO HEART CENTRAL OTAGO PINOT NOIR

”In March 2013, Georg Riedel hosted a sensory workshop in the Central Otago region. 11 wineries attended; Felton Road, Mt Difficulty, Peregrine, Rippon, Akarua, Carrick, Rockburn, Quartz Reef, Maude, Mt Edward, and Amisfield. The participants sampled the same wines from 14 differently shaped glasses. They were instructed to analyse the aroma, taste and overall flavour profile, to determine the best performing glass. Following rounds of elimination, two glasses stood out above the others: the Vinum XL Pinot Noir and the Vinum Extreme Pinot Noir. The Central Otago Pinot Noir glass incorporates the best features from these two glasses, in order to elevate the drinker's experience and enjoyment.

This newly shaped glass has been fine-tuned to highlight the distinctive flavour profile of this young wine-growing region. Unique from other Pinot Noir glasses in the Riedel portfolio, the Central Otago Pinot Noir glass accentuates the aroma and taste of the region's typical fruit-forward and intense mineral style.”

Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes); Riedel website; various websites; Coriolis analysis 214 CENTRAL OTAGO 1.3.a Central Otago is very isolated from major population centres, but is New Zealand’s most famous tourist destination

CENTRAL OTAGO REGION

- Situated in the South Island of New Zealand

- Split into six subregions - Alexandra - Bannockburn - Bendigo - Cromwell/Lowburn/Pisa - Gibbston - Wanaka

- Considered to be world’s southern most wine producing region

- Major tourist destination prior to gaining renown as wine region

- Queenstown has international airport

- 3.5 hours drive from Dunedin, 6 hours from Christchurch

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Fermented Grape website; various websites; Coriolis research 215 CENTRAL OTAGO 1.3.b The terroir story is simplified to three main points

SOUTHERN MOST WINE REGION CONTINENTAL CLIMATE SIX DISTINCT SUB REGIONS

“What makes the region’s wine so “Central Otago has a distinctive semi- “The main sub-regions lie within close special is the landscape. At a latitude of continental climate, found nowhere else reach but the distinctive mountainous 45° south, Central Otago is the in New Zealand. It is one of the hottest, terrain means each occupies a unique southernmost wine growing region in the coldest and driest regions in New niche of climate, aspect and altitude. world, with unique shaly soil and climate Zealand.” Soils can vary considerably within each providing excellent grape growing sub-region though a stony free- draining conditions.” base is common to all.”

Source: photo credit (PixaBay); Queenstown New Zealand website; New Zealand Wine; Central Otago Winegrowers Association; various websites; Coriolis research 216 CENTRAL OTAGO 1.3.c The difference between the sub regions is being increasingly emphasised

WANAKA GIBBSTON BANNOCKBURN

“This sub-region, lying 80km and a “Situated east of Queenstown along the couple of mountain ranges north of “On the south bank of the Kawarau River spectacular Kawarau Gorge, Gibbston Queenstown, boasts one of the world’s at the southern terminus of the Cromwell hasn’t looked back since the first most picturesque vineyards. Cooler and Valley, the vineyards occupy one of the commercial bottling in 1987. The highest slightly wetter than the Queenstown/ warmest, driest sites in the region sub-region, its cooler climate and north- Cromwell area, beautiful Lake Wanaka (harvest can be up to a month ahead of facing hillside vines ripen later than provides welcome reflected radiation Gibbston) producing highly distinctive neighbouring sub-regions, giving lighter and mitigates frost producing delicate and complex wines.” though still intense wines.” and vivid wines.”

ALEXANDRA BENDIGO GIBBSTON

“Feraud’s 1864 plantings were here, and “Northeast of Cromwell, Bendigo is “This area is located on the western side his stone winery still stands within its possibly the warmest of all the sub- of Lake Dunstan stretching north for spectacular schist landscapes. The most regions with vines planted on gentle some 25km from the township of southerly sub-region, the climate is dry north facing slopes. Wide-scale plantings Cromwell. The majority of plantings are and runs to extremes in both summer (in the context of the region) on stony situated on the lower terraces and valley and winter but the marked diurnal soils are capturing the extreme climate’s floor running parallel to the snow- variation right up to harvest gives vividly hot summer sun and cold clear night.” capped Pisa mountain range producing varietal, aromatic, finely structured seductive wines.” wines.”

Source: New Zealand Wine; Coriolis research 217 CENTRAL OTAGO 1.3.d Central Otago wineries often produce several distinctive single vineyard Pinot Noirs from the different sub regions

EXAMPLE: TWO PADDOCKS WINERY Owned by Actor, Sam Neill, 2016

2014 The Fusilier Pinot Noir 2013 Last Chance Pinot Noir 2014 Two Paddocks Pinot Noir

- ‘Bannockburn Vineyard’ on front - ‘Earnscleugh Vineyard’ on front - Three vineyards named on front of label, as well as ‘Central Otago’ label, as well as ‘Central Otago’ label and ‘Wine of New Zealand’ and ‘Wine of New Zealand’ - Tasting notes include percentages - The Fusilier vineyard at western - Last Chance vineyard above the end of Felton Road Earnscleugh Valley - Bannockburn, Alexandra, Gibbston sub regions - Bannockburn sub region - Alexandra sub region

Source: photo credit (fair use; low resolution; complete product/brand for illustrative purposes)Two Paddocks website; Coriolis research 218 CENTRAL OTAGO 1.4. Identifying with recognisable Central Otago imagery though a consistent theme: grapes, lakes, snow covered Alps

EXAMPLES OF IMAGERY USED BY CENTRAL OTAGO REGIONAL WINERIES & STAKEHOLDERS TO PROMOTE REGION As of Oct 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 219 CENTRAL OTAGO 1.5. Identifying Central Otago with a down-to-earth approach

“We were seen as the Pinot Event as the best venue. We are the most down to earth and most approachable. You can tell that we all get on.”

James Dicey, President, COWA

“We are seen as honest with a pioneering spirit. That’s part of our story, our message. We are all about great hospitality and a relaxed atmosphere.”

James Dicey, President, COWA “Down to earth and genuine”. The Central Otago message.

COWA

Source: Coriolis interviews 220 CENTRAL OTAGO Second, Central Otago executes on a consistent marketing program

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

221 CENTRAL OTAGO 2. Execute on a consistent marketing program The Central Otago region works to promote the use of its story and its brand across the region

2.1 Promoting a strong, consistently used brand a. The Central Otago brand is the name; it is commonly referred to as one of the ‘most scenic wine regions in the world’ b. Major producers in the region use ‘Central Otago’ prominently c. Central Otago Winegrowers Association are supportive of New Zealand Wine’s work to protect the region’s brand through Geographical Indications

2.2 Using ‘common phrases’ or taglines across the region; Central Otago wineries touch on broad themes of terroir, hero variety and lifestyle

2.3 Encouraging Central Otago wineries to execute key elements of the marketing package…uptake across the region is strong

2.4 Encouraging press articles and trade materials to repeat the Central Otago story

222 CENTRAL OTAGO 2.1.a The Central Otago brand is the name; it is commonly referred to as one of the ‘most scenic wine regions in the world’

“Central Otago wineries are located in one of the world’s most scenic wine regions.”

Cellarmasters

“Its dramatic mountains, gorges and lakes—and now, its stunning Pinot Noirs—make New Zealand's Central Otago one of the most dazzling spots on the planet.”

Food & Wine

“Central Otago (or “Central”, as the locals call it) is the world’s southernmost wine region and one of its most wildly beautiful.”

The World Atlas of Wine

Source: various published articles and websites; Coriolis analysis 223 CENTRAL OTAGO 2.1.b Major producers in the region use ‘Central Otago’ prominently

SELECTED CENTRAL OTAGO PRODUCERS 2016

Advertising Bottle label Website

Advertising Bottle label Website

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Akarua website; Mt Difficulty website; Coriolis analysis 224 CENTRAL OTAGO 2.1.c Central Otago Winegrowers Association are supportive of New Zealand Wine’s work to protect the region’s brand through Geographical Indications

“NVV HAS ASSUMED THE DUTY OF PRESERVING THE NAPA VALLEY NAME FOR THOSE WHO HAVE EARNED THE RIGHT TO PUT IT ON THEIR LABELS”

- The Geographical Indications - The Act is yet to be - Ministry of Business, Innovation (Wine and Spirits) Registration implemented and Employment, Ministry of Act 2006 was enacted in 2006 Foreign Affairs and Trade, - New Zealand Wine “now Ministry for Primary Industries - Provides for registration system considers that implementation for geographical indications of the Act should be a priority” - Commence work towards (GIs) amending and implementing the - Implementation would be Act - Any misuse of registered GIs “useful for protecting and would constitute a promoting their products and - Expected to come into force in contravention of the Fair Trading reputation in export markets” 2017 Act 1986 - Central Otago Winegrowers - Will help protect wine exports Association prepared a into EU submission supporting New Zealand Wine’s position

Source: Ministry of Business, Innovation and Employment; Coriolis analysis 225 CENTRAL OTAGO 2.2. Using ‘common phrases’ or taglines across the region; Central Otago wineries touch on broad themes of terroir, hero variety and lifestyle

“The house of Pinot” Quartz Reef “Carrick wines, grown and made in “Down on the Farm” Bannockburn, Central Otago, New Chard Farm Zealand” Carrick

“Wines of Central Otago” “Akitu – written by the weather” Mount Edward Akitu

“A great single vineyard “Wine with Altitude” dedicated exclusively to Pinot Noir” Peregrine Grasshopper Rock

“Good wine. Good food. Good living.” Gibbston Valley

Source: various websites; Coriolis analysis 226 CENTRAL OTAGO 2.3. Encouraging Central Otago wineries to execute key elements of the marketing package….

EXAMPLE: GRASSHOPPER ROCK WINERY 2016

“A great single vineyard dedicated exclusively to Pinot Noir”

Using Central Otago brand Using recognisable imagery Using Central Otago taglines

“The land was originally part of a larger parcel known since the 1860s as Como Villa and has human history that dates back to the 1860s gold rush and the early establishment of grape vines in the 1870s. An old gold mining water race now brings water from the surrounding hills for irrigation and frost fighting.

Telling the terroir story Telling Central Otago history Focusing on ‘Hero Variety’

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Grasshopper Rock website; Coriolis analysis 227 CENTRAL OTAGO 2.3. …uptake across the region is strong

EXECUTION OF MARKETING PACKAGE BY SELECTED CENTRAL OTAGO WINERIES 2016 CRITERIA Akarua Akitu Amisfield Black Quail Chard Farm Felton Road Gibbston Valley Grasshopper Rock Misha’s Vineyard Mount Edward Peregrine Quartz Reef Rippon Rockburn Two Paddocks

Using Central Otago brand !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$

Using recognisable imagery !$ !$ !$ !$ !$ "$ !$ !$ !$ "$ !$ !$ !$ !$ !$

Using Central Otago taglines #$ "$ #$ #$ "$ #$ "$ !$ #$ !$ !$ !$ #$ #$ #$

Telling the terroir story !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$

Telling Central Otago !$ #$ "$ !$ !$ !$ !$ !$ !$ !$ "$ "$ #$ !$ "$ history

Focusing on ‘Hero Variety’ !$ !$ !$ !$ !$ !$ !$ !$ !$ "$ !$ "$ !$ "$ !$

OVERALL !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ !$ "$ !$ !$

Source: various websites; Coriolis analysis 228 CENTRAL OTAGO 2.4. Encouraging press articles and trade materials to repeat the Central Otago story

LONELY PLANET WINE TRAILS TRAVELLER DAN MURPHY’S

- Central Otago in top ten of world’s - Emphasis on ‘Hero Variety’ of Pinot - Regional history touched on most intriguing wine regions in Noir Lonely Planet’s Wine Trails - Terroir story “extreme climate”, sub - Terroir story “most southerly grape- regions, “world’s southernmost wine - Terroir story “World’s growing region in the world” region”, “semi-continental climate” southernmost wine region”, six sub- regions - Recognisable imagery - Emphasis on ‘Hero Variety’ of Pinot Noir - Emphasis on ‘Hero Variety’ of Pinot Noir

Source: Lonely Planet website; Traveller website; Dan Murphy’s website; Coriolis analysis 229 CENTRAL OTAGO Third, Central Otago optimises in-regional activity for maximum impact

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

230 CENTRAL OTAGO 3. Optimising in-region activities Central Otago has great cellar doors, however there are opportunities to improve in order to optimise wine tourism

3.1 Executing on a very well developed wine trail a. Central Otago has around 130 wineries, creating an accessible cluster of cellar doors in the different sub regions b. There is a wide range of well-presented cellar doors, catering to different consumer preferences c. Winery information is supplied by three different organisations; the offering could be expanded

3.2 Generating interest through a constant calendar of events a. Individual wineries constantly host a variety of events, ranging in size and target audience b. The sub regions host individual ‘wine and food’ festivals; these are authentic, local events c. The Central Otago Winegrowers Association hosts a regional celebration of Pinot Noir; the marque event in the region

3.3 Collaborating within the region to ensure a co-ordinated, world class experience for Central Otago visitors

231 CENTRAL OTAGO 3.1.a Central Otago has around 130 wineries, creating an accessible cluster of cellar doors in the different sub regions

NEW ZEALAND WINE ONLINE VINEYARD MAP 2016

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); New Zealand Wine website; Coriolis analysis 232 CENTRAL OTAGO 3.1.b There is a wide range of well-presented cellar doors, catering to different consumer preferences

SELECTED CENTRAL OTAGO CELLAR DOORS 2016

- Meet the winemaker and owner

- Boutique family owned vineyard

- Highly personalised wine tastings

‘Best kept secret’

- Award winning architecture

- Rustic historic woolshed, striking winery, barrel hall

- Functions, weddings, tastings ‘Must see’

- Stunning view

- Famous Central Otago wine brand

- Weddings, concerts, group tastings

‘Central Otago establishment’

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Central Otago NZ website; Peregrine website; Rippon website; Coriolis analysis 233 CENTRAL OTAGO 3.1.c Winery information is supplied by three different organisations; the offering could be expanded

KEY CENTRAL OTAGO WINERY INFORMATION PROVIDERS 2016

NEW ZEALAND WINE CENTRAL OTAGO WINEGROWERS TOURISM CENTRAL OTAGO

- Interactive map of wineries - Appealing, informative 20 page map - ‘Wine & Food’ fifth tab and information guide - List of wineries and search function - ‘Cellar Door & Tasting Rooms’ and - Available to download via Dropbox ‘Wineries & Vineyards’ options - Introduction, wine styles, photos, overlap unnecessarily contact information, video, links, - Individual sub region map and Facebook embedded window, wine winery listings - Winery pages have logo, online merchant search function map, contact information, link to - Website very out of date, links to website winery websites only

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 234 CENTRAL OTAGO 3.2.a Individual wineries host events, ranging in size and theme

SELECTED CENTRAL OTAGO WINERY EVENTS 2016

- Gibbston Valley Winery Summer Concert

- Queenstown’s largest annual music event

- ‘Classic rock’ acts likely to appeal to baby boomers

- Cloudy Bay* Long Lunch at Rata

- Held during Queenstown Marathon weekend

- Cloudy Bay wines presented during lunch by Head Viticulturist

- First Pinot Noir vintage from Cloudy Bay owned Central Otago vineyards

- Rippon Festival

- Biennially open air music festival held at Rippon Vineyard

- Tribute to New Zealand music

*Cloudy Bay (MHLV) was an early leader in the development of Marlborough Sauvignon Blanc. Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Queenstown NZ website; Gibbston Valley website; Rippon website; Photo Credit: Pat Shepherd; Coriolis analysis 235 CENTRAL OTAGO 3.2.b The sub regions host individual ‘wine and food’ festivals; these are authentic, local events

SELECTED EVENTS IN CENTRAL OTAGO SUB REGIONS 2016

- Gibbston Wine and Food Festival - Cromwell Wine & Food Festival - New Releases Tasting

- Held in Queenstown gardens; - Held at Old Cromwell Town Historic - Over 20 local vineyards involved, tickets $25; 3 complimentary tasting Precinct taste over 50 new release wines tickets - Showcases Cromwell Basin - Held at Olivers Garden in Clyde, $25 - Three wine master classes held on producers, many who don’t have tickets the day, live music, food stalls cellar doors - Complimentary tastings and - Eight wineries from Gibbston sub - Live music, food stalls nibbles, live music region - Take home bottle sales

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); various websites; Coriolis analysis 236 CENTRAL OTAGO 3.2.c The Central Otago Winegrowers Association hosts a regional celebration of Pinot Noir; the marque event in the region… “We bring in quality people to our events. They need to be quality and influential critics. It costs more to bring them over, but it’s worth it. The third party endorsement goes a long way.” James Dicey, President, COWA

- Hosted by Central Otago Pinot Noir; promotional arm of Central Otago Winegrowers Association

- Brings together wine enthusiasts, leading wine writers, commentators, sellers, wine makers from around the world

- Over 40 local winemakers involved in 2016

- Two days

- Tastings, master classes, dinners/lunches, vineyard tours, charity auction

- Held since 2000; not held on years that Pinot Noir NZ is held in Wellington (every four years)

- Consumer based event

- 160 tickets $1,200 each

“This event is hugely successful. Great wines and the trade and media get direct access to the growers and owners.” James Dicey, President, COWA

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Pinot Noir Celebration website; Central Otago Pinot Noir; Coriolis analysis 237 CENTRAL OTAGO 3.2.c The Central Otago also hosts Ambassador Programmes “Central Crush” and “E’Sensual” bringing trade influencers and buyers to the region

“CENTRAL CRUSH” “E’SENSUAL”

WHAT WHY WHAT WHY

- Domestic - Increase sales of Central Otago - International and domestic - Immerse buyers and the Central wines Otago experience - Annual harvest and tasting event - July 2016 - 10th year - Meet the wine-makers - Recognition that once a professional - 2016 5th year - Trade only - targets professionals in visited the region they make great - First look at harvest the wine trade - including ambassadors - 2.5 days in February/March international guests from the - Attract buyers away from desk and region’s key export markets - 10 NZ Professional sommeliers, into the region restaurant managers and leading - 18 people (max) wine retailers - Reiterate the Central Otago message of Pinot Noir quality and - 20 wineries (max) - Includes: picking grapes, wine- “down to earth and genuine” making and bottling, masterclass - In-depth vertical tastings and and tastings seminars, vineyard tours, viticultural discussion, materclasses - Lunches and dinners with local food matching

“Central’s “amazing” landscape and premium wines “By creating advocates for our wines, we are sold themselves. It’s the people here who leave a increasing wine sales for the region and that’s what lasting impression.” this is all about.” Vikki Kircher, Event Manager, COPNL Vikki Kircher, Event Manager, COPNL

Source: Articles; websites, Coriolis analysis 238 CENTRAL OTAGO 3.3. Collaborating within the region to ensure a co-ordinated, world class experience for Central Otago visitors

- Central Otago’s tourism strategy

- Recommendations grouped under 22 headings; Wine is 16th heading

- Cycling, Golf and the Highlands Motorsport Park recommendations listed above Wine

- Refers to Central Otago Wine Industry Draft Tourism Growth Partnership Proposal 2013, that was not submitted due to limited resources of Central Otago Winegrowers Association (COWA)

- Ten recommendations, responsibility ranging from business, COWA, Tourism Central Otago

- “Central Otago has an opportunity to develop itself as a world class wine tourism destination by delivering innovative tourism products and turning high value visitors into brand ambassadors for Central Otago wines”

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); Towards Better Tourism Outcomes for Central Otago 2014-2019; Coriolis analysis 239 CENTRAL OTAGO Fourth, Central Otago organises out-of-region activities

1 2 3 4 EXECUTE ON A OPTIMISE ORGANISE OUT PRESENT A CONSISTENT IN-REGION OF REGION CLEAR STORY MARKETING ACTIVITIES ACTIVITIES PROGRAM

240 CENTRAL OTAGO 4. Organising out of region activities Opportunities exist for Central Otago to do more in-market; leveraging New Zealand Wine’s Global Events Programme is an obvious first step

4.1 Leveraging New Zealand Wine’s extensive Global Events Programme to promote Central Otago wines

4.2 Hosting own Central Otago wine events to create opportunities to experience the wine

4.3 Leveraging Pinot Noir NZ 2017 event to promote the Central Otago region

241 CENTRAL OTAGO 4.1. Leveraging New Zealand Wine’s extensive Global Events Programme to promote Central Otago wines

NEW ZEALAND WINE INTERNATIONAL MARKETING EVENTS 2016; selected events

“We partnered with NZWine at the Trade Tasting London Event. London is part of our market strategy, so it suited us to go. Twenty of us went along. We had a tight story a compelling offer, it was well received.” New Zealand Wine Global Events Program

James Dicey, President, COWA - “supports the New Zealand wine category by providing a platform for individual winery brand promotion” 9 - Asia, Australia, Canada, Europe, UK & Ireland, and USA are target markets 7

- Mix of marketing programme and user 4 pays events 10

- 91 seminars, master classes, education programmes and self pours in 14 25 3 markets for marketing programme 21 18 3 User Pays Events - Over 200 New Zealand wineries 13 involved in 2016; 750 wines poured 10 Marketing 7 Programme - Pinot Noir themed events Asia USA Uk & Ireland Europe Canada Australia

Sources: New Zealand Wine Annual Report 2016; Coriolis analysis 242 CENTRAL OTAGO 4.2. Hosting own Central Otago wine events to create opportunities to experience the wine

SELECTED IN-MARKET EVENTS RUN CENTRAL OTAGO PINOT NOIR (COPNL) 2016

Source: Central Otago Pinot Noir Ltd Facebook page; Coriolis analysis 243 CENTRAL OTAGO 4.3. Leveraging Pinot Noir NZ 2017 event to promote the Central Otago region

- “the best Pinot Noir event on the planet” SPEAKERS

- Three day event; Wellington, New Zealand; 117 wineries Kenichi Ohashi MW Maynard Keenan - “Virtual road trip throughout New Zealand, discovering provenance Mike Bennie in a nation of pinot noir producers spread throughout our land” Jancis Robinson OBE, MW Blair Walter - Keynotes, discussions, cuisine, film, music and tastings Larry McKenna Jane Skilton MW - International media, trade and enthusiasts Emma Jenkins MW Helen Masters - Collaboration with Pinot Palooza; day prior to Pinot Noir NZ Marcel Giesen

Source: photo credit (fair use/fair dealing; transformative, criticism, comment, scholarship & research; no other available source); PinotNZ website; Pinot Palooza website; Coriolis analysis 244 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)

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