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Special Report Wineries FEATURE Chinese Taste for WA Wines Leads Asian Sales Push

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Special Report Wineries FEATURE Chinese Taste for WA Wines Leads Asian Sales Push WineriesSpecial Report Wineries FEATURE Chinese taste for WA wines leads Asian sales push Key takeaways HE Chinese have taken – trading in a market that has a liking to a good Aussie more tension around supply and • WA bottled Tdrop. demand.” Australia’s wine exports to Mr Jorgensen said the fed- exports to China China (including Hong Kong eral government’s $50 million up 35 per cent and Macau) set a record this Export and Regional Wine Sup- (by value) last year with bottled wine exports port Package had also increased year increasing by 51 per cent in the confidence in the sector. 12 months to March 2018 reach- Across Australia, 21 interna- • Reduction in ing just over $1 billion – a first tional wine tourism projects tariffs through for Australian wine exports to a were granted funds earlier this single country. month, including proposals from China-Australia The data released by peak the Swan Valley and Margaret FTA fuelling industry body Wine Australia River wine regions, receiving wine export last month also showed Austral- $250,000 each. growth ia’s overall wine exports reached The Margaret River Wine Asso- their highest value in a decade, ciation is planning to use the grant • Federal $50 increasing by 16 per cent to $2.65 to fund a week-long program of million Export billion. events in Singapore, as well as the For Western Australia, bot- development of marketing assets and Regional tled exports to China by value and a digital campaign to help Wine Support increased by 35 per cent in the grow visitation from Singapore Package a boost year to December 2017, from and South-East Asia. for industry about $13 million to $17 million. Mr Jorgensen said the Swan Mainland China is the biggest Valley region was also focusing • Emerging export market for the state by on Singapore as part of its com- demand from both value and volume, followed petitive grant strategy, with the China for by the UK, and the US. Singa- other seven WA wine regions pore and Hong Kong come next, to benefit from a broader state organic wines with bottled exports by value grant, which is currently being growing by 5 and 4 per cent negotiated by Wines of WA. respectively in the 12 months to “The biggest opportunity is December 2017. collaboration,” he said. The reduction in wine tariffs “What do you think has more set out in the China-Australia value, generic New Zealand sau- Free Trade Agreement is one vignon blanc or Marlborough driver for the substantial sauvignon blanc? growth in exports to China, “Promoting the fine wine with the tariff set to be removed regions in WA, that’s where the completely in January 2019; this branding juice is. is expected to provide a compet- “That’s another attraction itive advantage over other key for visitors when considering Katie McDonald POTENTIAL: Vanya Cullen plans to exhibit her Wilyabrup-based organic wines at Asia’s premier wine and spirits trade fair at the end of this month. Photo: Tim Campbell [email protected] producers such as France, Italy coming here; we have nine dif- and Spain. ferent distinct regions.” Chief executive on industry the east coast and the growth in to hit $540,000 this financial Local wineries peak body Wines of Western Opportunity sales of premium wines. year. Australia, Larry Jorgensen, Fogarty Wine Group, ranked The group’s acquisition of the Dr Hall has sought out Asian are embracing said there was more optimism in the BNiQ Search Enginee as Evans & Tate brand last year was markets since he purchased among the state’s wineries the state’s largest winery by one way to bolster this appe- the winery in 2002, pointing to China’s growing than 12 months ago, given the volume of wine produced (see tite, with Mr Fogarty pointing advantages such as: its burgeon- improved export performance, page 20), is one of many local pro- to the brand’s track record of ing middle class with a desire for taste for WA specifically to China. ducers hoping to accelerate wine award-winning premium wines. affluence; a population far larger “There’s no question that sales in China. The premium drawcard than the competitive domestic wine with plans China is a growth market,” Mr Chairman Peter Fogarty said has been top of mind for Den- market; its location in the same Jorgensen told Business News. the group had been gradually mark-based winery Rockcliffe, time zone as WA; and the ability to develop “The impact of China on the building its presence in Asia and which has created a new label, to fly directly from Perth. domestic market is also some- planned to increase its efforts in Peaceful Bay, specifically tai- “We got into China via agents,” more export thing to consider; the more wine China over the next 12 months. lored to China’s tastes. Dr Hall said. that goes offshore, the less there is He said China had already Owner Steve Hall said the “Patience has been key; time opportunities available for the domestic market. absorbed a significant amount winery had already shipped its invested in forging workable “That’s where the benefit of Australian wines, evident in first container to China in 2018, relationships is now beginning across Asia. for smaller producers comes the increasing grape prices on with total sales to China on track to bear fruit. FEATURE Chinese taste for WA wines leads Asian sales push POTENTIAL: Vanya Cullen plans to exhibit her Wilyabrup-based organic wines at Asia’s premier wine and spirits trade fair at the end of this month. Photo: Tim Campbell Wine shows have also been She said instead of showcasing increasing by 170 per cent during currently, just boutique levels.” key to Wilyabrup-based Cullen in the Australian section of Vin- the smae time frame. The UK market has tradi- China Wines, which managing director expo, the winery had chosen the Ms Cullen said the winery tionally been the largest export seems to be Vanya Cullen said was planning organics section. was well placed to cater to Chi- market for McHenry Hohnen, to exhibit at the 20th anniver- Cullen Wines has embraced na’s organic appetite, with its however, Mr McHenry said the on the move sary of Vinexpo Hong Kong, organic and biodynamic wine- Vanya Cabernet Sauvignon bio- winery would soon match that Asia’s premier wine and spir- making principles since the late dynamic label retailing for $500 in sales to China. for everyone its trade fair, at the end of this 1990s, but Ms Cullen said con- per bottle. “For the best part of eight month. sumer interest had only started South West winery McHenry years we’ve taken a hit on the - Vanya Cullen This year, Australia is the to grow in recent years. Hohnen Vintners co-founder exchange rate, but UK sales have country of honour, featuring 140 According to Wine Australia, Murray McHenry also plans to got some margin now,” he said. “When I began attending wine brands from more than 35 the country’s organic wine showcase wines at the Vinexpo “Our other key market today wine shows in China, I was regions across the nation. exports were valued at $14.5 mil- in Hong Kong. is China, particularly for our red taken aback by the enormity of “China seems to be on the lion in the year to March 2018, “If we don’t visit, we’re not wines. demand. In particular, if Chinese move for everyone,” Ms Cullen with Sweden and the UK the larg- going to build our export trades,” “The UK will grow at 3-5 per consumers liked a wine, they said. est destination markets. Mr McHenry said. cent a year and China will grow were game enough to order it by “We’ve spent a lot of time get- Sales to China were next, with “We’re also looking at Taiwan at 10 -15 per cent a year.” the pallet, not the case.” ting the right person there.” Australia’s organic wine exports and Japan, they’re not big Read more online FEATURE WINERIES Sandalford selling wine experiences VARIETY: Grant Brinklow says expanding the business’ offerings has underpinned its success, backed by numerous industry awards. Photo: Attila Csaszar Sandalford Wines has established itself as one of Australia’s most popular wineries, with dining and events key to its appeal in the wine tourism market. Katie McDonald The Prendiville Group has since with getting through to the invested substantially in its facili- consumer. [email protected] Our expectation is that this ties and the brand. “With a sea of competition, how GRAPES have been harvested over Developing different wine do you build a relationship with interest in wine experiences will successive vintages at Sandalford experiences in tandem with that customers? Wines in the Swan Valley for more investment has been an integral “We’re able to have one-on- continue to gain more momentum than 175 years. part of the strategy, according to one experiences with guests at The business has its roots chief executive Grant Brinklow, the estates; it’s a very important - Grant Brinklow in 1840, when Queen Victoria and a tactic that has come to means of building the brand and bequeathed John Septimus Roe, fruition of late, with the winery repeat patronage.” aided by the business’s partner- From a product export perspec- Western Australia’s first surveyor winning gold at the Australian Mr Brinklow said Sandalford’s ship with Captain Cook Cruises, tive, he said Asia had emerged as a general, 4,000 acres of land at Tourism Awards earlier this year Swan Valley restaurant had won which operates charter cruise day promising opportunity for many Caversham, with extensive Swan for the wineries, distilleries and more than 15 Gold Plate awards trips along the Swan River.
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