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TOURISM VICTORIA
INVESTMENT GUIDELINES FOR WINE TOURISM
M I N I STER’S FORE WORD
Tourism is a big
contributor to Victoria’s
economy representing
5% of Victoria’s Gross
State Product and 6%
of all employment.
There are many factors
behind Victoria’s
increasing success in
tourism, but one is the
spectacular growth in
wine tourism. This small but growing segment of our
tourism industry is becoming more and more visible
to our domestic and international markets.
also receiving increasing inquiries from medium to small
investors wanting to explore the possibility of investing
in food and accommodation infrastructure in Victoria’s
wine regions. Inquiries like these provided the basis
for preparing these Guidelines, with wine producers,
investors, developers, local government, and community
groups being the target audience.
Victoria claims to be Australia’s food and wine capital,
supported by some 22 wine regions and over 400
wineries. Encouraging visitors to Victoria to experience
our provincial food and wine first-hand, spreads tourism
benefits across the State and generates many flow-on
benefits to regional cities and towns.
I commend the Investment Guidelines for Wine Tourism.
Wine-related tourism is not new. Visitor infrastructure at
many regional wine areas is first-class. Many established
vineyards are now upgrading cellar doors and new
projects are under development or being scoped.
These include significant investment in restaurants and
accommodation which are new business activities for
many vineyard owners. In some cases, new investors are
behind these proposals, forming innovative partnerships
with the vineyards and adding to the marketing
of Victoria’s wine regions. Associated off-vineyard
investment in wine tours, food and accommodation in
regional wine centres, and small town master plans that
highlight wine production are also adding to Victoria’s
momentum in wine tourism.
The Guidelines are thought to be the first of their kind by
any Australian tourism agency, thus highlighting Victoria’s
interest in leading this important segment of Australia’s
tourism market. The Guidelines summarise the issues that
need to be considered in investing in wine tourism - from
concept to reality.
JOHN PANDAZOPOULOS MP
Minister for Tourism and Major Events
While Victoria is making good progress in wine tourism,
as Tourism Minister, I want to quicken the pace.
Tourism Victoria is receiving more and more inquiries
from vineyards big and small about how to develop
their investments into tourism destinations. We are
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TA B LE OF CONTENTS
Introduction
1. Context for Investment in Wine Tourism
1.1 International
1.2 What’s on Offer - Victoria’s Wineries
1.3 Importance of Tourism at Regional and Local Levels
1.4 Strategic Direction
2. The Regional Context
3. The Market at a Glance
4. Developing the Concept
4.1 Assessment of a Wine Tourism Project
4.2 Key Factors
4.2.1 Regional Character
4.2.2 The Customer Base
4.2.3 Competition
4.2.4 Brand Positioning
4.2.5 Financial Resourcing
4.2.6 Staff Resourcing
4.2.7 Alliances
4.2.8 Promotional Support
4.2.9 Product Mix
5. Financing Wine Tourism
5.1 Who is investing in Wine Tourism?
5.2 Why invest in Wine Tourism?
5.3 Business Planning and Obtaining Finance
5.4 Issues for Obtaining Finance
5.5 Structural Options
6. Planning and Design
6.1 The Planning Framework
6.2 The Planning Process
6.3 Other Approvals
6.4 Planning and Design Issues
6.5 Local Government
7. Case Studies
7.1 Red Rock
7.2 Hanging Rock Winery
7.3 Lyre Bird Hill
7.4 Warrenmang
7.5 Pettavel
7.6 Brown Brothers
8. Project Development - Summary Checklist
9. Key Contacts
10. Selected References
Disclaimer
2 Investment Guidelines for Wine Tourism
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Chateau Tahbilk
I N T RODUCTION
Writer and humorist, Fran Lebowitz, has noted that: “... food is an
important part of a balanced diet”. Increasingly, it seems, wine is
becoming an ‘important part’ of the Victorian tourist experience.
What is wine tourism?
It is usually not the sole reason we travel yet Victoria’s
burgeoning wine (and food) industries are adding
new dimensions to the enjoyment of regional Victoria.
Travellers are increasingly seeking a more rounded
engagement with the characters, places and culture
of their chosen tourist destinations. Wine - its growing,
production, tasting and consumption - provides an
easy social entry point for most of us and an absorbing
enthusiasm for others.
Wine and food seems to focus regional cultural
differences in a way that no other pursuit does.
One thinks of the fortified wine (and characters)
of Rutherglen; the Italian heritage of the King Valley;
Yarra Valley sophistication; Mornington’s professionals.
It is also a logical partner to the other things for which
we travel - rest, business, seeing friends, golf, fishing,
landscape, adventure and so on.
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As time goes on it is becoming difficult to separate
out ‘wine tourism’ from just ‘tourism’. However for
the purposes of these guidelines investment in wine
tourism is taken to mean:
• Direct investment in a winery or vineyard to
service tourists. Examples are: cellar door sales,
accommodation, café/restaurant/epicurean
centre, education, conference facilities, etc.
• Investment in infrastructure not at the winery but
developed as an adjunct to a winery experience
or trading in support of a winery experience hotels, gourmet foods, restaurants, specialty
shops, attractions.
• Investment in promotional ventures designed to
encourage tourism based on the attractiveness of wine
imagery or product - trails, festivals, concerts, and so on.
Background to wine tourism in Victoria
Travelling through rural areas has been part of the
Victorian scene since earliest European settlement. In
1846 the Argus notes that visiting Bendigo vineyards to
purchase wine and grapes was a popular part of everyday
provisioning. More recently, W.S. (Sam) Benwell’s Journey
into Wine (1961) reported the special joys of sampling
the winemaker’s art on site - even if he was speaking at,
perhaps, the lowest point of the Victorian wine-making
industry’s history. He wrote: “A list of the wines which
have gone forever from our tables would make mournful
reading ... What is left in Victoria that is drinkable? ... Who
makes it, and how did the vineyard come to be there? ...
To find the answer to these questions, one must make
a journey ... wine is always best when it is drunk near its
own soil”. Wine and food writers also encouraged the
gourmet tradition - Peter Smark, Dan Murphy, Len Evans,
David Dunstan, James Halliday and others all contributed
to a new public interest in wines and winemaking. But it
was Rutherglen’s Wine Festival of 1967 (later the Winery
Walkabout) which heralded the possibilities for a new
relationship between wine, travel and recreation. The
introduction of the Wine Equalisation Tax with subsequent
concessions for cellar door sales has re-enforced the
financial significance of on-site sales to most growers.
Most typically, the development of wine tourism in
Victoria has been an incremental process. Sales from the
winery have led to basic cellar door facilities perhaps with
access to ‘behind the scenes’ wine-making. Bill Chambers’
Rosewood Winery at Rutherglen retains the informal
charm of this first step whilst places like Chateau Tahbilk
introduced cellar door sales into historic buildings to
provide genuinely world class environments, bursting
with heritage and a real sense of place. Others have gone
on to design purpose-built tasting outlets (matching the
growing sophistication of the new breed of winemakers).
Increasingly, opportunities for gourmet banquets
and functions at the winery were seen as a means of
supplementing income and expanding awareness of the
label. The Mitchelton development
in 1974 pioneered the concept of a major ‘ground-up’
wine tourism complex with restaurants, merchandise,
farmers markets, reception facilities, cellar door, concerts
(and even a ‘model farm’) established to lure the visitor
to the Goulburn.
As visitation has grown, the question of accommodation
has become increasingly relevant to some wineries’
development. Different responses have emerged - B&B’s
have suddenly become part of the Victorian culture
and can now be found as a part of many wineries’
offer; Natalie Pizzini has made the Whitfield pub an
easy way to spend another day in the King Valley; All
Saints specialises in weddings and receptions; Chateau
Yering and the Lancemore Group’s hotels have elevated
wine touring to a five star experience and opened up
possibilities for corporate conferences.
Why Invest in Wine Tourism?
The last ten years have seen an explosion in planting and
wine production in Victoria. Competition is fierce and
many small and medium size growers must establish the
‘next step’ for their business. Wine and food tourism
gives winemakers an opportunity to relate directly with
their customers building brand loyalty and providing
direct income from restaurants, accommodation and
the other ancilliary businesses. For the investor, the
growth in regional tourism and the interest in lifestyle
product - especially food and wine - can offer a rewarding
investment vehicle.
Purpose of These Guidelines
Tourism Victoria works to position Victoria as the leader
in attracting investment in quality tourism infrastructure.
It facilitates projects by providing strategic focus and advice
to public and private sectors. Investment Guidelines for
Wine Tourism is the second in a series, following Tourism
Victoria’s Building Tourism from Concept to Reality published
in 2000. The establishment of the Victorian Wineries
Tourism Council (VWTC) in 1992 to provide advice
to the Minister has been pivotal to the growth and
importance of wine tourism.
Tourism Victoria assists in the improvement of Victoria’s
tourism assets by identifying economically and socially
sustainable infrastructure opportunities which will maintain
the state’s competitive edge. The wine industry is rapidly
emerging as an area in which Victoria has special strengths
and potential.
Wine producers and investors both require background
information to make informed assessments of the wide
range of wine tourism options and approaches available to
them. These guidelines are a step in canvassing investment
options with a view to exploring and realising the best
potential tourism outcome.
Rochford on Eyton
1 . CONTE X T FOR INVESTMENT
I N WINE TOURISM
1.1 International
Four major structural
challenges are facing
winegrowers around
the world: a shift in
consumer demand from
small specialist retailers
to modern retail
chains; the emergence
of dominant brands;
increasing international
competition; and changing consumer demand for
different quality and types of wine. All these forces
are leading to larger scale production and distribution
systems with, at the retail outlet, pressures to simplify
brand ranges. In turn, the place of the small producer
is becoming more vulnerable to competition, less stable
contract arrangements and increased difficulties in
distribution and promotion. In the short term, most
producers are also facing oversupply conditions in
certain varieties that are unlikely to equalise before 2005.
Again, in the short term, the increase in the exchange
rate may curtail overseas expansion and therefore
increase domestic competition.
Inbound (international) tourism directly provided $7.2
billion. towards Australian’s Gross Domestic Product in
2002-2003. In total export earnings international visitors
spent $16.7 billion. on all goods and services produced
by the Australian economy. The Australian tourism
industry employs over 540,000 people. Importantly,
tourism tends to be a labour intensive industry with
benefits to regional employment.
Identifying the synergies between the tourism and wine
industries is one of the exciting, unfolding, challenges to both.
Internationally, Australia’s wine has gained recognition.
Recently interest in Victoria’s wine tourism regions has
started to grow amongst international visitors. The Yarra
Valley wineries have quietly crept up to fifth (behind
Melbourne City, The Great Ocean Road. Sovereign Hill,
and Philip Island) on the Victorian Tourism Operator’s
rankings of all tourist destinations. But the actual numbers
of international tourists to Victoria (1.21m. or 23.5m.
nights) remains a small fraction of intrastate or interstate
trips (where Tourism Victoria focuses its major wine
tourism marketing effort). Nonetheless international
visitation can be significant for wineries on existing
touring routes - the South Gippsland wineries near coach
routes to the Penguin Parade, are one example - and the
challenge is to realise the potential of the wine regions
for international visitors.
With its participation in The Global Network of Great Wine
Capitals Melbourne has joined Bordeaux, San Francisco,
Bilbao-Rioja, Porto, Cape Town, Santiago and Florence
in promoting business, education and wine tourism on
the world stage and international promotion of short stay
or day trips from Melbourne may in the future include
Victoria’s outstanding winery experiences.
1.2 What’s on Offer Victoria’s Wineries
The regional spread of grape growing over the last ten
years has been phenomenal. Victoria now has 28% of
Australia’s vineyards and wine tourism is increasingly
being seen as an important stimulator of regional tourism.
In 2002 of some 400 Victorian wineries, over 200 were
reported as having cellar door facilities and it has been
estimated that the majority of Victorian wineries draw
‘at least’ 50% of their revenue from cellar door sales.
In 1994/95 the number of visits to Victorian wineries
was 1.6 million. By 2001/02 this had ballooned to 3.2
million. 54% of these were to the growing areas close to
Melbourne - Yarra Valley, Mornington Peninsula, Geelong,
Sunbury and Macedon Ranges - reflecting a growth in
visitation to those areas of 19% since 2000.
Tourism infrastructure - accommodation, eating out,
tourist trails, even adventure sport - has followed the
growers. For some regions such as the Yarra Valley,
Pyrenees and Rutherglen the wine industry is a major
contributor to tourism. In the ‘emerging’ wine regions
- including Mornington, Geelong/ Bellarine Peninsula,
Gippsland, King Valley, Ballarat, Macedon/ Sunbury,
Bendigo and Heathcote - wine and food tourism is
becoming a significant component of the region’s
attraction. For some towns like Milawa and Oxley the
‘gourmet’ traveller is becoming central to their identity
and to local producers of cheese, olives, honey, relishes
and other regional produce.
Equally important, the nature of wine tourism is
changing. The Yarra Valley ‘Grape Grazing Festival’ has
demonstrated the power of festivals celebrating the
new vintage and others like the King Valley’s ‘La Dolce
Vita Fiesta’ emphasise the increasingly strong cultural
relationship between local food and wine. Over the
last five years winegrowers associations and regional
tourism authorities have generated a rich feast of festivals
and trails which focus attention on particular local
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products and specialisations. Petanque competitions
have become identified with celebrations in the Pyrenees
and at the Wood, Wine and Roses Festival at Heywood
somehow wine has found its way into main billing with
woodchopping! Music - from Spray Farm’s international
concerts to Eyton’s Summer Music Series - adds another
dimension. The opening of the Besens’ TarraWarra
Museum of Art will usher in new standards for winery
related activities.
1.3 Importance of Tourism at Regional
and Local Levels
Tourism is an industry which contributes $10.6 billion
a year to the state’s economy, and employs 156,000
Victorians. 2002 figures estimated that the economic
value of Victorian wine tourism was $412m. and Victorian
Wineries Tourism Council figures suggest that (for
visitors to a cellar door) 53% reported that wineries
were the main reason for visiting a region.
It is clear that investment in wine and food tourism
is already having a significant impact on Victorian
regional economies. This is more than an ‘added-value’
proposition - wine and food are generating visitation
(seen most clearly in the 40,000+ who visit the Yarra
Valley over the weekend of the Honda Grape Grazing
Festival). Again, the attraction of wine is encouraging not
only increased visitation but also increased length of stay
and, if return visitation is an indicator, increased visitor
satisfaction with the regional experience.
1.4 Strategic Direction
‘Wine tourism’ is not new. For many years visitors have
been seduced by the aura of wine and have sought it out
at its source. It is only over the last fifteen years that the
special synergy between winemaking, food and tourism
has been officially recognised and fostered. Australia’s
Wine Industry Strategy 2025 called on the industry to “...
Capitalise on wine tourism opportunities by stimulating
wine tourism and improving profitability for wineries”. In
1997 the Office of National Tourism provided funding for
the Winemakers Association’s National Wine Tourism
Strategy. Now most states have instituted formal
studies to scope and develop wine tourism. Since its
establishment the Victorian Wineries Tourism Council
has been instrumental in moving Victoria to the forefront
of national wine tourism through its promotional
publications, market intelligence surveys, public awareness
campaigns and encouragement of wine and food festivals.
Victoria’s Tourism Industry Strategic Plan 2002-2006 identifies
wine and food as a tourism product of state-wide
significance and a key segment for development. The
Strategy calls for wine and food to be included “... as
core product strengths” in all marketing strategies. It
also identifies the promotion of the Yarra Valley as “...
Victoria’s hero food and wine destination to national and
international markets”. Additionally, the Strategy commits
to improving regional restaurant experiences and restates
the importance of the Victorian Wineries Tourism
Council in providing direct industry advice to the Minister.
The Strategy maintains the regional structure of planning
but also identifies a shift towards the importance of
focusing attention on “... specific destinations, events
or activities that are the key motivators for visitors...
quality destinations with a strong sense of place offering
boutique accommodation, restaurants, shopping,
galleries, markets and appropriate quality service”.
This approach involves the identification of key
destinations - villages, attractions, and in some cases areas
(such as The Great Ocean Road. and The Grampians).
As a part of its overall approach, Victoria’s Food and
Wine Tourism Plan 2004-2007 will explore:
• Existing strengths
• Cooperation between regional wine and food groups
• Encouragement of quality food and wine festivals
• Preferred areas for development
• Opportunities for agri-tourism development
• Market positioning and strategic direction
• Education and accreditation of operators
Ideally, new product development should be closely
aligned to investment attraction and infrastructure
development of these strategic focal points.
2 . T HE REGIONAL CONTE X T
Brown Brothers
Victoria has eight
tourism regions which
provide a strategic
direction for Marketing,
Infrastructure
Development, Industry
Development, Product
Development and
International Marketing.
The regions provide a
clear focus for tourism
promotion bodies to co-operate in marketing and
product development.
The regions include The Murray, North-East Victoria,
Gippsland, Melbourne, Melbourne Surrounds, Great
Ocean Road, Grampians and Goldfields. The general
geographic boundaries of these are identified below:
Regional Tourism Development Plans (RTDPs) have been
developed for each of the State’s tourism regions and
are used to co-ordinate Marketing, Industry and Product
Development and Infrastructure activities.
REGIONS
A20
20
A79
Mu
rr
ay
NEW SOUTH
WALES
Riv
er
Grampians
Gippsland
Murray
Great Ocean Road
North-East Victoria
Goldfields
Melbourne Surrounds
Mu r r a y
Goulb
Rive r
urn
A8
r
M31
G
F
R i v er
lg
Grampians
lene
National
Park
i
S
k
s
l d
i e
Daylesford
1
r
ve
Bendigo
S n o wy R i
ve
A79
Ri
SOUTH AUSTRALIA
31
A8
l l ey
Yarra V a
Ballarat
A1
MELBOURNE
M1
A1
A1
Port
Phillip
M1
A1
B100
B100
SOUTHERN
OCEAN
N
Peninsula
Great
Ocean Road
Phillip
Island
BASS
0
50
100 km
STRAIT
Victoria’s Tourism Regions
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Many of the RTDPs identify food and wine as a product
strength and/or a product that is a point of difference.
Additionally, food and wine is identified as being a
complementary activity to many other tourism activities
and therefore adds significant value.
The plans identify that there is a need for quality
accommodation in regional Victoria to leverage the ability
for induced visitation to the regions to increase overnight
stays and yield. Investment in food and wine tourism will
help to achieve this objective and is therefore supported
by the RTDPs.
The tourism regions do not match the emerging
boundaries of wine producing areas (See map below)
however, each region is assessed and characterised on
the basis of its ‘brand attributes’ (key regional features,
destinations, attractions) and ‘brand personality’
(emotional or intangible attributes). Most often these
identify wine and food as a positive regional attribute.
Wine Regions
AROUND MELBOURNE
Yarra Valley
1
Mornington Peninsula
2
Geelong
3
Sunbury
4
Macedon Ranges
5
WESTERN VICTORIA
Ballarat
6
Pyrenees
7
Grampians
8
Henty
9
NORTH-WEST VICTORIA
Murray Valley
10
Swan Hill
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CENTRAL VICTORIA
Bendigo
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Heathcote
13
Goulburn Valley
14
Upper Goulburn
15
Strathbogie Ranges
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NORTH-EAST VICTORIA
Rutherglen
17
Beechworth
18
Alpine Valleys
19
King Valley
20
Glenrowan
21
SOUTH-EAST VICTORA
Gippsland
Wine Regions of Victoria
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Spray Farm
3 . T HE MARKET AT A GL ANCE
Understanding the make
up of the market - the
‘who, how and why?’
- is an essential input
into any investment
decision. The nature
and number of visitors
to wineries and adjunct
business have changed
dramatically since Sam
Benwell’s travels. As
‘lifestyle’ becomes
almost a tangible term for a whole range of consumption
behaviours, customer choices about wine (and food)
can describe quite different types of people. However,
some general trends are clear - the number of people
interested in travel, wine, food and local experiences
continue to grow; the young are becoming involved; and
certain regions are gaining sufficient ‘weight’ to act as
tourist magnets. Building relationships with these markets
is a key to successful wine tourism development.
In 2003 Tourism Victoria with the Victorian Wineries
Tourism Council (VWTC) conducted the Victorian Cellar
Door Survey (following its 2001 Cellar Door Survey).
This survey was completed by visitors to Victorian cellar
doors about themselves, their reasons for visiting and
their tourism habits. In summary, the survey reported:
Age
A significant increase in 25-34 year olds and 35-44
year olds over the 2001 Survey. The 25-34 year old
demographic now represents the largest single segment.
Life Cycle
The highest lifecycle group was in the family sector (32%)
but the report noted that older couples (28%) and
younger couples (26%) were also strongly represented.
Geographic Profile:
58% of visitors to Victorian cellar doors were from
Melbourne and a further 19% from regional Victoria.
Interstate visitors represented 20% whilst overseas
tourists represented only 3% .
Repeat Visits
87% of respondents were repeat visitors. On average,
those who were questioned made 3.5 trips per year
which included wineries. 80% reported at least one visit
to a winery each year (including 28% who reported 2-3
visits per year).
Regional
With most visitors coming from Melbourne it is not
surprising that the Yarra Valley and Mornington regions
attracted the highest visitation:
• Yarra Valley 48%*
• Mornington Peninsula 36%
• Rutherglen 18%
• Geelong 12%
• Pyrenees 11%
* multiple choices allowed
Duration
Over half (51%) of those questioned reported that they
were day trippers; one third (35%) were on short trips
of 2-3 days duration; and 14% were part of a trip of four
or more days.
Wine Consumption and Wine
Club Membership
46% of cellar door visitors drink wine ‘a few times a
week’; 32% ‘every day’. 24% belong to a wine club
or society.
Planning and Information Sources
77% reported that they planned to visit a winery before
departing on their trip. Key reference points were:
recommendations from family and friends (44%); Tourism
Victoria’s Wine Regions brochure (27%) and Tourism
Victoria’s ‘Jigsaw’ brochures (26%).
Motivation to Visit
Apart from wine tasting, the key reasons for visiting
a winery included: its surrounding scenery (24%); its
atmosphere (15%); and a food experience (20%).
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Main Reason for visiting Region
Most enjoyable aspect of a winery visit
53% of visitors suggested that visiting wineries was the
main reason for visiting a region. Reasons stated were:
visiting friends and relatives (14%); a weekend away
(14%); and attending sporting or outdoor events (10%).
The increasing importance of friendly staff was
emphasised by the VWTC cellar door survey. In 2001
this aspect was reported as secondary to the quality of
the wine. In 2003 although the quality of wine remained
stable at 31% , “friendly staff” had lifted from 23% to
36% to be the most significant determinant of enjoyment.
The significance of food facilities and ambience also
increased between 2001 and 2003.
Reason for Choosing a Particular winery
Wine quality was important but not the only
consideration when deciding on which winery to visit.
Respondents noted:
• quality of wine (20%)
• reputation (19%)
• food (17%)
• recommendation (17%)
• past experience (13%)
• ambience (13%)
Other activities
The most mentioned activity participated in by winery
visitors was eating out (73%). Arts and crafts, shopping,
picnics, outdoor activities and events/festivals were also
mentioned.
In summary, three key trends are clear:
• Wine is a significant driver of tourist demand. As
market demand for regional tourism grows, investment
potential of projects associated with wine are
becoming sustainable as attractive investments.
• Additional activities - particularly food - are sought
after as a part of the wine experience. Investment in
conjunction with wine enterprises offers strong ‘value
adding’ to both wineries and new enterprises.
• Wine and food tourism is no longer limited to older
demographic profiles - youth (25-34 year olds) is
increasingly important. The market for regional wine
and food experiences is made up of segments with high
disposable incomes. Strong return visitation indicates
that loyalty is high suggesting high yield and strong
word of mouth promotion.
4 . DEVELOPING THE CONCE PT
Mitchelton
4.1 Assessment
of a Wine
Tourism Project
In every project there are certain aspects which
determine success or failure. These ‘key success factors’
may relate to demand, margins, or revenue levels.
They may also be dependant on other things happening
- success in a regional wine trail promotion, an upturn
in intrastate tourism, containment of building costs,
differentiation from competitors, etc. Often a project’s
success is dependant on its location - near a major city
or destination hub, or perhaps, near a major landmark.
The investment
opportunities are
there. Victoria’s
tourism infrastructure
is developing as fast as
any in the country but
grape growing and wine
production has added
a dimension which
has opened up further possibilities for new ventures in
accommodation, restaurants, gourmet ventures, primary
production, events, festivals, adventure sport... and more.
In any case, identification of key success factors and an
analysis of the ‘sensitivity’ of those factors to change is
important in checking the ‘best case’ and ‘worst case’
possibilities for a project.
From an investment point of view, developing a successful
wine tourism product requires attention to many aspects
of the existing business and of the ‘adjunct’ business
under consideration. The same issues must also be
taken into account by an external investor in a project.
Tourism Objectives
Statutory Planning
Local Attractions
Tourism Type
Tourist Numbers
Tourism Needs
Tourism
Wine
Existing Loyalty
Identity / Image
Investment in wine tourism is no longer a matter of
shortening the distribution chain by opening a cellar door
facility. A range of variables must now be considered
in decision-making to move away from a simple wine
production model.
Figure 1, below, indicates the principal factors which
should be assessed in preparing a wine tourism
investment proposal. The ‘above the line’ factors: Regional
Character, Customer Base, Competition and Brand Position
represent the context for a new venture. The factors
‘below the line’ - Financial Reserves, Staff, Alliances, and
Promotion - are the resourcing issues which will provide
direction particularly in respect to scale and long term
financial viability. Examination of both types of variable
may suggest the most appropriate type of components
for a project - small scale and minimum risk BBQ facilities,
a family-run B&B,... or... a $6m conference centre.
Regional Character
Customer Base
Competition
Brand Position
Alliances
Other Attractions
Growers Association
Staff Resources
Staff / Contract
Self
Cashflow
Capital
Financial Reserves
Promotional Support
Components
Paid / Free
Regional Tourism
Tourism Victoria
Tourism Product
Cellar Door
Cafe
Accommodation
Picnic / BBQ
Winery Tour
Events
Conferences
Functions
Adventure
Arts / Craft
Wine Education
Other …
Figure 1 Wine Tourism Investment Issues
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Although a fortunate few can enjoy the winemaking
process purely as a pleasurable pastime, investors are
focussed on business outcomes. Establishing the financial
feasibility of any new or ancillary business is a critical step
in undertaking a project.
Predicting performance of a business is rarely risk free
and any feasibility analysis is only as good as its base
information and assumptions. Nonetheless a careful
approach to feasibility analysis can provide a good way
of exploring the issues which may make the difference
between success and failure. A feasibility analysis will, in
any case, be required as a part of any approach to banks
or other investors for funding.
Feasibility of a project depends not simply on accurately
gauging market-place demand. Financial profitability
is the objective and accurate estimation of the costs
and revenues associated with meeting demand is the
real outcome of a feasibility assessment. If feasibility
assessment is not a competence of the grower or
investor it is best that this stage is undertaken by an
independent specialist consultant.
Examination of trends in a particular industry is the
starting point for any assessment of future performance.
It is important to realise that a wine tourism project
can mean an understanding of many different industries
- each with their own market dynamics. Even basic
cellar door sales can be directly effected by trends
in merchandising. Restaurant fashions are constantly
changing. Accommodation is dependant on disposable
income, and so on.
Assessing past performance is one aspect of establishing
trends; predicting the future is the other. Often
trends, which history suggests are likely to continue,
can be turned into short term episodes by a larger
trend or one-off occurrence. Changes in government
policy - for example, water rights - can have a similar
effect. An understanding of broad economic trends is
usually obtainable from banks, government agencies,
or professional consultants. Industry associations and
banks usually have data on sector performance which
can be used to fill in details in particular industries.
Other agencies such as Tourism Victoria, the Victorian
Wineries Tourism Council, the Winemaker’s Federation
of Australia and regional tourism authorities can assist
in providing further specialist insight and statistical
information about visitation levels and market segments.
For more complex projects it may be appropriate to
commission market research to help establish the scale
and type of demand.
While investors are seeking to maximise the return on
their investment in a tourism-based project, often the
goal is not purely immediate revenue. The vision for the
project may embrace such issues as:
• Long term brand development - here the number
of people who engage with the brand may be more
important than a financial contribution.
• Short term promotion to new markets - investment in
festivals, regional promotions and brand alliances may
be a means of opening the brand to an new audience.
• Lifestyle - the grower or investor may simply wish
to enjoy the development of a larger concept.
• Capital appreciation of real estate - investment in
buildings, landscaping and facilities can add to long
term attractiveness and property value.
A clear understanding of the objectives of the investment
and its contribution to a wider vision of the enterprise’s
future is essential in evaluating feasibility and in
determining its real tests of success.
4.2 Key Factors
(Refer Project Development - Summary Checklist p.36)
4.2.1 Regional Character
Visitors understand regional differences and seek them
out. It may be the ‘terroir’ [Fr.“soil”] of the winery or
the impression one has of particular places - the
landscape, the people, the climate, attractions,
and special events.
Regional character provides the matrix within which
a tourist offering is made. It can be effected by the
marketing objectives of tourism authorities or by the
approach of local government to development, heritage
protection, environmental objectives, and so on.
The location of the venture is a key consideration
- proximity to local attractions and to key tourism
hubs may be critical to visitation. Already a tourism
trend to wine regions close to Melbourne has
justified infrastructure development in restaurants
and accommodation on the Mornington Peninsula
and the Yarra Valley. Macedon Ranges wineries have
found easy alliances with spa and restaurant operators
in Daylesford and Hepburn Springs. As international
interest in Australian wineries grows it is likely that
proximity to Melbourne will become a crucial issue for
inbound tourism. Again, as Tourism Victoria’s planning
around regional attraction unfolds it is clear that other
opportunities will emerge around those tourism ‘hubs’,
particularly for the intra - state and inter-state markets.
Ideally, a wine tourism venture will springboard off
regional character. It has been easy to associate wine with
regional difference (and continuing efforts at appellation
controls on labelling emphasise the significance of terroir);
now, associated food, building design, and even the
welcome of staff must reflect local differences. A project
developed without a clear understanding of the regional
constraints and character, risks missing opportunities
to build on these special attractors and to contribute
to them. In some cases - Milawa, Yarra Valley, and
Rutherglen are regional examples - the wine (and food)
factor has become a central driver in establishing an
identity for the future.
4.2.2 The Customer Base
4.2.3 Competition
Any wine tourism project relies on customers.
Understanding the present and potential numbers of
visitors, their needs and aspirations is a critical part of
any business planning.
Competition can come in two forms - other wineries;
or other attractions. Although a number of wineries
concentrated in a particular area can provide a certain
‘weight’ in the marketplace they can also compete directly
for the tourist’s dollar. Similarly, other attractions may
bring visitors but they may also consume the traveller’s
time and money.
In simple terms, visitor needs can be considered as of
two types:
• ‘Functional’ - the basic requirements: roads, toilets,
shelter, opening hours, signage, wheelchair access, etc.
• ‘Aspirational’ - needs for more emotionally-rooted
desires such as: personal recognition, exploring what
is new, security, peer approval, respect, fun, the best
of good living, and so on.
These issues are the matters that can be defined by
rigorous market research or even just by talking to
visitors. Frequently ‘demographic’ grouping can offer
insight to the way people may behave - age can be a
factor, as can family status, or income. Tourism Victoria
utilizes the Morgan Value Segments which identify
‘lifestyle’ categories based on the particular segments
approach to spending. Other markets are identified by
the use associated with a venue. For example weddings,
conferences, and celebrations often bring guests to a
place which they may not otherwise visit.
Targeting particular lifestyle, demographic or other
segments can be important in designing the features of
the project and efficient advertising depends on focusing
on the media relevant to a target market.
While it is important to assess the type of visitor it is
equally important to understand the size of potential
visitation i.e. the number of people that are likely
to come. Some large scale projects and major joint
promotions can begin new tourism trends to a region;
other projects may improve visitation from special
niches in the market; for others the absolute upper
limit of visitation will be the existing numbers coming to
the region, taking account of trends - up or down - for
the future. However, there is no attraction which will
capture the total potential market. In fact, in estimating
visitation, the investor must start at zero (and this is what
an existing winery going into a cellar door operation
without any existing reputation, promotion, alliances,
signage, etc. etc. can expect) and build up the project’s
visitation profile according to its appeal to its targeted
markets. Accurate estimation of the scale and frequency
of demand is perhaps the hardest but most important
single determinant of a successful business development
exercise.
Understanding the market is not simply a ‘once-off’.
Ongoing market reconnaissance is vital to remaining
competitive. Keeping abreast of customer needs can
range from simply requesting postcodes to undertaking
ongoing qualitative or quantitative market research on a
regular basis.
Some competition may be beneficial, enhancing the total
regional offer and expanding the overall visitation from
which the new project may draw its patronage. Other
competition may simply dilute a limited visitor pool.
The challenge to investors is to define possibilities for
establishing competitive advantage based on their special
situation, skills, and resources. Imagination in creating
a new concept, improving an existing one, or finding
market niches which are not being serviced are the keys
to competing successfully.
4.2.4 Brand Positioning
The identity and image of a winery (and its wines)
is a key asset of an enterprise.
Public trust of a brand can mean acceptance of products
at the retail and wholesale level. It can also assist in
financing and it can place a firm or a family in a social or
cultural context. It must be protected and nurtured.
A tourism adjunct to the wine business must positively
contribute to the wine brand. And it can! Many investors
have actually built their wine brand by entering an
adjunct market. Careful consideration of the implications
of a new venture on the existing brand is central to
building on existing loyalty and to providing access to a
larger patronage base. Usually the new venture should
be congruent with the brand identity of the winery - a
premium wine is not well serviced by a poor restaurant;
strength in an Italian grape may well be enhanced by a
game of bocce; ... and so on.
It is critical to remember that in any brand association
arrangement the business purpose is to enhance the
winery brand image - and therefore profitable sales by improving:
• Awareness of the brand
• Preference for the brand
• Intention to purchase the brand
• Actual purchase of the brand’s products
• Satisfaction with the brand
• Respect or loyalty to the brand
13
Much of the recent growth in wine tourism products
can be attributed to brand building. Frequently concerts,
restaurants, events, sponsorships, accommodation,
galleries, tours and other initiatives operate at little or
no profit but have enormous impact on building or
enhancing brand image.
4.2.5 Financial Resourcing
Ancillary products can be attractive in providing
additional revenue and ‘smoothing’ seasonal cash flow
variations; however strict business planning must be the
basis for deciding on a new venture. Institutional financing
will be linked to a clear analysis of demand and return
on investment. It is necessary to establish the capital
requirements of a proposal and to justify the cash flow
requirements over a reasonable business horizon. Benefit
can be determined by either an increase in existing
winery business or on the basis of a stand-alone adjunct
business. Accommodation, restaurants, events and so on
must be evaluated in terms of that particular industry or
in terms of adding brand awareness or image for the
wine label.
Financing expansion of the business depends on:
• One’s own funds
• Borrowings of loan funds
• Securing capital through equity injection,
sharing or raising
Inevitably, tourism also involves issues of public liability
and property damage. Insurance implications must be
carefully assessed and costed in advance.
4.2.6 Staff Resourcing
Running a vineyard and winery is, typically, a full time
occupation. Vineyard operations can draw heavily on the
most valuable resource of the owner - time. The decision
to expand operations into tourism ventures must be
undertaken with a clear view of the implications for staff
and the impact on the time resources of the winegrower.
Most of the time running a B&B, for instance, is not in
cleaning or cooking but in attending the phone for bookings.
Adjunct businesses have their own needs for expertise
and generally conform to the financial dynamics of
the ‘other’ industry. Staff issues including: the owner’s
expertise, local availability of suitable personnel, and
training requirements should be analysed. Similarly, the
need for contractors and specialist consultants needs to
be realistically assessed and costed.
Staff costs (including statutory and other on-costs)
are usually a major part of any enterprise’s annual
expenditure. Consideration of whether staff are to
be employed on a full time, part time or casual basis
depends on seasonal and daily demands.
Cost is not the only consideration. Staff (especially front
of house staff) are vital in maintaining strong customer
satisfaction and therefore return visitation and positive
brand impressions.
4.2.7 Alliances
Increasingly, success in developing a tourist resource is linked
to alliances with regional enterprises and associations and
with external brands, which can reinforce awareness of
the grower’s brands.
Typically, initiatives include taking advantage of economies
of scale in branding, joint marketing initiatives, and
promotions. Growers and tourism associations also
provide the opportunity for consolidation of market
research and network data bases.
Association with other wineries and attractions, growers
associations, accommodation, retail outlets, events,
restaurants, services and retail products can all be
useful in bringing tourists to a winery. The work done
by Browns Brothers and other local wineries in the
North East has been outstanding in generating interest
in the Milawa/King Valley region. The Scotchman’s Hill
group has built strong relationships with accommodation
businesses in the Geelong region to assist its wedding
and function clients. There are many other examples.
More generally, industry associations such as the
Victorian Wineries Tourism Council have generated
enormous awareness of wine tourism in the Victorian
context. The Winemakers’ Federation of Australia has
broad experience in research and advice on wine tourism
and its excellent guides, reports and research resources
are invaluable to any grower seeking expansion into
wine tourism.
Brand alliance with external corporations is an activity
which is being used to mutually enhance brand image.
BMW (Aust.) for example has utilised a number of Yarra
Valley winery destinations to re-enforce its image as a
prestige car provider. Similarly ballooning in the Yarra
Valley has become a popular part of the wine experience.
Assessment of the contribution to a project of existing
and potential alliances can be a decisive factor in
determining long term viability.
4.2.8 Promotional Support
Assessment of a new venture should take account
of the continuing requirements for promotion in the
marketplace. Advertising, public relations and loyalty
programs are likely to underpin a viable enterprise.
Tourism Victoria and regional tourism authorities provide
crucial promotional support to wine tourism initiatives.
Tourism Victoria’s publication, Wine Regions of Victoria,
has a distribution of 125,000 throughout Victoria and its
regional ‘jigsaw’ brochures are perhaps the single most
significant influence on self drive tourists.
There are also other free opportunities for news,
radio/television and internet coverage. Television, in
particular, can be powerful in raising awareness of a
wine and its brand. Travel programs, Postcards, Discover
and Australian culture programs are constantly seeking
new angles on the Victorian scene.
Again, co-branding with other businesses may enhance
awareness and image. This may be as simple as
providing wines to the local art gallery or as complex
as formal deals with major corporations as part of joint
promotional exercises. Sponsorship is a form of cobranding. The trade off is between the winery’s cash
and/or kind in return for association with the ‘brand’
of the local group, charity, cultural centre or product.
Customer Need
Business Activity
Associate markets
Buying
Cellar Door
Merchandise
Gourmet produce
Gallery
All day trip and overnight
Learning
Tasting
Wine education
Winery tours
Museum
Education, interest group
Accommodation
B&B
Hotel / Motel
Weddings, romance,
festivals, gay/lesbian,
adventure, sports
(Socially Aware, Traditional Family)
Business
Conference facility
Seminar, convention, retreat
Eating
Cafe
Restaurant
Epicurean Centre
BBQ / Picnic
Day trip, romance, festivals,
events, gay/lesbian,
adventure, sports (Visible
Reception facilities
Weddings, celebration
Weddings, functions
4.2.9 Product Mix
The table right (Table 1) summarizes some relationships
between the needs of customers, potential wine associated
activity which may satisfy those needs, and some possible
markets for the new enterprise.
(Visible Achievement/Look at
Me/Socially Aware/Young Optimist/
Traditional Family)
(Visible Achievement/Socially
Aware/ Young Optimist/Look at
Me/Traditional Family)
Nonetheless provision for paid advertising, sponsorships
or public relations activity is prudent.
The opportunities for investment are limited only by
imagination and potential market demand. Broadly,
customers display consistent needs which commercial
on-site ventures can tap into.
(Morgan)*
Achievement/Socially Aware/Young
Optimist/Look at Me/Traditional
Family)
(Visible Achievement/Young
Optimist/Look at me/Socially Aware)
* Morgan Value Segments © Roy Morgan Research
Table 1. Customer Needs
Holiday buying behaviour can be significantly different
from day to day shopping. Wine sales and specialty
consumption are typically more attractive in a holiday
situation and the opportunity is to cater to such
specialties. Again, wine education represents an activity
which may best be pursued on site. It is also clear that
accommodation associated with wineries has added a
positive dimension to an overnight stay. Meeting the need
for corporate conferencing is especially appropriate in a
winery as is demand for food and celebration.
15
5 . F INANCING WINE TOURISM
(Important Note: It is not the purpose of these guidelines to broach all the issues associated with possible finance and financial structures for undertaking
a new project; nor to recommend any. However some exploration of structural options may provide prompts to further discussion with qualified accountants
or financial advisors)
Spray Farm
5.1 Who is
investing in
Wine Tourism?
• to directly increase yield, and net return through
additional income streams;
• to enhance a brand in order to maintain or increase
market share;
The great lesson of the
past ten years is that
investment in wine and
wine tourism can come
from many quarters
- dedicated wine
growers, professionals,
the hospitality industry,
superannuants,
international corporations, farmers and others.
However, it is important to differentiate between
the two types of investor involved in wine tourism:
• to improve the value of the capital asset of the land
and its improvements; and
• lifestyle.
Perhaps most significantly, wine tourism projects can
offer some growers a way to balance cash flow over the
long term development of a wine business. The early
set up years of a wine business are characterised by low
revenue. As vines mature, the label is established in the
marketplace and economies of production are realised,
break even is achieved and eventually ongoing profit
achieved. A tourism product can, however, be achieved
more quickly and may deliver positive cash flow sooner.
• the winegrower or winery expanding its offer to
the public for revenue or brand development; and
• the external investor using visitation to a wine region
as a springboard to infrastructure development in
hotels, accommodation, restaurants, gourmet food,
merchandise and so on.
The model below (Graph 1) reflects a hypothetical case
of cash flow from wine (in blue) and tourism (in red).
It can be seen that the net cash flow position (in green)
can be improved, especially in the sensitive early years
through introduction of a tourism product. By the time
reinvestment in tourist product is required (shown below
at Year 8), vineyard income is nearly established and the
overall net cash flow position is manageable by Year 15
the overall benefits of cash flow from both sources are
clearly apparent.
5.2 Why invest in Wine Tourism?
$
Wine producers’ viewpoint
Growers may have a number of major financial
motivations for entering into a wine tourism venture:
Wine
400
Tourism
300
Net Cash Flow
200
100
Year
20
19
18
16
17
15
14
13
11
12
10
9
8
7
6
5
4
3
2
1
0
-100
-200
-300
-400
-500
-600
Graph 1. Cash flow
The simplified models (based on nominal value per
case) below demonstrate the advantage to the wine
producer in undertaking direct sales. In Model A the
producer achieves profit solely in the margin between
production costs and wholesale less distributors charges.
Model B shows that while there may be costs of direct
sales - administration, time, travel, representation, etc
- equivalent (or near) the distributor’s charges, the whole
retail component is retained by the producer, in this case
doubling gross margin.
Model A: 100% Distributor
$/ Case
Production cost
40
Distributor (say 20% Wholesale)
20
Producer Gross Margin
40
Retailer
40
TOTAL (RRP)
140
Production cost
Distributor
Retailer
Graph 2. Without cellar door
Model B: 100% Own Sales
Production cost
40
Cost of sales
20
80
TOTAL (RRP)
140
Production cost
Cost of Sales
Graph 3. With cellar door
In practice cellar door sales are limited by the demand
at cellar door. If the total production cannot be sold
directly, other distribution must be arranged. Again selling
purely through cellar door may limit the establishment
of the brand in the wider marketplace and be seen as
undesirable from that point of view. Nonetheless the
desirability of encouraging visitation to the winery to
capture the winery experience and cellar door (with
associated restaurant) sales is clear.
The Wine Equalisation Tax (WET) rebates available
from the Commonwealth and Victorian governments to
small growers for cellar door sales (up to $300,000) have
also provided a strong inducement to most producers
to establish cellar door facilities and direct mail-order
services. Under changes announced in the 2004 Budget
producers will now receive a maximum rebate of
$290,000 per year on all sales up to $1m. - effectively
neutralising the cost of the WET for 90% of wineries. The
net effect is to put distributor sales in the same (rebated)
situation as cellar door so this may actually remove some
of the incentive to open a direct outlet.
Small growers certainly benefit from direct sales in other
ways as well - principally in saving distributors’ margins
and competition for shelf space and smoothing year
round cash flow. But even the basic cellar door operation
must be considered a small business with all the
requirements for staffing, promotion, branding, facilities,
ongoing costs and so on.
There are no rules for sequencing investment. Brown
Brothers have shown the prudence of moving forward
from a stable financial and marketplace platform. On the
other hand, Spray Farm has successfully demonstrated
that intensive investment in events, food and functions
can help quickly elevate a brand above the ‘also-rans’.
Often, to support a cellar door operation, a grower will
invest in ancillary facilities from BBQs to restaurants,
B&B’s or other attractions. The option seems reasonably
simple. Vines take years to produce income whereas a
restaurant can be productive immediately. The challenge
is to make visitors come ... and buy!
In addition to capital commitment to growing grapes and
making wine, the grower is then faced with new financing
needs for buildings and fit-out. The danger lies in overextending reserves while there remain demands on the
winemaking business to cover establishment, expansion,
stock holding costs or in riding out over-supply situations.
Unsustainable costs in a new venture can actually
endanger the core business. Frequently the answer can lie
in a smaller investment in cooperative regional marketing
or in drawing external investors into the business or
in encouraging synergistic development by others.
Sometimes the ‘new’ business may prove to be a superior
investment to the wine business. Generally, however, the
rule is that as business grows more external funding will
need to be injected.
Throughout, the grower-investor must carefully gauge
the level of investment which is sustainable and the
implications of borrowing or capital raising on wine-trade
development and control of the business.
17
Outside investors’ point of view
External investors usually seek to associate with
the wine tourism industry:
• to make profit and a satisfactory internal rate of return
• to invest in the long term growth of the wine industry
• to invest in the long term growth of the
tourism industry
• to invest in the long term capital growth
• because of lifestyle considerations
• Piggy-back development - Relationship to events,
attractions, etc.
• Alliances - formal and informal.
• Financing - capital structure and cost.
• Profitability - satisfactory Internal Rates of Return;
reliable revenue, expenditure and cashflow
performance.
• Marketing plans - links to operators, brochures, trade
show attendance, advertising, sponsorships, loyalty
programs.
Benefits of cooperation
Cooperation of winemakers and other investors can
contribute to:
• Organisation - Corporate structure, management
structure, staff.
• risk reduction
• Operations - hours of operation, cyclical maintenance
costing, risk management, insurances.
• sharing of expertise
• increased borrowing power
• expanded brand profile
• synergies of development and marketing
• Government support - Access to grant
programs, subsidies.
• Statutory - Requirements for: planning approvals,
Worksafe, licensing, environment protection, shop
trading, etc.
The principal benefit is, however, a question of scale.
Although there are opportunities to invest in wine
tourism at all different levels, increasingly, the scale of
investment in facilities is growing larger as tourists expect
more (and get more from the competition). There is no
doubt that the more vigorous the wine tourism industry
becomes the more cost effective larger scale investments
in infrastructure become.
5.4 Issues for obtaining Finance
5.3 Business Planning and
Obtaining Finance
• Venture Capital - Equity participation from
superannuation funds, managed investment funds,
specialists in rural business, merchant bankers, etc.
For ‘premium’ deals arrangements involving debt and
equity involvement may be established. Usually this
will involve projects of at least $2m.
Proper business planning is the key to prudent
investment. A good business plan will test the concept
of the project; it will provide a required basis for
consideration of others - banks, financiers, etc; and, it will
provide targets against which the new venture can test
itself in operation. The plan should clearly identify:
• Purpose - Why the enterprise is being undertaken.
• Objectives - What is hoped to be achieved by the
venture.
• Concept planning - explaining the concept.
• Vertical or horizontal integration - Relationship with
other activities.
• Identification of business - What industry is the new
venture in? What are the trends and opportunities of
that industry?
• Market positioning - Where the new venture sits in
relation to competition, market type and market
demand.
Put simply, there are two types of finance:
• Loan Funding - Usually borrowed on the basis of
repayment of a loan plus interest based on security
of the proponent. This type of arrangement is most
appropriate for small scale ventures with a value
of under $2m.
Banks and finance institutions gauge the risk of their
involvement in particular investment in the context of
the expected performance of the industry in which it sits.
For example, an investment in a winery restaurant could
be considered as a part of the restaurant industry and/or
as a part of the wine industry. Current bank guidelines
rate large scale wine enterprises more highly than smaller
ones. This will effect the ease with which funding may
be available. Similarly, the restaurant industry is seen as
having its own risks. Generally the greater the lender’s, or
investor’s, perception of risk, the costlier and less flexible
arrangements are likely to be.
To improve attractiveness to financial institutions,
investors must be rigorous in addressing clearly and
reliably:
Most structures should therefore be entered into on
the basis of a clearly understood vision of personal and
enterprise goals reaching well into the future.
• Business Skills - the track record of a proponent in the
chosen business or in earning other income.
Financial structure (or corporate structure) may be
considered in the context of:
• Actual Capital Costs - Independent quantity surveyor or
architect assessments of costs.
• financing
• Business Plan - finance ratios, revenue estimates, cost
estimates, etc.
• Pricing - “Premium Wine Experience” or lower value
price bracket. Some regions’ ‘brands’ can sustain
$30.00 / bottle, some cannot. Similarly some tourism
products can attract a premium others may have
to find another position due to issues of margin and
customer profile.
• Brand - Is existing brand awareness sufficient to draw
customers? Does cellar door etc build brand or is it
better to build other experiences as an anchor to the
business?
• Benchmark - Estimated performance against industry
benchmarks.
• Risk - Risk can be in the form of: competive pressure in
margins; demand trends; and liability to litigation.
• Impact on rest of business - does the new enterprise ‘fit’
with the existing business.
• Capacity to meet demand of the tourism industry - lead
times, volumes and commissions.
• Regions tourism performance and catchment - eg
distance from Melbourne, existing established regional
tourism industry.
• Scale - Size of enterprise, capital requirements,
turnover etc.
• Security - Is debt secure?
• Presentation - Is the proposal presented in a
professional manner, inspiring confidence?
5.5 Structural Options
Wine tourism projects are often characterised by
a development of interests between a grower or
winemaker and new expertise (in say restaurants,
accommodation or some other venture). Where two
or more parties are sharing funding of a project close
attention needs to be paid to the type of corporate and
financial structure chosen to reflect interests and control
future plans. Too often winemakers have seen a need to
attract capital to cover stock holding or expansion then
found that their new ‘partner’ has gained unanticipated
rights to the firm’s management and assets.
• income sharing
• taxation planning
• indemnification and limitation of liability
• family inheritance planning
Sole proprietorship, where a business is operated in
the name of an individual is perhaps the simplest form
of structure. Revenue and outgoings provide the basis
for the individual’s net income and, accordingly, tax
responsibilities. The proprietor also retains responsibility
for legal obligations, including debts. This structure costs
little to set up and can quickly reflect the financial success
of a business, particularly when it operates in only one
enterprise. The structure can present limitations in
respect to capital raising as the assets of the business are
essentially limited to those of the proprietor. The great
advantage of this structure is that it does ensure close
personal control of a business.
A partnership can increase access to borrowings and
can bring together complementary skills. A husband and
wife can also value their respective input into a business
for taxation purposes. A partnership does, however,
open up possibilities for internal dispute regarding overall
direction. In the situation where a grower seeks the
partnership of a tourism specialist, say a restaurateur,
it is important that corporate vision and goals are
clearly agreed and that dispute settlement procedures
are envisaged. Additionally, a partnership usually has
unlimited legal liability.
Proprietary companies provide a separation of legal
entity from the individuals involved in them. In this way
financial participation in the company can be at legal
‘arms length’ through shareholding and consequent
dividends and legal liability lie with the company - not the
individual. Establishment of a company structure does
involve some costs and annual reporting to the Australian
Securities and Investment Commission. It also entails high
standards of record keeping and public scrutiny. Directors
of a public company are also required to comply with
clear standards of decision making and retain financial
responsibilities in certain situations. The proprietary
company does offer a means whereby a diversity of
owners can be accommodated through shareholding
and election of Directors. The company structure does
not necessarily preclude shareholder friction as holdings
fluctuate but it can provide impartiality of management
and perhaps a more stable base for accessing finance.
19
Badger Brook Winery
Managed Investment Funds (‘MIF’) represent
another vehicle of use in raising finance. In a managed
investment scheme your funds (and other participants)
are, in effect, combined to provide a capital base for a
common enterprise. Such schemes have been utilised
to invest in a variety of enterprises including: property,
small businesses, shares, cash management and
agricultural projects.
Established as a proprietary company (with the
consequent advantages and disadvantages) a MIF can
be designed to accept shareholder funds from, say two,
participants in a project on the basis of a transfer of
shareholding. A MIF can also act as a contributor to
another entity which can include proponents of
a particular scheme.
In some cases where a portfolio of assets is to be held, an
equity structure of ‘stapled securities’ can be considered
instead of simple shareholding. Stapled securities usually
comprise two or more separate entities (for example a
loan note, or trust unit, and a share) that must be traded
as one ‘stapled security’. This arrangement can allow for
some flexibility in distributing income and equity
between participants.
Strict controls apply to the establishment of these
types of investment vehicle and establishing a Managed
Investment Scheme, or participating in an existing one,
is a complex business which should only be undertaken
after getting high quality financial advice.
Recently, Pooled Development Funds have emerged to
take financial positions in winemaking and associated
enterprises. The First Wine Fund and the Authorised
Investment Fund are examples. Typically, these companies
use shareholder funds to invest in existing wine
businesses or to undertake new ventures. Stock market
listing entails considerable expense in meeting statutory
requirements for shareholding, capital and prospectus
issue but provides a certain ongoing strength in raising
finance. Usually this type of investment company provides
impartial administration of the business, however, at this
scale it can be difficult for smaller participants to retain
control over strategic decisions.
Two other more specialised structures have recently
been utilised.
To facilitate construction of its 32-apartment
development at Yarra Glen, Balgownie Vineyard Resort
has offered the 1 and 2 bedroom units for 199 year lease
(off the plan) on the basis that the lessee could make the
unit available to the resort to enable it to offer rooms
in conjunction with its proposed conference centre and
general tourism. This lease option enabled the company
to conform to planning subdivision requirements whilst
at the same time providing financial participation by
others in the project.
At Tarrawarra, Eva and Marc Besen have established the
TarraWarra Museum of Art Ltd as “... the first privately
funded, significant public visual arts museum to be set
up under the Australian Government’s philanthropic
measures announced in March 1999.” (TarraWarra
Museum of Art brochure)
Paringa Estate
6 . P L ANNING AND DESIGN
The development of any
food and wine tourism
investment requires
careful and considered
planning and design
in the early stages
of the development
process. For any food
and wine tourism
project to succeed it
will need approval from
relevant Government
departments including Local Government.
The development of a winery with restaurant and
associated accommodation for example, would, in the
first instance, require planning approval from the relevant
Local Government Authority. The following will provide
information on the Planning Framework which controls
development in Victoria, the general planning process
to gain approval and some design considerations when
considering the development of a food and wine
tourism investment.
Further information on the Victorian Planning Framework
can be found at www.dse.vic.gov.au
6.1. The Planning Framework
Victoria’s Planning Schemes are governed by the Victorian
Planning and Environment Act 1987, which provides a
statutory base for land-use and development planning.
The Act specifies the planning process and the particular
procedures Local Government must take in the
assessment of a planning application. Underpinning the
Act are specific Local Government Planning Schemes
which specify land use and development controls and
policies.
• A Local Planning Policy Framework (LPPF) which
contains a Municipal Strategic Statement (MSS),
and Local Planning Policies. The framework identifies
specific long term directions about land use and
development in the specific Local Government
area and presents a vision for the community
and other stakeholders.
• Zones which specifically identify what types of land use
activities, development and subdivision could possibly
be undertaken.
• Overlays, as well as zones, which can apply additional
controls on the development of a site. eg. Building
height, heritage and vegetation protection.
• Particular Provisions which identify specific
requirements for land use, development and
subdivision.
• General Provisions and Land Use Definitions.
Therefore, before considering a particular use and
development of land specific consideration should be
given to the Zone and any Overlay control which may
be applicable to the site.
Zones
The Planning Scheme zones are listed in the planning
scheme and identified on the Planning Scheme
maps. Each particular zone has a purpose and set of
requirements. This information will indicate if a planning
permit is required and the matters Council must consider
before deciding to grant a permit. This zone also contains
information relating to land uses, subdivision of land,
construction of new buildings and other changes to
the land. A zone sets out the land use controls in three
sections as follows:
The Planning Scheme
• Section 1 Uses - Uses which do not require a permit
The Planning Scheme effectively determines what types
of development and land use can be undertaken on land
and any new development must comply with the specific
requirements.
• Section 2 Uses - Uses which require a permit
They contain:
• A State Planning Policy Framework (SPPF) which
describes strategic issues of state importance.
• Section 3 Uses - Uses which are prohibited
Thus, for example, a permit for a B&B accommodating
no more than 6 people does not require a permit in a
Rural Living Zone (RLZ) but ‘a Restaurant’ does; and
a ‘Nightclub’ is prohibited.
21
Overlays
Not all land has an overlay but some sites may be
affected by more than one overlay. An overlay may relate
specifically to significant landscapes, heritage, building
height limits, vegetation, etc. which attract permit controls
over and above other scheme controls.
Where land is used for multiple purposes, which are
not identified as ancillary, each use must comply with
scheme requirements.
Councils are continually adding to and amending their
schemes and therefore careful consideration should
be given to the current planning controls relevant to
the land.
6.2 The Planning Process
In most cases, a food and wine tourism proposal will
require a planning permit, however, this should be
confirmed by meeting with the Local Government
Authority to discuss the idea. If a planning permit is
required a general outline of the process is:
1. Pre-application Preparation
• Review the planning scheme.
• Discuss the proposal with Council.
• Talk to neighbours.
• Consider getting professional advice.
2. Prepare and Submit the Application
• Complete application form.
• Pay required fee.
• Lodge required plans and drawings.
3. Council checks the Application
• Is all information provided?
• Council may request further information.
4. Application is Advertised, if Required
6. Council Decides Application
• Approval (Usually with conditions), or;
• Refusal.
7. Review by Victorian Civil and Administrative
Tribunal (VCAT), if applied for
• By permit applicant against conditions or refusal.
• By an objector against an approval.
The time taken for the consideration of an application
will vary considerably for each Local Government area
and will be determined by the work load of the Council
staff, the number of objections (if any) to the proposal
and the various issues involved in the assessment of the
application. Investors should discuss the timing of the
application with the relevant Local Government officer
to gain an understanding of the length of the application
process. A refusal at Council level may not mean the
end of a permit application. Appeal against a Council
determination may be pursued through the Victorian
Civil and Administrative Tribunal.
6.3 Other Approvals
In addition to the State planning legislation, there are
a number of other permit authorities which must be
approached for certain aspects of some developments.
These include:
• Vic Roads - Traffic management, highway access and
highway signage.
• Heritage Victoria - Listed historic buildings and
places, aboriginal, and shipwreck sites of state-wide
importance.
• Consumer Affairs - Liquor licensing - Vignerons Licence
(Cellar Door or licenced restaurant)
• Environment Protection Authority - Pollution and noise
emissions.
• Local Government Health Requirements - food
preparation areas require health approval.
• Advertised for at least 14 days.
• Local Water Authority - Sewerage and water supply.
• Usually by letter to neighbours and a sign on site.
Investors should consult each of the relevant authorities
to determine their specific requirements and any
application procedures. Local Governments planning
office will generally guide you on the authorities that
you may need to consult with.
• People affected may object.
5. Council Assesses the Application
• Considers objections.
• Holds mediation meeting, if needed.
• Considers any Referral comments.
• Assesses planning scheme provisions.
• Negotiates with applicant.
• Prepares report.
6.4 Planning and Design Issues
There are a number of issues which should be addressed
in consultation with the relevant Local Government
Authority. Some may be of a minor or technical nature
others may be central to success. A strong Council
commitment to food and wine tourism can be the key
variable in making or breaking a project and the lesson,
therefore, is talk early, talk often to Councillors and staff.
Money spent on good design is a wise investment and
will help maximise functionality and customer experience.
It may be prudent to engage an experienced designer
or architect that can lead you through the design phase.
Design of a new facility requires not only forward
planning of physical elements but a strong understanding
of a winery’s brand character. A new building or
extension can reinforce an existing character or
can signal a new direction for the winery. It must be
considered as a major public statement of the aspirations
of the winery; the sense of arrival and amenity of the
facilities is critical to the visitor’s impression of the
product and services. Some of the most successful
food and wine tourism investments feature well planned
and designed facilities that fit well within the landscape,
are contemporary and reference their locality.
The following will provide insights into some of the
planning and design issues that should be considered
in the scoping and design phase of a food and wine
tourism product.
Access and Car Parking
In most cases food and wine tourism development is
linked strongly with road touring and therefore the
provision of quality vehicular access and car parking is
central to a quality experience.
Vehicular access should be provided to allow safe and
efficient movement of vehicles considering adequate site
distances for vehicles exiting and entering the site. In many
cases, consultation with Vic Roads would be required for
new access points, where it abuts a main road. Vehicle
slip lanes may be required to allow adequate distance
for vehicles to enter or exit a main or local road.
Adequate car parking should be provided to
accommodate the likely number of vehicles that may
be associated with the proposal. The Planning Scheme
stipulates the minimum required number and dimensions
of car parks. For example, a restaurant is required to
provide 0.6 car spaces to each seat available to the
public. In a number of cases consideration may be given
to providing additional car parking to accommodate any
overflow which may result. Provision should also be made
to accommodate buses as, in a number of cases, bus
groups may be associated with wine tourism activities.
Wet weather access to the facilities from car parks should
also be considered. It is also critical to plan car parking to
minimise the likelihood of visitors bringing vine disease
into the vineyard.
Building Design
Any buildings proposed should be designed to
consider the brand image of the wine product
and the surrounding landscape.
In particular, consideration should be given to the
setbacks, height and orientation of the building so that
it provides for desirable view lines both to and from the
building. For example, it would not be desirable for a
building to look out onto a car park, toilet facilities or
service areas; the more appropriate response would be
to capitalise on view lines across natural land features
such as vines, a valley or water body. Quality view
lines to the building could be encouraged with a building
height, massing and an external finish that complements
the surrounding built form, landscape and
topographic features.
Building Layout
A functional, well designed building will assist with the
management and comfort of visitors to the venue. Some
considerations include the provision of disability access,
wet weather protection, provision for deliveries and
service areas, provision for solar orientation and access
to natural sunlight and food preparation areas that
comply with relevant health standards.
The building layout should also include provision for
possible future expansion should this be necessary.
Landscaping
Quality landscaping is one way of significantly adding
to the food and wine tourism experience. Consideration
should be given to retaining as much significant vegetation
that is on the site and also to planting appropriate new
landscaping. Landscaping can define and accentuate
a pleasant entry way and can also screen any visually
undesirable structures or vistas, such as service areas
or staff facilities. Careful selection of plant species is
important as each species type would have different
mature heights and screening abilities.
Consideration should be given to drought tolerant
plants particularly those that are indigenous to the local
area. Many Local Government Authorities can provide
suggested planting lists. Indigenous plants can help
attract native birds and animals to your facility which
can be a tourism feature.
Signage
The appropriate identification of a food and wine tourism
business is important to encourage visitation and brand
identification of the premises. The Planning Scheme
stipulates specific requirements for signage and in many
cases Local Government authorities have specific design
policies for new signage which should be considered.
In general, signage should be located and designed to be
clearly visible without obstructing sight lines and resulting
in visual clutter. The design of the signage will, in most
cases, give the visitor a first impression of the venue.
Site Servicing
New development requires the provision of essential
site services which include things such as electricity,
water, sewerage and drainage.
23
Servicing availability is a matter for discussion with the
Local Government authority and servicing agencies to
determine the capacity available. In a number of cases in
rural or semi rural areas mains sewerage or water may
not be available so consideration will need to be given to
the provision of water and wastewater treatment on site.
mechanisms which may include appropriate site layout,
acoustic treatments to buildings and the appropriate
location of any emission flues etc.
Health Considerations
If food and beverage is involved, various health
regulations and requirements are required to be satisfied.
In particular, food preparation areas are required to meet
health standards and satisfy the Local Government health
requirements.
Amenity Considerations
Any new development proposal will result in changes
to the existing environment. Some impacts may include,
noise generation, smell and fumes, traffic movements
and stormwater run off. Consideration should be given
to minimising the impacts of these by using appropriate
The following diagram (Diagram 1) illustrates some
design and planning issues for a wine tourism proposal.
w
ar
to e O
Vis ve
ito rsp
r s ra
y
Vineyard
Be
Dam
Pest / Disease Management Zone
NO ENTRY
View
am
w
Vie
Turnout
Highway View to Winery
D
to
Vineyard
View
Trees for Summer Shade
Kitchen
Highway
Restaurant
Vats
Control Vehicle Access
Accommodation
Accommodation Visible from
Cellar Door but Separate
n
w
ar
to e O
Vis ve
ito rsp
r s ra
y
Car
ng
Par ki
atio
od
mm
co
s
View
Be
Ac
Vineyard Operations
Vineyard
BBQ
Picnic
d
Ro a
Create Gate
Presence
Barrels / Processing
Service
Parking
Gate
Tree Shade
Winery Sign
Allow Stopping Distance
Wineries
Signage
Interior View
Cellar
Door
Pest / Disease
Courtyard
Car Park
Management Zone
NO ENTRY
Barrell Hall
s
View
/
Pest
ase
Dise
e
Zon
ent
RY
agem
ENT
NO
Man
yard
Vine
Diagram 1. Design issues
6.5 Local Government
Local Government in Victoria is seeing the positive
benefits - in jobs and economic growth - of wine tourism
and are active in facilitating projects.
Local Government is a focal point for attracting
investment in food and wine tourism. A number of
projects in Victoria have been achieved by clear Council
policy support.
In a number of ways Local Government can support food
and wine tourism:
• Internally - identification of food and wine tourism as a
corporate priority by including objectives in the Council’s
corporate plan and by providing staff resources.
• Planning focus - at the MSS and LPPF level, the Local
Council can indicate its approach to land use and other
planning. Clear statements of strategic direction and
planning objectives are important not only in initial
considerations but also in the event of appeal at the
Victorian Civil and Administrative Tribunal (VCAT).
• Economic Development Strategy - the contribution
of wine tourism in economic development and
employment can be highlighted in the Council’s
Economic Development Strategy.
• Tourism Strategy - Many Councils have identified
the special possibilities tourism can bring to the
municipality. This strategy can: identify the significance
of tourism to the local economy; identify assets; and
possible incentives.
Food and Wine Tourism, is in effect, an emerging land
use (particularly when the issues of complex use of rural
land is in question). There is considerable potential for
some Local Government areas to explore wine tourism
strategies focusing on developing infrastructure which
combines primary production with ancillary public and
commercial facilities.
Rate concessions are generally difficult for Local
Government to concede. Nonetheless there is a capacity
for Councils to contribute incentives through such things
as promotions, trails, road access and staff support.
Already local government support of this type has
resulted in many positive initiatives in wine tourism.
7. C ASE STUDIES
The following case studies are intended as a cross section of
some of the initiatives taken in Victoria in developing wine tourism.
The cases range from the small to the large; from B&B’s to major
regional tourism infrastructure investments.
Cases have been chosen to reflect different Victorian wine producing
or tourist regions, a variety of investment levels and the different
weighting of particular factors for success.
All show perceptiveness in meeting the market in a responsive
and personal way.
25
7. 1 RED ROCK
Rohan Little
“Small vigneron finds niche market in west”
Red Rock is truly small.
About 15kms from
Colac, it is owned and
run by a young couple,
Rohan and Dominique
Little. There are a few
other small wineries in
the region (including
Empress and Barwon
Plains) but by no stretch
of the imagination can it
be considered a “wine
region”. Rohan started the 16 ha. vineyard in 1997 and
based his investment decisions on the availability of
suitable land at a reasonable price and proximity to an
existing tourism feature - the Red Rock volcano, which is
an existing tourist attraction. Cellar door and some food
were always considered a part of the overall plan. He has
constructed the very basic (but not unaesthetic) cellar
door/restaurant (120 seats) himself (for $70,000!). All up
they have spent about $700-800,000 buying land, house,
buildings and establishing the vineyard - most of this
from the sale of their Melbourne house but with some
reinvestment of profit and some local Bendigo Bank
contribution to new works. They are currently building
a small barrel room facility which will include two self
contained B&B apartments - all up cost, about $350,000.
Red Rock captures some tourists from visitors to the Red
Rock lookout (on the Volcanoes Discovery Trail) and others
from travellers going by coast along the Great Ocean
Road then returning to Melbourne inland. New regional
attractions which are pulling customers into Red Rock’s
catchment include: the Otway Fly (a major investment
in Australia’s largest tree-top walk); Timboon cheese;
and whale watching at Warrnambool. Rohan reckons
that 30% of his customers are locals, 30% intrastate,
30% interstate and 10% internationals. In the absence
of quantitative market research he estimates that most
visitors are in the 40-60 year old demographic - most
travelling as couples.
Rohan’s background is in the hospitality industry as a
wine consultant and broker and as restaurant/function
manager in Melbourne and at Erskine House, Lorne. He
produces most of the popular varieties - his aim is simple
‘fruit driven’ wines at about $15-$18/ bottle. Recently
Rohan has also introduced a highly pleasant sparkling
methode champagnoise tache.
Rohan’s advice to growers seeking to expand into wine
tourism is:
Following an unexpected demand from locals for
inexpensive receptions, ‘vigneron lunches’ and meals
(c. $15/ main course) he has employed an experienced
‘foodie’ friend to assist in running the restaurant. This has
developed into a worthwhile business in its own right
and is important in introducing the label to local retailers
and business accounts. The new B&B apartments will
help in accommodating a demand for wedding parties.
Dominique runs the cellar door which is achieving a
healthy average spend of $50 per customer. Visitation
to the cellar door and restaurant (excluding functions
and weddings) is running at about 1000-1500 per month
May to October and 2000-2500 per month November
to April.
This wine tourism venture has been warmly embraced by
the local community and Council. Rohan and Dominique
advertise in local papers and on local radio. They chip
in for school raffles, the kindergarten, football club
and churches. The Colac Visitor Information Centre is
important in sending visitors out to the winery and the
Colac Otway Shire has got behind a wine and food trail
of 16 attractions, including Red Rock, for Great Ocean
Road Marketing.
The brand appeal may be characterised as ‘personal,
fresh, and inexpensive’ and this is the nature of the
people involved, staff, the buildings, the wine and the
needs of the market Red Rock serves. Everything fits.
• Remember why you are doing it and don’t listen
to too many people.
• Don’t expand or upgrade for the sake of ego.
• There are efficient sizes for wineries but between
those sizes can be inefficient; instead of gradual
expansion, get comfortable at a targeted size then plan
the ‘leap’ to the next size.
• Everyone’s a critic and everyone could do what you are
doing better than you - they can’t. On the flip side you
will be showered with compliments, these people have
no greater expertise than your critics.
• Prioritize your time at what you are best at, not what
you most enjoy doing.
• Business management is number one; there is many
a perfectly manicured vineyard/winery that is not a
sustainable business.
Summary
Scale
Small
Financing
Own
Bank
Brand Character
Young
Energetic
Inexpensive
Regional Character
Rural non-wine
Environmental
Holiday
Restaurant
Lunches
Receptions
Jazz Nights
Cellar door
Basic
Accommodation
Coming
Planned Expansion
Accommodation
Message
Sometimes demand can be created
Respond to the market
27
7. 2 HANGING ROCK WINERY
Anne and John Ellis
“Quality producer takes advantage of proximity to Melbourne”
Hanging Rock near
Woodend is one of
those special places that
encourage visits and
mythmaking. John Ellis’
Hanging Rock Winery
(with a new breed
of Macedon Ranges
winemakers) is adding
another dimension
to the legend.
Hanging Rock aims for the premium and super-premium
end of the market. Its “Macedon” sparkling has just
received a prestigious international gong for Australia’s
best. Its public face belies the major investment in
processing which is skilfully hidden out the back. John
and Ann Ellis established the vineyard in 1983. The
winery was built in 1985-86 ready to make its first
vintage in 1987. A cellar door was always part of the
concept and came on stream in 1990.
In addition to its cellar door outlet Hanging Rock
has its ingeniously designed ‘Winery Retreat’. (This
accommodation facility is, essentially, a four star cross
between a B&B, a ski lodge and a conference complex.
It has four double rooms with a floor plan allowing for
flexible accommodation of couples, families or groups at
a base rate of $180 per double room per night including
breakfast.) The barrel hall followed in 2002 - designed to
provide for storage and the building for future expansion
into food and functions.
The cellar door and distribution list provide about
20% of Hanging Rock’s nearly $4m. sales (the rest is
made up predominantly of wholesale sales with healthy
injections from interstate and export markets). The
accommodation component of the winery is currently
producing about $60,000 in revenue and a small profit
after expenses. John is a believer in wine tourism - not
just because of his Chairmanship of the Victorian
Wineries Tourism Council (more the other way around)
or because it contributes directly to revenue but because
he has seen how important it can be in establishing the
Hanging Rock brand in today’s market environment.
John sees tourism to the region as an integral part
of his overall marketing effort. Hanging Rock Winery
is a driving force in the local Campaign Committee
which raises funds to be matched by government for
promotions. Local wineries, food producers, and retailers
now participate in events such as the Harvest Picnic,
the Worlds Longest Lunch, the Good Food Show, the
Hanging Rock Races and classic car rallies. Hanging Rock
Winery has an advertising and promotions budget of
nearly $150,000 and a permanent in-house marketing
staff of 1.5 (full time equivalent) whose job it is to get
media coverage and to manage promotional initiatives.
So the tourism activities such as co-branding deals
with prestige accommodation like the Lake House, the
Bentinck and Campaspe House sit alongside marketing
investments such as a sponsorship of the Melbourne
Football Club.
John’s enduring objectives are financial. He is continually
looking for ways to increase yield and improve
profitability. He takes the view that the land is an asset
which must produce a reasonable return. Whilst he
retains enormous confidence in the long term future
of wine production, he believes that regional tourism
initiatives are critical in establishing a brand identity
which will enable the larger business to function. He
also takes the view that a ‘smoothing’ of cash flow can
contribute to the enterprise’s overall financial health - a
matter dear to John’s heart having survived the vagaries
of an unsatisfactory equity sharing arrangement with
investors earlier in the winery’s history. As a result of that
experience John and Ann are committed to retaining
management and equity rights as an essential part of any
financing of the future of Hanging Rock winery.
There is no doubt that the future will, at some time, see
an investment in a restaurant within the winery complex.
Also there is, attached to the winery, a large acreage
of undeveloped farmland (not suited to viticulture),
surrounded by virgin forest. In fact the winery retreat is
on a separately titled 40 ha property which has a current
permit for development as a tourist facility. There is
potential for development of this property to increase
the accommodation side of the business.
Summary
Scale
Medium
Financing
Self
Bank
Brand Character
Premium
Regional Character
Interesting
Mystical
Proximity to Melbourne
Restaurant
No
Cellar door
Yes
Accommodation
Yes
On Site
Possible Expansion
Restaurant
Functions
More accommodation
Message
Careful brand development
associated with regional character
Objective of, income generation
Structure now protects ownership
29
7. 3 LYRE BIRD HILL
Robyn and Owen Schmidt
Gippsland accommodation
Lyre Bird Hill is one of a
group of small wineries
established in South
Gippsland (Koonwarra)
either as an alternative
to dairy industry
rationalisation or the
‘retirement dream’.
In this case Owen and
Robyn Schmidt gave up
city jobs in accounting
and catering services to plant some 6 acres of grapes
about eleven years ago. They have established a typical
‘packing shed’ winery and are producing some very good
varietals. Production runs between 600-2000 cases
depending on seasonal conditions. Cellar door sales are
critical to wine sales generating about $80,000 (from
4000 visitors) revenue in 2003. Trade sales contributed
another $30,000 and Owen’s making for other local
growers, another $30,000.
Owen and Robyn were early adapters to the B&B trend.
Their principal accommodation is three bedrooms within
the house - modern (4 1/2 Star), and comfortable; and
in an adjoining farm cottage which is used for families.
Dinner with the winemaker, featuring estate wines,
is available to B&B guests. This is a good means of
promoting wine sales. Very basic facilities in the winery
provide for bush banquets and picnics. Entering the
wine and food business has meant that Lyre Bird Hill
has had to register as a ‘food premises’ with the local
council. This also means appointment of a certified ‘Food
Safety Supervisor’ (Robyn) and establishment of a ‘Food
Safety Plan’. Local B&Bs saved by sharing the cost of
bringing an accredited food safety course to Leongatha,
rather than travelling separately to Melbourne. The
cellar door’s ‘Vigneron’s Licence’ covers most of their
activities and limited licences are required for off site and
one off events. Income from accommodation has risen
progressively each year until 2002 (when, like many other
small vineyards, Lyre Bird Hill reports some temporary
reduction in 2003 cellar door sales and accommodation
bookings) and now accounts for about $70,000 revenue.
Owen suggests that the four income streams provide
a major advantage in balancing income - when wine
production is down accommodation can be up; when
trade sales are up, winemaking can be down ... and so on.
Lyre Bird Hill is located off the South Gippsland Highway.
Owen has observed that the rerouting of the highway
has meant that its finger signage has been scrapped and
cannot be re-instated under new guidelines. He is not
pleased! Marketing the winery remains Lyre Bird Hill’s
major challenge. Owen and Robyn allocate $10,000
each year for advertising, publication (including their
newsletter which goes to 1500 loyal clients and website)
and promotions. The business relies heavily on loyalty
of those who have stayed overnight or who come to
the special banquets. Lyre Bird Hill has also concentrated
on building alliances with local B&Bs.
Lyre Bird Hill has attracted visitors diverting from
the Penguins and Wilson’s Prom. They rely heavily on
visitors and owners of holiday and permanent homes in
the beach resorts along the coast from Phillip Island to
Walkerville. They support Local and Regional tourism
publications and promotions and attend a number of
Food & Wine Festivals held throughout Gippsland.
They are also involved with a group of 14 wineries in the
process of developing a Wine Trail in South Gippsland.
However, the collaborative efforts are at the first stages
of ‘tourism readiness’ with strong commitment of cellar
doors to regular hours yet to be consistently achieved
by some of the participants. Owen and Robyn see any
shortfall in advertised commitments as a serious failing in
a tourist market which is becoming increasingly reliant on
a professional approach. Nonetheless a character of rural
friendliness epitomised by Lyre Bird Hill and the nearby
Ramsay’s Vin Rose are emerging as the core of
a regional brand identity. This fits Lyre Bird Hill’s
aspiration to provide “good wine, good food, and
good accommodation ... without too much palaver.”
Summary
Scale
Small
Financing
Own
Bank
Brand Character
Friendly
Intimate
Carefully made
Regional Character
Rural Friendly Sustainable produce
Restaurant
No. But ancillary food events
Cellar door
Yes
Accommodation
In house B&B and cottage
Message
Personal commitment to
hospitality Accommodation
provides brand loyalty
31
7.4 WARRENMANG
Athalie and Luigi Bazzani
“Ground up venture in the Pyrenees”
Not much slows
up Luigi and Athalie
Bazzani.
Luigi’s CV includes the
Grand Metropolitan
Hotel and the
Connaught Hotel in
London, then the first
class salons of the
Queen Elizabeth I on the
London-New York run.
Over the last thirty years their energy and passion for
hospitality has left many travellers with fond memories
of regional Victoria. They claim that their Copper Pot
(est. 1970) in Bendigo was the first “real” restaurant
in regional Victoria and many people agree. La Scala
(started in 1976) in Ballarat cemented their reputation
for excellence. Along the way they got the idea that they
should provide their own wines for their restaurant tables
... which in turn led to an involvement at Warrenmang.
Warrenmang’s cellar door opened in 1978 staffed by
“a local woman who did not like wine”. In 1986 they sold
La Scala and a planned (by Athalie) retirement turned
into the establishment of the Warrenmang restaurant
(by Luigi). By 1989 the first cottages had been built - a
response to the issues of strengthened drink/drive laws.
This was a turning point in sales at Warrenmang. In 1988
Athalie recalls selling $100,000 from the cellar door
for the entire year. Once the cottages opened and the
restaurant was launched this sales figure was achieved
after one month.
Warrenmang started with six 4-bed cottages followed
by six double suites then a further five. Now there are
eighty four beds. Increases in capacity over ten years saw
a sustained doubling of cellar door sales and export leads.
Success was based on continual development of the
quality of the wine and on Warrenmang’s reputation as
an outstanding restaurant. This status was confirmed by
a three hat award by the Age Good Food Guide. In 2003
Warrenmang Vineyard Resort was voted Australia’s
best in the Great Wine Capitals Wine Tourism
International Awards.
Warrenmang has also focussed on capturing the
conference market. This business has provided a lynch
pin to the other tourist facilities providing as it does a
weekday demand for food and accommodation which
could not sustain high calibre staff and services purely on
weekend patronage.
Athalie thinks that the “on site” experience of guests has
been vital in building a loyalty to the wine brand. She
believes that visitors enjoy recreating their rural stay each
time they open another bottle of Warrenmang!
Warrenmang, with the other champions of the Pyrenees
- Taltarni, Blue Pyrenees, Dalwinnie, and Redbank - has
been instrumental in developing the reputation of the
whole region and in developing a viable visitation.
Athalie now markets the resort from a shop front in the
main street of Ballarat. She claims this has boosted bookings
and brought her closer to both potential customers and the
tourist industry.
Recently Warrenmang has announced its next step
- refinancing as a listed company with the involvement
of a major Australian investor with British connections
who is understood to be planning to link Warrenmang
with the Glen Kara vineyard at Landsborough with plans
to expand to 200,000 cases by 2013. The float involves
raising $6m. (minimum) in 35 cent shares.
Summary
Scale
Medium
Financing
(Proposed Listed Company)
Brand Character
Quality
Regional Character
Quality
Restaurant
Yes (and, until recently,
at Bazzani’s Bendigo)
Conference facilities
Up to 100 delegates
Cellar door
Yes
Accommodation
B&B cottages
Luxury Suites
Message
Drive, stamina and vision counts
Growth may require external
equity involvement
33
7. 5 PET TAVEL
The Fitzpatricks
“New Player on the Geelong Block”
The Pettavel story is
different. Mike and
Sandi Fitzpatrick were
significant Mildura
contract growers (with
a small winery outlet)
who saw the shift in
power from growers
to wineries and decided
that they would be
better placed to join
the latter. They sold up, set up vineyards in the Geelong
region then ten years on have established the new
complex on the Geelong - Colac Road. - after reviewing
figures on highway use. $8m. later they opened Pettavel
in December 2001 with a view to attracting Great Ocean
Road trippers, Melbournians, holiday makers from Lorne,
Anglesea, Torquay and the coast, and passing trade.
visit and the Age Good Food Guide awarded Pettavel a
coveted ‘hat’ in 2002/03 and 2003/04. Pettavel was also
recognised as the 2003 Best New Restaurant and Best
Winery Restaurant in 2004 by the Victorian Restaurant
and Catering Association.
The winery and restaurant (180 seats) building is striking
and set up to provide maximum efficiency in wine
production. The interior surprises in comparison to the
utilitarian exterior. Consultants in architecture, winery
design, label design, brochure design and a consultant
chef were employed to assist with the set up.
From its own budget, Pettavel, allocates some $40,000
for advertising and $20,000 for promotions. Pettavel has
gained cover on TV’s Postcards and has been reviewed
(positively) in Gourmet Traveller, Vogue Entertaining, and
the Herald Sun. Still, Robyn is quick to acknowledge that
it is in the marketing area that she wishes to see rapid
development over the next few years. To that end,
Pettavel has recently appointed a specialist
marketing manager.
Pettavel is the largest crusher and producer of wine in
the region. They now crush 1200 tonne (of which 500
is for their own labels - Evening Star (eco); Platinet ($25);
Émigré ($40)). The new centre is run by Mike’s daughter,
Robyn, and employs up to 30 people.
Pettavel provides lunch but no evening restuarant
meals (apart from summer Friday nights) because of
staff shift issues and the distance from central Geelong.
The resturant is well booked for functions and corporate
entertainment. 10% of their output is cellar door; 15%
through functions and restaurant; the rest to the trade,
bulk, and juice to various wineries. There is a strong
emphasis on customer service and a front of house
manager has been appointed to handle staff training
and quality control.
The Pettavel objective is expressed as “quality, quality all
the way” aiming to be associated with top-end Geelong
players, Scotchman’s Hill and Bannockburn. Already they
have achieved success. Stephen Downes, food critic from
The Herald Sun, awarded the restaurant 19/20 after his
Robyn is a believer in cooperative action at the local
level. She has been President of Wine Geelong which
includes a representative of Geelong Otway Tourism and
is involved in marketing and promotion of the cellar door
offers of local wineries. Most recently, Wine Geelong
has produced its first wine trail involving wineries of
the Geelong and Bellarine regions. Robyn has also been
Secretary of the Geelong Winegrowers Association
which focuses on the technical aspects of winegrowing.
(Surprisingly, a number of Geelong restaurants do not
serve regional wines despite their special character
and quality.)
The restaurant at Pettavel contributes about 20% of
overall revenue and a small profit. Robyn sees its main
purpose as a part of the branding process - introducing
visitors to a quality experience and quality wines. She is
toying with the idea of adding accommodation or a
spa facility to the complex ... sometime in the future.
Summary
Scale
Medium
Financing
Own
Bank
Brand Character
Quality
Regional Character
High quality wines
Mixed destination image
Restaurant
Yes
Cellar door
Yes
Accommodation
No
Possible expansion
Evening meals
Spa accommodation
Message
Food excellence complements
wine product Tourism offers option
to growing only and builds brand
35
7. 6 BROWN BROTHERS
The Browns
“Incremental growth creates regional strength”
With annual production
running at about
750,000 cases and a
staff of 200 (full time
equivalent) Brown
Brothers is entitled to
call itself a significant
player in the Australian
wine industry. But CEO,
Ross Brown, is quick to
point out that the ‘big
four’ wine companies - Orlando, Southcorp, Hardy and
Mildara Blass - provide 80% of the domestic supply with
a further 10% shared by the next eight biggest companies
(including Browns). In this context competition for retail
shelf space is fierce with the top fifteen producers taking
90% . The strategic problem for Browns was to retain
and grow their share of this tight market whilst expanding
though increased export to world markets.
Today’s Brown Brothers enterprise is one of Australia’s
great family stories. With nearly one hundred and fifty
years at Milawa successive generations have contributed
to the gradual building of the brand. Ross describes the
brand attributes that they see as the core of Brown
Brothers’ identity today as: “Innovative, Passionate,
Unpretentious”. For Ross, brand recognition is crucial to
retail success and wine tourism offers a means through
which the brand awareness of the Australian market
can be sustained.
Browns have made significant investments in on-site
visitor facilities since the present cellar door was opened
in 1980. In 1987 the first Wine and Food Weekend “...
celebrating Spring, live music, food and wine” was held.
The Epicurean Centre followed in 1994. Brown Brothers
Easter (April) and Winter (June) Festivals attract more
people every year. Some 100,000 visitors now come
to the Milawa cellar door annually yet direct cellar door
sales account for only about 6% of Brown’s business,
emphasising the importance of tourism to image and
education not revenue alone.
For a number of years the Brown family have been
vigorous promoters of their region as a focus for tourism.
The North East Valleys Wine and Food Association has
grown to coordinate the activities of some 200 wine,
farm gate and food operators in the Shires of Indigo,
Wangaratta and Alpine. Brown Brothers see events
such as the Wangaratta Jazz Festival as directly relevant
to their marketing and provide support through direct
sponsorship and hosting of their own jazz events. As
the Milawa Gourmet Region concept has gained Council
and participants’ support, the character of the MilawaOxley-King Valley area has become increasingly attractive
to tourists and ancillary businesses - cheese, olives,
blueberries, mustards, nuts, and even mead - have
established a full time retail presence. Restaurants such
as the Cheese Factory and the King River Café have
quickly established formidable reputations and steady
clientele. Regional accommodation is also linked - most
grandly at Lindenwarra Country House Hotel developed
in cooperation with Brown Brothers on land opposite the
winery entrance but also in development of B&Bs
and upgrading of local motels and hotels.
Brown Brothers tag line is “nothing but the wine” and
they do not plan to cater for functions, seeing this as
too remote from their core business. (Although Ross’s
brother, Peter, has taken over the All Saints Winery
at Wahgunyah and is specialising in hosting some of
Victoria’s most glamorous regional wedding celebrations.)
Summary
Scale
Large
Financing
Own
Bank
Brand Character
‘Innovative, Passionate, Unpretentious’.
Regional Character
Genuine Australian plus Italian
culture makes gourmet region
Restaurant
Epicurean Centre
Cellar door
Expansive
Accommodation
Local
Lindenwarrah
Message
Gradual evolution
Regional alliances
Clear strategy
Family ownership
37
8. PROJECT DEVELOPMENT SUMMARY CHECKLIST
The following checklist should be used as a quick reference guide to the development of your wine tourism investment,
from concept to reality. If you have any queries or require assistance contact Tourism Victoria on (03)9653 9777.
Scoping the Concept
ISSUE
CONSIDERATION
NEXT STEP
Tourism Product
What are the wine
tourism Investment
options?
Many opportunities exist which may include:
• Cellar door sales.
• Regional Produce sales
• Food / Restaurant.
• Accommodation.
• Events and Festivals.
• Wine Trails and Tours.
• And many more.
• Review opportunities which will add value to the wine brand.
• Talk to other industry people about their experiences.
• Talk to your business adviser about opportunities which will
improve business profitability and cash flow.
• Discuss opportunities with your Regional and Local Tourism
Authorities.
• Review other wine regions and wine tourism benchmark
case studies to assist in scoping new ideas.
Define visitor numbers, types and needs. Investigate:
• Visitor Demographics - age, income, gender.
• Lifestyle and visitor needs.
• The visitors desired aspirations.
• Visitor origins intrastate, interstate, or international?
• The long term trends in the industry.
• Numbers of visitors to the wine region and surrounding
area.
• How many visitors can your project hope to capture?
• Can your product create new demand?
• Investigate sources of information, which may include:
• Tourism Victoria - Marketing Information, cellar door survey,
current players in the market, tourism research, Industry
information.
www.tourismvictoria.com.au Ph. (03) 9653 9777
• Local Government, www.mav.asn.au Ph. (03) 9667 5555
• Australian Bureau of Statistics, www.abs.gov.au
Ph. (03) 1300 135 070
• Wine Makers Federation of Australia - Industry information,
wine tourism information data base and research
information. www.wta.org.au Ph. (08) 8222 9255
• Tourism Australia, www.tourism.australia.com
Ph. (02) 9360 1111
• Department of Industry Tourism and Resources, www.
industry.gov.au Ph. 1800 024 095
• Commission specialist market researcher, as necessary.
For a list of potential consultants contact the Australian
Market and Social Research Society, www.mrsa.com.au
Ph. (02) 9566 3100
Customer Base
Is there a market for
the idea?
Developing the Concept
ISSUE
CONSIDERATION
NEXT STEP
Designing the Concept
What are the Planning
and Design issues that
need to be considered?
• Prepare the initial design and layout of your proposal.
• Clarify the Planning Scheme controls applicable to the site.
Zoning, building height, heritage and landscape controls.
• Is a Planning Permit and Building Permit required?
• Consider key planning and design issues which may include:
Access and Parking
Building Design
Building Layout
Landscaping
Signage
Site Servicing
Amenity Considerations
Health Considerations
• What other approvals are required? Liquor licensing, Vic
Roads, Heritage Victoria, servicing authorities etc.
• Does the project meet Council Policy and strategy plans?
• Review planning controls applicable to the site. Information
is available from the Department of Sustainability and
Environment www.dse.vic.gov.au Ph. 13 61 86 Customer
Service Centre.
• Discuss the concept with the relevant Local Government
Authority and Service Authorities. To find out what
Local Government Area is relevant contact the Municipal
Association of Victoria www.mav.asn.au Ph. (03) 9667 5555.
• Engage professional advice as necessary:
• Architect - Royal Australian Institute of Architects www.
architecture.com.au Ph (03) 9654 8066
• Landscape Designer - Australian Institute of Landscape
Architects www.aila.org.au Ph. (03) 9650 1898
• Town Planner - Planning Institute of Australia www.planning.
org.au - Ph: (03) 9347 1900
ISSUE
CONSIDERATION
NEXT STEP
• Is the project close to main transport nodes and touring
routes and other complementary tourist attractions?
• What are the characteristics of local wine making which can
be further enhanced and capitalised on?
• Are there local food producers that could be featured in
your project?
• Define the wine character of the region.
• Identify the strength of local food and wine offers.
• Assess regional and local tourism initiatives by talking to
your Regional and Local Tourism Associations. Details
of Regional and Local tourism bodies can be found at
www.tourismvictoria.com.au Ph. (03) 9653 9777
• Investigate whether local wineries, events or attractions
are going to keep visitors away from your project or attract
further visitation.
• List the existing regional destinations and attractions that
might complement your investment.
Visit and assess:
• Local wineries and meet other winemakers to determine
what your competitors are doing. For details of local
wineries go to www.tourismvictoria.com.au Ph. (03) 9653
9777 which includes details of wineries in the various wine
regions of Victoria.
• Major attractions, festivals and sporting events.
• Local destinations cities and towns.
• Local wine touring initiatives and determine if they will
encourage visitation to your project.
• Assess the contribution of existing market place loyalty and
recognition to the project.
• Does the project reinforce brand characteristics? Prestige,
value etc.
• Review mailing list to gauge customer loyalty and potential to
support the project.
• Compare wine, venue and regional character and align with
brand image.
• Assess staff characteristics and training against brand
character and image.
• Identify which Tourism Victoria marketing services and
policies support the region.
• Assess regional tourism initiatives & services which market
the region.
• Quantify future marketing opportunities:
Advertising - paid in magazines, guides, radio, TV etc.
Public relations - free in news papers, magazines and radio.
Sponsorship - Charity community, sporting cultural etc.
• Identify complementary services, sponsorships and products.
• Identify co-branding alliances or “in kind” opportunities to
promote with other attractions.
• Identify need for professional assistance.
• Estimate costs.
• Contact Tourism Victoria. www.tourismvictoria.com.au
Ph. (03) 9653 9777
• Contact other growers and grower associations. Details of
grower associations can be found at www.aglinks.com.au
• Contact Regional and Local Tourism Associations. www.
tourismvictoria.com.au Ph. (03) 9653 9777
• Approach editors and producers.
• Approach the media for rates.
• Canvass possible sponsorship opportunities and cost.
• Seek professional advice as necessary from Marketing
and advertising professionals.
Regional Character
Does the project fit in
with regional strengths?
Competition
Is competition useful
or detrimental to the
project?
Brand Position
Does the project enhance
brand image, awareness
or acceptance (and vice
versa)?
Promotion and Alliances
Is the ongoing marketing
of the project critical?
Developing the Business Case
ISSUE
CONSIDERATION
NEXT STEP
Business Planning & Financial Resources
Is the project feasible
and is it likely to be
successful?
What Capital, Cash flow
and Financial structure is
required to sustain the
investment?
• Undertake a Feasibility Assessment, which includes a market
and financial feasibility. Some considerations include:
• Market demand and trends.
• Competition.
• Future growth potential.
• Concept design and costing.
• Profitability, projected cash flows and return
on investment.
• Possible benchmarking with other projects.
• Options Appraisal.
• Preparation of a Business Plan to determine the financial and
business strategies for the proposal. Some considerations
include:
• Assess the market structure particularly the competitive
forces affecting supply and demand.
• Identify options and define what business Structure is
appropriate for the business - Sole proprietor, partnership,
Company, managed fund etc.
• Identify what the business is and its components.
• Identify the market that will be serviced by the investment.
• Determine the proposed sales and marketing strategies.
• Determine how the business will be managed and the
operational staffing issues.
• What are the business establishment and ongoing costs?
• What are the potential sources of funds for the investment?
• Engage professional advice, as necessary, for preparation
of the feasibility assessment. For guidance on the
preparation of a feasibility report contact Tourism
Victoria www.tourismvictoria.com.au Ph. (03) 9653 9777
and Department of Innovation Industry and Regional
Development www.business.vic.gov.au Ph. 13 22 15
• Engage a professional business advisor, as necessary, to
prepare a detailed business plan to identify possible financial
options and business planning issues.
• Some of the ways you can find an accountant / business
advisor that suits your needs include:
• Through the Institute of Chartered Accountants in
Australia (ICAA) www.icaa.org.au Ph: 03 9602 5844 or
• CPA Australia www.cpaaustralia.com.au
Ph:(03) 9606 9606 or
• The National Institute of Accountants (NIA)
www.nia.org.au Ph: (03) 8665 3150
• Ask your friends or business contacts for a
recommendation
• Trade associations
• Advice from your banker, solicitor or consultant
• Contact the Victorian Business Line
www.business.vic.gov.au Ph 13 22 15 (local call)
• Contact your bank or financing body to determine
application requirements.
39
9. KEY CONTACTS
Australian Bureau of Statistics
GPO Box 2796Y, Melbourne VIC 3001
Telephone: 1300 135 070
Facsimile: 1300 135 211
Email: [email protected]
Web: www.abs.gov.au
Australian Institute of Landscape Architects
Level 1, 41 Exhibition Street, Melbourne VIC 3000
Telephone: 03 9650 1898
Facsimile: 03 9650 3360
Web: www.aila.org.au
Australian Market & Social Research Society
Level 1, 3 Queen Street, Glebe NSW 2037
Telephone: 02 9566 3100
Facsimile: 02 9571 5944
Web: www.mrsa.com.au
Tourism Australia
Level 4, 80 William Street, East Sydney
GPO Box 2721, Sydney NSW 2001
Telephone: 02 9360 1111
Facsimile: 02 9361 1388
Web: www.tourism.australia.com
Australian Wine & Brandy Corporation
PO Box 2733, Kent Town, SA 5071
Telephone: 08 8228 2009
Facsimile: 08 2882 2022
Web: www.awbc.com.au
Bureau of Tourism Research
GPO Box 1545, Canberra ACT 2601
Telephone: 02 6213 6940
Facsimile: 02 6213 6983
Statistical Inquiries Line: 02 6213 7124
Web: www.btr.gov.au
Cooperative Research Centre for Viticulture
PO Box 154, Glen Osmond SA 5064
Telephone: 08 8303 9405
Facsimile: 08 8303 9449
Web: www.crcv.com.au
Department of Industry Innovation
and Regional Development
Invest Victoria
55 Collins Street, GPO Box 4509RR
Melbourne VIC 3000
Telephone: 03 9651 8100
Facsimile: 03 9651 9531
Web: www.invest.vic.gov.au
Regional Development Victoria & Victorian Business Centres
55 Collins Street, GPO Box 4509RR
Melbourne Victoria 3000
Telephone: 13 22 15
Web: www.business.vic.gov.au, www.iird.vic.gov.au
Food Victoria
GPO Box 4509RR, Melbourne VIC 3001
Telephone: 13 22 15
Web: www.food.vic.gov.au
Department of Victorian Communities
1 Spring Street, Melbourne VIC 3000
Telephone: 03 9208 3333
Facsimile: 03 9208 3577
Web: www.dvc.vic.gov.au
Department of Infrastructure
80 Collins Street, Melbourne VIC 3000
Telephone: 03 9655 6666
Facsimile: 03 9655 6752
Web: www.doi.vic.gov.au
Department of Sustainability & Environment
80 Collins Street, Melbourne VIC 3000
DSE Customer Service Centre
Phone: 13 61 86
Web: www.dse.vic.gov.au
Environmental Protection Authority
Herald & Weekly Times Tower, 40 City Road
Southbank VIC 3006
Telephone: 03 9695 2722
Facsimile: 03 9695 2785
Web: www.epa.vic.gov.au
Grape and Wine Research Development Corporation
67 Greenhill Road, Wayville SA 5034
Telephone: 08 8273 0500
Facsimile: 08 8373 6608
Web: www.gwrdc.com.au
Consumer Affairs Victoria (Liquor Licensing)
Level 2, 452 Flinders Street, Melbourne 3000
GPO Box 123A
Melbourne 3001
Telephone: 1300 55 81 81
Web: www.consumer.vic.gov.au
Municipal Association of Victoria
GPO Box 4326PP, Melbourne VIC 3001
Telephone: 03 9667 5555
Web: www.mav.asn.au
National Wine Centre of Australia
Corner of Hackney Road and Botanic Road
Adelaide SA 5000
Telephone: 08 8222 9222
Facsimile: 08 8222 9201
Web: www.wineaustralia.com.au
Planning Institute of Australia
G-05 / 60 Leicester St Carlton Victoria 3053
Telephone: 03 9347 1900
Facsimile: 03 9347 2900
Web: www.planning.org.au
Property Council of Australia
Level 7, 136 Exhibition Street
Melbourne VIC 3000
Telephone: 03 9650 8300
Facsimile: 03 9650 8693
Web: www.propertyoz.com.au
Royal Australian Institute of Architects
Level 1, 41 Exhibition Street, Melbourne VIC 3000
Telephone: 03 9654 8066
Facsimile: 03 9650 3360
Web: www.architecture.com.au
The Australian Wine Research Institute
PO Box 197, Glen Osmond SA 5064
Telephone: 08 8303 6600
Facsimile: 08 8303 6621
Web: www.awri.com.au
Tourism Alliance Victoria
PO Box 18136, Collins Street East
Melbourne VIC 8003
Telephone: 03 9650 8399
Facsimile: 03 9650 8543
Email: [email protected], [email protected]
Web: www.vtoa.asn.au, www.cvtc.com.au
Tourism Victoria
GPO Box 2219T, Melbourne VIC 3001
Telephone: 03 9653 9777
Facsimile: 03 9653 9722
Web: www.tourismvictoria.com.au
VICROADS
Head Office Administration
60 Denmark Street, Kew VIC 3101
Telephone Enquiries: 13 11 74
Web: www.vicroads.vic.gov.au
Victorian Wine Industry Association
14/123 Queen Street, Melbourne VIC 3000
Telephone: 03 9642 2505
Facsimile: 03 9642 2506
Web: www.vwia.org
Victorian Wineries Tourism Council
C/- Tourism Victoria, GPO Box 2219T
Melbourne VIC 3001
Telephone: 03 9653 9777
Facsimile: 03 9653 9722
Web: www.tourismvictoria.com.au
Wine Makers Federation of Australia
National Wine Centre, PO Box 2414
Kent Town SA 5071
Telephone: 08 8222 9255
Facsimile: 08 8222 9250
Web: www.wta.org.au
WINETAC
First Floor, 206 Greenhill Road
EASTWOOD S.A. 5063
Telephone: 08 8373 7090
Facsimile: 08 8373 7091
Web: www.winetac.com.au
Wine Titles
Australian Wine Online
97 Carrington Street, Adelaide SA 5000
Telephone: 08 8223 4799
Facsimile: 08 8223 4790
E-mail: [email protected]
Web: www.winetitles.com.au
Wine Industry State Associations:
New South Wales Wine industry Association
www.nswwine.org.au
South Australian Wine & Brandy Industry Association Inc.
www.winesa.asn.au
Queensland Wine Industry Association
www.queenslandwine.com.au
Victorian Wine Industry Association Inc.
www.vwia.org
Vineyards Association of Tasmania Inc.
www.winetas.org
Wine Industry Association of Western Australia Inc.
www.winewa.asn.au
41
1 0. SELECTED REFERENCES
1. Statistical Sources
• Australian Bureau of Statistics, Australian National
Accounts: Tourism Satellite 2002-2003
• Tourism Australia / Bureau of Tourism Research
• 2003 Victorian Wineries Cellar Door Survey
for Tourism Victoria and the Victorian Wineries
Tourism Council
2. Tourism Victoria Publications:
• Wine Regions of Victoria
• ‘Jigsaw’ Regional Guides
• Victorian Tourism Industry Strategic Plan 2002-2006
• VWTC Strategic Plan
• Planning and Building Tourism from Concept to Reality
- Guidelines for Planning and Developing Tourism
Projects in Victoria
3. Market Information
• Tourism Victoria / VWTC
2003 Wine Tourism Activity Statement
2003 Cellar Door Survey
• Tourism Research Report Vol 5 No.1, Autumn 2003,
Bureau of Tourism Research, 2003
• Report on the Nature, Scope and Prospects for Wine
Tourism in Australia. Global Tourism & Leisure Pty Ltd
for The Wine Lodges Group, August 2003.
4. Wine Makers Federation
of Australia Wine Tourism Guides;
• Our Guide to Wine Tourism (series) - www.wfa.org.au
• Wine Tourism Uncorked - A guide to making wine
tourism work for you.
5. General
• Wine Tourism - Perfect Partners. Proceedings of the
first Australian Wine Tourism Conference, Margaret
River. Western Australia, May 1998. Elizabeth Cowan
University / BTR, 1999.
• Pathways to Profitability for Small and Medium
Wineries. Acil Consulting for Department of
Agriculture, Fisheries and Forestry, 2003.
• The Profitability of Investing in a Small Vineyard and
Winery. Dakis and others. Dept. of Natural Resources
and Environment, 2001.
• KPMG Wine Industry Report - Surrendering the
Advantage?, KPMG, July 2003.
Disclaimer
These guidelines are not intended as financial recommendations or as the principal basis for investment decisions. Further specialist advice
is required to provide current, or project particular, information for specific investments.
Tourism Victoria has sought to ensure the accuracy of all the information incorporated into the guidelines. However, estimates and
observations are: based on present judgment; subject to the reasonable scope of the guidelines; and subject to future events which may
not have been foreseen.
Where there is reliance on secondary data supplied by other organisations, reasonable steps have been taken to ensure the quality of
these data. However the validity and reliability of the data supplied depends on the skills and professionalism of the organisations originally
collecting and/or supplying these data.
It is important that these assumptions are taken into account when using these guidelines as an input to decision-making.

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