annual report - Wine Australia

Transcription

ANNUAL REPORT
2013-2014
30 September 2014
The Hon. Barnaby Joyce MP
Minister for Agriculture
Parliament House
CANBERRA ACT 2600
Dear Minister Joyce
On behalf of the Directors of the Australian Grape and Wine Authority (AGWA), I have the pleasure of
submitting the Annual Report 2013-14 for the Wine Australia Corporation for the year ending 30 June 2014.
This final annual report of the Wine Australia Corporation has been prepared by the Directors of AGWA in
accordance with Section 24 of Schedule 2 to the Grape and Wine Legislation Amendment (Australian Grape
and Wine Authority) Act 2013 and Section 9 of the Commonwealth Authorities and Companies Act 1997.
Yours sincerely
Brian Walsh
Acting Chair
Australian Grape and Wine Authority
Published by:
National Wine Centre – Industry House
Corner Hackney and Botanic Roads, Adelaide SA 5000
© Australian Grape and Wine Authority 2014
Postal Address: PO Box 2733, Kent Town, SA 5071
Apart from logos and the Commonwealth Coat of Arms, all material in this publication
is licenced under a Creative Commons Attributions 3.0 Australia Licence. The Creative
Commons Attribution 3.0 Australian Licence allows the content of this publication to
be used, copied and distributed under the condition that the source of that content is
attributed to the Australian Grape and Wine Authority. The full terms and conditions
of the Creative Commons Attribution 3.0 Australian Licence can be accessed at
creativecommons.org/licenses/by/3.0/au/legalcode.
Telephone: +61 8 8228 2000
Facsimile: +61 8 8228 2066
E-mail: [email protected]
Website: www.agwa.net.au
ISSN 2200-4645
Creative Commons Licence
Contents
OVERVIEW
4
CHAIR’S REPORT
5
ACTING CHIEF EXECUTIVE’S REPORT
6
YEAR IN REVIEW
8
THE ORGANISATION
35
FINANCIAL STATEMENTS
45
APPENDICIES
88
Mission, Vision and Values
What we do
Stakeholders and other industry partners
State of the industry
Market development
Wine sector intelligence
Regulatory services
Trade
Geographical indications
Financial results
Market overviews
Board
Committees
Enabling legislation
Accountability
Corporate governanace
People
Appendix 1 Corporate directory
Appendix 2 Wine industry statistics
Appendix 3 Glossary of terms and acronyms
Appendix 4 Compliance index
Appendix 5 Alphabetical index
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
Overview
The Wine Australia Corporation was a statutory authority
established in 1981 to provide strategic support to the Australian
wine sector. Its responsibilities included:
•
•
•
•
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —OVERVIEW
•
•
international and domestic marketing of Australian wine;
export regulation and compliance;
wine sector information and analysis;
maintaining the integrity of Australia’s wine labels and
winemaking practices;
protecting the names of the wine producing areas of Australia
and other countries; and
assisting in negotiations to reduce international trade barriers.
The Wine Australia Corporation ceased to exist on 30 June 2014,
from which date, its functions were assumed by the Australian
Grape and Wine Authority.
WINE AUSTRALIA’S MISSION WAS TO
•
identify and maximise the environment for sustainable demand
for Australian wine both domestically and internationally.
WINE AUSTRALIA’S VISION WAS
•
to be recognised as an innovative and respected industry
partner acknowledged for leadership; value creation; and
exceptional communication.
WINE AUSTRALIA’S VALUES
Wine Australia pledged to do what it said it
would and to always act in the best interests of the industry.
TRAN SPA R E NCY: Wine Australia was committed to
delivering a ‘no surprises’ culture and to communicating with
stakeholders in a professional and authentic manner.
PASSION: Wine Australia was committed to undertaking
everything it did with fervour to support a successful and
competitive Australian wine industry; and to always strive to
achieve greater results.
U NDERSTA NDI NG: Wine Australia was committed
to supporting the needs of the industry and sought to fully
understand those needs by listening first.
AGIL E : Wine Australia was committed to adapting, growing and
evolving as the industry did.
ACCOUNTA BL E : Wine Australia regarded its goals as
commitments not intentions.
INTEGR I TY:
WHAT WE DO
4
MARKET DEVELOPMENT – PROMOTING THE QUALITY,
DIVERSITY AND VALUE OF AUSTRALIAN WINE
The aim of Wine Australia was to sustain excitement about
Australian wine, evolve positioning and continue to build and
strengthen the reputation of the Australian wine sector.
This was primarily done through marketing and promotional
activities both domestically and internationally in key markets.
Supporting this objective were Wine Australia’s offices in
Australia, the United Kingdom, the United States, Canada and
China.
WINE SECTOR INTELLIGENCE – INDUSTRY
INFORMATION AND ANALYSIS
One of Wine Australia’s functions was to provide the wine
sector with the latest domestic and overseas market statistics,
information, data, analysis and insights. This sharing of knowledge
empowers the industry to make informed business decisions.
REGULATORY SERVICES – PROTECTING THE REPUTATION
OF AUSTRALIAN WINE
Wine Australia’s regulatory activities were primarily aimed at
preserving Australia’s internationally recognised reputation for
quality and integrity.
Australia is increasingly recognised as an abundant source of
regionally distinctive wines made from an array of both traditional
and recently introduced grape varieties. The integrity of Australia’s
wine producing regions were maintained through the Register of
Protected Geographical Indications and Other Terms and through
the support of the Geographical Indications Committee, for which
Wine Australia assumed responsibility.
Wine Australia also assumed responsibility for the Label Integrity
Program and Export Controls.
TRADE – MAXIMISING ACCESS TO EXPORT MARKETS
Wine Australia represented the needs of the wine sector
in relation to international export markets by working with
governments, regulatory bodies and industry partners on market
access issues. In addition Wine Australia aimed to reduce barriers
to trade and to provide comprehensive resources for the sector
on specific regulatory requirements of international markets
through its Export Market Guides.
STAKEHOLDERS AND OTHER
INDUSTRY PARTNERS
Wine Australia’s principal stakeholders were:
• the Australian Government;
• wine producers who pay the Wine Grapes Levy; and
• exporters who pay the Wine Export Charge.
Wine Australia also worked closely with other Australian
Government agencies such as the Department of Agriculture,
the Grape and Wine Research Development Corporation
(GWRDC), Tourism Australia, Austrade and the Department of
Foreign Affairs and Trade.
Other stakeholders includeed:
• the national, state and regional wine producer associations and
bodies;
• wine grape growers and their national, state and regional
associations;
• State and regional tourism bodies;
• liquor boards, authorities and overseas governments;
• importers, distributors and retailers;
• the wine trade, sommeliers, wine educators and other
influencers;
• media and social commentators; and
• wine consumers and the broader public.

Chair’s Report
AC T I NG C HA I R BRIA N WA LS H
Notwithstanding the challenging market
environment, we can look back on the
past year as one of achievement and
planning for the future. This is a fitting
conclusion to Wine Australia’s (previously
the Australian Wine and Brandy
Corporation) 33 year history of delivering
benefits to the Australian wine sector.
It’s my fervent hope that this collaboration
will bring greater opportunities for a vibrant and thriving
industry and renewed energy and optimism for the future of
Australian wine.
Australia is a relatively small player in the global alcohol market
with just 0.4 per cent category share. Since 2007 we’ve seen our
sector’s profitability fall significantly.
To support the return to profitability we have focused on:
•
•
•
•
creating a favourable market environment that supports
winemakers in executing their brand strategies;
addressing market access issues and giving guidance on
individual export market requirements;
managing a regulatory model that protects the reputation of
Australian wine globally; and
providing the latest market data to levy payers so they can
have a clear understanding of the global trading environment
and make prudent business decisions that enhance
profitability.
Our market development strategy centres on differentiating and
improving the perception of Australian wine by showcasing its
quality, diversity, provenance and personality. Two major events
executed in 2013-14 in support of this strategy were Savour
Australia and the third annual Aussie Wine Month.
Savour Australia – Australia’s first global wine forum, was a
major undertaking for the sector bringing together nearly 800
influencers of the industry from all over the world.
Savour’s aim was to re-ignite the world’s interest in Australian
wine and the feedback from attendees was overwhelmingly
positive with more than 240 new listings secured as a direct
result.
to think and drink Australian wine during
May. This year there were 150 events that
showcased 36 local wine regions, a 30 per
cent increase on the previous year.
Other major initiatives held throughout the
year included the Australia Day Tasting in
the UK; ProWein in Germany; the China
National Wine, Spirits and Food Fair and the
Next Chapter tastings across the US.
Following our comprehensive review of our
compliance function nearly two years ago,
our revised controls continue to underpin
a strong culture of compliance in order to
protect the quality and integrity of Australian
wine through the Label Integrity Program.
Our Wine Sector Intelligence team also
continues to provide the latest data, market
intelligence and analysis to help producers and growers identify
sustainable business opportunities and understand the operating
environment.
I thank the Wine Australia Chair George Wahby and the
Wine Australia Board Members for their drive, counsel and
commitment to supporting our sector. I would also like to thank
Wine Australia’s Acting Chief Executive, Andreas Clark for his
leadership during this period of transition and acknowledge
the efforts of the dedicated global team who continue to work
tirelessly to help create an environment where Australian
wineries can prosper and be competitive.
Without minimising the market challenges we still face, the
quality and diversity of our wine offer has never been better.
The sheer number and unique terroirs of our wine regions
combined with the collaborative spirit of the winemaking
community is a strong foundation upon which our sector can
grow; a sector of great importance to urban and regional
economies, export dollars, jobs and our Australian way of life.
AGWA is committed to providing greater strategic alignment
of activities and delivering more value to levy payers, from the
vineyard through to the market place, all supported by a strong
research base.
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —CHAIR’S REPORT
The Australian grape and wine industry
has entered an exciting period of change
and collaboration with the formation of
the Australian Grape and Wine Authority
(AGWA) on 1 July 2014, following the
amalgamation of the Wine Australia
Corporation and the Grape and Wine
Research and Development Corporation
(GWRDC).
Brian Walsh
Acting Chair
Now in its third year, Aussie Wine Month encourages people
5
Chief Executive’s Report
ACTING CHIEF EXECUTIVE ANDREAS CLARK
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —CHIEF EXECUTIVE’S REPORT
On 1 July 2014 Wine Australia joined
with the Grape and Wine Research and
Development Corporation (GWRDC)
to form the Australian Grape and Wine
Authority (AGWA). The formation of
AGWA affords the grape and wine sector
opportunities for improved strategic
alignment and collaboration across all of
our activities for the benefit of all levy
payers.
MARKET DEVELOPMENT
Turning to the previous year, our
objectives were to re-establish confidence
and interest in Australian wine in our
mature export markets; develop our
position in emerging markets and
promote Australian wine domestically to
help arrest the loss of market share to
imports.
We delivered another robust program of events and activities
as part of our market development strategy including Savour
Australia, a landmark industry event held across three days.
An immersion in to the world of Australian wine, the diverse
program was designed to challenge people’s perceptions of the
sector, facilitate greater networking among the industry and
uncover new business opportunities for Australian brands in
export markets.
As a direct result we’ve seen more than 90 additional Australian
wine events confirmed in markets all around the world including
wine dinners, exhibitions, promotions, masterclasses, training,
education and tastings. We generated 280 media stories and
#SavourOz reached a potential audience of more than 900,000
Twitter users, 50,000 Instagram users and a remarkable 74.2
million Sina Weibo users in China.
Delivering maximum return on investment for our levy payers
remains a priority focus for us and this is reflected in our
program of core activities, those which are directly funded by
levy contributions and aim to showcase the quality, diversity and
regionality of Australian wine.
A focus for 2013-14 was delivering a more coordinated
approach to education. This year we introduced a global
education role to the market development team and our Wine
Australia education program included Sommelier and Trade
Immersion Programs; the A+ Australian Wine Schools and
Wine Specialist Program as well as the One Day Wine Schools.
In addition to these core services, we continued to develop the
user-pays Market Programs, which attracted strong sign-up from
wine producers and brands, regional wine associations and state
bodies.
6
In the domestic market, our key activity
was Aussie Wine Month, now in its third
successive year. A City Cellar Door pop-up
bar activation and a consumer event
attended by 650 people provided a fantastic
launching pad for a month long celebration
of Australian wine.
A partnership with the Good Food and
Wine Show saw our A+ Australian
Wine School sessions attended by 1,500
consumers and we continued our long
association with the Noosa International
Food and Wine Festival where we hosted
three Landmark masterclasses.
An on-going partnership with Tourism
Australia will culminate in the exciting ‘Invite
the World to Dinner’ event in Tasmania
later this year as part of their ‘Restaurant
Australia’ campaign. Wine Australia has been working closely
with Tourism Australia as they bring Australia’s premium food
and wine positioning to life with events held in key overseas
markets such as the UK, China, the US and Europe.
This is an exciting new era in the promotion of wine and
food and will help our offering become more relevant to the
decision making process for travel to and within Australia. This
is an important opportunity for the wine sector to extend
our consumer reach on a scale we’ve not been able to achieve
before and move the promotion of wine into the lifestyle space.
REGULATORY SERVICES
There were no significant incidents recorded during the year
that may have adversely impacted the international reputation of
Australian wine. We maintained strong relationships and open
lines of communication with key regulatory bodies in our major
export markets and they continue to have confidence in our
processes which reduce the administrative burden in-market.
We randomly analysed more than 950 Australian wines for
residues of 56 agricultural chemicals and none were found to
breach the Australian maximum limit.
We also expanded our auditing presence which enabled us
to undertake more than 300 audits of wine producers and
exporters during 2013-14 with only one export licence
suspended and one permanently cancelled.
We continued to support the competitiveness of our sector by
addressing tariff and non-tariff barriers to market access. Our
export market guides, provided free to all levy payers, offer
comprehensive information and advice on market specific duties
and taxes among other country specific import requirements
designed to assist exporters overcome regulatory hurdles
overseas.
WINE SECTOR INTELLIGENCE
Our Wine Information Dashboard remains a valuable industry
tool, giving time-poor levy payers an instant snapshot of
the market. We’re also developing a recommendation for a
mandatory National Grape and Wine Database which would
provide the industry with key metrics along the value chain.
F R A UD CON TR OL
I certify that Wine Australia put in place appropriate fraud
prevention, detection, investigation, reporting and data
collection procedures to meet the specific needs of the
organisation and comply with guidelines. No incidents of fraud
were detected throughout the year.
T HE YEAR AH EA D
It is with a renewed sense of purpose that we look to the
year ahead and the increased opportunities flowing from the
commencement of AGWA.
We know there’s plenty of work yet to be done and the
planning is well underway. Delivering excellent service to all
stakeholders will continue to be the primary focus.
On behalf of the AGWA team, we look forward to working
with you all in support of a competitive and sustainable
Australian wine sector, investing in RD&E while growing global
demand and protecting the reputation of Australian wine.
Andreas Clark
Acting Chief Executive
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —CHIEF EXECUTIVE’S REPORT
In 2013-14 we visited a number of wine regions across
the country to present the latest market data and led two
R&D projects funded by the GWRDC to assist us in better
understanding where potential market opportunities lie for
Australian winemakers in the US and the UK.
7
Year in Review
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —YEAR IN REVIEW
8
STATE OF THE INDUSTRY
9
MARKET DEVELOPMENT
12
WINE SECTOR INTELLIGENCE
22
REGULATORY SERVICES
25
TRADE
27
GEOGRAPHICAL INDICATIONS COMMITTEE
29
FINANCIAL RESULTS
29
MARKET OVERVIEWS
30
ASIA
30
UK AND EUROPE
31
NORTH AMERICA
33
EMERGING MARKETS
34
STATE OF THE INDUSTRY
WINEGRAPE PURCHASE PRICES
DOWN IN 2014
The biggest shift came in purchases at under $300 per tonne
(E/F price segment), with the share of purchases increasing
from 31.9 to 42.3 per cent. This came from a corresponding
reduction in the share of purchases between $300-600 per
tonne (D), from 51.4 to 42.0 per cent. The share between
$600-1,500 per tonne (C) declined marginally from 13.4 to 12.5
per cent. There were also small shifts in $1,500-2,000 per tonne
(B), from 1.3 to 1.4 per cent, and above $2,000 per tonne (A),
from 2.0 to 1.6 per cent.
PRODUCTION AND STOCK LEVELS
INCREASE
In 2012-13, wine production increased by 95 million litres to
1.24 billion litres, the second successive increase after four years
of declines. Wine inventories also increased to 1.8 billion litres,
up 81 million litres on the previous year. The stocks to sales ratio
edged up higher to 1.54 which is still well below the 1.64 ratio
recorded in 2007-08.
DOMESTIC SALES UP MARGINALLY
According to the Australian Bureau of Statistics (ABS), domestic
sales of Australian wine increased by 0.5 per cent to 459 million
litres in the twelve months ended March 2014. Red wine sales
decreased by 3 per cent to 172 million litres while white wine
sales increased by 3 per cent to 217 million litres. Sparkling wine
sales were stable at 36 million litres.
Bottled wine sales increased by 3 per cent to 240 million litres
while soft-pack sales increased for the first time in a decade, up
7 per cent to 136 million litres.
In the domestic retail off-trade market, Aztec reported that
Australian wine sales declined 0.3 per cent to 329 million litres
while value increased by 1.9 per cent to $3.2 billion. The average
price paid for Australian wine increased by 2.2 per cent to $9.88
per litre.
In the bottled off-trade market, Sauvignon Blanc was the most
popular varietal, with sales up 10 per cent to $640 million
Other varietals recording value growth included Cabernet
Sauvignon, Pinot Gris/Grigio, Moscato, Semillon/Sauvignon Blanc,
Pinot Noir, Riesling and Cabernet blends. Meanwhile, sales of
Cabernet/Merlot, Merlot and Shiraz blends were down.
The two fastest growing price points were $20-30 and above
$30 per bottle, with sales up 17 per cent and 14 per cent
respectively.
EXPORT VOLUME DOWN, GROWTH IN
THE PREMIUM SEGMENTS
In the year ended June 2014, total Australian wine exports
declined by 2 per cent to 684 million litres valued at A$1.78
billion. The average value of exports declined marginally to
A$2.60 per litre due mainly to a continuing shift towards
shipping branded wine in bulk containers (which naturally has
a lower price without its packaging). This offset a 6 per cent
increase in the average value of bottled exports to A$4.77 per
litre.
The increase in the average bottled value was driven by a
turnaround in fortunes for exports of premium Australian
wines in our key markets, which for many has seen a reversal
of the downward trends that were set in place when the global
financial crisis took hold in late 2007.
A decline in bottled wine exports offset an increase in bulk wine
exports. Bottled exports declined by 10 per cent to 285 million
litres, which partially caused its share of the export mix to
decline by more than three percentage points to a 42 per cent
share of total exports. Bottled exports have been in a long-term
downward trend as more branded wine is being shipped to
Australia’s major markets to be packaged offshore. Over the
past three months, the decline in bottled exports appears to
have stabilised but it is too early to determine if this reflects a
reversal in the trend.
Bulk wine exports have increased in the first half of 2014 after
being on a downward trajectory during 2013. In the latest 12
month period, bulk exports increased by 4 per cent to 392
million litres, resulting in the share of bulk in the mix to increase
by three percentage points to 58 per cent.
The national average wine grape purchase price in 2014 was
$441 per tonne, down 11 per cent on the 2013 average of
$499 per tonne in 2013, but above the historical low of $413
per tonne in 2011. The decline in the national average purchase
price reflects that Australian wine production exceeded
Australian wine sales in 2012 and 2013 resulting in an increase in
Australian stock levels. This, coupled with an increase in global
supply in 2013 (particularly out of Europe), has put downward
pressure on wine grape prices in general.
however, much of this was of New Zealand origin. Shiraz was
the second highest selling varietal, with sales up 13 per cent
to $435 million. The multi-year decline in Chardonnay sales
subsided during the year, with sales stable at $271 million.
The average value of bottled exports has been on the rise since
hitting a trough in June 2010. Two key factors contributed to
the increase in the bottled average value. Firstly, there was a
decline in bottled exports at lower prices, with some of this
volume most likely now shipped in bulk containers. Bottled
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wine shipments under A$5.00 per litre declined by 11per cent
to 254 million litres, with the rate of decline stronger at the
lower end. Secondly, there has been an increase in exports at
higher price segments. Bottled exports of wine at above A$5.00
per litre increased by 4per cent to 31 million litres. Although
this segment is relatively small in volume terms with a 10 per
cent share, the segment is valued at A$664 million annually,
representing a 37 per cent value share.
The United Kingdom remained Australia’s biggest export market
by volume and exports fell by 1 per cent to 244 million litres.
The United States remained the second largest export market.
Two consecutive record wine grape crushes in the US helped
drive Australian exports down by 15 per cent to 161 million
litres. Exports to third-ranked Canada increased by 20 per cent
to 59 million litres. In contrast, exports to China declined by 10
per cent to 37 million litres, due mainly to government austerity
measures and Chile’s trade advantage. Germany re-joined the
top five largest export markets by volume with exports to the
destination increasing by 3 per cent to 33 million litres. New
Zealand dropped to sixth place, with exports to the country
declining by 5 per cent to 31 million litres.
Red wine accounted for the majority of the decline in the
volume of Australian wine exports. Red wine exports declined
by 6 per cent to 383 million litres and accounted for a 56 per
cent volume share. White wine exports increased by 3 per cent
to 287 million litres, representing a 42 per cent share. Sparkling
wine accounted for much of the remaining 2 per cent share and
exports of the category declined by 11 per cent to 11 million
litres. Exports of fortified wine also declined, down by 13 per
cent to 900,000 litres. This was the first time fortified wine
exports dipped below one million litres in more than 25 years.
AUSTRALIA REMAINS NUMBER ONE
IN THE UNITED KINGDOM
According to Nielsen data for the 12 months ended March
2014, Australia stretched its lead as the number one category in
the UK off-trade outperforming the market in volume (20.0 per
cent in the March MAT compared to 19.8 per cent in January
MAT) and value (20.1 per cent compared to 20.0 per cent).
Australian sales declined in volume by 1.5 per cent (the market
declined by 4.3 per cent) and increased by 2.4 per cent in value
(market increased by 1 per cent).
Australian sales declined at the low-end of the market (<£3
down 78 per cent, £3-4 down 31 per cent, £4-5 down 24 per
cent) but increased in all price segments above £5 (£5-6 up 19
per cent, £6-7 up 29 per cent, £7-8 up 20 per cent, £8-9 up 18
per cent, £9-10 up 9 per cent and >£10 up 3 per cent).
10
There were mixed fortunes for Australia’s biggest selling
varietals. Chardonnay sales increased by 7 per cent to 4.6 million
cases (while the market declined by 5 per cent) and Australia
holds a 55 per cent share of the category. In contrast, Shiraz
sales dropped by 7 per cent to 3.1 million cases (compared to
a market decline of 4 per cent) with Australia’s share of the
category at 62 per cent.
The two stand-outs for Australia were Pinot Grigio (up 39 per
cent to 500,000 cases) and Sauvignon Blanc (up 32 per cent to
790,000 cases). The increases are from relatively small bases
but importantly these varietals are the second and third biggest
selling in the market behind Chardonnay.
Retailers, own brands account for 14 per cent of Australian sales
by volume – this is significantly lower than Italy (36 per cent),
France (34 per cent) and Spain (22 per cent).
The UK remains a challenging but important market, with
a more stable economy driving consumer confidence and
building on growth in the premium segment. Australia remains
well-placed in the market ranked first in volume and with the
average value of Australian sales in the UK is higher than the
market average. In the on-trade, casual dining in the UK presents
as an opportunity for Australia while the online channel typically
has higher margins.
US CONSUMERS SEEK PREMIUM
WINES
Information Resources Incorporated (IRI) reported that the
US off-trade market grew 0.6 per cent by volume and 3.5 per
cent by value in the 12 months ended March 2014. In contrast,
Australian sales declined by 8 per cent in volume and 6 per cent
in value.
While Australia remains the second ranked importer it’s losing
ground to first ranked Italy. However Australia’s market share is
double that of third ranked Chile.
While 87 per cent of Australian sales were in the US$5-7.99 per
bottle bracket, the only segment to record growth for Australia
was US$11.00-14.99, up 12 per cent. This segment accounts for
3.7 per cent of Australian sales and Australia holds 2.5 per cent
market share.
Chardonnay is the number one varietal in the market and the
value of sales grew 2 per cent, however Australian Chardonnay
sales declined by 10 per cent. Shiraz is a small segment of the
market (US$162 million versus Chardonnay US$2.2 billion) but
it’s Australia’s second biggest selling varietal behind Chardonnay.
Australia accounted for a 62 per cent market share of Shiraz
sales although sales declined by 14 per cent.
Despite the decline in volumes, 2013-14 has been a relatively
positive year for Australian wine in the US market, with
renewed enthusiasm across the country. There have been a
growing number of success stories from importers, distributors
and trade, particularly for premium and/or regional Australian
wine sales. It’s a vital market for the future of the Australian wine
category and it remains Australia’s biggest export destination by
value.
The US is the largest consumer of wine in the world, with
145 million wine drinkers and a consistent rise in consumption
over the last decade. At around 10 litres per head, there is still
considerable upside in wine consumption.
The US is also a large and growing premium wine market. The
$15-25 segment is seen as the best opportunity for Australia. In
line with this, Australian bottled exports between A$7.50-9.99
per litre were up 17 per cent on the previous year.
AUSTRALIA UNDER-PERFORMS IN
CANADA
The Association of Canadian Distillers reported that in the year
ended April 2014, Australian wine sales in Canada declined by
2.7 per cent to 4.6 million cases. In comparison the total market
increased by 2 per cent to 45 million cases. The US was the
strongest performer, up 11 per cent to 5.8 million cases, jumping
ahead of France into second place. Italy remains the number one
imported wine category with 6.6 million cases.
Australia recorded declining sales in all of the major provinces
– Ontario (down 5 per cent), Quebec (down 0.3 per cent),
Alberta (down 7 per cent) and British Columbia (down 5 per
cent) – but recorded strong growth in smaller markets Nova
Scotia (up 16 per cent), New Brunswick (up 11 per cent) and
Prince Edward Island (up 12 per cent).
Canada is Australia’s third largest export destination by volume.
Australia is the fourth ranked importing country and the average
value of Australian bottled wine exports to Canada increased by
1 per cent to $5.11 per litre in the last 12 months – compared
to the total bottled average of $4.60 per litre.
The total wine market in Canada is valued at more than
CAD$10 billion. While Canada has a significant domestic wine
production base, 85 per cent of wine is imported. Unlike many
countries around the world, the Canadian economy is relatively
stable.
Wine consumption has grown at a faster rate in Canada
compared to the US over the past five years with growth
strongest at higher price points.
Despite the slowdown, Australia remains well-placed in China,
second behind France in bottled export, and achieving the
highest average value among the top 10 importing countries.
China remains the biggest destination for Australia’s premium
wines. Furthermore, there is significant upside in wine per capita
consumption with the current rate at 1 litre per head compared
to 24 litres in Australia.
There are potentially 345 million wine consumers but according
to Wine Intelligence only 19 million currently drink imported
wine (and eight million drink Australian wine).
The China market presents opportunities for those who are
focussed on long term brand building.
NEW ZEALAND CONTINUES AS THE
DOMINANT IMPORTED CATEGORY
According to the ABS, in the year ended April 2014, imports
to Australia fell by 2 per cent to 84 million litres. Increases in
imports from New Zealand and Spain were offset by declines
from France, Italy, South Africa and Chile.
New Zealand remains the dominant importer with 64 per cent
volume share, well ahead of France (16 per cent) and Italy (10
per cent). These three countries accounted for 90 per cent of
the imported wine sector.
In addition, the economy is moving in the right direction with
GDP up, unemployment down, personal consumption up, and
household debt down.
All major importer countries recorded a decline in volumes
exported to China, with the exception of Chile, which recorded
a 23 per cent increase in exports. Chilean exporters benefit
from a Free Trade Agreement with China which gives it a
competitive advantage, particularly in the bulk segment.
AUSTRALIAN VALUE GROWTH
LEADING THE WORLD IN CHINA
The Global Trade Atlas (GTA) reported that Chinese wine
imports declined for the first time since 2005, down 12 per cent
to 356 million litres valued at US$1.5 billion in the year ended
March 2014. The austerity measures introduced by the Chinese
Government in 2012 was a major cause of the decline.
11
WINE AUSTRALIA
ACTIVITIES
O UT C O M E
Wine Australia’s operations in the
year under review were delivered in
line with:
•
•
•
the objects of the Wine
Australia Act 1980;
the 2011—14 Corporate Plan
strategies; and
the 2013—14 Annual Operational
Plan (AOP) actions aimed at
contributing to the achievement
of those strategies.
O U T PU T 1
OUTP UT 2
OU TP U T 3
OUTP UT 4
MARKET
DEVELOPMENT
WINE SECTOR
INTELLIGENCE
COMPLIANCE
TRADE
1. MARKET DEVELOPMENT
OUTPUT:
Create a market environment that acknowledges and responds positively to Australian branded
wine as a premium product.
KEY MEASURE
OF SUCCESS:
A 3 per cent increase in the percentage of shipments of bottled wine exports > the current MAT
average of $4.00 per litre.
A 1 per cent increase in market share for Australian wine in the Australian domestic market,
measured by wholesale sales data.
2013—14 RESULT:
A 1.1 per cent increase in the average value of bottled wine shipments.
A 0.5 per cent increase in the market share for Australian wine in the Australian domestic market
(measured by wholesale sales data).
STR ATEGY #1 Targeted trade education
programs to build confidence and insight
AOP ACTIONS
•
•
•
•
•
12
TO ENHANCE THE OPERATING ENVIRONMENT FOR
THE BENEFIT OF THE AUSTRALIAN WINE INDUSTRY
Develop global educator’s role ensuring KPIs are aligned with
market expectations and delivering greater consistency.
Deliver engaging seminars and tastings with distributors,
importers, retailers, sommeliers and other key influencers.
Deliver trade focused, market specific education programs
that promote our best wines as being second to none and
that evolve our positioning towards a stronger perception of
quality, diversity and value.
Review and update all education content and collateral.
Develop consistency across all markets, and work with IT to
have all materials available online.
Partner with third party organisations including agents,
distributors and wine educators to ensure Australia
content is updated and current and is appropriate for global
consumer and wine trade education.
WINE AUSTRALIA’S ACTIVITIES
Fostering education of Australian wine globally and reaching
key influencers and consumers remained a key focus for Wine
Australia in 2013-14. Global education programs continued to
raise awareness among key wine trade and media influencers
about the rich diversity of Australian wines maintaining a strong
focus on quality and rationality.
AUSTRALIA
In Australia, Wine Australia continued to evolve its domestic
education platforms at both a trade and consumer level. The
One Day Wine Schools were again held in Melbourne and
Sydney with the top five students qualifying for a place in the
Trade Immersion Program (TIP).
In 2015, the One Day Wine Schools will also take place in
Adelaide and Brisbane ensuring a broader cross section of trade
access to this program.
The continued sponsorship of the Wine List of the Year Awards
enabled Wine Australia to have access to the top tier of the
sommelier fraternity across the country. The finalists in the ‘best
representation of Australia’ category were again taken on the
Sommelier Immersion Program and were engaged in extensive
‘in region’ education via master classes, discussions and vineyard
and winery visits.
consultants, trade seminars in three major Canadian cities, and a
media tasting for a specific and influential Ontario media group.
In total, over 200 trade and media were reached across British
Columbia, Manitoba, Ontario and Quebec.
Wine Australia initiated the A+ Australian wine classes in the
domestic market and these are now delivered to trade and
consumers in Melbourne, Sydney and Adelaide by third party
educators.
•
Key Activities Included:
Key activities included the Guild of Sommeliers Roadshow in
August and September 2014 which consisted of five seminars
and engaged the Guild of Sommeliers US community. Over
200 attendees participated in the seminars in New York, Miami,
Chicago, Seattle and San Diego. All seminars were arranged
and moderated by Wine Australia, with support from Guild
of Sommeliers. The Sommelier Immersion Program continued
throughout the year in New York. The six-session program
(one class per month) ran from September 2013 until February
2014. The program engaged 25 on premise and independent
retail trade participants.
The Australia Today Winter Roadshow featured a guided
seminar followed by a walk-around tasting in San Francisco, New
York and Houston. Wine Australia hosted each seminar and had
a total of 128 attendees. Surveys completed by both importers
and attendees revealed that the seminars were a highlight of
each event.
During the spring months of March and April, Wine Australia
participated in the Palm Desert Wine Festival (in conjunction
with South Australian Tourism Commission) and the Pebble
Beach Food & Wine Festival (in conjunction with Tourism
Australia). Mark Davidson crafted and moderated compelling
consumer/trade seminars at each festival with 50 attendees at
Palm Desert and 70 attendees at Pebble Beach. Both festivals
enhanced Wine Australia’s working relationship with Tourism
Australia and the South Australian Tourism Commission as well
as meeting Wine Australia’s education objectives for trade and
consumer engagement.
CANADA
In Canada, the Wine Australia Education program consisted
of sessions with various provincial liquor board product
•
•
Winnipeg Wine Festival Product Consultant Training,
where Wine Australia had the opportunity to educate at
the government liquor store level. A panel of visiting winery
principals were engaged in a half-day session on Australian
regionality across all price points reaching 30 product
consultants and ambassadors.
The Australia Today winter roadshow which was presented
in three major Canadian cities: Vancouver, Montreal and
Toronto. All three featured a seminar, led by Wine Australia
and followed by a walk-around tasting. In total approximately
150 trade and media were present for the seminars with
over 400 trade, industry and media being reached through
the events overall. Feedback from agents and attendees
indicated that the seminars were a highlight in all cities.
CHINA
In China, Wine Australia’s education program continued to focus
on the A+ Wine School and the A+ Australian Wine School
Specialist Program.
A+ Australian Wine School
Launched in mainland China in October 2011, Wine Australia’s
wine school soon became one of the most authoritative wine
courses in Chinese market. The course, developed to provide
up-to-date information on Australian wine to consumer and
trade audiences in China, is delivered by professional wine
educators in the local language. Class sizes vary from 20 to100
people. Due to a growing interest and to satisfy student requests
to further their education of Australian wine, a more advanced
level of the course was developed in 2014 (intermediate rather
than introductory).
USA
In the USA, the Wine Australia’s education program consisted
of 10 large-scale, specialised Australian seminars across the
country and a Sommelier Immersion Program seminar series
in New York. The education team, led by Mark Davidson,
engaged a total of 475 trade, media and wine-savvy/high net
worth consumers throughout the year and covered seven key
US markets, namely San Francisco Bay Area, San Diego, Seattle,
Palm Desert (So.CA), Chicago, Houston, Miami, and New York.
BCLDB Product Consultant Training (July 2013) which
was in support of the ‘July Super-Thematic’ in 100 stores
in British Columbia involving 38 products (six of which
were new listings). 25 product consultants were engaged
in half-day session where they were trained on Australian
regionality and on the thematic wines to assist them in
hand-selling the products in stores during the month of July
and beyond.
At 30 June 2014, Wine Australia had a total of 14 A+ Australian
Wine educators in mainland China and had almost 5,700
students attending the introductory A+ Australian Wine School
and about 130 students attending the intermediate equivalent.
Student feedback was positive with students reporting that they
had learned about the varieties, regions and history of Australian
wine as well as how to select Australian wines and read and
13
recognise Australian wine labels.
A+ Australian Wine Trade Specialist Program
Wine Australia began developing the Trade Specialist Program
in 2012-13. The program aims to recognise active promoters
of premium Australian wines in the Chinese market including
importers, wholesalers, distributors, retailers, sommeliers,
restaurants/hotel, etc. During 2013-14, Wine Australia
developed 50 additional trade specialists bringing the total
number to about 120 specialists in mainland China. Collateral
materials including wine maps, wine booklets and gift boxes
have been developed to encourage those trade specialists to
participate in promotional activities in China. The annual Wine
Australia Award Night also provides the opportunity for the
participants to win a full-sponsored trip to Australia.
JAPAN/GREATER ASIA
Across the Greater Asia (China, Japan, Hong Kong, Singapore,
South Korea, Taiwan and India), Wine Australia continued to
partner with the region’s leading wine educators and wine
schools to offer the A+ Australian Wine School “Level 1”
(introductory) and “Level 2” (intermediate) courses. Nearly
900 wine enthusiasts, including members of the wine trade,
took part in the courses, with most of them attaining the 70
percentile required for the Certificate of Achievement. The A+
Wine School has been the key activator for a renewed interest
in the kinds of wine Australia currently produces and has been
an ‘eye-opener’. There are 14 local A+ Specialist Educators who
conduct these courses in their respective markets within the
region.
In Japan, the A+ Trade Specialist Program has seen its second
program year full of great initiatives, ranging from fine wine
seminars to consumer activation to trade education and events.
By the end of 2013-14, there were 20 A+ Trade Specialists
in Japan, all of who had been rigorously selected based on
their influence as well as their knowledge of and commitment
to the Australian wine category. Their self-activated events
include a Japanese Sommeliers’ Association seminar with James
Halliday AM, a Twitter-based consumer promotion and various
consumer wine tasting events, trade seminars and workshops.
A series of staff training sessions hosted by Wine Australia
introduced the Australian wine message to Oddbins, Hakkasan,
four Majestic teams, Harrods and Laithwaites. Attendance
numbers varied between 10 and 50 staff members. The primary
objective of these sessions was to raise awareness about
Australia’s premium wine offerings and promote the breadth,
depth and diversity of the category. Further training is planned
for 2014-15.
Further to this, Australian Chardonnay was put under the
spotlight with a masterclass presented by Justin Knock MW in
Leeds. This tasting was presented to owners of Local Wine
School franchises from across the UK to arm them with new
knowledge to relay to their students. Justin will also host a
masterclass for students of the Austrian Weinakademie in Rust
during 2014-15.
Tastings have also been held at the Weinakademiker-Workshop
event where approximately 40 wine academics from Austria,
Germany and Switzerland met at the University of Geisenheim.
The interest for the workshops about Australian Botrytis and
Riesling was particularly strong.
EMERGING MARKETS
The A+ Australian Wine School program continued to be
developed across Emerging Markets in 2013-14. This included
holding the very first “Level 1” (introductory) course in Thailand
in conjunction with Austrade Bangkok and Wine Australia’s
Singapore based A+ Australian Wine educator.
ST R AT EGY # 2 Increased investment in the
Visitor Program, targeting key influencers
AOP ACTIONS
•
UK AND EUROPE
In the UK and greater Europe, Wine Australia led a number of
effective educational initiatives to build confidence and develop
insights.
At the heart of the in-market programs was a monthly Tasting
Blind Club, which welcomed members of the UK and European
wine trade into Australia House to taste through up to 25
Australian wines in a blind tasting. A majority of the participants
were sommeliers and students studying for the Master of
Wine or Wine and Spirit Education Trust Diploma, while
media personnel frequently attended which generated positive
14
coverage commending the success of the initiative. The Tasting
Blind Club was aligned with a proactive social media campaign
which encouraged guests to tweet about their experience and
engage in discussion about Australian wine.
•
•
Enhance the scope and range of international visits, with
particular focus on key buyer and media visits for category
review purposes to demonstrate that there is more to
discover about Australian wine with Savour Australia 2013
being the key drawcard.
Expand on premise and influencer visits from in market
education programs, including One day wine schools, SIP
classes and A+ wine schools.
Continue to work closely with regional and state associations
to portray a diverse regional story. Coordinate the marketing
activities of the various national, state, regional bodies to
ensure aligned resource allocation and net benefit outcomes.
In 2013-14 Wine Australia’s visitor program provided a platform
whereby key wine influencers from across the globe can gain
a greater depth of knowledge of the offering of the Australian
wine sector by experiencing Australian wines in Australian wine
regions.
NORTH AMERICA
26 key influencers from the US wine media and trade were
brought to Australia to participate in Savour and the associated
regional tours (held both pre and post Savour). The 26
participants from the US included eight influential wine media
personnel, 11 influential wine retailers and seven restaurateurs.
The in-market results continue to be seen, via enhanced support
for the Australian category by all those who travelled. Specific
results to date include media articles, wine listings and event
partnerships.
Similarly, Savour Australia was the signature program and an
invaluable part of the International Visitor Program program
for Canadian media and trade. Of the 10 Canadian visitors to
Savour Australia (and the pre/post Savour regional tours), there
were five influential wine media personnel, two wine retailers,
one restaurateur and two liquor board buyers.
CHINA
For the fourth consecutive year, Wine Australia arranged for
a group of influential media, educators, food and beverage
representatives, importers and retailers from the Chinese wine
market to participate in a ‘Vintage Trip’ in Australia. 20 guests
travelled to Australia in early March 2014 for the six day trip.
The group visited McLaren Vale, Adelaide Hills, Clare Valley,
Riverland and Coonawarra. For most of the guests, it was their
first time to Australia and they relished the opportunity to
experience the diversity of Australia wine and the Australian
wine regions. They were also very impressed by the experience
they had in regions and appreciated the hospitability by each
region and winery. After the trip many disseminated positive
information and articles via online or printed media about the
trip and about Australian wine and wine regions in general.
Wine Australia, in conjunction with Wine Tasmania also
facilitated five influential wine and lifestyle media personnel from
China to participate in a one week ‘Savour Tasmania’ trip. The
trip generated media coverage both online and in print in the
JAPAN/GREATER ASIA
Several influential wine personnel were guests of Wine Australia
at Savour Australia, including representatives from wine21.com
(South Korea), Vinotheque magazine (Japan), Watson’s Wine
(Hong Kong) and Cold Storage (Singapore). Their positive
experiences in the Australian wine trade were reflected in
media coverage, merchandising and promotions.
As part of the Japanese International Visitor Program, a group
of five new A+ Trade Specialists visited the sponsoring regions
of McLaren Vale, Adelaide Hills and Yarra Valley in June, not
only soaking in the detailed regional and stylistic understanding
of Australian wine, but also deeply engaging with the Australian
hosts, despite the language and cultural differences. The visitors
are already working to action their experience in various
planned activities in 2014-15.
Wine Australia also partnered with its regional and other allies
to host visits such as a WANDS Magazine visit (in partnership
with the New South Wales Wine Industry Association) and
lifestyle media visits from Japan (in partnership with Tourism
Australia and the Australia’s South West tourism).
UK AND EUROPE
Wine Australia brought several key wine trade and wine press
personnel from the UK and Europe to visit Australia’s wine
regions.
Buyers from three of the UK’s top food retailers enjoyed
regional immersions including representatives from the
Co-Operative UK, Sainsbury’s and Tesco. With a turnover of
c £1.6b, Tesco is the largest multiple grocer in the UK market,
with international businesses located around the world.
Sainsbury’s, the second largest wine retailer in the UK, has
a major focus on Australian wine as a destination category
for their consumers and recent statistics have proven that
the Australian category has outperformed their total wine
sales. Meanwhile, the Co-Operative Group remains the fifth
largest food retailer with 3,300 stores of various sizes and the
biggest geographical spread of any retailer or store in every
postal region of the UK. These visits are crucial in developing
relationships with these retailers and updating the Australian
wine knowledge of these important players as they improve the
category offering.
In conjunction with industry partners, Wine Australia continued
to host visits to Australian wine regions and to develop its
domestic visitor program via the Sommelier Immersion and
Trade Immersion Programs. The breadth of regions that
participated in both programs was highly encouraging and
demonstrated that there is a strong regional diversity and quality
message being communicated. Savour Australia was a critical
part of the International Visitor Program.
Chinese wine media which disseminated positive information
about Australian wine.
Wine Australia also assisted with the travels of Oz Clarke, Olly
Smith and Tim Atkin MW on their separate visits to Australia.
EMERGING MARKETS
12 VIPs were selected and invited to attend Savour Australia
2013 from the Emerging Markets. Most guests also visited
Australian wine regions. Guests originated from media and trade
15
channels from Brazil, Mexico, Russia, Poland, Dubai, Malaysia and
India. Results from the VIPs visit to Australia are included below:
Market Activation post
Savour
Emerging Markets
New listings (on- and
off-trade)
153
Sample requests
4
Further communication
with wineries
5
Wine Dinners
8
Wine Exhibitions
6
Promotions
1
Tastings
16
Training
6
USA
Media Reviews
8
Master classes
15
The Wine Australia headline trade/media event program for
2013-14 was ‘Australia Today’, a six-city winter roadshow for
USA and Canada that attracted over 950 trade and media in
total and 535 in USA.
Brazil, Mexico, UAE, Malaysia,
Singapore, Poland and Russia
STR ATEGY #3 Display and promote a diverse
portfolio through exclusive consumer events
AOP ACTIONS
•
•
•
Deliver programs and activities as part of the joint global
campaign with Tourism Australia that target profitable
growth opportunities in the Australian domestic market,
USA and North East Asia region.
Raise awareness of the quality, diversity and value of the
Australian category targeting millennial audience events and
activities, with a focus with online communities.
Targeted retail promotions and activity to restore consumer
demand for key varieties produced in Australia
AUSTRALIA
Wine Australia again partnered with the Good Food and Wine
Show in 2013-14 to deliver A+ Wine Schools across four cities
(Brisbane, Melbourne, Perth, Sydney). The cumulative audience
at these masterclasses was approximately 1,500 consumers.
As an awareness raiser and publicity activation, Wine Australia
conducted a City Cellar Door ‘pop up’ in Australia Square
as a precursor event to Aussie Wine Month. Wine Australia
worked with key journalists from around the country to identify
a benchmark wine from 65 of the country’s wine regions
and these were showcased along with premium Australian
16
seafood and King Island Dairy cheeses. Over the course of
the afternoon, more than 1,500 consumers attended and the
coverage via traditional and social media was extensive.
The launch event of Aussie Wine Month at the Ivy Ballroom in
Sydney attracted 650 consumers to experience wines from 16
regions and was again partnered with premium food offerings.
Wine Australia partnered with Dan Murphy’s for Aussie Wine
Month. As a result, Dan Murphy’s devoted their monthly Fine
Wine Buyers Guide solely to Australian wine. This publication
has a circulation of 1.5 million and the resultant sales from the
promotional period indicated growth for the Australian wine
category.
Wine Australia also continued its long association with the
Noosa International Food and Wine Festival where three
Landmark masterclasses were conducted for the consumers
attending. A collective audience of over 150 consumers
attended.
The program kicked off in San Francisco and continued
to Vancouver, New York, Houston, Montreal and Toronto
throughout January and early February 2014. It was the first
road show throughout North America in well over eight years.
‘Australia Today’ was chosen as the theme to highlight the
evolution of Australian wine offerings in both USA and Canada,
with a specific focus on regionality, diversity, new vintages, and
new packaging. Each event featured a seminar, and trade tasting
with over 30 wineries at each event. Wine Australia Education
Director, Mark Davidson, presented a compelling seminar at
each event which highlighted the evolution of Australia’s classic
styles. Australia Today Roadshow in USA exceeded registration
targets, and met overall attendance targets. USA Registrations
total 535 and USA Attendees total 370.
Spring 2014 saw a significant consumer event program come
into full swing. The Taste of Australia is a Landry’s Restaurant
Group and Wine Australia collaborative event series to drive
visibility and traffic to Landry’s concepts in key markets via
compelling Australian wine consumer events. This program
serves to help solidify the relationship between Wine Australia,
participating Australian wineries/importers and Landry’s
teams, to create the environment for future business between
participating importers and the Landry’s wine buying and
executive teams. The Taste of Australia features Australian wine
using ‘regional’ ‘discovery’, ‘travel’, ‘adventure’ and ‘food/wine
pairing’ messaging. The program is based on multiple events
with the Landry’s Group – a combination of large consumer
restaurant-based events, intimate winemaker dinners and unique
projects at Landry’s entertainment properties. More than 40
events are anticipated through the 12 to 18 month program.
From January through June 2014, over 2,000 consumers were
engaged via eight Taste of Australia Events. 25 Taste of Australia
events are currently planned for 2014-15.
•
•
•
•
•
•
•
•
SATC: sponsored Landry’s ‘Taste of Australia’ activities April
2014.
Tourism Australia: sponsored Pebble Beach Festival April
2014 – feature lunch, seminar and grand tasting tables.
SATC: sponsored Palm Desert Festival March 2014– feature
lunch, seminar and grand tasting tables.
Tourism Australia: co-sponsored Wine Spectator advertising
program with Wine Australia December 2013 – Feburary
2014.
Meat and Livestock Australia: co-sponsored Fairways
‘Australian Lamb & Wine Dinner’ with Wine Australia 22
January 2014.
Tourism Australia: sponsored James Beard House lunch and
dinner with Tourism Victoria and Wine Australia November
2013.
Guild of Sommeliers: co-sponsored Fall Tour program
(shared activity; WAC cost; Guild outreach). August/
September 2013.
Tourism Australia: participated in Education Sessions with LA
Office Team, hosted by Mark Davidson October 2013 and
December 2013.
CANADA
The ‘Australia Today Trade Roadshow’, was a highlight of
2013-14. The Canadian component of the six-city winter trade
show series was a three city tour through Vancouver, Montreal
and Toronto and drew over 400 trade and media to seminars
and walkaround tastings (a total of 950 trade and media were
attracted across North America).
The theme, ‘Australia Today’ was a close look at the Australian
wine today and how the category has evolved through regional
offerings, new varieties, innovation and packaging and each
event featuring 25 to 30 wineries and 150 to 200 wines.
Mark Davidson, tailored the seminar themes in each city and
presented compelling content alongside local media personalities
and visiting winery principals. The Canadian roadshows
exceeded registration targets and met overall attendance
targets.
The spring of 2014 saw the advent of wine festival season.
In May, Wine Australia was the theme region of the Winnipeg
Wine Festival in Manitoba. Efforts there included off-site
consumer events, Manitoba Liquor Marts in-store thematic, staff
trainings, new product introduction features and a proprietary
Australian section in the three-session consumer tastings
sessions. Nearly 10,000 consumers were reached and through
festival and liquor board activities a 7 per cent category lift was
seem immediately following the festival.
Additional Liquor Board activity in 2013-14 centred on the
key markets of BC and Ontario. First up in 2013-14 was the
BC Liquor Stores annual thematic in July 2013 themed ‘Bring
Australia Home’. Over 100 stores featured 38 products for
a 40 per cent increase over the prior period for participating
products and 22 per cent lift over the same period of the
prior year (2012). The initiative was supported by nine in-store
tastings featuring all participating wines and a special wine and
food evening in partnership with Tourism Australia.
In January 2014 the BCLDB featured six Australian products as
part of a ‘Signature Store Release’ whereby each major store
(25) in the province of BC had an Australian display promoting
seasonal wines in support of Wine Australia’s Australia Day
activities. In return, Wine Australia activated in key stores with
multi-supplier wine tastings, with Australian fare and a live
on-site radio show.
Early 2014 also saw back-to-back LCBO activity. There was a
Wine (general list) mini-thematic in January featuring 20 listed
products and supported by Wine Australia in-store tastings. This
was quickly followed up with a Vintages ‘A Release’ of 15 new
products in February.
Partnership Activities:
Through 2013-14, Wine Australia worked in partnership
with Tourism Australia, government and wine industry trade
associations. Some of the events are listed below.
•
•
Tourism Australia and Ketchum PR: In January 2014, Wine
Australia provided wine, wine expertise, education and
staff for three Tourism media events centred on Restaurant
Australia in Vancouver, Montreal and Toronto featuring over
100 Canadian travel and lifestyle media.
Through 2013-14, Wine Australia worked closely with tourism,
government and trade partners such as Tourism Australia, the
South Australian Tourism Commission, Meat and Livestock
Australia and Guild of Sommeliers to bring together multiple
events which are listed below.
At the end of February at the Vancouver International Wine
Festival, Wine Australia, in addition to hosting an Aussie Saturday
Lunch event and an Australian booth in the main tasting room,
announced its intention to be the theme region of the 2015
festival where over 25,000 consumers, trade and media will be
reached through 16 Australian-themed consumer, trade and
media events with strong regional and premium messaging.
Tourism Australia: provided Chef John Placko for a special
BC Liquor Stores evening tasting featuring food and wine
and 25 guests; Wine Australia provided wine and wine
pairings for each course, winery principals and Mark
17
•
Davidson as educator and host for the evening. January
2014.
Drinks Ontario: Wine Australia sponsored the annual
industry dinner February 2014 in Toronto. Drinks Ontario
is the provincial trade association representing the interests
of manufacturers, agents, importers, marketing groups, trade
offices and distributors of beverage alcohol products in
Ontario.
Also, with the help of our educational partner Taiwan Wine
Academy and Austrade Taipei, the Wine and Gourmet Taipei
exhibition (June 2014) saw two high-end Australian wine
seminars offered there.
CHINA
UK AND EUROPE
Wine Australia Seminar and Grand Tasting Roadshow
The most comprehensive tasting of Australian wine in the UK
and Europe was the Australia Day Tasting at Lindley Hall in
London. Held in January, the tasting showcased almost 1,000
wines from 50 exhibitors to more than 900 trade and press
attendees (132 on-trade, 180 off-trade, 74 press, 46 educators,
342 UK agent/distributors) and presented wines from 184
different wineries. Attendees benefited from the presence
of 20 Australian winemakers who were available to pour and
talk about their wines on the day. For the first time, this event
was amplified with the addition of ‘Dine Australia’, a food and
wine pairing initiative encompassing the ethos behind Tourism
Australia’s food and wine push through Restaurant Australia.
Additionally, a ‘Press Club’ area was hosted to facilitate the
visiting press who came locally from the UK as well as from
broader Europe. The tasting received several published articles
both online and in print across local and international media,
including in Australia.
Working with over 30 exhibitors and 60 brands from 16 wine
regions, Wine Australia successfully delivered a three-city
Roadshow in April 2014 in one first tier city and two second
tier cities, to showcase a range of high quality Australian wines
to local key trade and media. The event provided an important
opportunity to reach influential members of the wine trade in
both the first tier and the second tier markets and was also one
of the premium events from Australia with all the Australian
wineries involved having at least one wine rated 90 points and
above by high profile wine critics James Halliday and Jeremy
Oliver.
An educational class was held before the grand tasting in all
the three cities with different topics in first and second tier
cities. In the second tier cities such as Shenyang and Nanning,
an A+ Australian Wine School ‘Level 1’ (introductory) class
was delivered to over 300 local trade in total, and in Shanghai, a
masterclass highlighting wines rated 94+ was delivered to over
100 trade, media and educators by Jeremy Oliver. The following
grand tasting also attracted over 700 visitors including key trade,
media and targeted consumers.
In order to evolve the grand tasting, Wine Australia partnered
with Dairy Australia and Australian Seafood CRC to offer
tastings of Australian cheese, oyster, lobster and abalone.
94+ Masterclass:
Working with Jeremy Oliver, Wine Australia organised a
successful masterclass highlighting wines rated 94 points and
above in Shanghai. Over 100 guests including influential media,
educators, on-trade and off-trade representatives attended. 10
wines from different key Australian regions were tasted. The
feedback from audience was very positive as it was a good way
to showcase some of the best wines from Australia and highlight
the diversity of Australian wine.
JAPAN
The annual Wine Australia Tasting in Tokyo (September
2013) attracted 342 active wine professionals and media. The
tasting sucessfully allowed exhibitors to showcase an excellent
cross-section of Australian wines of high quality and of varing
styles in an interactive setting. New this year, the three A+ Trade
18
Specialists (Satoshi Tonooka, Yayoi Hayashi and Reiko Hoshino)
led ‘Tasting Trail’ guided tours, helping the guests a deeper
Australian wine experience by sharing their perspectives on the
ground.
Across the channel in Europe, Wine Australia again hosted a
stand at ProWein, Europe’s largest wine fair. Each year some
48,000 visitors flock to the Messe Hall in Düsseldorf, Germany.
This year was the fair’s 20th anniversary and was made up
of 4,830 exhibitors from 47 countries, making it the biggest
ProWein event on record. Publicity of the Australian presence
featured locally and abroad and generated lively discussion on
social media.
In September 2013 Wine Australia hosted a Nordic Tasting
in Stockholm, Sweden. This market has been identified as one
where wine is increasingly becoming a mainstream product
and where the category is achieving above average growth.
This snap shot into the world of Australian wine was broken
down into a trilogy of events including an exclusive opening for
the Monopoly buyers, allocated timing for trade and press and
finally an opportunity for Swedish consumers to taste through
our wines. Due to the success of this event, the event will be
taken to Oslo and Helsinki also, as well as back to Stockholm, in
September 2014.
In Ireland, Wine Australia hosted an Annual Trade Tasting in
Dublin in June where 12 producers showcased thier wines.
80 people from the trade attended, including key press and
distributors. Media coverage continues to appear in print, online
and on local radio.
EMERGING MARKETS
ST R AT EGY # 4 Focus on new technologies to
engage a greater and more targeted audience
Wine Australia was responsible for organising a Wine Australia
pavilion at the Hong Kong Wine and Spirit Fair in November
2013. Represented on the pavilion were 19 wine companies
from 18 regions across Australia. In addition to the pavilion,
Wine Australia ran a series of nine educational masterclasses
throughout the fair, focusing on the themes of ‘Classic and
Emerging Landmark Australian Wines’, ‘Australian Shiraz’ and
‘Regional Heroes’.
AOP ACTIONS
In conjunction with the Hong Kong International Wine and
Spirits Fair organisers, Wine Australia co-ordinated a Grand
Tasting of Australian Wines for 120 VIPs at the Hong Kong
International Wine and Spirits Fair, showcasing 30 top wines as
rated by James Halliday, Jancis Robinson, Wine Spectator, Wine
Advocate and Decanter.
Wine Australia utilised Vinexpo Asia-Pacific 2014 Hong Kong in
May 2014 to launch the new ‘Savourised’ branding which was a
key factor in drawing crowds larger than the neighbouring stands
to the 20 wineries at the exhibition.
Philippines
Wine Australia developed an educational supermarket
promotion across Metro Gaisano Supermarket (six branches)
and Rustan’s Supermarket (five branches) in the Philippines
in conjunction with Austrade Manila targeting high net worth
consumers likely to purchase Australian food and wine. The
promotion received significant media attention and consumer
support.
Singapore
Wine Australia delivered educational trade masterclasses to
students in partnership with Wine Australia’s Singapore based
A+ Australian Wine educator in 2013-14.
Australia
Wine Australia delivered an International Student Tasting
targeting students from the Asia/Emerging Markets region. The
tasting’s aim was to introduce Australian wine to international
students who may not have previously had exposure to wine.
More than 200 students attended with 30 per cent originating
from China.
AUSTRALIAN WINE OVERSEAS PROGRAM
The Australian Wine Overseas program continued to evolve its
offering in 2012-14. The strategy for guaranteeing uptake and
growth of this service was in communication via Wine Australia’s
head office and regional offices to the relevant parties within
Austrade, embassies and high commissions.
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Continue to enhance and update the A+ Australian
Wine website to facilitate conversation, interaction, and
relationship building with trade, media and consumers.
Leverage online community with strong social media
engagement across all activities, and encourage online retail
involvement.
Ensure full integration of activities with the A+ Australian
wine website. Deliver targeted trade education programs to
build confidence and insights.
Increase communication of in-market intelligence and insights
to our stakeholders.
Wine Australia continued to build and engage the online
Australian wine community both domestically and internationally
with a view to increasing awareness of Australian wines, regions
and in-market initiatives.
Domestically, efforts to enhance and engage Wine Australia’s
audience were strongly focussed on Savour Australia 2013.
To support this event and to ensure an engaged audience at
the event and around the world a bespoke website and digital
communications strategy was developed. The website www.
savouraustralia.com was the key communication tool for the
event and boasted various communication features including:
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a launch video to promote the event;
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detailed information on key sponsors and partners; and
profiles of all speakers and VIPS;
a detailed and up-to-date calendar of events;
videos and audio recordings and presentation slides from
various business sessions;
a ‘Media Centre’ for all media releases and positive media
outcomes.
The website also provided a platform whereby tickets could be
purchased and meetings in the Entry to Market Lounge could be
arranged.
Hong Kong
The website still receives substantial visitation as members of
the international wine community take advantage of the volume
of valuable content produced at Savour Australia. The Savour
Australia website received over 189,000 unique page views
from July-December 2013 while the Savour Australia video
content has received over 100,000 views to date.
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In the social media sphere, a Wine Australia Twitter account was
established to disseminate news and updates from the event.
The official hash tag, #savouroz, reached over 900,000 unique
Twitter users during the event while images on Instagram using
the official hash tag reached over 50,000 unique Instagram users
and were also shared with over 200,000 unique Twitter users.
Content from the event also reached a potential audience of
74.2 million Sina Weibo users, the Chinese equivalent of Twitter.
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In the US, Wine Australia utilised its website and maintained
current content to support market activities through the year.
Quarterly e-news blasts were sent out to the trade to promote
various marketing initiatives. Event listings, press results, research
results, and education highlights were the main sources of
content updates. Supporting social media avenues activities in
the US focused on Twitter and tracked hashtag progress for
multiple activities via Storify.
US media actions through 2013-14 focused on securing
wine business media features to cover Australia’s premium
momentum, primarily as a means of building confidence for
the Australian category today with key trade and distributor
gatekeepers. Messages included ‘premium shift’, regionality,
diversity, authenticity, business strategy, category recovery and
rebound, premium growth, next chapter and ‘Australia today’.
In the consumer public relations and broad messaging sphere,
Wine Australia shared efforts with Tourism Australia to target
lifestyle/tourism media and worked closely with the key wine
publications for consistent coverage that maintains the messages
of ‘discovery’, regionality and Australia’s premium offering.
Some of the media results in the US for 2013-14 included:
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Wine Spectator ‘Down Under Rising’ – Australian Feature
August 2014 Issue – Harvey Steiman.
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International Wine Cellar ‘Best New Wines From Australia’
– Australian Feature July/August 2014 Issue – Josh Raynolds.
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Beverage Trade Network May 2014 – Understanding the
Australian Invasion; Interview with Angela Slade.
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Grapevine May Issue 2014 USA/Imports – Interview with
Angela Slade.
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Australia’s Wine Diversity – Gabe Sasso, The Daily Meal May 2014 (from Australia Today, NYC).
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Variety is King in Australian Wine Gabe Sasso- Bullz-Eye May
2014 (from Australia Today, NYC).
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Boomerang from Down Under – five pages (on rise by
value; premium shift); Shanken’s Market Watch April 2014.
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The New Australian Breed – ‘Stateside gatekeepers take
another look’ feature: Beverage Media April 2014: 3 pages.
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The Australia Advance -Beverage Media April 2014 Issue: for
Market Access clients: 3 pages.
“Dipping into Natural Wines: A Snapshot of the Scene in
Australia”: Wine Spectator Blog, H.Steiman 16 April 2014.
“A Snapshot of Australian Wines Part 1” - SF Examiner
Pamela Busch 11 April 2014.
Wall Street Journal, Mark Ellwood 10 April 2014 “Tasmania:
The Next Foodie Destination”.
Afar, Tom Downey 4 April 2014 “Melbourne’s Creative
Spark”.
ABC News, Kristin Fazzalaro 7 April 2014, “Wine Tour of
the World: 10 Must-Stop Visits”.
GrapeRadio.com: Interview with WAC/Angela Slade. (OC/
LA January 2014; released March 2014).
“Remapping Australian Wine” Food and Wine MagazineRay Isle February 2014 Issue.
‘Say G’Day to Australian Riesling’- Wall Street Journal, 13
February 2014 (from UK source).
‘Balanced Barossa’- James Suckling report 7 February 2014.
Wine Enthusiast – 10 Best Wine Travel Destinations:
Barossa, January Issue 2014.
Aussie Turnaround Looks to Be Real, Wine Spectator blog,
22 January 2014, Harvey Steiman.
Australian industry looks to improve country’s wine image
Capital Gazette, December 2013.
Back and Open for Business… Tasting Panel Magazine,
November 2013 (Savour coverage).
Telling Australia’s Wine Story the Old School Way - The
Wine Economist, November 2013 (post-Savour).
Wine Australia announces US trade survey results - Drink
Business Review, 4 October 2013.
Wine Australia’s “Next Chapter” Research Project Results
Beverage Trade Network, 4 October 2013.
Shift to High-End is Key to Australian Recovery – Wine
Spirits Daily, October 2013.
The Dead Arm’ Shiraz Maker Revives Australian Wines
Bloomberg, 6 October 2013 (post-Savour).
Is Australia Back? Time to take another look at the wines of
Australia” Snooth, 15 October 2013.
Re-Branding Australia (and Australian Wine) - The Wine
Economist, October 2013 (post-Savour).
Anatomy of Australia’s New Wine Strategy - The Wine
Economist, October 2013 (post-Savour).
Australian Wine Finds Its Edge - Departures Magazine September 2013.
CANADA
Media efforts in Canada were focused around pre-and
post-Savour visits by the four media that attended and the
influential Wine Align media group (cross-Canada). Targeted
messaging supported our premium, regional/diversity talking
points. The target audience for Canadian media results was the
food/wine/travel savvy Canadian consumer.
The ‘Wine Align Media Tasting’ presented six journalists from
the Wine Align media group with the 15 newly released LCBO
Vintages wines. Generated from this was in-depth positive
coverage in the form of an email blast and newsletter.
At the British Columbia Liquor Distribution Board (BCLDB)
in-store tastings leading up to Australia Day in January, the
Best of Food and Wine radio was brought on location where
multiple winery principals, Mark Davidson and James Gosper
were interviewed in an hour long feature on Australia.
Some of the media results in Canada for 2013-14 included:
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Taste Magazine, James Nevison Summer 2014, “Picture
Perfect Wine Regions”.
The Globe & Mail, Beppi Crosariol, “Aussie Shiraz Gets in
Touch with its Inner Rhone”, 6 June.
WineAlign Blog, David Lawrason, “Ten Trends in Australia
Right Now & Ten Great Wines”, 5 June.
WineAlign Blog, John Szabo, “Don’t Say Aussie Shiraz!”, 30
May 2014.
Good Food Revolution, Jamie Drummond, “Ms. Australia: An
interview with Angela Slade”, 27 May 2014.
Courier Islander, Doug Sloan, ”Best Finds at the Vancouver
International Wine Festival!” 14 March 2014.
Everything Wine, Erica Van Driel “ Best of the Wine Fest:
Australian Gems”, 5 March 2014.
The Best of Food & Wine Interviews: http://www.
am650radio.com/BestofFoodandWine/episodes.aspx
Wine Fest Day 2 pt 2: Peter Saturno of Longview winery.
Mark Davidson interview - discussing 2015 Van Winefest
sponsorship, Australia’s direction and Tony Gismondi’s recent
visit with Lehmann on the ‘Mentor’ program, 27 March
2014.
George Samios (Wolf Blass) and some talk about our
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Good Food Revolution Jamie Drummond, “Hunting with
Fowles” 28 February 2014.
Toronto Life David Lawrason “From Riesling to Pinot Noir,
here are five can’t-miss new wines from Australia” 28
February 2014.
The Montreal Gazette Bill Zacharkiw “Zacharkiw: Wine
from a land Down Under”, 31 January 2014.
The Globe and Mail Beppi Crosariol “New Wine Wonders
from Down Under”, 30 January 2014.
Toronto Sun Christopher Waters “Australia Wine: Don’t
Call it a Comeback”, 22 January 2014.
Montreal Gazette Bill Zacharkiw “The Australian wine
hangover/redefine itself”, 6 October 2013.
La Presse “Les Meilleurs Chardonnays sont Australiens”, 8
October 2013.
Le journal de Montreal “Domination Australienne au
Jugement de Montreal”, 28 October 2013.
CNN John Szabo “Hook up with inexpensive, awesome
pinots” 7 October 2013.
Taste Magazine Rhys Pender, Summer 2013 issue, ”The New
Taste of Australian Wine”.
CHINA
Social media
Wine Australia’s Weibo platform had attracted over 12,000
followers by end of June 2014; a 20 per cent increase compared
with June 2013. Given the general decline in the popularity of
Weibo, Wine Australia shifted its focus to Wechat in April 2014
where it quickly began to attract followers.
E-newsletter
Wine Australia delivered a bi-monthly e-newsletter in both
English and Chinese to stakeholders whom conduct business in
China and to key Chinese contacts. This proved to be good tool
in keeping the Chinese market informed of various happenings
within the Australian wine industry and keeping Australian
stakeholders informed on significant event and trend within the
Chinese wine sector.
Media clipping
In Canada, Wine Australia utilised its website and maintained
current content to support various market activities through
the year. As in the US, quarterly e-news blasts were sent out to
the trade to promote various marketing initiatives. Event listings,
press results, research results, and education were the main
sources of content updates. Supporting social media avenues,
our team focused on Twitter and tracked hashtag progress for
multiple activities via Storify.
announcement, 20 March 2014.
The involvement of a local public relations company in China
ensured that Wine Australia could actively engage key wine and
lifestyle media to in market events as well as generate stories
from time to time. The total number of media stories and
clippings reached over 470 including 98 printed, 377 online and
three TV.
A+ Australian Wine Chinese website
The Chinese Wine Australia’s website is aimed at the Chinese
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trade, media and wine lovers who want to learn more about
Australian wine including the regions and varieties. It plays a
major role in communicating with and educating the Chinese
market and has been extremely well received.
Yesmywine.com Pre-sale campaign
Partnering with the biggest online wine retailer, Yesmywine.
com, Wine Australia organised an online campaign in China with
wines rated 90 points and above in April and May 2014 with 56
SKUs representing nearly 20 brands from more than 10 wine
regions. The total sales value of the online promotion reached
RMB619,922, equivalent to A$112,713 with 3,034 bottles sold
at an average retail price of approximately RMB204 (A$37).
It proved to be a good opportunity to showcase a range of
high quality Australian wine to wine lovers and to encourage
consumers to appreciate and understand the quality behind
various labels.
Australian Wine Quiz Show
An Australian wine knowledge quiz competition was launched
via vinehoo.com, an online wine community and media, in
the month of Jan 2014, with 100 multiple choice questions
developed, in order to increase more awareness on Australian
wine and create the buzz among wine lovers. Over 20 wineries
and their importers sponsored the weekly and monthly prizes.
There were about 800 participants in the quiz competition in
total.
UK AND EUROPE
A dynamic communications plan has seen improvement in the
online content for UK/Europe. While regular article posts, event
summaries, blogs and e-communications are at the heart of the
online network, we have recently introduced the ‘Message in
a Bottle’ initiative. Here producers are encouraged to submit
a questionnaire responding to questions that target the story
behind the wine. The response to this has been overwhelmingly
popular.
Social media activity has been colourful with ongoing twitter,
Facebook and Instagram posts as well as summaries on Storify.
To date we have more than 17,700 twitter followers, almost
5,400 Facebook likers and 972 Instagram followers.
2. WINE SECTOR INTELLIGENCE
OUTPUT:
Support the competitiveness of the Australian wine sector through the collection, interpretation
and dissemination of global wine sector intelligence.
KEY MEASURE
OF SUCCESS:
Increased use of information products and services.
2013—14 RESULT:
The number of products downloaded increased by 40 per cent.
STR ATEGY #1 Provide timely, fit-for-purpose,
accessible and appropriately targeted information
and analysis to stakeholders
AOP ACTIONS
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JAPAN
Wine Australia maintains a very active social media program
(Facebook and Twitter) in the Japanese and Korean languages,
assisted by the in-market service providers. In Japan, the annual
Australia Day ‘Tweet-up’ campaign has gained traction, with a
plan to execute it in a larger scale trade promotion format.
Undertake continuous assessment and evaluation
of foundation data sets with reference to industry
requirements, alternative providers and sources and funding
arrangements.
Work to increase the sector’s control and management of
foundation data.
Continue to review, refine and adapt information products
and services to reflect and respond to industry needs.
Wine Australia delivered a submission to the ABS and ABARES
National Agricultural Statistics Review. The purpose of the
review is to understand the requirements of data collection for
the agricultural sector in the future. This review will likely have
implications on the collection of wine sector statistics when the
NASR makes its final recommendations to the ABS.
Wine Australia continued to evaluate the data and services
provided to levy payers through Winefacts to ensure it best
meets their needs. Through regional visits and a user survey, we
engaged directly with the industry, receiving positive feedback
that affirmed the Wine Information Dashboard is a valuable
Our State of Play report focused on strategic issues and
priorities for the sector and has been used as a resource
in forums such as investor information days and regional
presentations.
Wine Australia prepared and published annually the Australian
Winegrape Purchases Price Dispersion Report. 2013-14 was
the seventh year in which the report was published. This report
has become a valuable resource for price information and a
secondary survey undertaken in October 2013 accounted for
the impact of post-vintage price adjustments.
Other presentations by Wine Australia included regional
workshops conducted by the SA Wine Grape Council held in
late 2013.
Our comprehensive regional and varietal snapshots provided
insights into Australia’s supply base and give the sector a better
understanding of Australia regions and varietals in domestic
and international markets. The snapshots included plantings
and bearing area over time, wine grape production and yields,
water application methods by region, top five varietals and their
weighted average prices, exports by regional label claim and top
five export destinations.
With access to up-to-date Global Trade Atlas data, Wine
Australia provided information and analysis on the scale and
dynamics of competitor wine producing countries, a vital service
in an increasingly competitive operating environment. Focus was
increased on monitoring global supply and demand, regularly
monitoring reports from the OIV and tracking trade through
Global Trade Atlas.
Wine Australia’s Export Market Guides continued to be an
essential reference point for Australian exporters and allied
industries. These guides were regularly updated to monitor and
communicate changes in the global wine regulatory and policy
framework on a market-by-market basis..
Wine Australia led two GWRDC-funded studies to identify new
opportunities for the Australian wine category. The first study,
“Barriers in the United States trade for developing premium
Australian wine sales”, aimed to understand the US wine trade
attitudes and behaviours towards Australian wines, and to
explore barriers for developing premium Australian wine sales in
the US market. As part of the study, Wine Opinions conducted
four discussion groups among US wine distributors, on- and
off-premise representatives and importers.
The second study, “The opportunities for Australian wine in the
on-line channel in the United Kingdom”, aimed to encourage
Australian wineries to consider the on-line channels in the
UK for profitable opportunities. The study addressed the lack
of information in this area by providing insights and assessing
opportunities for the profitable and sustainable growth of
Australian wine sales in the UK.
ST R AT EGY # 3 Actively engage research
communities and industry organisations in
information-sharing and integrated relationships to
leverage shared intelligence and processes for the
benefit of the Australian wine sector
AOP ACTIONS
STRATEGY #2 Contribute to the resolution of
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sector-wide strategic issues and priorities
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Develop strategic intelligence for the Australian wine sector
to inform policy development and debate on key issues.
Operate as an inter-agency information hub to ensure
industry is provided with required supply and demand
intelligence.
Meet regularly with research communities and industry
organisations to develop opportunities for information
sharing.
Facilitate identification of priority areas.
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Define and communicate segment imbalances between
supply and demand for the Australian wine category.
Wine Intelligence was commissioned to undertake a brand
health study on the Australian wine category in four key
markets: Canada, China, the UK and the US. The study identified
the strengths, weaknesses, opportunities and threats for the
Australian category.
Market insight reports were developed to provide intelligence
to the sector and assist wine producers in assessing market
opportunities.
Seek ways to minimise the costs to the wine sector of data
collection and reporting.
Wine Sector Intelligence (WSI) provides supply and demand
intelligence to assist decision making within the wine sector. As
the main sourced of data, all information and statistics are freely
accessible to levy payers and available to purchase by others on
the Wine Australia website.
tool that meets the needs of our time poor stakeholders. The
last user survey conducted in 2013 reported that 3.71 out of 5
users were satisfied with Winefacts, up from 3.46 the previous
year.
The team responded to over 2,500 queries during the year,
receiving positive feedback from customers on the timely and
professional manner in which queries were handled.
WSI shared information with research providers and regional,
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state and national organisations. We also worked closely with
WFA to provide analysis and data to support their initiatives.
Through the course of its activities, WSI consulted and
collaborated with other peak wine bodies and maintained Wine
Australia’s membership of the National Wine Extension and
Innovation Network.
WSI contributed to Market Development’s Market Programs
User-pays Activities Prospectus 2014-15 through market
summaries and participation in regional roadshows that
promoted the prospectus.
STR ATEGY #4 Optimise the dissemination and
incorporation of Wine Australia-facilitated knowledge
into Australian wine sector decision-making
AOP ACTIONS
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Wide promotion of the Wine Australia’s website to attract
greater use of information products by customers.
Investigate alternative data delivery methods to make
downloading of data much easier.
Undertake state, regional and company presentations and
deliver industry journal content to foster greater adoption
and utilisation of information products and services.
Information products were delivered predominantly through
Wine Australia’s corporate website. Over the year the website
received 182,000 visits and 650,000 page views from almost
105,000 visitors. Winefacts received 148,000 page views and
10,500 products were downloaded.
A substantial effort was devoted to promoting and
communicating Wine Australia’s information products and
services through a range of channels:
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Regular email notifications and phone communication to
stakeholders;
At least two contributing articles per month to industry
publications;
Regular presentations and promotional visits to industry
groups, companies and regions;
Presence at industry conferences;
Updates and presentations to the Board and senior
management;
Updates on information available via the Wine Australia
e-newsletter, our Twitter and Facebook profiles and the
corporate website homepage.
Regions visited in 2013-14:
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Adelaide Hills;
Barossa;
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Brisbane;
Clare;
Langhorne Creek;
Limestone Coast;
Margaret River;
McLaren Vale;
Melbourne;
Mornington Peninsula;
Perth;
Riverina;
Riverland;
Rutherglen;
Sydney;
Yarra Valley.
A website user survey found that 3.48 out of 5 respondents
found Winefacts easily accessible, up from 3.31 in the previous
survey.
3. REGULATORY SERVICES
OUTPUT:
Protect the reputation of Australian wine.
KEY MEASURE
OF SUCCESS:
The absence of any significant incidents that reflect adversely on the international reputation of
Australian wine.
2013—14 RESULT:
No situations developed to threaten Australia’s reputation for producing quality wines presented
with truthful labels.
AOP ACTIONS
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Review the electronic product and shipment registration
database in the light of recent changes to the export
process.
Automate the system for generating import certificates for
international markets.
In 2000 Wine Australia introduced an electronic system for
processing wine export applications. Despite significant changes
to the export control process in recent years it has continued
to operate with essentially the same electronic operating
system since that time. Nevertheless the system is reviewed
regularly and during 2013-14 improvements were made to the
licence application and renewals system to remedy a number
of problems reported by and servers underpinning the system
were also updated to allow for better support for future
improvements to the process.
Although the issuing of import certificates required for entry
of wine to the European Union is now automated, those
certificates required by other countries, particularly China,
continued to be manually generated despite the intention to
automate the process in 2013-14. There are two principal
reasons that progress was not made towards this objective.
Firstly, the strategy in international forums has always been to
seek to eliminate unnecessary documentation requirements, so
it would have been potentially wasteful to expend resources
on enhancing the process whereby documents are generated.
Secondly, there have been some indications that Chinese
authorities are considering implementing a certification system
of their own. If they were to do so it would render the current
system redundant since we would not wish to impose duplicated
requirements on exporters.
Wine Australia’s export controls were last reviewed in 2011 and
it continues to administer the process with no increase in fees
since the previous financial year.
Wine Australia’s export consisted of four key elements in
2013-14. Firstly exporters are required to be licensed and at the
end of the year under review there were 2,089 licence holders,
5 per cent less than at the same time last year. Wine producers
accounted for 46 per cent of these licences. In addition to
the licencing requirement all wines destined for export must
be registered. In 2013-14, 12,289 wines were registered, an
increase of 2.4 per cent on the previous year. Before a shipment
is despatched, it must be issued an export permit. In 2013-14,
42,977 export permits were issued, a 5.8 per cent decline on
the previous year.
Finally, many export destinations require wine shipments to
be accompanied by import certificates. Shipments to the EU
require an import document containing the results of various
chemical analyses of the wine. Wine Australia issued 32,934 of
these documents this year, 6.9 per cent less than the previous
year. In markets other than the EU, notably China, there was an
11.2 per cent rise, to 7,159, in the number of import certificates
issued.
ST R AT EGY # 2 Maintain an effective label
integrity program to ensure confidence in the
description and presentation of Australian wine
AOP ACTIONS
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Sample at least 1,200 wines from amongst those registered
for export and submit them to analysis to ensure compliance
with the Food Standards Code.
Conduct 400 label integrity audits, scheduled both randomly
and in areas of greatest risk. Ensure that independent
bottling facilities, and wine brokerage businesses are included
in the survey.
Review the OIV list of eligible Australian wine grape variety
names to ensure names and synonyms are valid.
STRATEGY #1 Maintain a robust regulatory regime
to protect and enhance Australia’s reputation for
producing wines that meet customers’ expectations for
quality, safety and integrity
In order to monitor compliance with the Australia New Zealand
Food Standards Code, 957 randomly selected Australian
wines were analysed for residues of 56 agricultural chemicals.
Test results were reported to each wine producer selected
for the analysis programme. No sample was found to breach
any Australian maximum limit. Many export markets impose
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sampling and testing requirements on imported wine. Although
compliance with Australian limits does not guarantee a wine
will meet the requirements of all export markets, the results
of our analysis programme provide confidence that Australia’s
reputation for the production of “clean and green” wines will be
maintained.
we continued our series of presentations on regulatory and
market access developments with seminars across Western
Australia, South Australia and Queensland. We presented
lectures to oenology students at the University of Adelaide and
presented a workshop at the Australian Wine Industry Technical
Conference.
Wine Australia conducted 337 audits on Australian wine
exporters to monitor compliance with the legislated Label
Integrity Program. This program provides assurance that claims
made regarding the provenance of a wine, its vintage, varietal
or regional description, can be substantiated. Label claims must
be justified through appropriate record-keeping throughout
the wine supply chain and are subject to inspection by Wine
Australia’s auditors. Audit findings resulted in the temporary
suspension of one export licence, held by a wine producer, and
the permanent cancellation of another, held by a wine broker.
We also respond to requests from the industry to assist in a
range of technical matters, primarily labelling for international
markets. We replied to approximately 1,750 such requests
during the year.
Wine Australia commissioned an independent expert review
of the list of grape variety names authorised for use on wine
labels. The results of the review have been forwarded to the
Department of Agriculture for transmission to the OIV.
STR ATEGY #3 Assist wine exporters to comply
with domestic and international wine production and
labelling requirements
AOP ACTIONS
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Continue to review export market guides to ensure
exporters are provided with timely and accurate regulatory
information.
Conduct a series of seminars and webinars explaining the
wine production and labelling obligations under which
Australian wine producers operate with particular emphasis
on the obstacles encountered in international markets.
When requested we will provide written opinions on
the suitability of draft labels for particular markets. We
will prioritise regulatory information collection on APEC
markets.
The export market guides issued by Wine Australia are essential
sources of information for the key technical requirements
of Australia’s most significant international markets. They
summarise the critical wine labelling, certification and
compositional regulations of thirty six export markets, providing
an indispensable reference for wine exporters. Wine Australia
comprehensively reviewed 24 of these guides and made
minor updates to several others in 2013-14. We also revised
our Compliance Guide and four label checklists, providing a
convenient reference when designing either domestic wine
labels, or those for the US, Canadian or EU markets.
Following the previous year’s visits to Victoria and Tasmania
26
ST R AT EGY # 4 Lead an effective and rapid
response to any incident that could adversely affect
the reputation of Australian wine
AOP ACTIONS
•
•
Revise the database of key industry contacts with whom it
would be necessary to communicate in the event of a crisis.
Reinforce the message that Wine Australia would be the
body that coordinates industry response to any critical
incident and should therefore be informed of any potential
incidents as soon as possible after they occur.
The industry Crisis Management Plan was reviewed and
provided to various industry bodies prior to wider distribution.
In particular the plan defines roles and responsibilities for each
member of the team responding to any crisis situation, and
provides a checklist of actions to assist in coordinating the
response.
Although our technical team responded to a number
of incidents whereby Australian wine was challenged in
international markets on the basis of its composition or
production conditions, no situation remotely constituting a crisis
was encountered during the year.
ST R AT EGY # 5 Assist the Australian
Government to ensure the Wine Australia
Corporation Act and Regulations continue to
provide a robust, credible and comprehensive
regulatory system
AOP ACTIONS
•
•
Consider the feasibility of introducing a series of fines for
relatively minor infringements of the Act.
Review the elements of Standard 4.5.1 and determine
whether an alternative legislative basis is feasible.
Wine Australia developed a procedure to be used when
changes to the regulatory framework are proposed. The
During our various regulatory compliance monitoring activities,
particularly our label integrity audits, we occasionally encounter
minor infringements of the Act that would not seem to
warrant either of the penalties currently available to us; licence
suspension or prosecution.
The option to impose financial penalties to expiate such offences
is currently being considered by the Department of Agriculture.
4. TRADE
OUTPUT:
Improved market access for Australian wine exports.
KEY MEASURE
OF SUCCESS:
Strong and effective contribution to efforts to reduce tariff and technical barriers to the free trade
of Australian wine in international markets.
2013—14 RESULT:
The wine sector will benefit from improved access to both the Japanese and Korean markets as
a result of Free Trade Agreement negotiations completed this year. Progress was also made in
identifying and addressing a range of technical trade impediments facing exporters of Australian
wine and work will continue towards removing or eliminating these trade obstacles.
STRATEGY #1 Constructively engage in relevant
international wine forums where Australian wine
can benefit from collaborative international action
on market access issues
AOP ACTIONS
•
•
We will represent Australia at the APEC Wine Regulatory
Forum in order to share information on regulatory
developments across the region.
Contribute to work of the Organisation of Vine and
Wine (OIV), FIVS and the World Wine Trade Group. A
priority will be to minimise the lack of harmony between
international regulations relating to maximum residue limits
of agricultural chemicals (MRL’s).
Wine Australia attended the APEC Wine Regulatory Forum
and World Wine Trade Group meetings in Washington DC.
The first forum brings together regulators from across the
APEC region, including key wine markets China, Japan, Canada
and the USA, and emerging markets Russia and Mexico. At
the November meeting the Forum agreed to create electronic
working groups focussed on minimising the certification burden,
promoting risk assessment principles in relation to laboratory
analysis and compiling compendia on international labelling,
wine composition and MRL requirements. Wine Australia is
represented on two, and chairs one, of these working groups.
The group chaired by Wine Australia has prepared a report on
its work to be presented at the next meeting of the forum in
Beijing in September 2014.
In the government section of the annual World Wine Trade
Group meeting, attended by Wine Australia, a statement on
analytical methodology and regulatory limits was developed and
is designed to avoid many of the technical trade impediments
encountered by wine exporters. The group also made progress
on its MRL project.
FIVS is an international wine and spirits industry representative
organisation based in Paris. This year it restructured its
activities to focus on four key activities and Wine Australia now
co-chairs the FIVS group working on the elimination of tradedistorting measures. Wine Australia also contributed to the
committee assisting the Department of Agriculture to manage
its membership of the OIV. The OIV intervened on our behalf
this year in an attempt to resolve an ongoing technical problem
with exports to China, a problem with implications for other
countries in addition to Australia.
ST R AT EGY # 2 Provide informed analysis
and support to Australian Government officials
for negotiations to improve market access for
Australian wine
procedure was designed to ensure clear and transparent
consultation with stakeholders and should minimise the risk of
any unintended consequences of proposed regulatory changes.
The procedure has been submitted to industry for consideration
in the near future. A range of possible legislative amendments
have been identified, in consultation with industry, but will only
be pursued when the regulatory amendment procedure has
been endorsed by industry and implemented by us. These
amendments include proposed changes to Standard 4.5.1.
AOP ACTIONS
•
In addition to making formal submissions in support
of wine sector objectives when Australia enters Free
Trade Agreement discussions, we will engage Australian
government officials posted to relevant markets where and
when technical impediments to trade in wine arise.
27
This year Australian officials completed negotiations towards
Free Trade Agreements with both Japan and the Republic of
Korea. Although not yet in force at this time, each promises to
significantly improve Australian access to these important wine
markets. Upon ratification, the tariff applying to Australian wine
entering the Korean market will be eliminated and tarriffs on
wine sent to Japan will be phased out over a period significantly
shorter than had applied with agreements between Japan and
other countries.
Negotiations towards an FTA with China have been on-going
for several years. China is Australia’s fourth largest export wine
market and preferential tariff treatment would greatly benefit
Australian exporters. We provided Australian negotiators a set
of priority outcomes in relation to both tariff lines and various
technical trade impediments that have arisen in China.
Generally, technical problems are more likely to be resolved
through direct discussions with the importing party than through
the FTA process. To that end, Wine Australia has intervened on
behalf of affected wine exporters when problems have arisen
in China, Thailand, Korea and the UK. In most cases we engage
the importing party through Australian Embassy officials in that
country.
STR ATEGY #3 Cultivate relationships with key
alcoholic beverage regulatory agencies to maximise
Australia’s understanding of international regulatory
requirements and minimise the potential for
Australian product to be found in breach of those
requirements
AOP ACTIONS
•
•
Maintain regular contact with agencies in key export
markets, in particular the Wine Standards Branch of the UK
Food Standards Agency, the TTB, the LCBO and AQSIQ in
Beijing.
Work closely with international wine trade bodies that share
our goal of identifying, clarifying and communicating the
regulatory requirements of key markets. Engagement with
the California Wine Institute, New Zealand Winegrowers
and the European CEEV will be a particular focus.
In April Wine Australia accepted an invitation to attend and
make presentations at a technical meeting jointly hosted by the
US wine regulator, the TTB, and the California Wine Institute.
Representatives from Argentina, China, Italy and Canada also
attended. Technical trade impediments of mutual interest
were discussed, and a number of initiatives aimed at facilitating
international wine trade were adopted.
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We met with representatives from various Chinese authorities,
including the AQSIQ, in the margins of the APEC Wine
Regulatory Forum meeting held in November. The focus of
this meeting was one particular technical problem confronting
shippers of wine to China. Unfortunately, despite our
representations to AQSIQ, that problem is yet to be resolved.
We attended one of the three meetings of the international
wine trade representative body FIVS and participated in
numerous teleconferences organised by FIVS and the APEC
Wine Regulators Forum. CEEV are members of the former
and both the California Wine Institute and New Zealand
Winegrowers participate in the latter.
GEOGRAPHICAL INDICATIONS COMMITTEE
The GIC has three members plus two nominated alternate
members to avoid potential conflicts of interest. The current
members and alternates are:
Mr Dennis Mutton (Presiding Member);
•
Mr Richard Dolan (Alternate Member nominated by Wine
Grape Growers Australia);
•
•
Mr Brian Englefield (Member nominated by Wine Grape
Growers Australia);
In accordance with the Wine Australia Corporation Act, a
Register of Protected Geographical Indications and Other Terms
has been established. The Register may be inspected at offices
of the Australian Grape and Wine Authority during business
hours and extracts are available at www.agwa.net.au.
Mr Philip Laffer (Member nominated by Winemakers’
Federation of Australia); and
Vacant (Alternate Member nominated by Winemakers’
Federation of Australia).
The GIC held one meeting in 2013-14.
FINANCIAL RESULTS
The Corporation achieved an operating deficit of $0.283
million for 2013-14, which was lower than the $1.0 million loss
approved by the Minister for Finance and Deregulation in May
2013.
Approximately 45 per cent of the Corporation’s 2013-14
revenue came from two industry levies – the Wine Grape Levy,
based on the previous year’s wine grape production, and the
Wine Export Charge, based on the FOB value of wine exports
in the year ending 31 March.
Wine Grape Levy revenue received during the year was $3.593
million as opposed to $3.234 million for the previous year.
The Wine Export Charge revenue received in 2013-14 was
$2.184 million, $42,000 more than the previous year’s figure of
$2.142 million.
Industry contributions to the Corporation’s market programs
was $2.852 million for 2013-14. This was an increase on the
2012-13 figure of $1.744 million primarily driven by Savour
Australia held in September 2013.
Revenue from regulatory fees decreased to $3.631 million (4
per cent) in 2013-14.
subscriptions to the 2013-14 User Pay Programs pre the 30
June 2013 balance date, being treated as unearned income and
prepaid expenses.
Cash holdings at 30 June 2014 totalled $1.797 million, an
increase from $1.655 million at 30 June 2013.
Full details of the Corporation’s finances are included in the
Financial Statements section of this report.
•
•
REGISTER OF PROTECTED
GEOGRAPHICAL INDICATIONS AND
OTHER TERMS
Total expenditure increased from $13.5 million to $14.4 million,
driven mostly by the expenditure on Savour Australia. All other
expenditure items were broadly in line with prior year levels.
There has also been a significant change in the balances of
Other Payables and Other Non-Financial Assets compared
to the previous year. This was predominantly due to income
and expenditure incurred on Savour Australia 2013 and
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MARKET OVERVIEWS
AUSTRALIA
The most important market for Australian wineries is naturally
the domestic market, which accounts for a 41 per cent volume
and 55 per cent value share of total sales. The higher prices
available in the domestic market and the stubbornly high
Australian currency have made the domestic market increasingly
attractive compared to the traditional export markets. This has
prompted many wineries to put greater focus on the domestic
market which has added to competitive pressure and margin
squeeze.
In the off-trade, Australia has recorded growing wine sales in
the higher price segments. The strongest rate of growth is in the
above $25 per bottle segment. Conversely, declining volumes
have been recorded in the under $12 per bottle segments.
Despite the imported wine segment growing in the off-trade,
customs data shows that total wine imports have been more or
less flat over the past two years.
In the on-trade, total sales increased by 1 per cent to 104.4
million litres according to Euromonitor. The value increased at a
faster rate, up by 4 per cent to A$3.6 billion implying that either
consumers purchased more expensive wines or/and there was
some price inflation in the channel.
Imports have also recorded increasing sales in the higher price
points. The $16 - 25 segment is the biggest for imported wine
and much of the New Zealand Sauvignon Blanc sold is priced
ASIA
CHINA
China has been the fastest growing export market for Australian
wine for several years. However, due to the introduction of
austerity measures on Government bodies in late 2012, there
was a big impact on the sales of many luxury goods, including
imported wine. Wine Australia’s export data of the year ended
June 2014 showed Australian bottled wine exports to China had
a decrease of 8 per cent to 33 million litres and China ranked
fourth in volume but second in value to A$203.7 million.
China remains the number one destination for Australia’s
premium wines (priced at above A$7.50 per litre). Australia’s
position in China remains strong despite the recent slowdown.
According to Global Trade Atlas in June 2014, Australia accounts
for 16.4 per cent of the value and 12.9 per cent of the volume
of bottled imports, ranking us second behind France. Australia’s
average value of bottled imports is also the second highest
among the top ten importing countries.
While the current challenges create hurdles for a lot of players
in the market, it also presents opportunities for those who are
focused on long term brand building and the education and
interactions with end consumers are even more crucial than
ever.
Educating trade, media and consumers was central to Wine
Australia’s strategy in China. Wine Australia’s major focus in the
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in this segment. The segment has recorded strong double digit
growth. The above $25 imported wine segment is also growing
at double digit rates. It is estimated roughly three-quarters of
imported wine sales in this category is Champagne. Imported
wine sales at the entry level have declined.
market included:
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•
•
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targeted trade education programs to build a network of A+
Australian Wine Trade and Education Specialists in China;
holding tastings and masterclasses and participate in key
trade shows to positively position Australian wine;
targeted public relations and communications via traditional,
online, mobile and social media platforms including weibo
and wechat; and
engaging with targeted consumers in targeted cities via
education (A+ Australian Wine School as well as food, wine
and lifestyle campaign.
JAPAN
According to Euromonitor, the Japanese wine market grew by 6
per cent to 312 million litres in 2013. With an average of 2.45
litres of wine consumed per head each year, the Japanese are
Asia’s biggest wine consumers. The size of the market is only
exceeded by China due to sheer weight of numbers. During
2013, consumers gave in to slightly cheaper wine, with the value
of the market growing slower than the rate of volume growth –
up 2 per cent to ¥776 billion (roughly A$8.3 billion).
While the Japanese are patriotic to their growing domestic
premium wine market, approximately 90 per cent of the wine
they consume is imported from a wide range of international
wine regions. Along with the British and the Americans, the
Japanese are considered to be among the most advanced and
discerning consumers in the world. The country’s wine lovers
are no exception. They are very well trained, intellectually
curious and prepared to ‘think’ about wine.
Beyond its tariff implications, the JAEPA (Japan-Australia
Economic Partnership Agreement) to be ratified in early 2015 is
expected to bring the general attention back to Australian wine.
The JAEPA comes as Japan, generally speaking, enjoys a sense
of buoyancy in business confidence, which one may expect to
continue leading to the 2020 Olympic Games in Tokyo.
It remains imperative to lift the common and out-dated
perception of Australian wine to create a solid position and high
expectations of Australia’s premium and regional wine offer
in the minds of the target Japanese trade and consumers. This
should be achieved not only through continuous wine education
and promotion, but also through efforts, in partnership with
our allied organisations, to foster the creation of a vibrant and
contemporary image for Australia.
As the second largest wine market in Asia, the people of the
Japanese wine trade are going through a generational change
which will see the next generation of curious, far more
open-minded sommeliers and wine professionals emerge in the
next five years. The Australian wine sector must ensure that
its engagement with Japan’s next generation remains strong,
ongoing and patient, and that its message is smart, polished,
culturally relevant, and convincing in order to win their hearts.
Although the propensity to lower priced ‘cost performance’
wine remains strong due to the country’s two-decade-long
deflation, Australia has viable opportunities in nurturing
its middle-priced category through trade and consumer
UK AND EUROPE
UNITED KINGDOM
The United Kingdom has been a challenging market for
Australian wine in the last 5 years with the recession
decreasing average incomes (which have only just recovered to
pre-recession levels), and excise levels being increased above the
rate of inflation five years in a row. In 2014, £2.05 from every
bottle of wine sold went directly to the state treasury, up from
£1.46 in 2008. Since the introduction of the ‘excise elevator’ in
2008, the average wine consumption per head has decreased by
1.3 litres to 21.4 litres.
In the on-trade market, wine sales were down by 2 per cent in
the year to March 2014. There was a distinct split between the
sales results for European vs Non-European producers, with the
Europeans increasing sales and the non-Europeans recording
declining sales. According to global on trade consulting company,
CGA Strategy, smaller brands have been winning market share
from bigger brands. Australia is the third most popular country
of origin for wine sales in the country behind France in first
place and Italy in second.
The United Kingdom is the world’s second largest wine
importer by both volume and value. In 2013/14, total imports
increased by 4 per cent to 1.3 billion litres. This level is down
50 million litres from the peak in 2011. In 2012, Italy overtook
Australia as the number one source country, however, year
to date 2014 imports between Italy and Australia are almost
inseparable.
Total Australian exports to the United Kingdom declined by
1 per cent in 2013-14 to 244 million litres valued at A$374
million. The shift towards shipping wine in bulk continued. Bulk
wine exports increased by 6 per cent to 208 million litres while
bottled wine exports declined by 28 per cent to 36 million litres.
In 2013-14, total wine imports increased by 6 per cent to 272
million litres. The French have a commanding position in the
market accounting for 27 per cent of the imports. At $11.90
per litre, the French average value is much greater than any
competitor. Italy also has a strong position accounting for a
further 15 per cent of the import market. Chile, who has a Fair
Trade Agreement with Japan and USA are ranked third and
fourth by volume, however these exports are predominantly
at the entry level end of the market. Ranked sixth by volume,
Australia recorded a 4 per cent decline in imports in 2013-14 to
nine million litres.
education focusing on the quality, style and relative value against
international benchmarks.
The average value of both container types increased steadily
with the bulk average up by 5 per cent to $1.10 per litre and the
bottled average up by 10 per cent to $4.05 per litre.
The average value of bottled wine is being driven higher by
growth in exports in the higher price segments alongside the
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shift to shipping relatively cheaper bottled wine in bulk. Bottled
wine exports above $7.50 per litre increased by 14 per cent
to 2.2 million litres. Although these levels are a fraction of their
peak in 2007 (10.7 million litres), it was the first year since
this peak that this segment recorded growth in a financial year.
While the high-end of the United Kingdom off-trade market
is growing, the volumes are relatively small with, according to
Nielsen, total sales of 1 million cases above £10 per bottle.
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Ireland
The overnight introduction of a further €1 tax increase on a
bottle of wine in December 2012 shook an already nervous
industry and had an immediate impact with total wine sales
declining by 2.3 per cent to 76 million litres during 2013.
Naturally, the lower price segments declined at a faster rate
due to the excise increase having a relatively higher impact.
Conversely, there was strong growth in sales at the higher end
of the market.
The Irish economy was hit relatively hard by the global recession
and although a slow recovery has taken hold, average real
incomes are still below what they were before the global
recession hit. Encouragingly, in 2014 the Central Bank of Ireland
has stated that “the National Accounts data now signal that the
economy has a stronger growth momentum than previously
estimated”.
EUROPE
Mainland Europe continues to struggle with the effects of
the global recession and although growth has returned, it
remains at historically low levels. In the International Monetary
Fund’s July 2014 World Economic Outlook Report, it is stated
“Growth in the euro area is expected to strengthen to 1.1 per
cent in 2014 and 1.5 per cent in 2015 but to remain uneven
across the region, reflecting continued financial fragmentation,
impaired private and public sector balance sheets, and high
unemployment in some economies”.
Germany is the world’s biggest imported wine market by
volume. In the 12 months to April 2014, total imports declined
by 4 per cent to 1.5 billion litres. The market is predominately
low valued with the average value of all wine imports at
US$2.27 per litre.
Total Australian exports to Germany increased by 3 per cent
to 33 million litres valued at $47 million. An increase in bulk
wine exports (up 6 per cent to 29 million litres) offset a decline
in bottled exports (down 11 per cent to 5 million litres). The
increase in bulk wine shipments came against the back drop of
a large 2013 vintage in Europe. This may have been the major
driver dragging the bulk wine average value downwards. The
average value of bulk wine exports declined 9 per cent to $0.93
per litre.
Conversely, the average value of bottled exports increased 4 per
cent to $4.19 per litre. This was driven by a decrease in exports
below $2.50 per litre (down 31 per cent to 1 million litres) and
an increase in exports above $7.50 per litre (up 2 per cent to
425,000 litres).
As wealth increases in Eastern Europe, the citizens have been
increasing their wine consumption. Some of the larger markets
(over US$1 billion) of note that have grown value strongly over
the past five years include: Russia (up 10 per cent on average),
Ukraine (up 11 per cent on average), Serbia (up 9 per cent on
average), Czech Republic (up 2 per cent on average), Poland (up
8 per cent on average) and Austria (up 3 per cent on average).
Scandanavia
The combined Scandinavian (Denmark, Norway, Finland and
Sweden) wine market is of similar size to the Australian market.
With a slightly higher population (25.8 million), who consume
slightly less wine than Australians (19.0 litres per head per
annum), results in a total market of 489 million litres. The
countries are rich; particularly Norway, and accordingly, they
spend relatively more on wine than most Western markets.
Obviously, the climate is not conducive for wine grape growing
and the region imports all wine which is consumed. Italy is the
market leader in the region, accounting for a 22 per cent share
of wine imports. France (15 per cent share), Spain (12 per cent
share), South Africa (11 per cent share) and Chile (10 per cent
share) round out the top five sources of wine while Australia is
ranked sixth.
NORTH AMERICA
UNITED STATES OF AMERICA
2013-14 was a positive year for premium Australian wine in the
USA market, with renewed enthusiasm in key markets across
the country. There have been a growing number of success
stories from importers, distributors and trade, particularly for
premium and/or regional Australian wine sales. Savour Australia
played a pivotal role in showcasing Australia’s next chapter to
trade and media, and has proven to be a launch pad for multiple
Wine Australia trade efforts in the USA.
USA is the largest consumer (by volume) of wine in the
world, with 145 million wine drinkers and a consistent rise in
consumption. According to Euromonitor, 338 million cases were
sold in the USA in 2013, up 3.8 per cent. A 63.4 per cent share
of sales are domestic wines which implies the remaining 36.6
per cent are imports. Australian wine represents 5.7 per cent of
total US wine sales and is the second largest imported wine by
volume, behind Italy, accounting for 15.5 per cent of all imports
into the US.
According to WEAR June 2014 MAT, the US market is showing
clear focus on bottled exports and premium values. The average
per litre value of bottle exports to USA was up 7.8 per cent
to A$3.51 per litre. Bottled exports above A$7.50 per litre
were up 7.4 per cent to 4.3 million litres and valued at A$56.5
million. The average value of A$7.50 and above per litre was
up 7 per cent to a record A$13.32 per litre. Bulk exports to
USA saw significant decline (down 38 per cent) and the share
of Australian wines imported to USA has shifted to 68 per cent
bottled and 32 per cent bulk.
According to IRI Year End March 2014, Australia represents 6.1
per cent of market share in volume and 5.5 per cent in value.
Australian sales were at 8.1 million cases, valued at US$611
million. The average price per bottle rose 1.8 per cent to
US$6.30. The segment that continues to see growth is $11 $14.99, up 12 per cent Year End March 2014.
WINE AUSTRALIA’S APPROACH
The Wine Australia program for the US market aimed to deliver
overarching visibility and strong premium cues for the Australian
category. Wine Australia’s USA team strived to adapt the US
programs and our activities to best capitalize on opportunities
for wineries in this market and to best suit the requests and
needs of Australian wine importers and trade in USA.
CANADA
Wine exports to Canada grew strongly during the year, up 20
per cent to 59 million litres valued at A$182 million. Bulk wine
exports, up 66 per cent to 28 million litres offset a decline in
bottled exports (down 5 per cent to 30 million litres). The
average value of bottled wine recorded strong growth, up 4 per
cent to A$5.21 per litre. This reverses a trend set in place when
the GFC hit in 2007.
Bottled wine exports have followed a similar trend to that in
the US and UK. Exports below A$5.00 per litre declined by 11
per cent to 18 million litres while exports above A$5.00 per
litre increased by 7 per cent to 13 million litres. The strongest
growth in bottled exports was in the above A$10.00 per litre
segment, with volume up 16 per cent to 1.6 million litres. The
GFC also had a big impact on this segment of the market. In the
year to June 2009, exports above A$5.00 declined by 41 per
cent and declined every year after until this year.
2013-14 was a year of consolidation and reviewing the market
opportunities with fresh eyes. Industry collaboration and
tourism partnerships were woven into many of our activities.
Savour Australia played a pivotal role in showcasing Australia’s
next chapter to Canadian trade and media, and continues to
be a reference point for building new Wine Australia industry
efforts in the Canada.
In Canada, approximately 85 per cent of the wine market is
imported. In total volume (bottle, bulk and other), Australia is
the number four imported wine in Canada, after France, Italy
and USA.
The USA continues to be the number one export market for
Australian wines by value for both total exports and bottled
exports. At the end of the 2013-14, the total value of the US
market for Australian wines was A$432 million and A$381
million for bottled exports.
The program for 2014-15(which will be carried out by AGWA)
will continue to be based on partnerships and collaborative
activities with importers, wineries, tourism bodies and
government partners, particularly with Tourism Australia and
G’Day USA. We will build upon our trade engagement, trade
education and distributor confidence-building efforts via our
Education Program and newly launched Trade Access Program.
And we will further develop our Market Access program in
response to the growing needs of wineries and importers. Each
of these areas, Education, Trade and Consumer Programs, and
Market Access offer consistent visibility and ever-increasing
support for the category.
Of Imports to Canada, Australia is number four by total Value
and Volume:
Total Value US$223 million down 3 per cent and Total Volume
55 million litres up 6 per cent.
Canadian wine consumption trends continue to show increases
for domestic as well as imported wines. Between 2007 and
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2011, Canadian wine total consumption increased by 14.55 per
cent.
WINE AUSTRALIA’S APPROACH
Goals across Canada for the next year will be to position
ourselves to better compete for visibility and market share. The
program for 2014-15 will be based on activities in the largest
provinces and will include Liquor Board activities, and enhanced
consumer awareness efforts to provide more pull-through and
sales support for retail as well as on-premise trade.
Through a continued investment in trade education, targeted
public relations, consumer/trade events, sales promotions, sales
data analysis and consumer research, we are building industry
confidence in premium Australian wines for the sustainable
future.
The year will feature two country thematic programs - one
with the SAQ and the other with the BCLDB – as well as a
collaborative thematic with other Southern Hemisphere wine
importers to support the LCBO. We will also have two in-store
tasting programs with the LCBO to ensure category visibility
during summer and winter periods. The large-scale highlight of
EMERGING MARKETS
Emerging markets covers a broad range of markets across the
Asia Pacific, Central and South America, Russia, Middle East and
Africa.
Many emerging markets share similarities in both opportunities
and challenges. Most markets have a relatively small market
for grape wine, however the upside of a low per capita
consumption means there is potential for growth, particularly
as consumers move from beer and spirits to wine. This is
particularly common across the Asia Pacific region where
consumers view wine as a more sophisticated and lower
alcohol beverage alternative. This coincides with a growing,
new middle class with a higher disposable income and an
interest for knowledge about international brands and products.
The younger generation and women are also proving to be
a powerful and growing consumer group across emerging
markets.
Common challenges across emerging markets include:
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•
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moderate to significant import duties and local taxes which
impact retail prices;
moderate to high on-premise mark-ups;
fragmented distribution and consumer access to wine;
limited knowledge of wine;
government legislation restricting alcohol sales; and
cultural and religious issues, which impact upon acceptance
of wine in the community.
Globally, the Asia Pacific region continues to be the fastest
growing region for wine sales. Australia has a strong competitive
advantage in Asia given our close geographic proximity, shared
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the year will be our role as ‘Theme Country’ for the Vancouver
International Wine Festival 2015, Canada’s largest wine festival
with influence across the country.
time zone and close cultural linkages with the region. Wine
Australia continues to identify opportunities across Emerging
Markets including a focus upon Mexico and India in 2014-15.
Malaysia and Vietnam present opportunities for exporters
whilst Brazil, and Russia are also a focus through working with
government to reduce and/or remove barriers to entry.
The Organisation
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COMMITTEES
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ENABLING LEGISLATION
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ACCOUNTABILITY
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CORPORATE GOVERNANCE
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PEOPLE
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WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —THE ORGANISATION
BOARD
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BOARD
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The Members of Wine Australia (the Board) are accountable
to the Minister for Agriculture (the Minister) and through the
Minister to Parliament, for the operations of the Corporation.
The Board is responsible for Wine Australia’s overall strategic
direction and directs its functions and the achievement of its
objectives by a process of policy decisions.
Course (GAICD).
BOARD COMPOSITION
MR KEVIN MCLINTOCK (DEPUTY CHAIR)
Appointed 15 May 2008
Reappointed 11 May 2011
Reappointed 1 May 2014 (as per section 14(5A) of the former
Wine Australia Corporation Act 1980)
Wine Australia comprises eight non-executive members
appointed by the Minister; a Chair, and seven members.
Members are nominated for appointment by the Wine Australia
Selection Committee which comprises members nominated
by the Winemakers’ Federation. The criteria for selection to
the Wine Australia Board includes expertise in winemaking,
grape growing, marketing, finance, business management and
administration or government policy processes and public
administration.
The members’ terms of appointment expired on 30 June 2014.
Members’ remuneration was determined by the Remuneration
Tribunal pursuant to the Remuneration Tribunal Act 1973.
MEMBERS OF WINE AUSTRALIA
BOARD
The Members of Wine Australia at 30 June 2014 were:
MR GEORGE WAHBY (CHAIR)
Appointed 1 July 2012
George Wahby has been an active member of the Australian
wine industry since 1998. He was formerly the Chief Executive
Officer and Director of McWilliam’s Wines Group Ltd, stepping
down in 2011.
George previously worked for large multi-nationals, Philips
and Bristol Myers Squibb, within the financial and commercial
disciplines.
Mr Wahby was the non-executive Chair of Wine Australia
A graduate of Harvard Business School with 36 years’
experience in the international wine industry, Kevin was Chief
Executive Officer of McWilliam’s Wines from 1993 until his
retirement from executive service in December 2005. He
remained on the McWilliam’s board as Deputy Chairman from
2005 to 2010. He was a member of the Executive Council of
the Winemakers’ Federation of Australia from 1994 to 2008
and elected President of the Medium Winemakers’ Forum. In
2006/07 he chaired the industry taskforce that produced the
strategy – Wine Australia: Directions to 2025. He was awarded
the 2009 Len Evans Award for leadership.
Mr McLintock was the non-executive Deputy Chair of Wine
Australia.
DR TONY JORDAN
Tony Jordan, through his own company Oenotec Pty Ltd,
consults on winemaking, viticulture and wine business to wine
companies in Australia, New Zealand, Europe, China and India.
George was also a Director and Vice President of the
Winemakers’ Federation of Australia, Chairman of Winemakers’
Federation of Australia’s Medium Winemakers Membership
Committee, a Director of the Liquor Merchants Association of
Australia (LMAA), Australia’s First Families of Wine (AFFW)
and sat on Wine Australia’s Market Development Advisory
Committee.
Tony graduated with Honors from Sydney University and then
completed a PhD in Chemical Physics which then led to an early
career in Research Science, a Lectureship in Wine Chemistry
and then Oenology at Charles Sturt University (where he
was involved in establishing the Wine Science course) and
later managing partner in Oenotec, a worldwide winemaking/
viticulture consultancy.
George has completed numerous courses including; the General
Management course at Harvard Business School in the United
States; a Bachelor of Business (Accounting/Business Law) degree
at the University of Technology Sydney; and the Wine Executive
Program at Monash University. He is also qualified as a Certified
Practicing Accountant (CPA), Chartered Secretary (ICSA) and
is a graduate member of the Institute of Company Directors
He started his current role with Oenotec in mid-2008 after 21
years with the Moët Hennessy group. He joined Moët Hennessy
in 1987 as Managing Director/Winemaker for Domaine
Chandon Australia, a role that was expanded to consulting
winemaker to the Chandon wineries worldwide in the 1990’s.
He was appointed as CEO of Domaine Chandon Australia,
Cape Mentelle and Cloudy Bay NZ in 2003.
Tony has investments in vineyards in SA, Tasmania and Victoria
and sits on the boards of two wine companies. Tony is a past
President of the Yarra Valley Wine Growers Association and the
Australian Society of Viticulture and Oenology.
In his spare time Tony looks after his small Yarra Valley vineyard.
Dr Jordan was a non-executive Member of Wine Australia.
MS JOSEPHINE ROZMAN
Josephine Rozman is a Chartered Accountant and a graduate
of the Australian Institute of Company Directors, with over
20 years of wine sales, marketing and management experience
in both domestic and international markets. After working for
Pricewaterhouse in Sydney and San Francisco, she partnered in
the establishment of a successful business pioneering Australian
wine brands in the United States, brands subsequently
sold to Mildara Blass. She then established a wine-industry
bio-technology company in the United States, worked as Asia
Pacific Marketing Director for a multi-national fast moving
consumer goods company and as Chief Executive Officer of
Blue Pyrenees Estate. She is currently an independent marketing
consultant to Australian and international wine companies on
marketing and distribution strategies and export planning.
Ms Rozman was a non-executive Member of Wine Australia.
She chaired both the Wine Sector Intelligence Advisory
Committee and the Audit and Finance Committee.
MS KATE THOMPSON
Kate Thompson is the Legal and Corporate Affairs Director of
Premium Wine Brands, the owner of several wine businesses
including Orlando Wines, with responsibility for legal matters,
public affairs and corporate social responsibility. Prior to this
she worked in private practice at Piper Alderman and Fisher
Jeffries lawyers. She has extensive experience in all transactional
aspects of the wine industry as well as compliance matters and
intellectual property protection.
Ms Thompson was a non-executive Member of Wine Australia.
She chaired the Legislation Review Committee and was a
member of the Audit and Finance Committee.
MS SUE HENDERSON
Sue Henderson has 28 years’ experience in the wine, liquor and
beverage industries, working in Australia and in the wine export
markets of the United Kingdom, Europe, USA, Canada, China,
Korea, Japan and New Zealand. Sue is highly skilled in both
sales and marketing and has negotiated many significant supply
and distribution contracts for both wine and beer in the global
markets. Sue has spent much of her career developing and
implementing marketing and business plans. She has consulted
to Australian and New Zealand wine companies since 2006 and
has participated in Board roles for Grant Burge and Prince Hill
Wines. Most recently Sue has undertaken a two year project as
Commercial Director for Ara Wines of New Zealand building
global distribution.
Ms Henderson was a non-executive Member of Wine Australia.
Mr Bill MOULARADELLIS
Bill Moularadellis is a Roseworthy Oenology graduate who
has had a lifelong involvement in the wine industry. He is the
founder and Managing Director of Kingston Estates Wines and
has extensive hands-on experience in viticulture, winemaking
and local and international sales. Under his stewardship
Kingston Estate has grown to become one of Australia’s largest
family-owned wine companies and produces in excess of five
per cent of Australia’s total wine production.
He is a past executive committee member of the South
Australian Wine Industry Association and has previously been
Chairman, and is a current board member, of the Riverland
Wine Industry Development Council. From 1997 to 2002 he
was a member of the Business Advisory Board to the Reserve
Bank of Australia.
Mr Moularadellis was a member of both the Audit and
Finance Committee and the Wine Sector Intelligence Advisory
Committee and was a non-executive Member of Wine
Australia.
He has judged over the last 25 years at all national and most
regional wine shows in Australia, as well as the Decanter Awards
in the UK, the Trophy Wine Show in South Africa, Winpac, the
Hong Kong International Wine Competition and the Easter
Show in New Zealand. He has been Chairman of the Royal
Hobart Wine Show, the Perth Royal Wine Show and the Hong
Kong International Wine Competition.
Kate is a current Board member of the Winemakers’ Federation
of Australia and of Drinkwise Australia.
37
Mr Brian WALSH
Brian Walsh is a Wine Industry consultant. He retired in
December 2012 after a 24 year career at Yalumba, spanning
roles of Chief Winemaker, Director of Production and Director
of Strategy & Business Development. This was preceded by
20 years working in winemaking and management positions in
McLaren Vale.
Brian has a long history of wine industry service, having been
President of the South Australian Wine Industry Association,
Chair of the South Australian Wine Tourism Advisory Board
and Chair of Barossa Winemakers Committee. He currently
chairs the Wine Innovation Cluster at the Waite Campus,
Urrbrae and is Independent Chair of Riverland Wine. A senior
wine judge in Australia over the last 30 years, Brian has been
both Chairman of Judges at the Royal Adelaide Wine Show and
Chair of its Wine Committee.
Upon expiry of his appointment to the Board of Wine Australia,
Mr Walsh was appointed as the non-executive Acting Chair of
the Australian Grape and Wine Authority.
MANAGEMENT
Responsibility for the day-to-day conduct of the business was
delegated to the Acting Chief Executive, Andreas Clark, who
was appointed by the Board and is accountable to the Board
for ensuring their decisions are translated into actions by the
management team.
The management team was selected by the Acting Chief
Executive, in consultation with the Acting Chair if appropriate,
on the basis of experience and expertise.
MEETINGS OF MEMBERS
The Board met formally on six occasions during the year.
Members’ attendance at meetings is shown on page 39.
COMMITTEES
AUDIT AND FINANCE COMMITTEE
The Audit and Finance Committee, comprising three Members
of Wine Australia, assisted Members in determining whether:
the Board and oversee the establishment of appropriate
remuneration policies and strategies provided the Corporation
with the capability to achieve its short and long term business
objectives. The Committee’s responsibilities included:
•
their actions complied with the Wine Australia Corporation
Act and other relevant acts;
•
•
1. reviewing and recommending to the Board for approval the
remuneration for the Chief Executive;
the accounting records were appropriately maintained;
2. providing guidance to the Chief Executive regarding the
remuneration for Senior Managers; and
•
the strategic planning documents and budgets had been
satisfactorily compiled;
•
the Financial Statements and management reports gave a
true and fair view; and
•
there were reasonable grounds to believe that Wine
Australia could pay its debts when they fall due.
there were adequate internal controls to safeguard the assets
of Wine Australia;
The Audit and Finance Committee had direct contact with
management and the auditor, creating a line of communication
between the Members and the auditor, and enabling a clear and
objective assessment to be made of the accuracy and quality
of accounting policies, records, reports and internal control
procedures.
REMUNERATION COMMITTEE
The objective of the Remuneration Committee was to advise
38
Mr Walsh was a non-executive Member of Wine Australia and
was a member of the Renumeration Committee.
3. ensuring the annual achievement review process occured in
accordance with the People and Operations Manual.
OTHER COMMITTEES
Committees comprising Members and industry and government
representatives play a key role in the decision making
process. Apart from the Audit and Finance Committee and
Remuneration Committee, the Board also established the
following committees:
•
Wine Sector Intelligence Advisory Committee – provided
guidance on the information and analysis undertaken by
Wine Australia.
•
Legislation Review Committee – ensured that the Wine
Australia Corporation Act and Regulations provided an
effective framework for regulating the Australian wine
sector.
Each committee had terms of reference and the Board
periodically reviewed the ongoing role and membership of its
committees.
Wine Australia also worked with industry, government agencies
and other stakeholders through ad-hoc working and reference
groups as required. For example, several Marketing Reference
groups were consulted as necessary. In this way, Wine Australia
ensured that it developed and implemented strategies that were
relevant to a cross section of interests within its stakeholders.
Attended
Held*
George Wahby (Chair)
6
6
Kevin McLintock (Deputy Chair)
6
6
Tony Jordan
5
6
Josephine Rozman
6
6
Kate Thompson
6
6
Sue Henderson
5
6
Brian Walsh
6
6
Bill Moularadellis
5
6
Josephine Rozman (Chair)
5
5
Bill Moulardellis
5
5
Kate Thompson
5
5
George Wahby
2
2
Kevin McLintock
2
2
BOARD AND COMMITTEE MEMBERSHIP
AND ATTENDANCE AT MEETINGS
BOARD
AUDIT AND FINANCE COMMITTEE
REMUNERATION COMMITTEE
Note:
No meetings were held for the Wine Sector Intelligence Advisory Committee in 2013-14 as it was not required.
The Legislation Review Committee was only required to meet when consideration of proposed changes to the Wine Australia
Corporation Act and Regulations was necessary. No such proposals occurred in 2013-14 that required a meeting of the
Committee.
Membership of Wine Australia’s committees, and committee
members’ attendance at meetings held during the year, is
shown below. AGWA, on behalf of Wine Australia thanks the
members of these committees for their contribution throughout
the year.
39
ENABLING LEGISLATION
Wine Australia was established under the Wine Australia
Corporation Act 1980 (the Act).
FUNCTIONS OF WINE AUSTRALIA
OBJECTS
•
The objects of the Act were:
•
•
•
•
•
to promote and control the export of grape products from
Australia;
•
to promote and control the export of grape products from
Australia;
to encourage and promote the consumption and sale of
grape products both in Australia and overseas;
to promote and control the sale and distribution, after
export, of Australian grape products;
•
•
to promote trade and commerce in grape products among
the States, between States and Territories and within the
Territories;
•
to improve the production of grape products, and
encourage the consumption of grape products, in the
Territories; and
POWERS OF WINE AUSTRALIA
to enable Australia to fulfil its obligations under prescribed
wine-trading agreements.
to improve the production of grape products in Australia;
to conduct, arrange for, and assist in, research relating to the
marketing of grape products; and
such other fGunctions in connection with grape products
as are conferred on the Corporation by the Act or the
regulations.
The Act gave Wine Australia the power to do all things
necessary to be done in connection with the performance of its
functions.
ACCOUNTABILITY
RESPONSIBLE MINISTER
Wine Australia was responsible to the Minister for Agriculture.
During the year in review, the Hon. Barnaby Joyce MP was the
Minister for Agriculture.
MINISTERIAL DIRECTIONS
The Wine Australia Act provided that the Minister may give
direction to Wine Australia with respect to the performance of
its functions and the exercise of its powers. No such direction
was given in the period under review.
Under the Commonwealth Authorities and Companies Act,
1997 (the “CAC Act”), the Minister, and the Minister for
Finance and Deregulation, could issue directions to the Board,
and the Minister could notify the Board of any general Australian
Government policies to be applied to Wine Australia. At the
date of this report, the following notifications had been received:
• In July 1998, the Minister issued a directive in accordance
with Section 16(1)(b) of the CAC Act requiring the
Corporation to comply with the reporting requirements of
the Guidelines on Funding of Consultation Costs by Primary
Industry and Energy Portfolio Statutory Authorities.
• In December 2006, the Minister for Finance and
Administration issued a directive in accordance with
Section 16(1)(c) of the CAC Act requiring Wine Australia
to provide annual Compliance Reports on legislative
40
Wine Australia’s functions were:
compliance and financial sustainability.
• The Minister has notified Wine Australia under Section 28
of the CAC Act that the following policies apply to Wine
Australia:
—— On 21 August 2002, Commonwealth Fraud Control
Guidelines 2011 (replacing Commonwealth Fraud
Control Guidelines 2002).
—— On 8 November 2005, Australian Government
Property Ownership Framework.
—— On 24 January 2007, Protective Security Policy
Framework (replacing Protective Security Manual
2005).
CONSULTATION PAYMENTS TO
INDUSTRY ORGANISATIONS
Wine Australia had a formal relationship with the Winemakers’
Federation of Australia – the peak industry organisation
representing Australian winemakers. Consultation payments
totalling $165,000 were paid to WFA during the financial year in
regard to a range of market access issues.
AUDIT
Wine Australia’s Financial Statements were independently
audited by the Australian National Audit Office (ANAO) in
accordance with ANAO Auditing Standards.
SIGNIFICANT EVENTS
AGWA will undertake the functions of the GWRDC and Wine
Australia collaboratively within one entity without change in
the structure, or amount of levies that fund each authority.
In particular, it is intended that AGWA will better align R&D
JUDICIAL DECISIONS AND REVIEWS
BY OUTSIDE BODIES
Wine Australia was not the subject of any:
•
•
judicial or administrative tribunal decisions that have had, or
may have, a significant impact on the operations of Wine
Australia; or
reports by the Auditor-General (other than the report on
the financial statements), or a Parliamentary committee.
CORPORATE GOVERNANCE
STATEMENT ON GOVERNANCE
approval licences and documents.
Wine Australia’s Corporate Governance Statement set out
governance framework designed to ensure Wine Australia
fulfiled its functions with efficiency and integrity. Board Members
were bound by a Code of Conduct and policies were adopted
providing for an annual review of their performance and
establishing their right to access independent professional advice
if required.
A reduction in revenue as a result of a downturn in wine
production or wine exports was a risk to Wine Australia. To
manage this risk, Wine Australia maintained financial reserves
and monitored the situation to tailor the level of activities
undertaken to the amount of revenue anticipated.
POLICIES AND PROCEDURES
Wine Australia’s People and Operations Manual was available to
the Board and all staff members and outlined Wine Australia’s
policies and procedures; roles and responsibilities of staff
members, the Board and its committees; Board delegations; and
the Code of Conduct.
CLIENT SERVICE CHARTER
Services are provided to the wine sector and wine sector
information is provided to the public. Wine Australia was
committed to providing these services with a client focus whilst
conscious of the need to maintain the integrity and reputation of
Australian wine.
Wine Australia aimed to provide an efficient, prompt, helpful
service to clients, while respecting confidentiality and upholding
the law in an impartial and consistent manner.
RISK FACTORS
Wine Australia’s operations were financially dependent on the
prosperity of the Australian wine sector. The principal source
of revenue was derived from wine producers and exporters
in the form of levies, export charges, voluntary contributions
to overseas promotional programs and fees paid for export
Wine Australia adopted a risk management policy and
framework in order to effectively and efficiently manage its
risks and embed risk management into its day to day activities.
This policy and framework facilitated ongoing risk identification,
analysis, monitoring and reporting.
PLANNING AND REPORTING
FRAMEWORK
Wine Australia was required to prepare three to five year
Corporate Plans and Annual Operational Plans and report its
performance in an Annual Report. All documents are available
on AGWA’s website.
CORPORATE PLAN
The 2011 – 2014 Corporate Plan sets out the strategy to be
followed in delivering the objects of the Act over the three
years ending on 30 June 2014. There were no variations to the
Corporate Plan pursuant to sections 31B or 31C of the Act.
ANNUAL OPERATIONAL PLAN AND PORTFOLIO
BUDGET STATEMENT
On 12 December 2013, the Grape and Wine Legislation
Amendment (Australian Grape and Wine Authority) Act 2013
(Act) was passed by the senate. The substantive portion of the
Act commenced on 1 July 2014 on which date the Grape and
Wine Research and Development Corporation (GWRDC)
and Wine Australia Corporation (Wine Australia) effectively
amalgamated to create the Austrralian Grape and Wine
Authority (AGWA).
and marketing strategies to maximise efficiency, make the best
use of resources and take advantage of economies of scale
through common management and financial reporting, as well as
corporate support, systems and procedures.
The 2013-14 Annual Operational Plan, agreed by the Minister,
sets out the actions to be taken during the year in order to give
effect to the Corporate Plan strategy. There were no variations
to the Annual Operational Plan pursuant to section 31H of the
Act.
41
Wine Australia’s annual strategy and budget are also included
in the Department of Agriculture, Portfolio Budget Statements
which are tabled in Parliament.
ANNUAL REPORT
Achievement of the Annual Operational Plan actions is reported
in the Year in Review section of the Annual Report.
The Annual Report is prepared in accordance with the
requirements of the CAC Act.
Pursuant to section 24(1) of Schedule 2 to the Grape and
Wine Legislation Amendment (Australian Grape and Wine
Authority) Act 2013 (the Act), the directors of the Australian
Grape and Wine Authority must prepare a report in accordance
with Schedule 1 to the Commonwealth Authorities and
Companies Act 1997 for the Wine Australia Corporation
for the final reporting period. Pursuant to section 24(2) of
Schedule 2 to the Act, the report must include the material
described in section 38 of the Wine Australia Corporation
Act 1980 immediately before 1 July 2014. In addition, pursuant
to section 24(3) of Schedule 2 to the Act, any reference in
the Finance Minister’s Orders referred to in Schedule 1 to the
Commonwealth Authorities and Companies Act 1997 to the
directors of the Wine Australian Corporation is to be read as if
it were a reference to the directors of the Australian Grape and
Wine Authority.
ANNUAL GENERAL MEETING
The 27th Annual General Meeting of the Industry (AGM) was
held in Adelaide on 13 December 2013.
The Chair and Acting Chief Executive presented reports on
the current state of the wine industry, the activities undertaken
during the year and Wine Australia’s plans for the future. No
motions were proposed for consideration at the AGM.
FREEDOM OF INFORMATION
Part 2 of the Freedom of Information Act 1982 (FOI Act)
establishes the Information Publication Scheme (IPS) for
Australian government agencies subject to the FOI Act. The IPS
commenced on 1 May 2011 and requires agencies to publish a
broad range of information on their websites where possible.
To find out more about the Information Publication Scheme see
http://www.oaic.gov.au/publications/factsheets.html.
The Wine Australia was an agency subject to the FOI Act
and was required to comply with the Information Publication
Scheme (IPS) requirements.
As such, Wine Australia prepared an Agency Plan as required
by s 8(1) of the FOI Act. The Plan describes how Wine
Australia implemented and administered the IPS in respect of its
information holdings.
42
In recognition that public sector information is a national
resource managed for public purposes, Wine Australia built and
fostered an agency culture that embraced appropriate proactive
disclosure of its information holdings, leading to successful
implementation and administration of the IPS.
Wine Australia received three requests under the FOI Act
during 2013-14, two of which resulted in disclosures being
made. A disclosure log for the Wine Australia Corporation is
available at www.agwa.net.au/corporate-docs
ENVIRONMENTAL OBJECTIVES
In accordance with the requirements of the Environment
Protection and Biodiversity Conservation Act 1999, it is
reported that Wine Australia:
•
•
•
supported the principles of ecologically sustainable
development and sought to ensure that its activities
accorded with those objectives by taking economic,
environmental, social and equitable considerations into
account in the decision making process.
aimed – to enhance the operating environment for the
benefit of the Australian wine industry – contributing to
ecologically sustainable development by facilitating the
development of the industry in a sustainable and responsible
manner.
cared for the environment by minimising the consumption of
power and recycling waste products where practicable and
its activities had minimal impact on the environment.
PRIVACY POLICY
Wine Australia’s privacy policy was published on its industry
website. The policy was rewritten in 2013-14 to reflect the
introduction of the Australian Privacy Principals which came into
effect in March 2014. Wine Australia was required to submit an
annual Personal Information Digest to the Privacy Commissioner.
The digest can be viewed on the commissioner’s website (www.
privacy.gov.au).
DISABILITY STRATEGY
Wine Australia’s policies, programs and services were accessible
to people with disabilities and met its obligation under the
Disability Discrimination Act 1992. AGWA is not aware of any
instance where a person with a disability has experienced any
difficulty in accessing any policy, program or service it offered.
INDEMNITIES AND INSURANCE
PREMIUMS FOR OFFICERS
Wine Australia had Directors’ and Officers’ Liability insurance
through ComCover. The insurer recommended that details
of the policy and the premium paid not be disclosed. No
indemnities have been provided to any current or former
officers.
PEOPLE
STAFF
Wine Australia employed 46 people at 30 June 2014.
Location
Males
Females
Total
Part-time
Full-time
Part-time
13
0
12
8
33
UK
0
0
5
0
5
USA
1
0
3
0
4
Canada
0
0
1
0
1
China
0
0
3
0
3
Total
14
0
24
8
46
WORK HEALTH AND SAFETY
Wine Australia was committed to providing a safe and pleasant
work environment for both staff and visitors.
Wine Australia did not establish a health and safety committee
as no such request was made by its employees under section
50 of the Work Health and Safety Act 2011. Wine Australia
appointed first aid officers and fire wardens.
Wine Australia consulted with all staff on health and safety
matters and included them in the decision making process.
Wine Australia’s Work Health and Safety Policy, which was
agreed following consultation with all staff, facilitated effective
cooperation between Wine Australia and staff in promoting
and developing measures to ensure the employees’ health,
safety and welfare at work and provided adequate mechanisms
for informing the employees about the arrangements and
reviewing the effectiveness of the arrangements. It also provided
adequate mechanisms for the variation of the arrangements in
consultation with employees and included a dispute resolution
mechanism to deal with disputes.
All necessary measures were taken during the year to ensure
the health, safety and welfare of staff and visitors. WHS training
was required in the induction of new staff. Wine Australia
continued to provide free flu vaccines to all staff. There were no
reportable injuries during the year and no investigations were
conducted.
Full-time
Australia
43
ORGANISATIONAL
STRUCTURE
BOARD
CHIEF EXECUTIVE
44
MARKET
DEVELOPMENT
WINE SECTOR
INTELLIGENCE
CHIEF OPERATING
OFFICER
CHINA
UK AND EUROPE
NORTH AMERICA
AUSTRALIA
EMERGING
MARKETS
JAPAN AND
GREATER ASIA
REGULATORY SERVICES
AND EXPORT ASSISTANCE
CORPORATE SERVICES
AUDIT
ADMINISTRATION
TRADE AND
MARKET ACCESS
FINANCE
EXPORT APPROVAL
AND FACILITATION
SYSTEMS & IT
LEGAL
Financial Statements
YEAR ENDED 30 JUNE 2013
46
STATEMENT BY THE ACTING CHAIR, ACTING CHIEF EXECUTIVE
AND CHIEF FINANCIAL OFFICER
48
INCOME STATEMENT
49
STATEMENT OF FINANCIAL POSITION
50
STATEMENT OF CHANGES IN EQUITY
51
CASH FLOW STATEMENT
52
SCHEDULE OF COMMITMENTS
53
NOTES TO AND FORMING PART OF
THE FINANCIAL STATEMENTS
55
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
45
Independent Auditor’s Report
46
47
STATEMENT BY THE ACTING CHAIR,
ACTING CHIEF EXECUTIVE
AND CHIEF FINANCIAL OFFICER
48
The directors of the Australian Grape and Wine Authority are required by clause 24 of schedule
2 to the Grape and Wine Legistlation Amendment (Australian Grape and Wine Authority) Act
2013 to prepare the financial statements of the Wine Australia Corporation for the year ended 30
June 2014.
In our opinion, the attached financial statements of the Wine Australia Corporation for the year
ended 30 June 2014 are based on properly maintained financial records and give a true and fair
view of the matters required by the Finance Minister’s Orders made under the Commonwealth
Authorities and Companies Act 1997, as amended.
This statement is made in accordance with resolution of the Australian Grape and Wine Authority.
Chair
B Walsh
Acting Chief Executive
A Clark
Chief Financial Officer
S Weinert
18 September 2014
18 September 2014
18 September 2014
Statement of Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2014
Note
2014
$’000
2013
$’000
Employee benefits
3A
5,454
5,510
Supplier
3B
8,452
7,472
Depreciation and amortisation
3C
398
408
Write-down and impairment of assets
3D
31
78
Foreign exchange losses
3E
46
49
Losses from asset sales
3F
EXPENSES
5
16
14,386
13,533
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
4A
6,734
6,107
Interest
4B
37
76
Rental income
4C
291
290
Industry levies and contributions
4D
5,777
5,376
Other revenue
4E
64
110
12,903
11,960
-
4
-
4
12,903
11,964
1,483
1,569
1,200
1,050
(283)
(519)
-
-
(283)
(519)
Total own-secure revenue
Gains
Reversal of Make-Good Provision
4F
Total Gains
Total own-source income
Net cost of services
Revenue from government
Operating deficit attributable to the Australian Government
4G
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
Total comprehensive loss attributable to the Australian Government
The above statement should be read in conjunction with the accompanying notes.
Total Expenses
49
Statement of Financial Position
Note
2014
$’000
2013
$’000
Cash and cash equivalents
5A
1,797
1,655
Trade and other receivables
5B
ASSETS
Financial Assets
Total financial assets
1,231
2,886
Non-Financial Assets
Land and buildings
6A
248
369
Property, plant and equipment
6B, 6C
199
422
Intangibles
6D, 6E
87
12
Inventories
6F
48
20
Other non-financial assets
6G
186
546
768
1,369
3,183
4,255
Total non-financial assets
Total Assets
LIABILITIES
Payables
Suppliers
8A
698
739
Other payables
8B
676
1,424
1,374
2,163
Total payables
Provisions
Employee provisions
9A
530
530
Other provisions
9B
37
37
Total provisions
567
567
Total Liabilities
1,941
2,730
Net Assets
1,242
1,525
EQUITY
Reserves
189
202
Retained surplus
1,053
1,323
Total Equity
1,242
1,525
50
618
2,415
Statement of Changes in Equity
Retained Earnings
Asset Revaluation
Surplus
Total Equity
2013
$’000
2014
$’000
2013
$’000
2014
$’000
2013
$’000
1,323
1,904
202
140
1,525
2,044
Deficit for the year
(283)
(519)
-
-
(283)
(519)
Total Comprehensive Loss
(283)
(519)
-
-
(283)
(519)
13
(62)
(13)
62
-
-
13
(62)
(13)
62
-
-
1,053
1,323
189
202
1,242
1,525
Balance carried forward from previous period
Comprehensive Income
Transactions with owners
Reallocation of equity
Sub-total transactions with owner
Closing balance at 30 June
2014
$’000
51
Cash Flow Statement
2014
$’000
2013
$’000
Goods and services
6,680
6,749
Receipts from government
1,200
1,050
Note
OPERATING ACTIVITIES
Cash received
52
Interest
Other
37
76
5,740
5,407
442
270
14,099
13,552
Employees
(5,544)
(5,166)
Suppliers
(8,251)
(8,886)
Total cash received
Cash used
Net GST paid
(28)
46
(13,823)
(14,006)
276
(454)
Proceeds from the sale of property, plant and equipment
-
9
Total cash received
-
9
Purchase of property, plant and equipment
(134)
(85)
Total cash used
(134)
(85)
Net cash from (used by) investing activities
(134)
(76)
142
(530)
1,655
2,185
1,797
1,655
Total cash used
10
Net cash flows from (used by) operating activities
INVESTING ACTIVITIES
Cash received
Cash used
Net increase (decrease) in cash held
Cash and cash equivalent at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
5A, 10
Schedule of Commitments
AS AT 30 JUNE 2013
2014
$’000
2013
$’000
Sublease rental income
(258)
(597)
Net GST recoverable on commitments
(108)
(103)
(366)
(700)
Operating lease commitments payable¹
1,448
1,728
Total Other commitments payable
1,448
1,728
Net commitments by type
1,082
1,028
One year or less
(148)
(221)
From one to five years
(110)
(376)
Total operating lease income
(258)
(597)
(67)
(44)
Note
BY TYPE
Commitments receivable
BY MATURITY
Commitments receivable
Operating lease income
Other commitments receivable
One year or less
Total other commitments receivable
(41)
(59)
(108)
(103)
888
709
Commitments payable
Operating lease commitments
One year or less
560
1,019
Total operating lease commitments payable
1,448
1,728
Net commitments by maturity
1,082
1,028
Other commitments
53
NB: Commitments are GST inclusive where relevant. Recoveries due from the taxation authority in relation to commitments payable
are disclosed as commitments receivable.
1
The amount reported as operating lease commitments comprises:
NATURE OF LEASE
LEASES FOR OFFICE
ACCOMMODATION
54
GENERAL DESCRIPTION OF LEASING ARRANGEMENT
Lease payments are fixed with terms varying from 1 year to 3 years.
PREMISES CAR PARK A Car Park lease exists adjacent to the National Wine Centre and is fixed for 3 years in line with the
adjoining property lease.
The above schedule should be read in conjunction with the accompanying notes.
Notes to and Forming Part
of the Financial Statements
NOTE
DESCRIPTION
PAGE
Summary of Significant Accounting Policies
56
2
Events after the Balance Sheet Date
62
3
Expenses
63
4
Income
65
5
Financial Assets
66
6
Non-Financial Assets
67
7
Fair Value Measurement
72
8
Payables
76
9
Provisions
77
10
Cash Flow Reconciliation
78
11
Contingent Liabilities and Assets
79
12
Members' Remuneration
79
13
Related Party Disclosures
79
14
Senior Executive Remuneration
80
15
Remuneration of Auditors
83
16
Financial Instruments
83
17
Reporting by Outcomes
87
1
55
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.1 OBJECTIVES OF WINE AUSTRALIA CORPORATION
Wine Australia Corporation was a statutory authority established to provide strategic support to the Australian wine sector. The
functions of the Corporation as set out in the Wine Australia Corporation Act 1980 were::
•
•
•
to promote and control the export of grape products from Australia;
to encourage and promote the consumption and sale of grape products both in Australia and overseas;
to improve the production of grape products in Australia; and
• to conduct, arrange for, and assist in, research relating to the marketing of grape products.
The Australian Grape and Wine Authority Act 2013 provides for the merger of Grape and Wine Research Development
Corporation and Wine Australia Corporation and the creation of a single statutory body, known as the Australian Grape and Wine
Authority on 1 July 2014.
As a consequence of this, Wine Australia ceased as an entity on 30 June 2014.
The Corporation was controlled by the Australian Government and is dependent upon the following industry based levies to carry
out its normal activities:
Wine Grape Levy
A levy imposed by the Primary Industries (Excise) Act 1999 in respect of any prescribed goods (via fresh grapes, dried grapes and
grape juice) used in the manufacture of wine, is collected by the Department of Agriculture and a component of the levy was paid to
the Wine Australia Corporation in accordance with the Wine Australia Corporation Act 1980.
Wine Export Charge
A levy imposed by the Primary Industries (Customs) Charges Act 1999 in respect of the ‘free on board’ value of wine exported, is
collected by the Department of Agriculture and was paid to the Wine Australia Corporation in accordance with the Wine Australia
Corporation Act 1980.
1.2 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
As noted in 1.1, Wine Australia Corporation ceased to exist on 30 June 2014 and its functions, assets and liabilities transferred to the
Australian Grape and Wine Authority with effect from 1 July 2014. There has been no change in the structure or amounts of the
levies that have funded the Wine Australia Corporation and all its functions are continuing in Australian Grape and Wine Authority.
The financial statements have been prepared on this basis.
The financial statements are general purpose financial statements and are required by clause 1(b) of Schedule 1 to the
Commonwealth Authorities and Companies Act 1997.
The financial statements have been prepared in accordance with:
•
•
Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2011; and
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for
the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for
certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or
the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise
specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in
the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the Corporation or a
future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However,
assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and
assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
56
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS CONTINUED
Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement
of Comprehensive Income when, and only when the flow, consumption or loss of economic benefits has occurred and can be reliably
measured.
1.3 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
In the process of applying the accounting policies listed in this note, the Corporation has made a judgement that the fair value of
land and buildings is based on the market value of similar properties as determined by an independent valuer. In some instances,
Corporation buildings are purpose-built and may in fact realise more or less in the market.
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next accounting period.
Adoption of new Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as noted in the standard.
Other new standards/revised standards/interpretations/amending standards that were issued prior to the sign-off date and are
applicable to the future reporting period will not have have a future financial impact on the Corporation.
Future Australian Accounting Standard Requirements
Other new standards/revised standards/interpretations/amending standards that were issued prior to the sign-off date and are
applicable to the future reporting period will not have a future financial impact on the Corporation.
1.5 REVENUE
Revenue from the sale of goods is recognised when:
•
•
•
•
the risks and rewards of ownership have been transferred to the buyer;
the Corporation retains no managerial involvement nor effective control over the goods;
the revenue and transaction costs incurred can be reliably measured; and
it is probable that the economic benefits associated with the transaction will flow to the Corporation.
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The
revenue is recognised when:
•
•
The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
The probable economic benefits associated with the transaction will flow to the Corporation.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date
bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment
allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of
the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and
Measurement.
Government Grants
Grants received or receivable from Government is recognised as Revenue from Government unless they are in the nature of an
equity injection or loan.
1.4 NEW AUSTRALIAN ACCOUNTING STANDARDS
57
1.6 GAINS
Resources received free of charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the
services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the
asset qualifies for recognition, unless received from another Government Corporation as a consequence of a restructuring of
administrative arrangements (refer note 1.7.
Sale of Assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
1.7 TRANSACTIONS WITH THE GOVERNMENT AS OWNER
Equity Injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital
Budgets (DCBs) are recognised directly in contributed equity in that year.
Restructuring of Administrative Arrangements
Net assets from or relinquished to another Government corporation under a restructuring of administrative arrangements are
adjusted at their book value directly against contributed equity.
Other Distributions to Owners
The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.
1.8 EMPLOYEE BENEFITS
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve
months of the end of the reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee benefit liabilities are measured as net total of the present value of the defined benefit obligation at the
end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations
are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick
leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Corporation is estimated to
be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time
the leave is taken, including the Corporation’s employer superannuation contribution rates to the extent that the leave is likely to be
taken during service rather than paid out on termination.
The liability for long service leave has been determined as an estimate of the present value of the liability taking into account attrition
rates and pay increases through promotion and inflation.
Separation and redundancy
Provision is made for separation and redundancy benefit payments. The Corporation recognises a provision for termination when
it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the
terminations.
Superannuation
The Corporation contributes to private superannuation plans for the majority of its employees and to the Public Sector
Superannuation Scheme (PSS) for the remainder. The private funds are accumulation plans, while the PSS is a defined benefit scheme
for the Australian Government.
58
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian
Government in due course. This liability is reported in the Department of Finance and Deregulation’s administered schedules and
notes.
The basis of contributions to the plans is, for private schemes - as determined by the Corporation, for the PSS - at rates determined
by an actuary to be sufficient to meet the cost to the Government. The Corporation accounts for the contributions to the PSS as if
they were contributions to a defined contribution Plan.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final month of the year.
1.9 LEASES
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower,
the present value of minimum lease payments at the inception of the contract and a liability recognised at the same time and for the
same amount.
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease
payments are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the
leased assets.
1.10 FAIR VALUE MEASUREMENT
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Corporation determines whether
transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.
1.11 CASH
Cash is recognised at its nominal amount. Cash and cash equivalents include:
•
•
cash on hand; and
on demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts
of cash and subject to insignificant risk of changes in value.
1.12 FINANCIAL ASSETS
The Corporation classifies its financial assets in the following categories:
•
•
•
•
financial assets at fair value through profit or loss;
held-to-maturity investments;
available-for-sale financial assets; and
loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets are recognised and derecognised upon trade date.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over
the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset, or, where appropriate, a shorter period.
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee
substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease.
In operating leases, the lessor effectively retains substantially all such risks and benefits.
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or
loss.
59
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the group has the positive intent
and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised
cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are
classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less
impairment. Interest is recognised by applying the effective interest rate.
Impairment of financial assets
Financial assets are assessed for impairment at the end of each reporting period.
Financial assets carried at amortised cost – if there is objective evidence that an impairment loss has been incurred for loans and
receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the
asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate.
The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.
Available-for-sale financial assets – if there is objective evidence that an impairment loss on an available for sale financial asset has
been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value,
less any impairment loss previously recognised in expenses, is transferred from equity to the Statement of Comprehensive Income.
Financial assets carried at cost – if there is objective evidence that an impairment loss has been incurred, the amount of the
impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows
discounted at the current market rate for similar assets.
1.13 FINANCIAL LIABILITIES
Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial
liabilities are recognised and derecognised upon ‘trade date’.
Financial Liabilities at Fair Value Through Profit or Loss
Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are
recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are
subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield
basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense
over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the
expected life of the financial liability, or, where appropriate, a shorter period.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have
been received (and irrespective of having been invoiced).
1.14 CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and
notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which
the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and
contingent liabilities are disclosed when settlement is greater than remote.
1.15 ACQUISITION OF ASSETS
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred
in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where
appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date
60
of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially
recognised as contributions by owners at the amount at which they were recognised in the Corporation’s accounts immediately prior
to the restructuring.
1.16 PROPERTY, PLANT AND EQUIPMENT
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases
costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items
which are significant in total).
Revaluations
Fair values for each class of asset are determined as shown below:
ASSET CLASS
FAIR VALUE MEASURED AT:
Leasehold improvements
Depreciated replacement cost
Plant and equipment
Market selling price
Following initial recognition at cost, property plant and equipment were carried at fair value less subsequent accumulated depreciation
and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of
assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended
upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset
revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously
recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to
the extent that they reversed a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset
restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful
lives to the Corporation using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a
straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are
recognised in the current, or current and future reporting periods, as appropriate..
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2014
2013
Lease term
Lease term
Plant and equipment
3 to 7 years
3 to 7 years
Impairment
All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset’s recoverable amount is
estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it
is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the Corporation where there exists
an obligation to restore the property to its original condition. These costs are included in the value of the Corporation’s leasehold
improvements with a corresponding provision for the ‘makegood’ recognised.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value
of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily
dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Corporation were deprived of
the asset, its value in use is taken to be its depreciated replacement cost.
61
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its
use or disposal.
1.17 INTANGIBLES
The Corporation’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost
less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Corporation’s software is 3 to 5
years (2012-13: 3 to 5 years).
All software assets were assessed for indications of impairment as at 30 June 2014.
1.18 INVENTORIES
Inventories held for sale are valued at the lower of cost and net realisable value.
1.19 TAXATION
The Corporation is exempt from all forms of taxation except Fringe Benefits Tax (FBT), Goods and Services Tax (GST) and State
Taxation.
Revenues, expenses and assets are recognised net of GST except:
• where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
• for receivables and payables.
1.20 FOREIGN CURRENCY
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency
receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are
brought to account in profit or loss.
1.21 INSURANCE
The Corporation has insured for risks through the Government’s insurable risk managed fund, called Comcover. Workers’
compensation is insured through Comcare Australia.
1.22 COMPARATIVE FIGURES
Comparative figures have been adjusted to conform to changes in presentation in these financial statements where required.
Note 3B: Suppliers, Other expenses. Amount over 10 per cent threshold.
Further expense categories introduced.
Note 4A: Provision of goods - related entities, reassessed related entities.
Note 8A: Supplier payables - related entities, reassessed related entities.
Note 14B and 14C: Remuneration bands for executive and other highly paid staff have changed.
2 EVENTS AFTER THE BALANCE SHEET DATE
The Australian Grape and Wine Authority Act 2013 provides for the merger of Grape and Wine Research Development
Corporation and Wine Australia Corporation to create a single statutory body, to be known as the Australian Grape and Wine
Authority on 1 July 2014.
As a consequence of this, Wine Australia ceased as an entity on 30 June 2014.
62
3 EXPENSES
2014
$’000
2013
$’000
4,501
4,525
297
279
3A EMPLOYEE BENEFITS
Wages and salaries
Superannuation
Defined contribution plans
47
36
Leave and other entitlements
Defined benefit plans
234
277
Separation and redundancies
-
90
375
303
Total employee benefits
5,454
5,510
Communications
194
233
Information technology
298
508
Levy collections
727
592
3B Suppliers
Goods and services
Promotion consultants
7
408
4,316
2,471
Travel and accommodation
595
626
Consulting Fees
297
407
Market Research Costs
149
120
Payroll Tax
173
160
Occupancy Costs
201
192
Goods Purchased
132
213
Promotion suppliers
Other
698
895
7,787
6,825
132
213
Rendering of services – related entities
1,113
2,256
Rendering of services – external entities
6,542
4,356
7,787
6,825
203
84
439
553
23
10
Total goods and services
Goods and services are made up of:
Provision of goods – external entities
Total goods and services
Other supplier expenses
Operating lease rentals - related entities
Minimum lease payments
Other employee benefits
Operating lease rentals – external entities
Minimum lease payments
Workers’ compensation premiums
Total other supplier expenses
Total supplier expenses
665
647
8,452
7,472
63
2014
$’000
2013
$’000
Property, Plant and equipment
239
243
137
139
376
382
22
26
3C DEPRECIATION AND AMORTISATION
Depreciation:
Total depreciation
64
Amortisation:
Intangibles:
Computer software
Total amortisation
22
26
398
408
31
58
-
20
31
78
Non-speculative
46
49
Total foreign exchange losses
46
49
Proceeds from sale
-
(9)
Carrying value of assets sold
5
25
Total losses from asset sales
5
16
Total depreciation and amortisation
3D WRITE-DOWN AND IMPAIRMENT OF ASSETS
Asset write-downs and impairment from:
Impairment on receivables
Impairment on intangible assets
Total write-down and impairment of assets
3E FOREIGN EXCHANGE LOSSES
3F LOSSES FROM ASSET SALES
2014
$’000
2013
$’000
Provision of goods – related entities
134
198
Provision of goods – external entities
35
58
Rendering of services – related entities
37
85
Rendering of services – external entities
6,528
5,766
Total sales of goods and rendering of services
6,734
6,107
Deposits
37
76
Total interest
37
76
Sub-lease
291
290
Total rental income
291
290
Wine grape levy
3,593
3,234
Wine export charge
2,184
2,142
Total industry levies and contributions
5,777
5,376
Export partner sponsorships
64
110
Total reversal of provisions
64
110
Reversal of Make-good Provision
-
4
Total other revenue
-
4
150
-
Commonwealth Government Budget Support
1,050
1,050
Total revenue from government
1,200
1,050
4 INCOME
4A SALE OF GOODS AND RENDERING OF SERVICES
4C RENTAL INCOME
Operating lease:
4D INDUSTRY LEVIES AND CONTRIBUTIONS
4E OTHER REVENUE
4F REVERSAL OF PROVISIONS
4G REVENUE FROM GOVERNMENT
Department of Foreign Affairs and Trade
Export Market Development Grant
4B INTEREST
65
2014
$’000
2013
$’000
Cash on hand or on deposit
1,797
1,655
Total cash and cash equivalents
1,797
1,655
5 FINANCIAL ASSETS
5A CASH AND CASH EQUIVALENTS
5B TRADE AND OTHER RECEIVABLES
Goods and services:
Goods and services – related entities
20
70
Goods and services – external parties
461
1,042
481
1,112
Interest receivable
–
–
Other receivables
68
85
GST receivable from ATO
97
68
Total other receivables
165
153
Total trade and other receivables (gross)
646
1,265
(28)
(34)
618
1,231
613
1,222
Total receivable for goods and services
Other:
Less: Impairment allowance account:
Goods and services
Total trade and other receivables (net)
Receivables are expected to be recovered in:
No more than 12 months
More than 12 months
5
9
618
1,231
567
901
0 to 30 days
50
235
31 to 60 days
2
89
61 to 90 days
16
11
More than 90 days
11
29
Total receivables (gross)
646
1,265
Total trade and other receivables (net)
Receivables are aged as follows:
Not overdue
Overdue by:
The impairment allowance account is aged as follows:
Overdue by:
61 to 90 days
More than 90 days
Total impairment allowance account
66
(23)
(5)
(5)
(29)
(28)
(34)
Reconciliation of the impairment allowance account:
Goods and Services
Other Receivables
Total
$’000
$’000
$’000
Opening balance:
(34)
-
(34)
Amounts written off
(28)
-
(28)
34
-
34
(28)
-
(28)
-
-
-
(34)
-
(34)
-
-
-
(34)
(34)
(34)
2014
$’000
2013
$’000
Movements in relation to 2014
Amounts recovered and reversed
Movements in relation to 2013
Opening balance
Amounts written off
Amounts recovered and reversed
Closing balance
6 NON FINANCIAL ASSETS
6A LAND AND BUILDINGS
Leasehold Improvements:
—— Fair value
597
581
(349)
(212)
Total leasehold improvements
248
369
Total land and buildings (non current)
248
369
—— Accumulated depreciation
No indicators of impairment were found for land and buildings
6B Property, Plant and Equipment
Plant and equipment:
—— Fair value
—— Accumulated depreciation
Total Property, Plant and Equipment (non current)
938
949
(739)
(527)
199
422
Note 6B Revaluation of non-financial assets
All revaluations were conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2014, an independent Valuer
conducted the revaluations.
As a result there were no impairment and no revaluation adjustments.
Closing balance
67
6C ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment (2013–14)
Leasehold
Improvements
$’000
Plant &
Equipment
$’000
Total
$’000
As at 1 July 2013
581
949
1,531
(212)
(527)
(740)
369
422
791
16
21
37
Revaluations recognised in other comprehensive income
-
-
-
Increase in makegood provision
-
-
-
(137)
(239)
(376)
-
(5)
(5)
248
199
447
Gross book value
Accumulated depreciation and impairment
68
Net book value 1 July 2013
Additions:
By purchase
Depreciation expense
Disposals:
By sales (NET Impact)
Net book value 30 June 2014
Net book value as at 30 June 2014 represented by:
Gross book value
597
938
1,535
(349)
(739)
(1,088)
248
199
447
6C ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
TABLE B – Reconciliation of the opening and closing balances of property, plant and equipment (2012–13)
Leasehold
Improvements
$’000
Plant &
Equipment
$’000
Total
$’000
Gross book value
584
932
1,516
(79)
(315)
(394)
505
617
1,122
6
72
78
-
-
-
-
-
-
(139)
(243)
(382)
(3)
(24)
(27)
369
422
791
As at 1 July 2012
By purchase
Disposals
By sales (NET Impact)
Gross book value
581
949
1,530
(212)
(527)
(739)
369
422
791
2014
$’000
2013
$’000
6D INTANGIBLES
Computer software at cost:
Internally developed – in progress
-
-
Internally developed – in use
874
806
Software purchased
295
266
(1,082)
(1,060)
87
12
Accumulated amortisation
Total intangibles (non current)
No indicators of impairment were found for intangible assets.
Additions:
69
6E ANALYSIS OF INTANGIBLES
Table A: Reconciliation of the opening and closing balances of intangibles (2013–14)
Computer
Software
Internally
Developed
$’000
Computer
software
purchased
$’000
Total
$’000
As at 1 July 2013
70
Gross book value
806
266
1,072
(806)
(254)
(1,060)
-
12
12
68
29
97
(6)
(16)
(22)
62
25
87
874
295
1,169
(812)
(270)
(1,082)
62
25
87
Additions:
By purchase
Write-down expense
Disposals
By sales
Gross book value
6E ANALYSIS OF INTANGIBLES continued
Table B: Reconciliation of the opening and closing balances of intangibles (2012–13)
Computer Software
Internally
Developed
$’000
Computer software
purchased
$’000
Total
$’000
As at 1 July 2012
Gross book value
278
1,084
(806)
(228)
(1,034)
-
50
50
Additions:
-
8
8
By purchase
-
-
-
-
-
-
-
(26)
(26)
Write-down expense
-
(20)
(20)
Disposals
-
-
-
-
-
-
-
12
12
By sales
Gross book value
806
266
1,072
(806)
(254)
(1,060)
-
12
12
2014
$’000
2013
$’000
Inventories held for sale
48
20
Total inventories
48
20
Prepayments
186
546
Total other non-financial assets
186
546
6F INVENTORIES
6G OTHER NON-FINANCIAL ASSETS
No indicators of impairment were found for other non-financial assets.
806
71
7 FAIR VALUE MEASUREMENT
The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value
hierarchy are defined below.
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Corporation can access at
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or
indirectly.
Level 3: Unobservable inputs for the asset or liability.
7A FAIR VALUE MEASUREMENT
Fair value measurements at the end of the reporting period by hierarchy for non-financial assets in 2014.
Fair value measurements at the end of the
reporting period using
Fair value
$’000
Level 1
inputs
$’000
Level 2
inputs
$’000
Level 3
inputs
$’000
248
-
-
248
199
-
199
-
447
-
199
248
-
-
-
-
Non-financial assets:
Assets not measured at fair value in the statement of financial position:
Non-financial assets1
1. The corporation did not measure any non-financial assets at
fair value on a non- recurring basis as at 30 June 2014.
Fair value Measurement - Highest & Best Use
The corporation’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all
controlled assets is considered their highest and best use.
7B LEVEL 1 AND LEVEL 2 TRANSFERS FOR RECURRING FAIR VALUE MEASUREMENTS
Recurring fair value measurements transferred between Level 1 and Level 2 for assets and liabilities
Transferred from
Level 1 to Level 2
2014
$0
Level 2 to Level 1
2014
$0
-
-
-
-
-
-
There have been no transfers between levels of the hierarchy during the year.
The Corporation’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.
72
7C VALUATION TECHNIQUE AND INPUTS FOR LEVEL 2 AND LEVEL 3 FAIR VALUE MEASUREMENTS
Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets in 2014
Category
(Level 2 or
Level 3
Fair value
Valuation
technique (s)1
Inputs used
Range
(weighted
average) 2
3
248
(price per
square metre)
(Fitout)
Net Present
Value
Replacement
Cost New
2
199
Market
Approach
Consumed
economic
benefit /
Obsolescence
of asset
20.00%
- 20.00%
(10.77%) per
annum
Current
obligation costs
(price per
square metre)
$65
Indexation
rates
1.6% per
annum
Discount rate
4.02%
Adjusted
market
transactions
1. There has been no changes to valuation techniques.
2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.
There were no significant inter-relationships between unobservable inputs that materially affect fair value.
Depreciated
Replacement
Cost (DRC)
73
Recurring and non-recurring Level 3 fair value measurements - valuation processes
The Corporation procured the service of the Australian Valuation Office (AVO) to undertake a comprehensive valuation of all
non-financial assets at 30 June 2010. The Corporation tests the procedures of the valuation model as an internal management
review at least once every 12 months (with a formal revaluation normally undertaken once every three years). If a particular asset
class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed
materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable,
regardless of the timing of the last specific valuation. The corporation has engaged Australian Valuation Solutions (AVS) to provide
written assurance that the models developed comply with AASB 13 for the year ended 30 June 2014.
There is no change in the valuation technique since the prior year.
74
Significant Level 3 inputs utilised by the corporation are derived and evaluated as follows:
Leasehold Improvements - Consumed economic benefit / Obsolescence of asset
Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable
market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Under the DRC
approach the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic
benefit / asset obsolescence (accumulated Depreciation). Consumed economic benefit / asset obsolescence has been
determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset
under consideration.
Leasehold Improvements - Current Restoration Costs, indexation rates and discount rate
Applicable makegood provisions have been determined in accordance with Australian Accounting Guidance Note 2010/1
Accounting for Decommissioning, Restoration and Similar Provisions (‘Make Good’). Current restoration cost have been
established based on analysed transactions, costing publications and industry sources. Current restoration costs have been index
to the obligation date (generally the expiry of the lease term) using industry building cost indexes relevant to the asset’s city and
then discounted, where the time value of money is material using the Australian government 10-year bond rate. The estimated
provision is depreciated in line with the corresponding leasehold improvement asset.
Recurring Level 3 fair value measurements - sensitivity of inputs
Leasehold Improvements - Consumed economic benefit / Obsolescence of asset
The significant unobservable inputs used in the fair value measurement of the Agency’s leasehold improvements and property,
plant and equipment asset classes relate to the consumed economic benefit / asset obsolescence. A significant increase
(decrease) in this input would result in a significantly lower (higher) fair value measurement.
Leasehold Improvements - Current Restoration Costs, indexation rates and discount rate
The significant unobservable inputs used in the fair value measurement of the Agency’s leasehold restoration cost (make good)
asset class relate to the current restoration costs, escalation rates and discount rates. A significant increase (decrease) in this cost
new and (or) escalation rate and decrease (increase) in the discount rate would result in a significantly higher (lower) fair value
measurement.
7D RECONCILIATION FOR RECURRING LEVEL 3 FAIR VALUE MEASUREMENTS
RECURRING LEVEL 3 FAIR VALUE MEASUREMENTS RECONCILIATION FOR ASSETS
Non-financial assets
Leasehold
improvements
Total
2014
$’000
2014
$’000
369
(121)
Purchases
-
-
Sales
-
-
Issues
-
-
Settlements
-
-
Transfers into Level 3
-
-
Transfers out of Level 3
-
-
248
248
-
-
Total gains/(losses) in accumulated depreciation
Closing balance
Changes in unrealised gains/(losses) recognised5
Notes:
1. Opening balance as determined in accordance with AASB 13
2. There have been no transfers between levels of the hierarchy during the year.
The corporation’s policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.
369
(121)
Opening balance
75
2014
$’000
2013
$’000
698
729
Operating lease rentals
-
10
Total suppliers payables
698
739
Related entities
241
187
External parties
457
552
698
739
2013
$’000
2012
$’000
323
463
8 PAYABLES
8A SUPPLIERS
Trade creditors and accruals
76
Supplier payables expected to be settled within 12 months
Total suppliers payables
Settlement is usually made net 60 days for AWO Scheme suppliers and net 30 days for all other suppliers
7B OTHER PAYABLES
Salaries and wages
Superannuation
41
22
Prepayments received/unearned income
73
693
103
162
Lease Incentive Liability
GST payable to ATO
-
-
Other
136
84
Total other payables
676
1,424
632
1,321
44
103
676
1,424
Total other payables are expected to be settled in:
More than 12 months
Total other payables
2014
$’000
2013
$’000
530
530
-
-
530
530
415
453
More than 12 months
115
77
Total employee provisions
530
530
Provision for restoration obligations
37
37
Total other provisions
37
37
-
-
37
37
Total other provisions
37
37
Carrying amount 1 July 2013
37
9 PROVISIONS
9A EMPLOYEE PROVISIONS
Leave
Separation and redundancies
Total employee provisions
9B OTHER PAYABLES
Other provisions are expected to be settled in:
More than 12 months
Amounts used
-
Reversal of unused provision
-
Additional provisions made
Closing balance 30 June 2014
37
The Corporation currently has three agreements for the leasing of premises which have provisions requiring the Corporation to
restore the premises to their original condition at the conclusion of the leases. The Corporation has made a provision to reflect the
present value of this obligation.
Employee provisions are expected to be settled in:
77
2014
$’000
2013
$’000
Cash and cash equivalents as per:
1,797
1,655
Cash Flow Statement
1,797
1,655
-
-
(1,483)
(1,569)
1,200
1,050
398
408
31
78
10 CASH FLOW RECONCILIATION
Reconciliation of cash and cash equivalents
as per Balance Sheet to Cash Flow Statement
Balance Sheet
78
Difference
Reconciliation of net cost of services to net cash from operating activities:
Net contribution by services
Add revenue from Government
Adjustments for non-cash items
Depreciation / amortisation
Net write down of assets
Reversal of Make Good Provision
-
(8)
Amortisation of Lease Incentive
(59)
(59)
(Gain)/Loss on disposal of assets
5
25
(Increase)/decrease in net receivables
582
(81)
(Increase)/decrease in inventories
(28)
(10)
(Increase)/decrease in prepayments
360
(405)
Increase/(decrease) in supplier payables
(41)
(829)
Changes in Assets and Liabilities
Increase/(decrease) in other payables
(689)
965
Increase/(decrease) in employee provisions
-
(11)
Increase/(decrease) in other provisions
-
(8)
276
(454)
Net cash from (used by) operating activities
11 CONTINGENT LIABILITIES AND ASSETS
Quantifiable Contingencies
The Corporation has no quantifiable contingencies
Unquantifiable Contingencies
The Corporation has no unquantifiable contingencies
Significant Remote Contingencies
2014 NUMBER
2013 NUMBER
$0 to $29,999
-
1
$30,000 to $59,999
8
7
8
8
2014
$’000
2013
$’000
296,200
277,157
12 MEMBERS’ REMUNERATION
The number of members of the Corporation included in these figures
are shown below in the relevant remuneration bands
Total number of members of the Corporation
Total remuneration received or due and
receivable by members of the Corporation
Member remuneration is determined by the Remuneration Tribunal.
13 RELATED PARTY DISCLOSURES
No loans or grants were made to any member or member-related entities.
Member related entities pay levies imposed by the Primary Industries (Excise) Act 1999 and the Primary Industries (Customs)
Charges Act 1999 as well as charges for processing export documentation and inspection charges. These levies and charges are
on the same terms and conditions as apply to all other levy payers and exporters.
The Corporation has no significant remote contingencies
79
14 SENIOR EXECUTIVE REMUNERATION
For the purpose of this note, the Corporation has defined senior executives as those employees who report directly to the Chief
Executive Officer. These employees are the only employees considered to have the capacity and responsibility for decision making
that can have a significant and direct impact on the strategic direction and financial performance of the Corporation. General
Managers are classified as senior executives and are disclosed in sections 14A and 14B of this note.
80
2014
$’000
2013
$’000
Salary (including annual leave taken)
621,860
858,681
Performance bonus
132,601
189,339
141 SENIOR EXECUTIVE REMUNERATION
EXPENSE FOR THE REPORTING PERIOD
Short-term employee benefits
Other
-
-
754,461
1,048,020
Superannuation
90,688
100,026
Total post-employment benefits
90,688
100,026
Post-employment benefits:
Other long-term benefits:
Change in long service leave accrued
(920)
11,865
Change in annual leave accrued
(17,239)
(13,879)
Total other long-term benefits
(18,159)
(2,014)
Termination benefits
Total employment benefits
-
-
826,989
1,146,032
Notes:
1.
Note 14A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may differ from the cash
‘Bonus paid’ in Note 14B).
2.
Note 14A excludes acting arrangements and part-year service where remuneration expensed for a senior executive is less than
$195,000.
14B AVERAGE ANNUAL REMUNERATION PACKAGES AND BONUSES PAID TO
SUBSTANTIVE SENIOR EXECUTIVES AS AT THE END OF THE REPORTING PERIOD
Average annual reportable remuneration1 – As at 30 June 2014
Reportable
Salary2
$
Contributed
Superannuation3
$
Reportable
Allowances4
$
Bonus Paid5
$
Total
$
Less than $195,000
2
$285,000 - $314,999
1
100,998
9,073
15,231
44,040
169,343
217,053
17,685
24,000
34,965
293,703
More than $315,000
1
Total
4
223,581
48,466
15,750
36,575
324,373
Senior
Executive
No.
Reportable
Salary2
$
Contributed
Superannuation3
$
Reportable
Allowances4
$
Bonus Paid5
$
Total
$
Less than $195,000
1
148,056
11,417
$255,000 - $284,999
2
202,421
33,283
4,800
-
164,273
12,004
18,500
266,208
$285,000 - $314,999
1
250,606
21,953
24,008
Total
4
-
296,567
Notes:
1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged
figure based on head count for individuals in the band.
2. ‘Reportable salary’ includes the following:
a. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);
b. reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits); and
c. exempt foreign employment income.
3. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to senior executives in that
reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslip.
4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.
5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The
‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with
or leaving the corporation during the financial year.
6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense
payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary sacrificed
superannuation, which is reported in the ‘contributed superannuation’ column.
Senior
Executive
No.
81
14C OTHER HIGHLY PAID STAFF
Staff No.
Reportable
Salary2
$
Contributed
Superannuation3
$
Reportable
Allowances4
$
Bonus Paid5
$
Total
$
$195,000 - $224,999
1
174,791
16,767
24,000
-
215,558
$225,000 - $254,999
1
199,793
-
4,972
24,446
229,210
More than $255,000
1
201,968
17,371
24,000
29,400
272,739
Total
3
Senior
Executive
No.
Reportable
Salary2
$
Contributed
Superannuation3
$
$195,000 - $224,999
1
184,133
16,172
$225,000 - $254,999
1
184,457
19,616
Total
2
Reportable
Allowances4
$
Bonus Paid5
$
Total
$
3,508
6,220
210,033
24,000
33,495
261,568
Notes:
1. This table reports staff:
a. who were employed by the Corporation during the reporting period;
b. whose reportable remuneration was $195,000 or more for the financial period; and
c. were not required to be disclosed in Tables A, B or director disclosures.
Each row is an averaged figure based on headcount for individuals in the band.
2. Reportable salary’ includes the following:
a. gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);
b. reportable fringe benefits (at the net amount prior to ‘grossing up’ to account for tax benefits); and
c. exempt foreign employment income.
3. The ‘contributed superannuation’ amount is the average actual superannuation contributions paid to staff in that reportable
remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslips.
4. ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment
summaries.
5. ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The
‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with
or leaving the corporation during the financial year.
6. Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and
expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘reportable salary’ column, excluding salary
sacrificed superannuation, which is reported in the ‘contributed superannuation’ column.
7. The reportable salary includes payments for unused annual leave and long service leave on termination and other eligible
termination payments.
82
15 REMUNERATION OF AUDITORS
The fair value of services provided by the Auditor-General in auditing
the financial statements for the reporting period.
2014
$’000
2013
$’000
30,000
27,500
2014
$’000
2013
$’000
1,797
1,655
No other services were provided by the Auditor-General
16 FINANCIAL INSTRUMENTS
Financial assets
Loans and receivables
Cash and cash equivalents
Receivables for goods and services
Carrying amount of financial assets
453
1,078
2,250
2,733
698
739
698
739
Financial liabilities
At amortised cost:
Suppliers payable
Carrying amount of financial liabilities
16B NET INCOME AND EXPENSES FROM FINANCIAL ASSETS
Loans and receivable
Interest revenue
Exchange gain/(loss)
Net gain/(loss) loans and receivables
Net gain/(loss) from financial assets
37
76
(46)
(49)
(9)
27
-
-
16A CATEGORIES OF FINANCIAL INSTRUMENTS
83
2013
2014
Note
Carrying
Amount
$’000
Fair
Value
$’000
Carrying
Amount
$’000
Fair
Value
$’000
Cash and cash equivalent
5A
1,797
1,797
1,655
1,655
5B
453
453
1,078
1,078
2,250
2,250
2,733
2,733
698
698
739
739
698
698
739
739
–
–
–
–
–
–
–
–
16C FAIR VALUES OF FINANCIAL INSTRUMENTS
Financial Assets
84
Financial Liabilities (Recognised)
Suppliers payable
8A
Total financial liabilities (Recognised)
Financial Liabilities (Unrecognised)
Other guarantees and indemnities
Total financial liabilities (Unrecognised)
11
Due to the short term nature of financial assets their carrying value approximates their fair value.
16D CREDIT RISK
The Corporation is exposed to minimal credit risk as the majority of loans and receivables are cash and fixed term deposits placed
with the National Australia bank and user-pay charges for wine export approvals and promotional activities. The maximum exposure
to credit risk is equal to the carrying amount of financial assets. In 2014 $28K (2013: $34K) has been allocated to an impairment
allowance account, in respect of financial assets whose recoverable amount is less than their gross carrying value.
The Corporation manages its credit risk by undertaking background checks as appropriate prior to allowing a debtor relationship and
monitors customer performance continuously.
In addition, the Corporation has policies and procedures that guide employees on debt recovery techniques that are to be applied.
In relation to cash and cash equivalents the Corporation manages credit risk by investing only in major Australian banking institutions
through the money market and fixed term deposits.
The Corporation has no collateral to mitigate against credit risk.
Credit risk of financial instruments not past due or individually determined as impaired:
2013
2014
5A
5B
Past
Due or
Impaired
$’000
Not Past
Due nor
Impaired
$’000
Past
Due or
Impaired
$’000
1,797
-
1,655
-
375
78
714
364
2,172
78
2,369
364
Ageing of financial assets that are past due but not impaired for 2014:
0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’000
Over 90 days
$’000
50
2
16
11
Total receivables for goods and services
50
2
16
11
0 to 30 days
$’000
31 to 60 days
$’000
61 to 90 days
$’000
Over 90 days
$’000
235
89
11
29
Total receivables for goods and services
235
89
11
29
Ageing of financial assets that are past due but not impaired for 2013:
Cash on hand and on deposit
Not Past
Due nor
Impaired
$’000
85
16E LIQUIDITY RISK
The Corporation’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the Corporation will
encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to the Corporation’s policy
of holding surplus financial reserves to fund unexpected and abnormal expenditure which cannot be met from the current year’s
revenue. Operating deficits also require the Minister’s approval. Monthly financial reporting processes and bi-monthly financial
reforecasts are undertaken to ensure any increased risk is identified on a timely basis.
86
The Corporation is dependent upon the Australian wine industry for its revenue. Approximately 45% of this revenue comes from
compulsory industries levies and the remainder largely from user-pay regulatory and promotional fees. These levies are based on
grape products used in the manufacture of wine and the value of wine exports and are subject to the vagaries of seasonal conditions
and global market conditions. Other than levies, where payment timing is defined in the legislation, revenue is largely received prior to
the activity being undertaken. This approach minimises the Corporation’s liquidity risk.
The following tables illustrate the maturities for financial liabilities for 2014:
On demand
$’000
Within 1 year
$’000
1 to 5 years
$’000
Over 5 years
$’000
Suppliers payable
-
698
-
-
Total suppliers payable
-
698
-
-
On demand
$’000
Within 1 year
$’000
1 to 5 years
$’000
Over 5 years
$’000
Suppliers payable
-
739
-
-
Total suppliers payable
-
739
-
-
The following tables illustrate the maturities for financial liabilities for 2013:
16F MARKET RISK
The Corporation maintains offices and conducts promotional activities in a number of countries. The Corporation is exposed to a
‘currency risk’ as expenses for the overseas offices are paid in local currencies. Movements in currency rates between when the funds
are received and expended are recognised in the statement of comprehensive income as gains/(losses) on foreign exchange.
In addition, the Corporation holds financial reserves to fund working capital requirements and to cover revenue fluctuations caused
by changing seasonal conditions and short term marketing opportunities. The Corporation does not have a significant exposure to
currency risk at 30 June 2014.
17 REPORTING BY OUTCOMES
17A OUTCOMES OF THE CORPORATION
The Wine Australia Corporation is structured to meet one outcome:
To enhance the operating environment of the Australian wine industry through providing a leading role in: Market Development,
Wine Sector Intelligence, Compliance and Trade.
2013
$’000
Employees
5,454
5,510
Suppliers
8,452
7,472
398
408
Write-down and impairment of assets
31
78
Foreign exchange losses
46
49
5
16
14,386
13,533
6,734
6,107
17B NET COST OF OUTCOME DELIVERY
Expenses
Depreciation and amortisation
Losses on asset sales
Total expenses
Income from non-government sector
Sale of goods and services
Interest
Rental income
Other revenue
Sales of assets
Reversal of Make Good provision
Total non-government revenues
Net cost of (contribution by) outcome
37
76
291
290
5,777
5,376
64
110
-
-
-
4
12,903
11,964
1,483
1,569
2014
$’000
87
Appendices
88
CORPORATE DIRECTORY
89
WINE INDUSTRY STATISTICS
90
GLOSSARY OF TERMS AND ACRONYMS
92
COMPLIANCE INDEX
93
ALPHABETICAL INDEX
94
Appendix 1
Corporate Directory
MEMBERS OF THE WINE
AUSTRALIA CORPORATION
NORTH AMERICA
National Wine Centre
- Industry House
Corner Hackney and Botanic Roads
Adelaide SA 5000
Regional Director, North America
Angela SLADE
2300 M Street NW, Suite 800
Washington DC 20037
USA
Members
Telephone:
Facsimile:
Email:
Wesbite:
Telephone:
Facsimile:
Email:
Tony JORDAN
PO Box 2733, Kent Town, SA 5071
Chair
George WAHBY
Deputy Chair
Kevin McLINTOCK
Josephine ROZMAN
Kate THOMPSON
Sue HENDERSON
Bill MOULARADELLIS
(08) 8228 2000
(08) 8228 2066
[email protected]
www.agwa.net.au
AUSTRALIA
Regional Director, Australia and Emerging
Markets
Aaron BRASHER
Brian WALSH
c/o Tourism Australia
28th Floor, 420 George Street
Sydney NSW 2000
SENIOR MANAGEMENT
Telephone:
Email:
Acting Chief Executive Officer
(02) 9631 1227
[email protected]
Andreas CLARK
UNITED KINGDOM AND EUROPE
General Manager, Market Development
James GOSPER
Manager, Wine Sector Intelligence
Peter BAILEY
General Manager, Regulatory Services
Stephen GUY
Chief Financial Officer
Steven WEINERT
Regional Director, United Kingdom and
Europe
Vacant
The Australia Centre
The Strand, London WC2B 4LG
UNITED KINGDOM
Telephone:
Facsimile:
Email:
+44 207 887 5259
+44 207 240 9429
[email protected]
+1 202 973 6442
+1 202 293 3083
[email protected]
CANADA
Suite 2600, 27th Floor
Brookfield Place, 161 Bay Street
Toronto, Ontario, M5J 2S1
Telephone:
Email:
+1 416 572 2338
[email protected]
CHINA
Regional Manager, China
Willa YANG
Suite 5205, Wheelock Square, 1717 West
Nanjing Road, Shanghai, 200040, P.R.China
Telephone:
Email:
+86 21 60103951
[email protected]
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —APPENDIX 1
HEAD OFFICE
89
Appendix 2
Wine Industry Statistics
Units of
measurement
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
tonnes
1 831 523
1 732 506
1 603 012
1 602 394
1 620 510
1 748 363
172 676
162 551
156 632
na
148 509
na
na
11.0
11.0
10.6
na
11.1
na
na
2013-14
VINTAGE
90
Vintage crush
(a)
Total vineyard area
(a,b)
Yield
(a)
ha
tonnes/ha
TOTAL PRODUCTION BY VARIETY
Cabernet Sauvignon
(a)
tonnes
258,066
248,451
213,922
231,321
207,558
249,689
na
Chardonnay
(a)
tonnes
428,082
384,185
298,013
398,410
348,283
397,239
na
Colombard
(a)
tonnes
59,202
62,081
45,856
56,745
52,936
66,852
na
Merlot
(a)
tonnes
125,285
126,915
104,874
110,225
117,383
131,575
na
Muscat Gordo Blanco
(a)
tonnes
39,311
52,042
48,643
47,560
54,155
70,564
na
Pinot Gris
(a)
tonnes
26,156
na
39,347
na
50,426
62,228
na
Pinot Noir
(a)
tonnes
43,923
31,310
41,392
35,081
34,574
41,726
na
Riesling
(a)
tonnes
39,305
39,620
33,681
31,212
32,317
31,310
na
Sauvignon Blanc
(a)
tonnes
62,420
63,638
71,909
86,694
81,442
98,212
na
Semillon
(a)
tonnes
100,031
81,851
76,620
81,913
77,890
77,187
na
Shiraz
(a)
tonnes
441,950
394,070
403,344
326,279
362,217
432,340
na
TOTAL AREA BY STATE
ACT
(a)
ha
114
104
113
na
103
na
na
New South Wales
(a)
ha
43,574
41,888
42,621
na
39,097
na
na
Northern Territory
(a)
ha
246
-
-
na
-
na
na
Queensland
(a)
ha
3,176
977
782
na
712
na
na
South Australia
(a)
ha
73,155
75,532
73,409
na
71,310
na
na
Tasmania
(a)
ha
1,507
1,548
1,388
na
1,320
na
na
Victoria
(a)
ha
37,472
30,056
26,498
na
25,409
na
na
Western Australia
(a)
ha
13,431
12,446
11,822
na
10,556
na
na
BEVERAGE WINE PRODUCTION
BY STATE
SA
(a)
’000 litres
572,870
519 425
546 306
526 882
593 106
568 196
na
NSW(a)
(a)
’000 litres
428,336
436 782
379 600
364 955
363 170
388 733
na
Vic
(a)
’000 litres
196,003
185 370
159 724
157 124
206 649
238 874
na
WA
(a)
’000 litres
42,658
33 760
43 836
44 638
45 764
43 725
na
Other States
(a)
’000 litres
4,909
3 104
2 636
7 300
3 908
6 074
na
Australia
(a)
’000 litres
1 244 776
1 178 441
1 132 102
1 100 899
1 225 919
1 245 601
na
Units of
measurement
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
DOMESTIC SALES BY COLOUR
Red
(c)
160 847
170 746
176 445
173 074
172 952
179 385
172 782
White
Sparkling
(c)
’000 litres
212 332
212 422
219 463
219 441
216 092
211 555
214 738
(c)
’000 litres
36 594
36 515
40 112
35 376
35 468
35 888
35 081
Fortified and other’
(c)
’000 litres
29 425
30 583
35 203
36 474
33 221
33 084
35 485
Total
(c)
’000 litres
439 198
450 266
471 223
464 365
457 733
459 912
458 086
IMPORTS BY SOURCE
New Zealand
(d)
’000 litres
23 862
37 024
44 490
45 525
54 733
51 093
52 191
France
(d)
’000 litres
7 531
7 464
7 426
9 093
11 603
14 448
13 610
Italy
(d)
’000 litres
7 122
7 487
6 652
6 691
7 172
8 889
8 518
Spain
(d)
’000 litres
1 168
1 086
1 108
1 304
1 667
2 281
2 617
Chile
(d)
’000 litres
4 450
3 200
665
757
3 763
989
1 069
Total
(d)
’000 litres
53 544
62 715
64 863
67 556
83 100
84 795
82 178
AUSTRALIAN WINE EXPORTS
United Kingdom
(e)
’000 litres
267 867
265 502
271 803
254 146
251 694
246 158
244 109
United States Of
America
(e)
’000 litres
182 599
236 377
223 071
179 580
191 030
189 960
161 263
Canada
(e)
’000 litres
46 109
44 920
51 706
54 816
49 831
48 973
58 545
China, Pr
(e)
’000 litres
13 628
25 182
45 966
51 452
41 408
40 679
36 679
Germany, Federal
Republic
(e)
’000 litres
23 772
27 054
32 779
41 736
40 453
32 356
33 469
New Zealand
(e)
’000 litres
22 111
19 740
26 763
21 746
21 823
32 357
30 853
Netherlands
(e)
’000 litres
24 805
19 619
18 251
16 587
15 479
16 035
14 608
Denmark
(e)
’000 litres
27 645
19 317
16 764
16 088
15 230
15 455
13 170
Japan
(e)
’000 litres
9 020
10 677
8 791
9 172
9 876
8 972
9 207
Italy
(e)
’000 litres
587
200
161
214
225
339
8 777
Other
(e)
’000 litres
90 772
81 920
80 901
81 869
76 420
66 974
73 254
Total
(e)
’000 litres
708 915
750 509
776 954
727 408
713 470
698 259
683 935
a. The 2012-13 and 2010-11 figures are based on the WFA Vintage Survey Estimate, while the previous years are from the
Vineyards Survey
b. The area in 2008-09 onwards includes wine grape vines only, in previous years drying and table grapes were included
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —WINE INDUSTRY STATISTICS
’000 litres
c. ABS publication 8504.0
d. ABS special report
e. AGWA export approval database
91
Appendix 3
Glossary of Terms and Acronyms
92
AGWA
AAT
Administrative Appeals Tribunal
ABS
Australian Bureau of Statistics
AGM
Annual General Meeting of the Industry
AWO
Australian Wine Overseas program
Board
The Members of the Corporation
CAC Act
Commonwealth Authorities and Companies Act 1997
DAFF
Department of Agriculture, Fisheries and Forestry
FIVS
International Federation of Wine and Spirits
FOB value
Free on Board value
FOI Act
Freedom of Information Act 1982
GIC
Geographical Indications Committee
GWRDC
Grape and Wine Research Development Corporation
LIP
Label Integrity Program
Minister
Minister for Agriculture, Fisheries and Forestry
OIV
International Organisation of Vine and Wine
RPN
Register of Protected Names
WEA
Wine Export Approval system
WFA
Winemakers’ Federation of Australia
WGGA
Wine Grape Growers Australia
WH&S
Work Health and Safety
WSET
Wine and Spirit Education Trust
WSIAC
Wine Sector Intelligence Advisory Committee
WWTG
World Wine Trade Group
Appendix 4
Compliance Index
Page
COMMONWEALTH
AUTHORITIES AND
COMPANIES ACT 1997
Page
WINE AUSTRALIA
CORPORATION
ACT 1980
Annual Operational Plan
12, 42
Assessment of Performance
9
38
Corporate Governance Statement
41
Corporate Plan
12, 42
Developments since end of
Financial Year
62
Disability Strategy
43
Enabling Legislation
Financial Statements
29
Ministerial Directions
40
OTHER LEGISLATION
OR REPORTING
REQUIREMENTS
40
Ecologically Sustainable
Development and Environmental
Performance
42
45
Fraud Control
7
General Policies of Government
41
Freedom of Information
42
Indemnities and Insurance
Premiums for Officers
43
40
Independent Auditor’s Report
46
Funding of Consultancy Costs
for Industry Representative
Organisations
Judicial Decisions and Reviews by
Outside Bodies
43
41
Legislative Functions
40
Legislative Objects
40
Location of Major Activities and
Functions
12
Meeting Attendance
39
Meetings Held
39
Members of Committees
39
Members of the Corporation
36
40
Organisational structure
44
Portfolio Budget Statement
51, 52
Responsible Minister
40
Review of Operations
12
Risk Factors
41
Service Charter
41
Stakeholders
4
Audit Committee
Geographical Indications
Committee Report
93
Appendix 5
Alphabetical Index
Page
A
Annual General Meeting
42
Annual Operational Plan
12, 42
Audit
38
Audit and Finance Committee
38
Audit Report
46
Australia Report
30
Australian Wine Overseas Program
19
B
Board
Attendance at Meetings
39
Composition
36
Meetings
39
Members
36
Responsibility
36
C
Page
O
Enabling Legislation
40
Objects of the Act
40
Environmental Objects
42
Organisational Structure
44
Export Approval Process
25
Overview
P
Financial
Planning Framework
42
12
Results
29
Principal Outcome
Statements
45
Principal Outputs
12
Fraud Control
7
Powers of the Corporation
40
Freedom of Information
42
Functions of the Corporation
40
G
Geographical Indications
4, 29
R
Regulatory Services
42
Responsible Minister
40
Geographical Indications Committee
29
Reviews by Outside Bodies
41
Glossary
92
Risk Factors
41
I
S
33
5
Indemnities
43
Staff
6
Insurance Premiums
43
Stakeholders
32
Statement on Governance
China Report
30
Ireland Report
Clients
41
J
Client Service Charter
41
Japan Report
30
Committees
38
Judicial Decisions
41
Attendance at Meetings
39
Membership
39
Compliance Index
93
Consultancy Payments to Industry
Organisations
Corporate
Governance
Performance
L
Label Integrity Program
4, 25, 26
41
12, 22, 25, 27
12, 42
D
Developments since Year End
62
Directory
89
Disability Strategy
43
M
Management
Market Development
43
4
41
T
Legislation Review Committee 37, 38, 39
40
4, 25
Reporting Framework
Chair’s Report
Chief Executive’s Report (Acting)
4
F
Canada Report
Corporate Plan
94
Page
E
Trade
U
United Kingdom Report
31
United States of America Report
33
W
Wine Australia Brand Development
38
4, 12
4, 27
12
Wine
Permits
25
Members of the Corporation
36
Wine Sector Intelligence
Market Overviews
30
Minister, Responsible
40
Wine Sector Intelligence Advisory
Committee
39
40
43
22, 39
WINE AUSTRALIA CORPORATION ANNUAL REPORT 2013-2014 —ALPHABETICAL INDEX
Wine Australia gratefully acknowledges the support of the following Network Members
Credits
Cover Photo
Content Editor
Design and Format
Wine Australia
Rachel Triggs
Nila Canning
95
www.agwa.net.au

annual report - Wine Australia

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