Australian Wine and Brandy Corporation Annual

Transcription

Australian Wine and
Brandy Corporation
Annual Report
2008–2009
Published by Australian Wine and Brandy Corporation
National Wine Centre – Industry House, Corner Hackney and Botanic Roads, Adelaide SA 5000. PO Box 2733, Kent Town, SA 5071
Telephone: +61 8 8228 2000 Facsimile: +61 8 8228 2022 E‑mail: [email protected] Website: www.wineaustralia.com
© Australian Wine and Brandy Corporation 2009
ISSN 1442‑9535
This work is copyright. Textual information in this report may be reproduced in whole or in part, provided the information is not sold
or used for commercial benefit and its source (“Australian Wine and Brandy Corporation 2008‑09 Annual Report”) is acknowledged.
Reproduction of text for other purposes, and storage or reproduction of any photographs or other graphical material in the report
for any purpose is prohibited without the prior written permission of the Australian Wine and Brandy Corporation.
Annual Report 2008 – 2009
28th Annual Report
highlights
“Our key priority is to work
collaboratively with the
other peak industry bodies
to provide leadership to the
Australian wine sector .”
•Updated Market Insight Reports were produced for
the Australian wine sector
•16,717 wines were submitted for evaluation prior to export
•Memorandums of Understanding were signed with
the People’s Republic of China and with Hong Kong
•A redevelopment of the winefacts online information
service was launched in May 2009
•A dedicated market program for China was launched
in partnership with Austrade
•Two key new market development appointments were
made – Director North America and Director UK/Ireland/Europe
•A new bilateral agreement with the European Union
on wine was signed on the 1st December 2008
•The inaugural Landmark Australia Tutorial was held –
showcasing more than 200 of Australia’s best wines
•The Wine Australia e-news continued into its second
year of publication reaching more than 8,000 people
worldwide each month
•Nearly 3,000 cases of wine were distributed to
diplomatic posts around the world via the Australian
Wine Overseas program
AUSTRALIAN WINE SALES BY VOLUME 2008–09
Germany – 27
Canada – 45
800
China – 25
700
600
Australia – 426
500
A$ Million
Others –152
TOP FIVE EXPORT MARKETS BY VALUE 2008–09
(Million Litres)
400
300
200
100
0
USA – 236
UK – 266
USA
741
UK
723
CANADA
214
CHINA
94
NZ
76
1
1 October 2009
The Hon Tony Burke MP
Minister for Agriculture, Fisheries and Forestry
Parliament House
CANBERRA ACT 2600
Dear Minister
On behalf of the members of the Australian Wine and Brandy Corporation, I am pleased to present the Corporation’s 28th Annual Report,
for the year ended 30 June 2009.
The Annual Report has been prepared in accordance with the Commonwealth Authorities and Companies Act 1997 and the Australian Wine
and Brandy Corporation Act 1980.
Pursuant to section 9 of the Commonwealth Authorities and Companies Act 1997, the Members of the Corporation are responsible for
the preparation and content of the Report of Operations section of this Annual Report that has been prepared in accordance with the
Commonwealth Authorities and Companies (Report of Operations) Orders 2008.
The Report of Operations was made in accordance with a resolution of the Members of the Corporation on the 25 August 2009.
Yours sincerely
James Dominguez CBE AM
Chairman
3
Contents
OVERVIEW
4
Our mission
4
What we do
4
Stakeholders and clients
4
CHAIRMAN’S REPORT
5
CHIEF EXECUTIVE’S REPORT
7
YEAR IN REVIEW
10
Market development
10
Organisational structure
40
Enabling legislation
41
Planning and reporting framework
41
Other reporting requirements
42
THE WINE INDUSTRY
44
World wine production
44
World wine trade
45
Australian wine production
45
Australian domestic market
47
Australian wine exports
48
Knowledge development
18
Compliance
21
Trade
24
APPENDICES
Geographical indications
27
Appendix 1 Corporate directory
Financial results
28
Appendix 2 Wine industry statistics
Regional reports
30
Appendix 3 Glossary of terms and acronyms
106
Appendix 4 Compliance index
107
Appendix 5 Alphabetical index
108
THE ORGANISATION
Statement on governance
35
35
Members of the Corporation
36
Responsible minister
38
Annual general meeting of the industry
38
Board and committee membership
and attendance at meetings
39
FINANCIAL STATEMENTS
49
84
87
4
Australian Wine and Brandy Corporation
OVERVIEW
The Australian Wine and Brandy Corporation is a statutory
authority established in 1981 to provide strategic support to the
Australian wine sector. Its responsibilities include:
• International and domestic marketing of the Australian
wine category;
The Corporation protects the integrity of Australia’s wine
producing areas, maintains the Register of Protected Names
and supports the Geographical Indications Committee – a
statutory committee established to define the grape producing
regions of Australia.
• Export regulation and compliance;
Trade – Better market access
• Wine sector information and analysis;
The Corporation assists the wine sector with international
market access issues by working to reduce trade barriers
and developing a comprehensive understanding of regulatory
requirements in key markets.
• Maintaining the integrity of Australia’s wine labels and
winemaking practices;
• Protecting the names of the wine producing areas of
Australian and certain other countries; and
• Assisting in negotiations to reduce international
trade barriers.
STAKEHOLDERS AND CLIENTS
To enhance the operating environment for the benefit of the
Australian wine industry by providing the leading role in:
The Corporation’s principal stakeholders are the Australian
Government and the wine and brandy producers who pay the
Wine Grapes Levy and the exporters who pay the Wine Export
Charge. The bulk of the Corporation’s revenue is drawn from
these levy payers who have the right to vote at its Annual
General Meetings.
• Market Development
Other stakeholders include:
• Knowledge Development
• The national, state and regional wine and brandy
producer associations; and
OUR MISSION
• Compliance
• Trade
• Winegrape growers and their national, state and
regional associations.
WHAT WE DO
The clients that utilise the Corporation’s services include:
Market Development – Growing the markets
The Corporation takes the lead role in the strategic marketing
of the Australian wine category, including the implementation of
strategies and activities in key markets and the identification of
new markets. Operating as Wine Australia in overseas markets,
it maintains offices in the United Kingdom, the United States,
Canada, Ireland, Japan and China.
Knowledge Development – Better decision making
The Corporation is the first point of contact in Australia for
wine sector information and analysis, delivering key industry
assessments as well as general data and information for the
broader community.
Compliance – Maintaining the reputation
The Corporation’s regulatory activities are aimed at preserving
Australia’s internationally recognised reputation for quality
and integrity. Activities include licensing exporters, issuing
permits for Australian wine exports and running a label integrity
program to prevent false or misleading labelling.
• Wine and brandy exporters – overseas marketing assistance,
export promotional material, export licences, export
documentation and approvals, information;
• Wine and brandy producers – label integrity assistance,
domestic promotional material, information;
• Grape growers and their regional associations –
geographical indication registration, information; and
• Wine research organisations, wine sector suppliers and
consultants, academics and students, lawyers, financial
institutions, businesses and the public – information.
Chairman’s Report
Chairman James Dominguez CBE AM
My appointment as Chairman on 1 July 2009, together with that of
Andrew Cheesman as the new Chief Executive on 24 June, brings
new leadership to the Corporation after an extended period without
a permanent chief executive officer. I am indeed fortunate to have a
strong Board with a substantial depth of expertise in the wine industry.
Knowledge provides an advantage in the highly competitive global
wine market. The Board will ensure that the information and
analysis available to the Australian wine sector continues to be
timely, targeted and relevant and serves its purpose in assisting in
critical decision making.
I have already been in contact with many of the Corporation’s
principal stakeholders including key industry representatives to
alert them to the changes that have occurred at the Corporation.
I am keen to encourage feedback to assist me in my new role.
During the present challenging times it is more important than
ever that we are vigilant in protecting the industry from parties
that may be tempted to actions that compromise the reputation of
Australian wine, particularly in our export markets. The Corporation
will maintain its regulatory role in ensuring the quality and integrity
of Australian wine and will see that it remains efficient and effective
without imposing unnecessarily on the operations of the sector.
Rather than review the past year, it is more appropriate for me
to comment on the current state of the industry and how the
Corporation Board under my leadership plans to respond.
The most significant issues for the both the grape growing and
winemaking segments of the industry are the uncertainty of the
system for taxing wine and the imbalance between supply and
demand. The Corporation is working collaboratively with the peak
industry bodies to provide leadership in addressing these issues
and to ensure there is a full awareness and understanding of the
implications of decision making and any potential regulatory or
legislative changes.
We are also working with the other peak bodies to achieve industry
alignment in strategy, communication and priority setting,
whilst also exploring operational integration to achieve efficiency
improvements within the Corporation and its kindred organisations.
The Corporation has relationships with such organisations in
government and the private sector and it is my goal to further
strengthen these relationships. As incoming Chairman, I intend
to see a strengthening of our relationship with all relevant
government departments and agencies.
For instance the Corporation’s prime link with the Government
is through the Department of Agriculture, Fisheries and
Forestry. The Corporation also has a unique partnership with
the Department of Foreign Affairs and Trade and in particular,
its export market development arm, Austrade. The growth in
Australian wine exports in the last decade has been extraordinary
on any criteria and my focus will be to further develop the
important Austrade linkage to our mutual benefit.
I have a strong commitment to defining and communicating the
growth opportunity for Australian wine and to develop programs
and activities that support that growth opportunity and achieve
new market and consumer creation objectives. Our success will be
measured by the ability of Australian producers to build a credible
premium for our top wines in global markets over the longer term
and over all segments of the Australian wine category.
It is important that the Australian Government continues to seek
out opportunities to negotiate improved trade agreements with
Australia’s key overseas trading partners. The Corporation’s role
in working in tandem with the Government is to ensure that the
interests of the Australian wine sector are considered in such
negotiations. Our interaction with the regulatory authorities in
other countries will be important to the future of the sector.
Although it is pleasing that the Corporation achieved a small
financial surplus in 2008/09, it is not the Board’s intention to
accumulate profits and we will investigate how some of the existing
financial reserves can be utilised for the benefit of the wine sector.
I congratulate Penfolds for winning the prestigious
Corporation‑sponsored George Mackey Memorial Trophy for the
best export wine for 2007/08. This is the third year in succession
that the Foster’s Group has won the trophy and this year it was for
the 2005 Penfolds Yattarna Chardonnay.
Finally I must thank my predecessor, the Hon John Moore
AO, for his leadership over the previous three years and the
other members of the Board, management and staff for
their contributions during the year. I would particularly like
to acknowledge the contribution made by our Corporation
Secretary, Jock Osborne who for just over eighteen months so
capably performed the role of Acting Chief Executive pending the
appointment of the new Chief Executive.
I especially welcome Andrew Cheesman in this position and look
forward to working with him and the Board.
James Dominguez CBE AM
Chairman
Members
Members L–R: Mark Purbrick, Andrew Moore, Andrew Cheesman (Chief Executive), Natalie Toohey, Kate Thompson,
James Dominguez (Chairman), Jock Osborne (Corporation Secretary), Kevin McLintock, Tony Jordan and Josephine Rozman.
Chief executive’s Report
Chief Executive Andrew Cheesman
I commenced as Chief Executive on 24 June 2009, with
a mandate to review the operations of the Corporation
and enact change. Since that date I have met with all of
our people and a broad cross section of our stakeholders
in order to improve my understanding of the business,
the value of services provided to industry, its strengths,
opportunities, issues and constraints.
Our trade, compliance and regulation activities will be reviewed
to ensure we provide an appropriate service to our maturing
industry, which continues to enhance the quality image of
Australian wine, whilst recognising the need to adjust to the
changing composition of Australia’s wine exports.
I have been encouraged by the capacity and capability that
exists within the organisation.
With respect to the major achievements of the 2008/9 financial
year, I note the following;
The industry is experiencing challenging trading
conditions, with excess supply fuelling the existence of
non strategic, opportunistic products that are commodity
in nature. These work to obscure our programs and
activities that target raising awareness of Australia’s key
brand personalities; brand champions – great value,
generation next – something different, regional heroes –
added interest and landmark wines – best in class. Our
strategy to establish a credible premium for Australian
wine in global markets is also being tested by the effects
of the global financial crisis, exchange rate volatility,
international competition and the effects of route to
market consolidation.
Our key priority is to work collaboratively with the other
peak industry organisations to provide leadership in
addressing the supply and demand imbalance; achieve
alignment of strategy, priority setting and communication;
and to affect operational integration to better position
ourselves to provide a sustainable, equitable platform
through which to service industry.
Within the Corporation we are working closely with our
advisory committees to ensure our services are appropriate
for the maturing Australian wine industry and that we
establish an environment that is stakeholder orientated
and sensitive to the fast moving agenda of the industry.
Over the coming year, our management team will focus on
a longer‑term market development strategy delivering a
balance between the mainstream and fine wine image of
Australia, and with appropriate investment for collaborative
marketing efforts in new, developing and mature markets.
We will refine our knowledge development activities to
deliver succinct, targeted foundation data and operate
collaboratively with the Grape and Wine Research and
Development Corporation to facilitate access to and
delivery of strategic information and analysis.
The change agenda is in progress and substantial progress will
be made in the year ahead.
Market Development
The restructure of the Corporation’s overseas marketing
platform was completed with the appointment of a Director
North America to manage our marketing programs in the
United States and Canada, and the appointment of a Director
United Kingdom/Ireland/Europe to manage our marketing
activity in those countries. The Corporation is now well placed
to execute our marketing strategy in the key markets for
Australian wine.
Following the July 2008 establishment of a marketing office
in Shanghai in partnership with Austrade, a market program
was delivered in China for the first time in 2008/09. China
represents an emerging market for Australian wine and we will
systematically build our investment in programs and activities in
this market in the coming years.
Our market development program has evolved as we
develop and implement programs aligned to the four brand
personalities of Australian wine. Membership of these
programs by our stakeholders for the first time this year is
by brand, category positioning and by market. This approach
facilitates more targeted participation by our members in
collaborative strategies.
Knowledge Development
A new Knowledge Development Advisory Committee was
appointed in December 2008 and was tasked with undertaking
a complete review of the outputs and work program of the
Corporation’s knowledge development function.
This advisory committee has presented recommendations to
our board and as a consequence our knowledge development
output will focus on succinct, targeted provision of foundation
data and low level analysis of this data. The objective is to ensure
the Australian wine sector has access to the information and
analysis it requires to facilitate informed decision making.
management team
Management Team L–R: Lawrie Sanford (Manager Information and Analysis), Steve Guy (General Manager Compliance and Trade),
Paul Henry (General Manager Market Development), Jock Osborne (Corporation Secretary), Andrew Cheesman (Chief Executive),
Ernie Sullivan (Chief Financial Officer).
9
A major redevelopment of the on‑line winefacts information
service was launched in May 2009. Designed to make the site
more user‑friendly, new features include: a dynamic search
tool, centralised reports and publications, the ability to add quick
links for favourite reports, and an improved report building tool.
Compliance
In 2009, the export approval service assessed 16,717 wines, of
which 120 failed to receive export approval. 17,977 labels were
inspected and over 103,474 export documents were processed.
To assist exporters, the Corporation obtained accreditation to
enable it to issue the Certificates of Origin that are now required
by many international regulatory authorities, avoiding the need
for exporters to deal with an additional authority.
Since February 2006, the Corporation has been working on
an in‑house project to upgrade the Wine Export Approval
(WEA) system. The aim of the project was to redesign the WEA
architecture, upgrade its operating system and deliver operator
and user enhancements.
The operating system has been upgraded and has fulfilled the
objective of prolonging the maintenance and support life of the
underlying technology. In addition, a number of operator and
user enhancements have been delivered.
The redesign of the architecture however, did not achieve the
project objectives and outcomes and as a consequence, the
costs associated with the redesign were expensed during this
reporting period.
Amongst the user benefits, the enhancements to the WEA have
enabled the Corporation to deliver on industry’s requirements to
extend the export approval period for bottled products from 12
to 18 months. This change was implemented and applied from
1 July 2009.
The signing of the new bilateral wine agreement with the
European Union on 1 December 2008 was the culmination
of many years of negotiation. The Corporation has worked
very closely with the Australian Government to ensure
that this agreement delivers real benefits to the Australian
wine sector, including flexibility in labelling, acceptance of
our winemaking practices and protection of our registered
geographical indications.
Fraud control
Although a fraud risk assessment was undertaken shortly
after the end of the financial year and a fraud management
plan will be prepared in the current year, this was not done
within the timeframe required under the Commonwealth
Fraud Control Guidelines 2002. Apart from this discrepancy, I
certify that the Corporation has put in place appropriate fraud
prevention, detection, investigation, reporting and data collection
procedures that meet the specific needs of the Corporation and
comply with the guidelines. No incidents of fraud were detected
during the year.
Board and Staff
Given the capability of our staff and the quality of our Board, I
am confident that together we will execute change and deliver
leadership and services of value that enhance the wine sector
operating environment and assist development of an innovative
and sustainable industry.
The absence of a permanent Chief Executive has at times
presented challenges for the Corporation’s staff and I extend
my thanks to all staff members for their dedication and efforts
during this difficult period.
Trade
The passage of the World Wine Trade Group Labelling
Agreement, expected to deliver efficiencies and savings
to industry, has progressed and is currently before the
Commonwealth Parliament as part of the domestic treaty
ratification process.
Separate wine related memoranda of understanding with China
and Hong Kong were signed by our Minister in April 2009 which
will support growth in these two key Asian markets.
Andrew Cheesman
Chief Executive
10
YEAR IN REVIEW
The Corporation’s operations in the year under review were delivered in line with:
• The objects of the AWBC Act;
• The Corporation’s mission statement;
• The 2006‑09 Corporate Plan strategies; and
• The 2008‑09 Annual Operational Plan (AOP) actions aimed at contributing to the achievement of those strategies.
Outcome
To enhance the operating environment for the benefit of the Australian wine industry
OUTPUT 1
Market Development
OUTPUT 2
OUTPUT 3
Compliance
OUTPUT 4
Trade
Market Development
Output: To create a market environment that enhances the global demand for Australian wine.
Key performance indicator: Enhanced demand for Australian wine in line with projected export sales target of A$4 billion by 2010.
2008–09 Result: Although the volume of Australian wine exports increased 6%, due to a number of challenges, the value
declined 10% to A$2.43 billion
Strategy #1
– Seek new Wine Australia Export Partner program partners.
Develop and implement Wine Brand Australia marketing
initiatives in targeted overseas markets highlighting the stylistic,
varietal and regional diversity of the offering.
– Work with Australian Made Campaign to develop joint
marketing opportunities.
AOP Actions
1.Implement overseas wine marketing programs aligned with
the Wine Australia brand segmentation strategy as identified
in the Wine Australia: Directions to 2025 strategy document.
– Deliver comprehensive collaborative wine marketing
programs in UK, Ireland, USA, Canada, Japan, continental
Europe and China.
4.Promote the adoption of Australia: World Class by agents,
distributors, wine educators and others as ‘the’ on‑line wine
education resource.
–Launch targeted on‑line Internet promotions.
–Initiate joint promotions with leading wine educators
and retailers.
5.Promote the Wine Australia brand logo as a ‘trust mark’ of
consumer confidence for quality and integrity.
2. Review the structures and fees for membership of
the overseas wine marketing programs to encourage
greater participation.
–Utilise logo on all promotional material.
3.Partner with like minded bodies to maximise wine marketing
opportunities in international markets.
– Register and defend logo in key overseas countries.
– Work with the South Australian and other State
governments to deliver regional promotional activities in
key overseas markets.
– Revise Memorandum of Understanding with Austrade and
coordinate wine marketing activities where practical.
– Licence logo for use by suitable wine producers, exporters
and importers.
6.Implement an international visitors program for key wine
representatives.
– Arrange and host visits to Australia by influential
international wine media, trade representatives, wine
educators and sommeliers.
Wine Australia’s four ‘personalities’ and their key
characteristics are now well understood and often
referenced by members of the wine trade and media.
Activities
Wine Australia brand
A new marketing initiative for Australian wine was launched
in May 2007 that introduced four distinct “personalities” to
best represent the diversity of the category. A part of the Wine
Australia: Directions to 2025 strategy, it reinforced the brand
message of Wine Australia as an assurance of consistently
better quality at every price point.
The Corporation’s marketing activities, carried out under the
“Wine Australia” banner, have been aligned with this new
marketing platform as follows:
• Brand Champions – Australian wines that appeal through
accessibility, ease of enjoyment and a strong premium brand
message about product and country.
• Generation Next – Australian wines driven by innovation
(marketing; product; packaging) that appeal to
consumers who primarily drink wine for social
occasion and/or peer group affinity, rather than for
wine attribute.
• Regional Heroes – Wines from somewhere rather
than anywhere. Australian wines that add and
sustain interest for consumers by fostering a clear
association between region and variety/style.
• Landmark Australia – High profile, distinguished
Australian wines built on inherent quality and
world class reputation.
Following extensive stakeholder engagement
including post‑Directions seminars involving over
220 wine companies, overseas retail presentations,
distributor seminars, local market AGMs, advisory
groups, regional associations, state agency forums and
trade media outreach, the four ‘personalities” and their
key characteristics are now well understood and adopted
by stakeholders, and are often referenced by members of
the wine trade and media.
The complementary use of the Wine Australia logo on all
promotional material to communicate the brand message has
further entrenched the logo’s role as a ‘trust mark’ of consumer
confidence for quality and integrity.
Market Programs
The collaborative promotion and strategic marketing of the
Australian wine category in overseas markets is coordinated
by the Corporation, primarily through the initiatives, activities
and presence of its six overseas Wine Australia offices and the
Market Programs they offer.
11
12
The inaugural Landmark
Australia Tutorial
showcased more than 200
of Australia’s finest wines,
presented by the country’s
leading winemakers
and commentators,
and accompanied by
an original series of
seminars devised uniquely
for the event.
The in‑market collaborative activity is designed to create
an environment to optimise the profitable development of
Australian wine sales across all price points and market sectors.
The Market Programs were run in six key export markets on
an annual subscription basis. Delivered by the Corporation’s
overseas staff in collaboration with Australian wine producers,
exporters and other key stakeholders, the programs offer
strategic initiatives aimed at promoting positive category
awareness for Australian wine, as well as identifying individual
brand opportunities for participating program members.
Multi‑national, family‑owned, small and medium sized wine
companies are all represented in the programs.
The promotion of Australia as the most relevant and compelling
wine category in the market is achieved via a core suite of
activities in the areas of: category promotion; education;
communications and public relations; key relationship
management; market intelligence and trade access.
Each activity type is assigned a priority weighting in each market
and the proportion of the annual budget allocated for delivery is
tailored to reflect the market’s relative state of maturity.
New organisational structure
In response to market challenges and to strategically position
the Corporation’s efforts for future export growth, a restructure
of marketing operations in UK/Ireland/Europe, North America
and Asia was announced in the lead‑up to 2008‑09 and
implemented in the current year
In the UK, Ireland and Europe, existing operations were
restructured to create a central hub based in London and
Lisa McGovern was appointed as Director – UK/Ireland/
Europe. The office in The Hague closed at the end of July 2008.
John McDonnell continues as the Regional Manager for Ireland.
In North America, James Gosper was appointed
Director – North America with responsibility for targeting
channel‑specific growth opportunities in both the US and Canada.
A new China Market Program was launched in July 2008 in
partnership with Austrade, and a Market Development Officer
based in Shanghai was appointed.
Hiro Tejima continues as the Regional Manager with
responsibility for the Japanese market.
Regional Heroes program
Promoting Australia’s key wine regions in major export markets
is the central tenet of the Regional Heroes program.
Targeted at independently‑owned retail outlets and restaurant
operations, the Regional Heroes program is aimed at
13
increasing the levels of awareness and expectation among
trade and consumers for regionally distinct wine from Australia.
The program’s key component is staff training sessions for the
trade aimed at communicating the distinctive features of regional
expression and demonstrating the benefits of encouraging
customers to trial or trade up to a ‘regional hero’ from Australia.
The promotion of regionally distinct wine in Australia’s key
export markets was supported by the South Australian
Government who provided a grant to conduct a second year
of the Regional Heroes program in the UK and Ireland and an
initial program in North America and Asia.
A range of point of sale material was developed to support the
program and incentivised trips to Australia provided for the most
successful businesses and for consumers. A complementary
e‑marketing campaign performed well, with over 14,000 wines
being tasted over the duration of the program.
Despite the difficult trading circumstances in the UK and Irish
markets, the average price of all wine sales per litre grew by
20% across all businesses involved in the program, and the
average price of Australian wine sold grew by 25%.
The Regional Heroes program was extended to the US
and Canada where it ran in 60 retail outlets in conjunction
with a US retailer, as well as a number of on‑trade outlets
throughout Ontario. The Canadian promotion was developed
as a joint marketing opportunity with the Australian Made,
Australian Grown Campaign.
The US and Canadian programs produced similar results in
terms of staff and consumer exposure to an increased range of
regionally distinct wines from Australia, as well as improved net
sales performance. Key personnel from the highest achieving
businesses visited Australia with a view to expanding their
Australian supply base. In‑market contact with participating
businesses will be a key feature of next year’s marketing activity.
The Regional Heroes program has now engaged more than 300
businesses; 2000+ staff and included more than 300+ regionally
distinct Australian wines.
Landmark Australia Tutorial
Twelve leading opinion formers from the international wine
world took part in a five‑day tutorial that showcased the past,
present and future of Australia’s fine wines.
The inaugural Landmark Australia Tutorial took place in the
Barossa Valley in June 2009 with three principal tutors, Andrew
Caillard MW, Michael Hill Smith AM MW and Dr Tony Jordan
presenting the course and guiding the tastings.
14
YEAR IN REVIEW
Some of Australia’s leading winemakers and commentators led
the participants, who were drawn from the fields of education,
media and trade in ten different countries, through a series
of tastings that featured rarities, classics and contemporary
Australian wine styles. Participants had the opportunity to taste
over 240 wines which were chosen in collaboration with the
guest tutors for each masterclass to articulate the Australian
fine wine story.
MP3s about Australia’s wine regions and an interactive wine
tasting experience.
The event generated enormous interest globally with many
people following the event via a dedicated website,
www.landmark‑wineaustralia.com and online participation
was encouraged via www.twitter.com/winehero, creating many
discussions about Australia’s fine wines.
In another education initiative, the Corporation became a Gold
Corporate Patron of the not‑for‑profit global wine education
provider, the Wine & Spirit Education Trust (WSET). Under
this arrangement, the Corporation provided their international
students with an opportunity to compete for eight travel
scholarships to Australia and the Corporation will host visits
to Australia by a group of WSET program providers. Australia:
world class continued to be endorsed by the WSET as a learning
resource for their students internationally.
Wine Australia Export Partnership
The Wine Australia Export Partnership is a sponsorship
program that raises funds to support additional marketing and
promotional activities. It is open to companies who supply or
service the wine sector on a national or international level.
The inaugural Landmark Australia Tutorial was made possible
through the generous support of the Export Partners and the
Corporation acknowledges their contribution in improving
awareness of Australia’s fine wines in our export markets.
The constrained economic climate contributed to the absence
of any new partners in 2008‑09. However, the Corporation
acknowledges the support provided for the Landmark Australia
Tutorial by The Louise luxury hotel and its acclaimed on‑site
restaurant Appellation, Coopers Brewery, Splitrock Water
Company and Oddbins Wine Auctions.
Australia: world class
Australia: world class is an interactive wine education program
designed to explore and uncover the key issues involved in the
making and enjoyment of wine.
The Corporation is committed to education as an important
tool to influence the perception of Australian wine in overseas
markets. The Australia: world class educational DVD and
online resource form the basis for educational initiatives
and provide Australian wine companies and their partners
with a professional tool to create and customise their own
presentations and promotional material.
Australia: world class is available in seven languages (English,
German, Dutch, Korean, Mandarin, Japanese and French) and
new features added in 2008‑09 included: additional fact sheets,
videos about wine and the Australian wine sector, images and
Rather than prepare their own material, Qantas distributed the
Australia: world class DVD to 5,000 crew members as part of
their ‘Sommelier in the Sky’ program. Impressed by the DVD’s
user‑friendliness and depth of information, Qantas believed it
contained all the information required for their staff to complete
their ‘Sommelier in the Sky’ assessments.
Australia: world class was also used in the USA to form
partnerships with the American Society of Wine Educators,
the Sommeliers Guild and Kevin Zraly’s Windows on the
World wine course.
International visitors program
The international visits program enables the Corporation
to provide influential people with a first‑hand experience of
Australian wine and its regional diversity.
The Corporation arranges and hosts visits to Australia and its wine
regions by international media, key trade representatives, wine
educators, sommeliers and other influential wine personalities.
A total of 96 visits were arranged in 2008‑09: 42 from the UK, 19
from the US, eight each from Japan, Europe and Canada, 7 from
emerging markets including China and 5 from Ireland.
A number of high profile media visits during this financial year
generated positive press in the relevant markets. In addition,
relationships with the trade was strengthened in 2008‑09 with
visits by key decision makers from the Liquor Control Board
of Ontario (Canada), Societe des alcools du Quebec (Canada),
Tesco (UK) and Sainsburys (UK) resulting in a number of major
in‑market category promotions.
Review of Market Programs
A comprehensive review of the Market Programs was
undertaken in response to the need to promote Australian
wine to more channel‑specific opportunities in each
market, and to encourage greater winery participation.
The Corporation
partnered with global
wine education provider,
the Wine & Spirits
Education Trust, providing
a three year commitment
to improving awareness
and knowledge of
Australian wines.
15
16
YEAR IN REVIEW
Allied to the new organisational structure, new Market Program
content has been developed for rollout in 2009‑10.
Activities and outcomes will be grouped in two streams:
Mainstream (Brand Champions/Generation Next) and Fine Wine
(Regional Heroes/Landmark Australia) in 2009‑10. Each of these
new ‘streams’ will have nominated target audiences, channels,
activities and outcomes. The result will be a more responsive
program with improved clarity of content; better traceability of
individual brand performance and an outcome‑driven agenda
that delivers greater return on investment.
Austrade collaboration
The Corporation works with Austrade to align the promotional
opportunities of both organisations in overseas markets where
possible. Several joint activities were conducted in 2008‑09
including a series of wine tastings in Denmark, the G’day USA
and UK programs, and the market activities in China.
A review of the Memorandum of Understanding with Austrade
was conducted during this period and agreement was reached
on the areas that will be updated and revised in 2009‑10.
Wine Australia offices
Reports from the Corporation’s six overseas Wine Australia
offices are included later in this report.
Strategy #2
Research embryonic and emerging market priorities,
particularly the key embryonic markets of eastern Europe,
Russia, China, India and Korea.
AOP Actions
1.Launch an overseas wine marketing program in conjunction
with Austrade in China.
2. Coordinate Australian participation in suitable wine events in
embryonic markets.
Activities
Emerging markets
The Asian region has been identified as a potentially strong
emerging market for Australian wine and during the year,
the Corporation released a Market Insight Report for the Asia
Pacific region to assist levy payers with their export decisions.
The report details growth opportunities for Australian exporters
by price point, wine style, channels and container type.
The Corporation also supported a major trade expo –
the Hong Kong International Wine and Spirits Fair – with
the inclusion of a Wine Australia pavilion, and Andrew
Caillard MW visited Hong Kong as the Corporation’s guest
to host a Landmark Australia dinner for media at the
Consul General’s home.
Travel scholarships were offered to wine education students
in Hong Kong and South Korea, and in 2008‑09, scholarship
recipients from Hong Kong, South Korea and Singapore
visited Australia.
China
As one of the strongest growth opportunities for Australian wine,
the Corporation has directed its emerging market resources
to China. A dedicated China Market Program was launched
at the beginning of 2008‑09 in partnership with Austrade.
The Corporation’s strategy in China focuses on the bottled wine
market and premium price points and to the end of June 2009,
Australia exported 1.5 million nine‑litre cases of bottled wine to
China at an FOB price of AUD$5.98 per Litre, compared with an
FOB price of AUD$3.73 for all wine exported.
Australian wine exports to China were reinforced by a
Memorandum of Understanding between the governments of
Australia and China that provides guidelines for administrative
cooperation on the import and export of wine and aims to avoid
obstacles to the trade in wine.
A similar Memorandum of Understanding for wine was signed
with the Hong Kong Government in April 2008.
Strategy #3
Develop and implement an effective domestic promotional
strategy designed to encourage infrequent wine consumers to
switch their alcoholic beverage preference closer to wine.
AOP Actions
1. Align the marketing activities of the various national,
state and regional bodies with the Wine Australia brand
segmentation strategy.
– Continue to convene the State Agency Forum to coordinate
marketing activity.
– Conduct workshops coordinated through regional bodies
to communicate the Wine Australia marketing strategy and
objectives.
2. Partner with appropriate organisations to deliver targeted
domestic events and activities.
–Participate in Wine Focus Australia premium tastings for
consumers in conjunction with Gourmet Traveller Wine.
17
Over 20,000 copies of the Australia: world class
educational DVD were distributed to interested
members of the public, the wine trade and
media worldwide.
Activities
Strategy #4
Domestic promotion
Ensure overseas diplomatic missions can promote Australian
wine by providing access to wine via the Australian Wine
Overseas (AWO) program.
Participation in collaborative opportunities to further promote
the Wine Australia brand segmentation strategy remains the
focus of the Corporation’s domestic promotion.
Meetings of the State Agency Forum were suspended in 2008‑09
pending an outcome of the review of the wine sector’s national
organisational structure, however individual meetings with
representatives from state and regional wine associations
continued to help shape coordinated marketing activities.
The inaugural Hyatt Wine Week and Wine Focus Australia were
two promotional initiatives supported by the Corporation with
tastings, educational master classes and consumer dinners
focused on Regional Heroes.
A major national retailer, Dan Murphy’s, adopted the Regional
Heroes branding in a consumer wine promotion that ran for
several weeks.
Following an independent article written in a major newspaper
in response to a targeted media promotion, over 450 copies of
the Australia: world class educational DVD were requested by
interested members of the public.
The delivery of the inaugural Landmark Australia Tutorial, while
primarily aimed at an international trade audience, generated
significant domestic trade and consumer press interest
including editorial features, a promotional offer and significant
other media coverage.
Corporation representatives made a number of presentations
to Australian wine producers, student groups and trade
representatives throughout the year and the Corporation’s
online wine marketing tools were upgraded to assist regions
and retailers with their promotional activities.
AOP Actions
1. Continue to market and promote AWO opportunities to
overseas diplomatic missions.
Activities
The Australian Wine Overseas program ensures that
Australian and foreign overseas diplomatic posts have access
to a comprehensive range of Australian wines. This unique
promotional channel is an opportunity to expose international
audiences to Australia’s fine wine offering.
Nearly 3,000 cases were despatched via the program during
the year, with 86% destined for Asian countries where access to
Australian wine through other channels tends to be limited.
A promotional flyer was circulated to existing and
potential customers when the new price list was released
in October 2008.
18
YEAR IN REVIEW
Output: To support the Australian wine sector’s competitiveness through the collection, interpretation and dissemination of
global wine sector intelligence.
Key performance indicator: The Corporation to be respected by wine industry decision‑makers as the pre‑eminent provider of
wine sector information and analysis.
2008‑09 Result: The Corporation has continued to assist wine industry decision makers through the provision of relevant and
timely wine sector information and analysis.
Strategy #1
Increase available knowledge through an integrated approach
to global wine intelligence gathering and analysis that includes
economic, political and market information.
AOP Actions
1. Maintain the Market Insight Reporting program and refine
it to accommodate industry feedback on spending levels,
relevance and gaps in knowledge.
2. Build and extend local and overseas knowledge networks that
further the opportunity to deliver timely, relevant and accurate
market knowledge.
3.Provide insights into sustainability by integrating previously
developed wine intelligence modules into value‑chain analysis.
4.Consolidate existing market intelligence reporting formats
into a single‑source.
Activities
Global wine intelligence
A set of comprehensive market insight reports covering
Australia’s key established, growing and emerging markets
was completed during the year with the preparation of reports
on Sweden and Canada and updates for Australia, the United
Kingdom, the United States and Ireland. Special interest reports
were also produced on Rosé and the Asia‑Pacific region.
In a process of continuous review and refinement, the content
and reporting style of the reports was changed in response to
consultation with industry about their effectiveness. The new
reporting format makes the reports more accessible to a wider
range of industry members and has led to a greater focus on
market overviews and up‑to‑date sales trends.
With the reports on key markets completed, planning for the
next generation of reports and the market intelligence required
commenced towards the end of the year. For established and
growing markets, the emphasis will be on the latest sales
trends while for emerging markets, the emphasis will be on
broader market overviews.
Overseas network
With Wine Australia offices located in key markets, the
Corporation’s overseas network is well placed to collaborate in
the preparation of Market Insight Reports and to assist in other
intelligence gathering activity.
Apart from assisting with the gathering of information, the
overseas network enables market intelligence reports to be
tested in the market to ensure that they meet the specific
planning needs of both the Australian wine sector and in
particular their representatives in the markets.
Economic sustainability
Volatility in the global economic operating environment over the
past year has underpinned the need for greater insight into the
viability of individual businesses in the Australian wine sector.
Further development of economic value‑chain models
for Australia’s key markets has assisted in this process.
Documenting the value‑chain for different sized producers and
key price segments has enabled the effect of changes in the
operating environment on economic viability to be analysed.
Strategy #2
Improve the means for disseminating information including
the Corporation’s websites, the online winefacts Statistics and
winefacts Information Search, and the Wine Australia Magazine.
AOP Actions
1. Publish Wine Australia Magazine and Wine Australia e‑News
as ‘must‑read’ sources of information for the wine sector.
2. Maintain the Corporation’s websites, incorporating winefacts
Statistics, as primary vehicles for the integrated delivery
of information.
A set of comprehensive market insight reports was
developed and made available to facilitate improved
planning.
Activities
News dissemination
The Wine Australia Magazine is the feature‑oriented,
primary print source of official Corporation
notifications and news. It includes international
market reports from the regional Wine Australia
offices and updates from the different service areas of
the Corporation.
Four editions of the Wine Australia Magazine
were distributed to the Corporation’s database
of key stakeholders in the past 12 months. Three
editions continued the theme of the four Wine
Australia brand “personalities”, and the fourth was
a dedicated ‘Landmark Australia Tutorial’ edition.
The theme of the different editions enabled a focus
on specific market channels and opportunities, and
brought together contributions from the Minister for
Agriculture, Fisheries and Forestry, and other industry
commentators.
Distribution of the monthly Wine Australia e‑news
(electronic newsletter) has grown from 6,000 to over
8,000 global readers in the last financial year, and
it continues to be the primary avenue for delivering
news and industry analysis on a regular and
timely basis.
Website
In addition to keeping the Corporation’s principal
website up‑to‑date and relevant, a website dedicated
to Landmark Australia was launched in May 2009.
Primarily to profile the Landmark Australia Tutorial,
the site also feeds out information to wine enthusiasts
about Australia’s regionally distinct and fine wines
and provides an ongoing platform for web 2.0
communications (interaction via blogs, sharing of
audio and video files, social networking etc).
A major upgrade of the winefacts website, including
its integration into the Corporation’s principal
website, was launched in May of this year. Planning
is underway to review all of the Corporation’s website
requirements globally, with the aim to develop a new
platform which will better address industry needs,
integrate with other industry bodies, and allow for the
use of new technologies.
Strategy #3
Work with the Grape and Wine Research and Development
Corporation (GWRDC) to establish AWBC as the
acknowledged provider of market intelligence and marketing
research and development.
AOP Actions
1. Maintain close dialogue with the GWRDC on
goal‑setting and developments in marketing
research and development.
2. Investigate options for collaborative funding of
market intelligence to address industry needs.
Activities
GWRDC collaboration
Market intelligence is a common plank in the charters of
both the Corporation and the wine sector’s research and
development facilitator, the Grape and Wine Research
and Development Corporation, providing a fruitful ground
for collaboration on information and market intelligence
gathering that maximises returns on the industry’s collective
investment in both organisations.
The Corporation acknowledges the GWRDC’s on‑going
support for the industry’s foundation viticulture data
collection that underpins supply planning. A major 3‑year
GWRDC funding arrangement that underpinned the
Corporation’s overseas intelligence gathering activity expired
at the end of the year and discussions on future collaboration
are on‑going.
The inclusion of GWRDC representation on the Corporation’s
Knowledge Development Advisory Committee and
Statistics Working Group, together with the Corporation’s
representation on the industry’s Strategic Directions Group
(tasked with identifying priority areas of additional research
for the industry), ensures a coordinated approach in
priority‑setting, policy‑forming and decision‑making.
Strategy #4
Increase intelligence on wine sector structure to accurately
identify new entrants and changes in operating structures by
established producers.
AOP Actions
1. Maintain dialogue with stakeholders through Corporation
committees and industry seminars and workshops.
19
20
YEAR IN REVIEW
2. Continue to review, refine and adapt industry data collections
and analysis to reflect and respond to evolving changes
in the industry.
Activities
Industry consultation
The inclusion of wine sector representatives on the Knowledge
Development Advisory Committee (KDAC) and the Statistics
Working Group (SWG) provide avenues for direct consultation
with the industry on the Corporation’s information and
analysis priorities. The generosity of industry members
in committing their time and thoughts to facilitating a
better operating environment for the industry as a whole is
gratefully acknowledged.
With the appointment of new members to KDAC in December
2008, significant advances were made in reviewing the relevance
and priorities of the knowledge development work program.
The review is responding to evolving industry challenges
– principally the considerable volatility in the operating
environment and changing industry priorities.
A Knowledge in the Australian Wine Sector Workshop
comprising KDAC and SWG members and other industry
stakeholders not represented on the committees, such as the
state associations, was conducted during the year to commence
the review process.
Data collection
The Corporation’s role as the custodian of the industry’s
foundation datasets was endorsed in the review of the
knowledge development work program.
The flow‑on effects of budget restraints on the Australian
Bureau of Statistics (ABS), a primary provider of foundation data,
has presented some challenges for the industry. The ability of
the ABS to commit to services previously provided and projected
fee increases as it moves to full cost recovery has impacted on
the Corporation’s foundation datasets. Most affected are the
viticulture data collection, via the Vineyard Survey, and domestic
sales of Australian wine. Interim arrangements have had to
be negotiated and plans made for longer‑term and possibly
alternative arrangements for their collection.
The past year has seen some rationalising of data collections.
The Corporation has ceased coordinating the annual
state‑based Australian Regional Winegrape Crush Survey
and ceased collaborating in the publishing of the Global
Wine Statistics Compendium. The final versions of these two
statistical publications were released during the year. In addition,
due to constraints in the availability of some data and in the
interests of rationalising resources employed in their creation
and distribution, the domestic sales, export shipments and
import statistics, that have traditionally been released monthly,
will be released on a quarterly basis in the coming year.
New publications released in 2008‑09 included a monthly
Winegrape Water Monitor, the bi‑annual Global Wine Supply
Monitor and the annual Australian Winegrape Purchases: Price
Dispersion Report.
Industry Analysis
The Corporation’s analysis of the industry’s economic and supply
and demand prospects were regularly conveyed to industry
stakeholders on both an individual and small group basis, as
well as through industry seminars and conferences such as the
annual Wine industry Outlook Conference.
Strategy # 5
Promote and communicate to stakeholders the benefits of the
work done by the Corporation.
AOP Actions
1. Distribute media releases on the Corporation’s activities as
opportunities arise.
2. Contribute articles to industry publications and make
presentations at appropriate forums.
Activities
Communication with stakeholders
Communication with stakeholders is vital if the Corporation is to
encourage greater engagement and if the stakeholders are to
understand the work done on their behalf.
Seminars and meetings were convened, both in Australia
and overseas, to communicate with stakeholders on a range
of topics and appropriate speakers were provided to deliver
presentations at a number of industry‑related functions
and events.
14 media releases were issued to the domestic and international
media on a range of topics in 2008‑09 including key new
appointments and updates on Corporation programs and
activities. The Corporation also responded to media enquiries
in relation its work and the work of the Geographical
Indications Committee.
21
17,977 wine labels were inspected during the year to ensure
they accurately reflect the provenance of the wine.
Compliance
Output: To protect and enhance the quality and integrity of Australian wine.
Key performance indicator: The absence of incidents reflecting adversely on the reputation of Australian wine.
2008‑09 Result: There were no significant threats that challenged the reputation of Australian wine for quality and integrity.
Strategy #1
Maintain a rigorous export approval process aimed at ensuring
the quality and integrity of Australian wine.
AOP Actions
1.Extend coverage of the enhanced (Generation III) electronic
Wine Export Approval system beyond the initial pilot group.
2. Introduce an extended export approval period for bottled wine
to more closely match the commercial life of the product.
3.Introduce a tiered approach to the auditing of bulk wine
shipments to reward those consignees with a good prior
record, and to subject less compliant consignees to a
heightened level of inspection.
Activities
To protect the international reputation of Australian wine,
exports are subject to regulations. Grape products may not
be exported in shipments of more than 100 litres unless the
Corporation has issued an export permit. To obtain a permit,
the exporter must be licensed and the wines must be assessed
to be of sound and merchantable quality. This three stage
process is outlined below.
Grape products include Australian wine, brandy, grape spirit and
products derived from grapes that have been declared by the
AWBC Regulations to be grape products.
Licence to export
Those seeking to export wine must hold a Licence to Export
Grape Products issued by the Corporation. The criteria by
which licence applications are assessed can be found in the
AWBC Regulations.
At the end of June 2009, there were 1,879 licensees, 9% more
than at the same time the previous year. Of these licenses, 750
were held by exporters who are not wine producers.
Licenses can be suspended or cancelled if the licensee no
longer meets the criteria for the granting of a license or if the
licensee exports wine in contravention of a provision of the
AWBC Act or Regulations. No licenses were suspended or
cancelled during the year but two that had been suspended
during the previous year were restored.
Product approval
To assess if a wine is sound and merchantable for export, the
Corporation employs a panel of well qualified wine inspectors
to conduct daily tastings of wines submitted for evaluation.
The panellists are rostered in pairs and are unaware of the
identities of the wines being evaluated.
Wines are rejected only when two consecutive independent
panels have judged the product to be faulty and thus likely to
damage the international reputation of Australian wine. In the
event that a wine is rejected, an appeal can be made to a review
panel consisting of five inspectors, none of whom were involved
in either of the previous evaluations.
16,717 wines were assessed in 2008‑09, marginally (0.5%) less
than were tasted in the previous year. Of these wines, 310 were
rejected at the first evaluation and 120 subsequently failed to
receive export approval.
As part of the approval process, wine labels are inspected
to ensure they accurately reflect the provenance of the
wine. During the year 17,977 labels were inspected and staff
responded to 251 requests for formal label opinions.
Specific procedures apply to the export of wine in bulk, a format
that now accounts for 34% of all wine leaving Australia. Bulk
wine may only be shipped to packers that can demonstrate
compliance with internationally recognised quality management
standards and audits of the final product are conducted through
the inspection of samples returned to Australia. Of the 436
such audits conducted in 2008‑09, 24 raised concerns about the
quality of the returned product. The frequency of future audits is
dependent on prior performance and serious non‑compliance
may result in approval status being withdrawn from a poorly
performing international packaging facility.
22
YEAR IN REVIEW
The Corporation thanks the wine inspection team for the
professionalism and dedication they have displayed throughout
the year. A list of wine inspectors is included in Appendix 1.
Shipment approval
An export permit is required for each consignment of wine in
excess of 100 litres. Furthermore, shipments to the European
Union cannot proceed without the import documentation
required for that market (a VI1 certificate).
Wine Export Approval system
objective of prolonging the maintenance and support life of the
underlying technology. In addition, a number of operator and
user enhancements have been delivered.
In 2008‑09, 103,474 export documents were processed, 12%
fewer than the previous year and continuing the decline that
commenced in March 2008.
Certificates of Origin
In response to demand from exporters, the Corporation
obtained accreditation to enable it to issue the Certificates of
Origin that are now required by many international regulatory
authorities, avoiding the need for exporters to deal with an
additional authority.
A total of 1,407 Certificates of Origin and Certificates of Free Sale
were issued during the year.
project objectives and outcomes and as a consequence, the
costs associated with the redesign were expensed during this
reporting period.
Amongst the user benefits, the enhancements to the WEA have
enabled the Corporation to deliver on industry’s requirements to
extend the export approval period for bottled products from to
18 months. This change was implemented and applied from
1 July 2009.
Over 90% of shipping documentation is now submitted on‑line
via the WEA, ensuring fast turnaround times.
Figure 1, Wine Inspections
Figure 2, Export Documents Processed
18000
16000
14000
140000
12000
10000
120000
100000
8000
80000
6000
60000
4000
40000
2000
0
00
99/
01
00/
02
01/
03
02/
04
03/
05
04/
06
05/
07
06/
07
/08
08
/09
20000
0
00
99/
01 1/02 2/03 3/04 4/05 5/06 6/07 07/08 08/09
0
0
0
0
0
0
00/
23
A total of 122 Label Integrity Program field audits were
conducted across Australia during the year.
Strategy #2
Maintain an effective Label Integrity Program (LIP) aimed at
ensuring the quality and integrity of Australian wine. Continue to
instil a ‘Culture of Compliance’ through education, information
and assistance.
AOP Actions
1. Restructure the LIP audit program, including a focus on
container inspections, to maximise its effectiveness and
consider extending the scope of the audit function to matters
other than label integrity such as industry environmental
assurance.
2. Contribute “technical notes” for Wine Australia e‑News and
provide articles on compliance issues for the Wine Australia
Magazine and participate in appropriate industry seminars.
3.Continue to provide opinions on the validity of draft
wine labels.
4.Contribute compliance and technical advice on key
international markets for the Export Market Guide.
Activities
Label Integrity Program
The Label Integrity Program is designed to ensure the truth, and
reputation for truthfulness, of statements made on wine labels
or other commercial documents regarding the regional, varietal
or vintage provenance of wine made in Australia.
Wine producers are required to make and retain accurate
records of winemaking activity in a manner that facilitates
an auditable trail through which claims made on behalf of
particular wines can be verified.
The Corporation’s LIP auditing priorities were revisited during
the year to enable the treatment of imported bulk wine to be
closely monitored and to pay particular attention to the use of
fractions derived from both grape juice and wine. Discussions
were held with the Winemakers’ Federation of Australia
regarding a possible extension to the scope of the audit program
to encompass the sector’s environmental performance but it
was subsequently decided not to proceed.
A total of 122 field audits were conducted across Australia
during the year, augmented by a further 33 desk audits. Most
of Australia’s largest producers were included, requiring
considerable allocation of resources due to their complexity.
When minor discrepancies are discovered, the auditors work
with the winery to ensure systems are improved to prevent any
recurrence. No matters arose during the year that warranted
prosecution or suspension of a winery’s export license. Two
previously suspended export licenses were restored after
satisfactory remedial action was taken to implement systems
compliant with legislated requirements.
The prosecution of a wine producer alleged to have made false
label integrity records in 2003 is currently before the court.
Label opinions
On the assumption that it is preferable to ensure a wine label
is compliant before it is printed, the Corporation offers a label
opinion service to wine exporters who would like advice on the
legality of their draft wine labels.
A total of 251 such formal label opinions were issued during
the year.
Industry education
Various communication channels were utilised to develop a
“culture of compliance” in the industry through the provision
of accurate and timely information on wine regulatory matters.
Information was communicated on a range of topics including
the making of environmental claims on labels, the use of
alcohol reduction technology, the addition of water to wine and
the confusion over the identity of the grape variety thought to
have been “Albarino”.
Furthermore, a number of presentations were made to various
wine companies, educational institutions and other industry
bodies on various aspects of wine law.
Strategy #3
Expand the annual analysis program to include a greater
range of potential contaminants and encourage development
of validated analytical techniques for substantiating
wine provenance.
AOP Actions
1. Continue the suspension of the routine analysis program due
to lack of funding.
2. Intervene in trade disputes involving wine composition when
appropriate, using historical analysis data.
3.Assist international regulatory authorities in their efforts
to analytically validate quality and integrity claims
when appropriate.
24
YEAR IN REVIEW
Activities
Surveys of Australian wine to monitor compliance with
international standards continued to be suspended in 2008‑09.
Previous annual surveys have not found any samples exceeding
the maximum residual level determined for any contaminant
in Australia’s major markets and the resources may be better
utilised elsewhere.
No trade disputes involving the composition of Australian wine
arose during the year.
The Winemakers’ Federation of Australia did not seek any
assistance on health related issues during the year.
Strategy #5
Ensure the AWBC Act and AWBC Regulations remain relevant
and provide the Corporation with the necessary powers to fulfil
its duties and that any legislative changes do not compromise
the objectives or functions of the Corporation.
AOP Actions
The Corporation is assisting researchers at the University of
Western Australia by providing wine samples to assist their
efforts to develop analytical methods by which the provenance of
wine can be substantiated.
1. Continue to work with the Department of Agriculture,
Fisheries and Forestry to ensure all identified amendments
to the AWBC Act are suitably drafted before being introduced
to Parliament.
Strategy #4
2.Ensure proposed amendments to the AWBC Act and
Regulations accurately reflect the new bilateral treaty with
the European Union.
Support the Winemakers’ Federation of Australia’s (WFA)
environmental and health initiatives.
AOP Actions
1. Continue to participate on WFA’s Wine Industry National
Environment Committee.
2. Consider integrating the monitoring of environmental
standards compliance with the label integrity audit schedule.
3. Assist WFA with submissions on health‑related issues by
providing access to statistics, wine samples and analysis
where available.
Activities
The Corporation continues to support the Winemakers’
Federation of Australia’s environmental initiatives by
participating in the Wine Industry National Environment
Committee. Following discussions with WFA, it was decided not
to integrate the monitoring of environmental performance into
the label integrity program audit schedule.
Activities
The Corporation, with guidance and assistance from the
Legislation Review Committee, constantly monitors the AWBC
Act and Regulations to identify areas of concern and ways in
which they may be addressed.
A number of proposed amendments have been identified
over the years and the Corporation continues to work with the
Department of Agriculture, Fisheries and Forestry and other
government agencies to have them enacted.
A Bill to amend the AWBC Act to give force to the bilateral
treaty negotiated with the European Union, and to improve the
label integrity program and other compliance provisions was
introduced into Parliament in June 2009.
Trade
Output: To enhance access to international markets for Australian wine.
Key performance indicator: An appreciable reduction in trade impediments in overseas markets and the successful
negotiation of new bilateral and multilateral agreements impacting Australian wine sales.
2008‑09 Result: A number of market access issues for Australian exporters were satisfactorily resolved and a range of
strategic initiatives to address the industry’s trade priorities in both key and emerging export markets were progressed.
25
Bilateral free trade agreements can be important vehicles
for locking in meaningful market access gains for
Australian wine exports.
Strategy #1
Continue proactive involvement in the World Wine Trade Group,
International Organisation of Vine and Wine, International
Federation of Wine and Spirits, Codex Alimentarius and other
relevant international wine forums.
AOP Actions
1. Continue to drive and support the work agenda of relevant
international organisations to ensure Australia’s wine trade
priorities are addressed.
2. Maintain dialogue with the Australian wine sector to ensure
its trade concerns are adequately addressed.
Activities
International wine forums
As a significant global wine producer, it is important that
Australia actively participates in key international wine forums.
Discussions on a memorandum of understanding to eliminate
unnecessary certification requirements as obstacles to
international trade in wine were advanced at a World Wine Trade
Group (WWTG) meeting in Brussels in March 2009.
the OIV will be assessed by the European Commission and
incorporated into the list of accepted EU practices.
The Corporation is monitoring developments in the OIV closely
and provided financial support during the year to enable an
Australian, Mr Peter Hayes, to perform his duties as the OIV’s
President. Mr Hayes’ three‑year term expired on 30 June 2009
and he has now assumed the role of 1st Vice‑President.
FIVS
With its membership covering both the ‘old’ and ‘new’ world
wine producing countries, the International Federation of
Wine and Spirits (FIVS) is an important strategic vehicle for
harmonised and coordinated action on global trade issues
of concern.
Participation in FIVS meetings in October 2008 and March
2009 enabled the Corporation to keep abreast of emerging
impediments to trade, including an increasing number and
variety of proposals in the area of labelling, and to communicate
these developments to the Australian wine sector.
Strategy #2
The Brussels meeting also provided an opportunity to discuss
proposals to reform the European Union’s Common Market
Organisation (CMO) for wine with key officials from the European
Commission.
Work closely with relevant Australian Government departments
on the initiation and negotiation of multilateral, bilateral, mutual
acceptance and free trade agreements (FTAs) with countries
that are, or may become, markets for Australian wine.
WWTG Labelling Agreement
AOP Actions
The implementation of the WWTG Labelling Agreement
signed in Canberra in January 2007 has progressed during
the year. Once in force, this Agreement will allow winemakers
to design one label that will be acceptable in all WWTG
countries (Argentina, Australia, Canada, Chile, New Zealand
and the United States) and the European Union, creating
efficiencies to Australian wine exporters worth approximately
$25 million annually.
For this agreement to come into force, all state and territory
governments were required to change their trade measurement
regulations to remove inconsistencies. This has now been done
and it is now ready for consideration by the Commonwealth
Parliament as part of the domestic treaty ratification process.
OIV
The International Organisation of Vine and Wine (OIV) –
an intergovernmental technical reference body on oenological
matters – is becoming increasingly important, given that under
the EU’s CMO reform, any oenological practices accepted by
1. Monitor ongoing FTA negotiations to ensure satisfactory
outcomes for Australian wine exporters.
2. Contribute to the current negotiations on FTAs with ASEAN,
Chile, China, Gulf Cooperation Council, Japan and Malaysia
and the feasibility studies on FTAs with India, Indonesia
and Korea and provide submissions and support for new
trade initiatives.
3.Provide a detailed submission and follow‑up support for
the Australian Government’s review of export policies
and programs.
Activities
FTA Negotiations
Bilateral free trade agreements can be important vehicles for
locking in meaningful market access gains for Australian wine
exports, provided they are comprehensive and truly liberalising.
The Australian wine sector is keen to see the suite of FTAs
currently under negotiation – in particular, China, South Korea
and Japan – promptly concluded with significant market access
26
YEAR IN REVIEW
gains for all wine product lines, limited phase‑out periods and
no carve‑outs. In addition, it is imperative that non‑tariff barriers
are comprehensively addressed.
In 2008‑09, the Corporation provided a formal submission to the
Department of Foreign Affairs and Trade task force responsible
for negotiating the FTA with the Republic of Korea and
continued to provide input as required on the other negotiations
currently underway.
FTAs with Chile and the ASEAN countries were concluded in
2008–09, providing duty free access to Chile and some gains into
emerging Asian markets such as Vietnam and the Philippines.
MOUs with China and Hong Kong
Separate wine‑related memorandums of understanding (MOUs)
with China and Hong Kong were signed by the Minister in April
2009 establishing the Corporation as the appropriate Australian
contact if market access issues arise. The parties also agreed to
adopt a cooperative approach to resolving any matters relating
to wine composition, labelling or certification and acknowledged
that wine certification requirements should be the minimum
necessary to protect human health and safety. These MOUs will
support the wine sector’s export drive into these two key north
Asian markets.
EU agreement
The revised bilateral agreement with the European Union was
signed on 1 December 2008. When in force (likely to be late
2009), it will provide Australian winemakers with more flexibility
in labelling for that market, allow for the acceptance of all
current Australian winemaking practices and ensure protection
of Australia’s 112 registered geographical indications.
Mortimer Review
The Corporation provided a detailed submission to the Mortimer
Review of Export Policies and Programs. Given that Australia is
the world’s fourth largest wine exporter, wine export volumes
currently represent almost 60% of Australian wine sales and
approximately half of Australia’s wineries currently export,
market access has been, and will continue to be, critical to the
sector’s ongoing success.
Strategy #3
Advocate the removal of tariff and non‑tariff barriers to trade,
the elimination of production subsidies and the harmonisation
of import requirements through the World Trade Organisation
and other relevant forums.
AOP Actions
1. Monitor the international trading environment and identify and
fix, where possible, impediments to the trade in Australian wine
as they arise.
2. Liaise closely with the Australian Government to ensure matters
of interest to the Australian wine sector are adequately addressed.
Activities
Market access barriers
The Corporation works closely with relevant Australian
Government departments and other industry bodies to pursue a
comprehensive trade agenda aimed at addressing market access
barriers to Australian wine exports. Goals include improving
market access through the lowering of tariffs and other taxes
and addressing non‑tariff technical barriers relating to wine
composition, labelling, certification and winemaking practices.
Australian exporters are fortunate that the major export markets,
namely the EU, the USA and Canada, have low tariffs. However, in
a number of the closer Asian markets, substantial import duties
and taxes are imposed on imported wine, significantly impeding
market access. Non‑tariff regulatory barriers in the form of
labelling, wine‑making or certification standards that impact
negatively on export performance pose a more serious challenge
for exporters to some markets.
Given the Australian wine sector’s reliance on exports, the World
Trade Organisation is an important institution as its dispute
settlement system provides a binding process for resolving trade
disputes that can produces liberalising outcomes. Pressure
applied by wine exporting countries through the WTO dispute
settlement process recently assisted in obtaining a partial
liberalisation of India’s onerous tariff regime for imported wine.
Strategy #4
Develop and maintain relationships with key global wine people
and regulatory agencies to assist in resolving issues and to
monitor issues.
AOP Actions
1. Further develop relationship with key officials with the US
Alcohol and Tobacco Tax and Trade Bureau (TTB) with a view
to resolving outstanding labelling issues in the US market for
Australian exporters.
– Host a visit to Australia by a TTB representative.
2. Initiate contact with key Canadian regulatory authorities,
including the Pest Management Regulatory Agency.
27
Memorandums of understanding with China and Hong
Kong were signed in 2009 establishing the Corporation as
the Australian contact if market access issues arise.
Activities
AOP Actions
TTB staff exchange
1. Continuously review the EMG to ensure its accuracy and
relevance to exporters, and where possible, leverage off the
FIVS‑Abridge Database of National Regulations and Legal
Aspects for the International Beverage Alcohol Sector.
As the United States of America is one of the principal markets
for Australian wine, close relations with our counterpart in
the USA, the Alcohol and Tobacco Tax and Trade Bureau,
is paramount.
The Corporation hosted a visit to Australia by the Assistant
Director of the TTB’s labelling and formulations divisions,
Ms Teresa Knapp, who is a key US contact on wine regulatory
matters. This visit continues the exchange program with the TTB
that has now involved two Corporation staff visiting the TTB and
two TTB staff visiting the Corporation.
Canadian regulatory authorities
Canada is another significant market for Australian wine and
it is important to develop closer relations with the relevant
regulatory authorities in that country. A strategy is being devised
to address a range of market access and technical issues in the
Canadian market to be further advanced in 2009–10.
Activities
Export Market Guide and FIVS‑Abridge
As a valuable resource for wine exporters, the Export Market
Guide is routinely monitored and updated to ensure that the
regulatory information it contains is accurate and reflects
the current laws applicable in the relevant international
markets. The EMG now covers 34 of Australia’s major wine
export markets.
The Corporation’s participation on the Technical Advisory
Committee of the FIVS‑Abridge Database of National
Regulations and Legal Aspects for the International Beverage
Alcohol Sector ensures that this comprehensive database
covering the international regulatory framework relative to wine
complements and is consistent with the EMG.
Strategy #5
Update the Export Market Guide (EMG) and maintain it as a
comprehensive guide to conducting business in the principal
markets for Australian wine.
GEOGRAPHICAL INDICATIONS
Strategy
Maintain an effective geographical indication (GI) regime to
define Australia’s wine producing areas and to protect the terms
in the Register of Protected Names.
AOP Actions
1. Determine outstanding GI applications.
2. Provide assistance and advice to those seeking new GIs.
3.Communicate requirements arising from the new bilateral
treaty with the European Union.
Activities
Geographical Indications Committee
The Geographical Indications Committee (GIC) is a statutory
committee established under the AWBC Act to determine
Australia’s wine regions and localities and to cancel any
Australian GIs that are no longer required.
The GIC comprises Ms Anabel Shears Carter (Presiding
Member), Mr Dennis Mutton, the winemaker nominated
representative, and Mr Brian Englefield, the wine grape grower
nominated representative. Mr Bruce McDougall is the alternate
winemaker representative and Mr Richard Dolan is the alternate
wine grape grower representative.
As the first step in the GI application process, the GIC must
publish the name of the proposed GI to invite objections from
people with prior trade mark rights. Any objections must
then be considered by the Registrar of Trade Marks and if the
Registrar finds that an objection is made out, the application
cannot proceed unless the Registrar is satisfied that it is
reasonable in the circumstances for the GIC to proceed, despite
the objection having been made out.
The Registrar of Trade Marks made determinations in regard
to two GI applications during the year. An objection to the
name Rothbury was made out and the Rothbury GI application
28
YEAR IN REVIEW
therefore terminated. An objection to the name Orange Foothills
was dismissed, however the GIC considered the name could be
confused with the existing Orange GI and asked the applicants
to nominate an alternative name.
The GIC did not determine any GIs during the year.
Proposed amendments to the AWBC Act that include
amendments to implement the newly signed bilateral treaty
with the European Union will have a significant impact on the
GIC and the GI process when they come into force. The effect
of the amendments will be communicated to stakeholders
when appropriate.
The Corporation provides administrative assistance to the GIC,
assistance and advice to GI applicants and responds to enquiries
of a GI nature.
Register of Protected Names
Under Australian wine law, the terms and expressions contained
in the Register of Protected Names (RPN) are protected.
The RPN contains the GIs, traditional expressions, names of
grape varieties and other words or expressions of Australia and
foreign countries (currently only the original Member States of
the European Union), and it prescribes any conditions of use for
those terms or expressions.
No new terms or expressions were entered into the RPN during
the year.
The RPN may be inspected at the Corporation’s office
during business hours and extracts are available on the
Corporation’s website.
FINANCIAL RESULTS
The Corporation achieved an operating surplus of $526,000 for
2008‑09, having budgeted for a break‑even result in the Portfolio
Budget Statement. Cash holdings at 30 June 2009 totalled
$4.643 million, $1.775 million more than reported in the Portfolio
Budget Statement. The improved cash position can be attributed
to the operating surplus, tight control over receivables, and a
higher supplier outstandings balance than had been budgeted.
The Corporation underwent significant restructure in
2008‑09 including the closure of the European office and the
establishment of a marketing presence in China in partnership
with Austrade, both in July 2008. In addition, the North
American and UK/Ireland/Europe operations both underwent
significant restructuring.
Levy revenue
Approximately 41% of the Corporation’s 2008‑09 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 current year.
The 2008 wine grape production of 1.9 million tonnes was 0.5
million tonnes more than the forecast vintage resulting in the
Wine Grape levy revenue of $3.545 million exceeding budget by
$1.116 million. The number of Wine Grape Levy payers increased
by 14% over the previous year to 2,454, while the average levy
payable per tonne increased by 3% to $1.87, due to the increased
number of small producers.
The Wine Export Charge revenue received in 2008‑09 of $2.611
million was 11% less than the previous year and $606,000 less
than budget.
In accordance with accounting standards, the Corporation’s
levy revenue should be brought to account when it is received
by the Department of Agriculture, Fisheries and Forestry, as it
has no right to receive the levy revenue until it is collected by the
Department. Prior to the current year, the Corporation brought
the Wine Export Charge revenue to account at the time that
the wine was shipped. The 2008‑09 Financial Statements have
been prepared to reflect this accounting standard. The impact
of the change is to reduce trade and other receivables at 30
June 2009 by $555,000 and increase the 2008‑09 operating
surplus by $49,000. The 2007‑08 operating surplus was
increased by $85,000 and the retained surplus at 1 July 2007
reduced by $689,000.
Industry contributions
Contributions to the Corporation’s overseas market programs
were down 13% on last year to $1.871 million, due largely to the
cessation of the European program. Contributions to user pay
promotional events in overseas markets reduced by 46% to
$266,000, principally due to a reduction in participation rates
and reduced emphasis on this form of promotional activity.
Promotional expenditure was adjusted accordingly.
29
Approximately 41% of the Corporation’s 2008–09 revenue
came from industry levies.
Due to a reduction in the level of export activity, revenue from
regulatory fees was down 9% on budget to $4.946 million.
The number of export licenses increased by 14% generating
$614,000 in revenue.
Information Services
Information services revenue remained constant at
$98,000, with strong sales of information through winefacts
throughout the year.
Other promotional funding
The Wine Australia Export Partnership partners maintained
their strong financial support for the Corporation in 2008‑09.
The Corporation also received significant financial support
from the South Australian Government for the global Regional
Heroes marketing campaign.
Organisational restructure
The majority of the redundancy and separation costs relating to
the closure of the European office on 31 July 2008 were provided
in the 2007‑08 financial accounts but some costs were included
in the 2008‑09 result. Separation costs of $35,000 incurred in
2008‑09 relate primarily to the restructure of the UK/Ireland/
Europe operations.
Employee costs were $200,000 less than budget in 2008‑09 due
mainly to savings arising from the timing of the appointment
of the Chief Executive and the appointment of staff in the UK/
Ireland/Europe and North American operations.
Foreign Currency variation
Market Program membership fees and user‑pay promotional
fees are charged in the currency in which they are to be
expended. The Corporation recorded a non‑speculative currency
gain of $160,000 during 2008‑09 due to movements in currency
exchange rates between the time when the funds were received
and the time they were expended.
Information Technology and e‑Business
objective of prolonging the maintenance and support life of
the underlying technology until 2013. In addition, a number of
operator and user enhancements have been delivered.
project objectives and outcomes. The Corporation will need
to rebuild the application in a new framework to improve
performance, reliability and give it the ability to maintain
and enhance the WEA application well into the future. As a
consequence, the costs associated with the redesign of $625k
have been expensed during this reporting period, as it is
uncertain how much of the redesign will be migrated across to
future developments and it is improbable that future economic
benefits will be derived as a result of this expenditure.
Financial statements
Full details of the Corporation’s finances are included in the
Financial Statements section of this report.
Developments since the end of the financial year
No matter or circumstance has arisen since the end of
the financial year that has significantly affected, or may
significantly affect:
• the Corporation’s operations in future years; or
• the results of those operations in future years; or
• the Corporation’s state of affairs in future financial years.
Significant changes in principal activities
or the state of affairs
There have been no significant changes in the Corporation’s
principal activities or, except for those matters outlined above, in
the state of its affairs during the financial year.
Significant events
There were no significant events within the meaning of section
15 of the CAC Act that required particulars to be provided
to the Minister.
30
YEAR IN REVIEW
REGIONAL REPORTS
United Kingdom
The Market
The Australian wine category’s share of the UK off‑premise
market as at June 2009 was 22% by value and 21% by volume.
Australia enjoys the largest share of total off‑premise sales by
volume by a margin of 6.3% over its closest rival, the USA.
Of all wine sold in the UK off‑premise market, a massive 73% is
sold through multiple retailers. Recessionary conditions, with a
1.2% fall in consumer spending in the first quarter of 2009, has
ensured supermarkets maintain their deep‑cut promotions.
The UK Governments’ duty increase in March 2009 (4 pence on
a 75cl bottle of wine) has further decreased profitability in this
highly competitive retail environment.
Of the total wine market, Rosé continues to grow its share
(12%), while white wine (45.6%) has overtaken red (42.1%) as the
UK’s preferred style. This growing preference for white wine
styles is reflected in changes in the exporters’ league table as
South Africa and Italy (largely with Pinot Grigio) increase their
market shares.
Concerns in the UK continue to focus on binge drinking and the
alcoholic beverage industry is encouraging the government to
tackle the problem via education. A cross‑section of retailers,
pub operators, suppliers and trade associations will invest £100
million over the next five years to encourage drinkers to take a
more responsible attitude to alcohol consumption.
As the multiple retail sector maintains its preference
for volume‑driving promotion, Australia has focused on
independent and high‑street specialist retailers and raising
its share of the on‑premise channel. As the UK market
polarises between commodity and value based purchases,
the independent sector offers the best opportunities to build
market share.
Corporation activities
A range of educational initiatives were delivered across trade
and consumer groups in 2008‑09.
The second year of the Regional Heroes program resulted in
businesses extending their listings of regional Australian wines
and competing for the chance to win a tour of Australia’s wine
regions. In addition, an online consumer campaign attracted
20,000 consumers to the Wine Australia website to test their
tasting skills and understanding of Australia’s regionally
distinct wines.
The 2009 Australia Day Tasting incorporated a Winemaker’s
Choice theme with producer and importer tables representing
the breadth and diversity of the Australian category.
The inclusion of themed wine flights for the trade was
received positively.
The Corporation supported the week‑long G’day UK initiative
which exposed a range of Australian businesses and exports
to UK corporate and consumer audiences. The celebration
of Australia saw the country’s wines promoted at Selfridges,
London’s leading premium retailer, with sales increasing by
300% over a two week period. It also involved a consumer
showcase of Matthew Jukes’ 100 Best Australian wines at
Australia House and a one‑day intensive wine evaluation course,
hosted by the Australian Wine Research Institute, at which a
selection of the UK’s leading press and trade representatives
received an insight into the rigorous quality control applicable to
wine evaluation and judging in Australia.
Ireland
The Market
The appropriate word to describe the Irish trading environment
last year was ‘subdued’, and there has been a substantial
deterioration in trading conditions since then. Job losses, lack
of consumer confidence, reduced spending and an increase in
cross‑border trading, have all contributed to make the day of the
Celtic Tiger a distant memory.
Market figures from the Wine Board of Ireland make for
sobering reading. In the calendar year to April 2009 (Jan – April
09), total wine imports declined by 12.6% whereas Australian
wine imports fell by over 20% in the same period. Our nearest
competitor, Chile, declined at a lower rate than Australia but
most of the other major suppliers experienced double digit
declines and were hit harder than Australia, particularly the
major European producers, the US and New Zealand. As a
result, Australia’s market share increased slightly to 27.7% in
this period, ahead of second‑placed Chile with 23.9%.
Although most channels shared the decline in sales, pubs
and independent off‑licences were the hardest hit, the former
as a result of increased socialising at home, the latter from
31
Wine Australia marketing initiatives took place in key export
markets to positively position Australian wine.
increased competition from multiples, discounters and
cross‑border trading. The effect of cross‑border trading cannot
be ignored. Northern Ireland’s multiple retailers experienced an
81% increase in alcohol sales in December 08 compared with
December 07. Tesco’s decision to source more of their goods
centrally (UK), instead of domestically, added to the pressure
being experienced by local Irish distributors.
The Corporation continued the successful Regional Heroes
program in 2008‑09, partnering with four different businesses
(two on‑premise and two off‑premise) and hosting a number
of trade and consumer events focusing on two Australian wine
regions, McLaren Vale and Margaret River.
The Wine Australia weekend in May 2009 proved a huge success
with the inaugural Touch Wine Ireland rugby festival raising
funds for the Victorian Bushfire appeal, and the following day’s
category tasting another great success.
Two training seminars were held for the sales representatives of
Irish distributors to improve their understanding and confidence
in Australian wine.
The Corporation also partnered with the Australian Wine
Research Institute (AWRI) to host an abridged version of the
AWRI’s Advanced Wine Assessment Course. The first time held
outside of Australia, this innovative, unique and successful event
drew attention to the quality and integrity regime in Australia
and the commercial application of AWRI’s insight.
Wine Australia Ireland was voted the best generic wine body in
Ireland by Meininger’s Wine Business International magazine.
Continental Europe
The Market
The vast European market is extremely competitive as all
wine producing countries fight for market share. Strong
retailing structures, local bottling (Germany, Denmark and the
Netherlands) and high demand for bag‑in‑box (Scandinavia)
result in relatively low margins. Apart from Sweden and
Germany, Australian bottled wine exports to Continental
European countries showed MAT declines averaging 5% in
volume to June 2009.
In most markets Australia’s presence was strongest in the
off‑premise sector, with the on‑premise continuing to be
an under‑performing segment for Australia. Wine reforms
recently implemented by the European Commission will mark
a new era for wine producing countries dealing in Europe.
The reforms scale down subsidies for poor quality wine (supply)
and increase generic marketing efforts for European produced
wine (demand), as the EU attempts to regain the initiative and
improve their market share.
Corporation activity was concentrated on the markets of
Sweden, Denmark, Netherlands, Belgium, and Germany and
the strategy of creating ambassadors in three segments of the
market: retail organisations; media and other trade influencers;
and other on‑premise outlets in major urban areas, continued.
This activity was reinforced with specific educational initiatives in
Denmark and Sweden where wine educator Jacqueline Jensen
conducted seminars for the on‑premise sector in partnership
with hospitality schools. In Germany, a series of consumer
“Wine & Dine” activities were organised to introduce German
consumers to a range of Regional Heroes wines. Building on
the Corporation’s fine wine strategy, Finnish MW, Essi Avellan
and leading German sommelier, Frank Kämmer, were invited to
attend the inaugural Landmark Australia Tutorial in Australia.
Future activity in Europe will be focused on a small number of
targeted events including a generic stand at ProWein (Germany)
in March 2010, together with trade and consumer events that will
be run on a user‑pays basis. This activity will be supported by
interaction with local Austrade offices, ongoing communications
with our European ambassadors and supporters of Australian
wines, and a focus on trade education through the distribution of
the updated version of the Australia: world class DVD.
United States
The Market
The strength of the Australian dollar at the start of 2008‑09 and
the effects of the global financial crisis that had a particularly
hard impact in the USA, presented a very challenging
environment for Australian wine exporters.
The Australian dollar’s subsequent weakening against the US
dollar improved things slightly but the trend for consumers
to trade down and seek greater value offerings was firmly
entrenched. The contraction in the market did not however
affect Australia’s overall position as number two importer,
behind Italy.
The Australian category suffered from a series of negative
media articles in the US market. Wine writers in both traditional
media and social media across the board directed their
criticism toward Shiraz, “critter labels”, declining imports and
32
YEAR IN REVIEW
the perceived “sameness” of Australian wine. Exaggerated
reports from the Victorian bushfires, coupled with references
to Australia’s supply imbalance, added to Australian wine’s
image problems.
Recently some of the more respected wine writers have begun
to question the validity of concentrating on the negatives instead
of directing consumers to the great Australian options available
in the marketplace.
Activities in the USA were concentrated on educating the
marketplace about Australia’s regionality and reaching out to
influential lifestyle and wine media. A recent sample mailing
(predominantly Generation Next and Regional Heroes) sent to
56 wine and lifestyle media across the US prompted favourable
responses and reviews.
The Corporation was the sole wine sponsor for the annual
Phoenix Cooks food and wine trade show at which 36 wine
tables were presented and four Regional Heroes consumer
seminars were hosted, each attracting 60 participants. A
Regional Heroes panel discussion and tasting involving 150
attendees was held in San Francisco in partnership with the
Luxury Marketing Council and the Corporation partnered the
Vino 100 retail franchise for a Regional Heroes promotion
focusing on six regions and varieties. The promotion included
staff training and an incentivised trip to Australia.
Since their return from their Australian visit in September 2008,
the winners of the Australia: world class correspondence course
have been presenting Australian tastings and educational
classes in their respective regions in the US.
The Corporation responded to a Wall Street Journal article
deriding Australian Shiraz by putting forward a “Case for the
Defence” – sending a case of Shiraz to each of the top wine
media in the US. A number of recipients subsequently wrote
favourable reviews of the Shiraz they received.
Masterclasses were held in New York, San Francisco
and Las Vegas in conjunction with G’day USA. Attended
by sommeliers, retailers and wine media and featuring
respected Australian panellists and wine ambassadors, these
classes yielded a number of favourable articles/blogs from
noted writers.
The Australian Film Showcase was also held in conjunction
with G’day USA and the Corporation hosted wine tasting
experiences at the Australian film marathons in San Francisco
and Miami.
Canada
The Market
Canada was not immune from the difficult economic conditions
in 2008‑09. While this was undoubtedly a significant factor in
Australia’s 3.3% decline in volume and 18% decline in value,
countries such as Argentina, Chile and the US increased their
volume and percentage market share. Despite the challenges,
Canada remained firmly ensconced as Australia’s third largest
export market in terms of volume and value. From a value
perspective, Canada remained as top of Australia’s five largest
export markets with an average export value per litre at $A 4.79.
While shipments to Ontario and British Columbia suffered the
largest declines, Quebec remained a very strong market with
significant increases in both volume and value. Alberta remained
slightly ahead of the previous year and Canada’s Atlantic
Provinces all remained strong in terms of market share, although
Nova Scotia showed a significant decline in overall volume.
A substantial gap between red and white consumption is
a feature of the Canadian market. Red wine accounts for
approximately 64% of sales compared with white wine’s share of
approximately 33%. Shiraz and Cabernet Sauvignon continue to
dominate the red category, although there are strong indications
that Shiraz blends could see strong growth. Chardonnay sales
dropped dramatically while there has been some encouraging
growth in Riesling sales, particularly in Quebec.
With the exception of Alberta and domestic wine stores in
British Columbia, wine sales in Canada are managed by
provincial monopolies. In an encouraging sign for Australia, the
consensus amongst the provincial liquor boards is that Australia
can maintain its premium position despite pressure from
value‑driven offerings from Argentina and the United States.
The liquor boards have made a strong commitment to increase
their focus on innovation and regionality and category buyers
from Ontario, Quebec and British Columbia are due to travel to
Australia in 2009–10.
Promotional activities for Australian wine were conducted
by the liquor boards in Quebec, Manitoba and British Columbia
in 2008–09.
For the first time, a special Regional Heroes masterclass was
conducted for 100 Société des alcools du Québec (SAQ) product
consultants in Montreal. A Regional Heroes seminar was
also delivered for product consultants, ambassadors and top
management during the Winnipeg Wine Festival in Manitoba.
33
A unique aspect of the Corporation’s market development
strategy is to partner with Australian allies such as Tourism
Australia, Meat and Livestock Australia, Austrade and well
known Australian brands.
The annual in‑store thematic was conducted in British Columbia
during October 2008, with a focus on Brand Champions and
Regional Heroes and incorporating 18 products. The Regional
Heroes Online Wine Challenge was demonstrated in conjunction
with in‑store tastings and the event was promoted by the
distribution of flyers to 85,000 consumers via the print media.
Per capita consumption at 0.7 litres is low, however due to
a growing middle class and a preference for luxury western
brands, the demand for wine is steadily growing. Chinese
consumers find the flavour profile of Australian wine relatively
approachable compared with the less fruit‑driven styles
produced by some competitors.
A series of Regional Heroes masterclasses were rolled out
in two phases in seven cities across Canada. Halifax, Ottawa,
Montreal, Calgary and Edmonton were target cities in the first
round in the autumn of 2008 and classes in Vancouver and
Toronto were held to coincide with the Australia Day Tastings
in January 2009. All sessions involved an in‑depth masterclass
followed by a lunch with additional wines, and most had
standing room only.
A steady increase in bottled wine exports at relatively high
price points has helped to position China as the fourth largest
market for Australian wine by value. Increases in both bottled
and bulk exports now make China the fifth largest market for
Australian wine by volume. Bulk wine exports are dependent
upon price points and availability and are therefore regarded as
a commodity rather than a sustainable export proposition for the
majority of exporters.
The 2009 Australia Day Tastings, Celebrate Australia, in Toronto
and Vancouver, incorporated all four of the Wine Australia brand
personalities. The Vancouver show also showcased the Regional
Heroes Online Wine Challenge with great success. Both events
were sold out with a record number of consumers attending.
It is estimated that approximately 80% of total imported wine
is sold through the on‑trade, while Chinese grape wine at
lower price points dominates the off‑trade. Red wine makes up
more than 70% of total wine sales with little or no consumer
awareness of white wine styles.
People from various Canadian sales channels visited Australia
during 2008‑09 including a number of prominent journalists and key
individuals from the SAQ and the Liquor Control Board of Ontario.
Although China offers considerable upside in terms of growth,
the challenges are numerous. They include a lack of wine
awareness or education for trade, media and consumers, an
embryonic trade infrastructure with limited quality importers
and distributors, routes to market that are not clearly defined,
poor distribution and logistics, and geographic, cultural and
language impediments. Exporters also face issues with the
volatility of the market, parallel exporting and counterfeiting,
changes in import requirements and overall government
control. Many exporters have unrealistically high expectations of
what is still a burgeoning market.
The Corporation participated strongly in festivals and expos in
Canada in 2008–09. Participation in the Gourmet Wine Expo in
Toronto provided an opportunity to expose over 35,000 consumers
to Australian wine. Twenty Australian wineries were accepted into
the Vancouver International Playhouse Wine Festival in March
2009 and a Landmark Australia Seminar was held in conjunction
with the festival to look at the ageing potential of Australian wines.
A booth showcasing Generation Next products was overrun with
consumers at the Winnipeg Wine Festival in May 2009.
China
The Market
With world wine sales currently at 23.5 billion litres, sales within
the Asia Pacific region of 1.5 billion litres are comparatively
small. However, with total alcoholic beverage sales of 50 billion
litres in 2008, China is the largest market for alcoholic drinks in
the Asia Pacific region.
Grape wine sales account for less than 2%, or approximately
940 million litres, of China’s alcoholic drink market but it is the
fastest‑growing segment. Due to a robust domestic industry,
wine imports account for just under 10% of the total grape wine
market. Australia has a 20% share of total bottled wine imports
by both volume and value, behind France.
Corporation Activities:
Working in partnership with Austrade China, a new China
Market Program was launched in 2008–09.
Key program initiatives included a major category tasting in
Shanghai featuring 400 Australian wines and more than 600
invited trade, media and VIP guests. Attracting more than 20
media reports and putting a national focus on Australian wine,
the event was widely regarded as a success. In addition, an
Australian wine stand and educational seminars were presented
at Food Hospitality China, a major food and beverage expo.
The premium positioning of Australian wine in China is arguably
as important as large scale category awareness initiatives.
Landmark Australia Tastings were held in Beijing and Shanghai,
along with a series of Regional Heroes workshops.
34
YEAR IN REVIEW
The China Market Program has been strengthened through
the support of the importing community and during the year,
Wine Australia worked closely with importers through ‘CAWIN’ –
the China Australian Wine Importers Network.
Key relationships were fostered via the international visitor program
which included a media visit to Australia by Food and Wine – the
largest and most highly regarded wine publication in China, and the
Wine Australia Travel Scholarship winners, Leo Liu and Mei Hong.
Japan
The Market
Japan’s imports of wine fell by 0.9% in calendar year 2008
compared with the previous year. However, the volume of
Australian wine imports grew by 2.9%. Australia is currently
sixth of the ‘big six’ wine countries in the Japanese market,
having exceeded the one million 9‑litre case milestone for only
the second time. Since 1999, the volume of Australian wine
imported to Japan has nearly doubled.
In comparison, France (No 1 with a 40.8% share) dropped
by 3.4% in 2008 and Italy (No 2 with a 18.6% share) grew
marginally by 1.4%.
Japan has been described as so deeply traditional and
French‑schooled that one may find it “more French than France”.
However, its solid knowledge of wine, although basic, makes
Japan a particularly viable prospect for Australia’s fine wines.
There is already growing recognition among Japan’s high‑end wine
trade that Australia is a ‘country to watch’ for premium wines.
Japan is a lover of innovative products and Australia’s
Generation Next wines meet that criterion. The country is
particularly accommodating of new ideas; the ready acceptance
of screw cap closures and alternative packaging such as
wine‑in‑can are examples of how unique value propositions can
help bring success to the market.
Japanese consumers are increasingly seeking better value in
the products they buy as the constrained economy has led to
people trading down, especially in everyday drinking situations.
Australia’s positioning as a producer of ‘finer’ casual wine that
over‑delivers is more important than ever for further growth in
the export of Brand Champion wines.
The Japan Market Program for 2008‑09 was designed to
continue to advance Australia’s position in the mainstream
wine market (mainly in the retail sector) and to foster the
market’s knowledge of, and experience with, Australia’s fine
wines. Engagement with the wine importer community was an
important aspect in educating, promoting and selling Australia’s
diverse wine offerings.
One of the highlights was the inaugural Wine and Gourmet
Japan exhibition held in Tokyo in April 2009 that more than
60,000 people attended over the three‑day event. Twenty wines
chosen daily to represent the four ‘brand personalities’ were
offered for tasting at the Wine Australia booth which attracted
nearly 1,000 trade representatives each day.
Now in its sixth year, 76 restaurants participated in the annual
By the Glass promotion (compared with 45 in the previous year)
from 11 prefectures across Japan. The promotion achieved sales
of 116,365 glasses of mostly regionally distinct wines between
September and December 2008. The strong performance of
Nagoya‑based participants is worth mentioning as it suggests
favourable penetration of Australian fine wines in this important
regional market.
Brand Champions merchandising tools were utilised at 220
supermarkets nationwide between April 2008 and March 2009.
A direct response to the cluttered wine shelves in Japan’s
retail stores, these tools help consumers to navigate the wine
selection by their flavour profiles, whilst establishing clearly
visible Australian icons in store.
A Landmark Australia Tasting held at the Australian Embassy in
Tokyo was attended by more than 60 guests, mainly Japanese
Sommelier Association certified sommeliers/wine advisors as
well as influential trade and media professionals. The tasting
was moderated by Japan’s ‘Best Sommelier 2008’, Mr Satoru
Mori and Shiraz and Chardonnay were presented with the theme
of ‘Tradition and Evolution of Australia Wine’.
Other educational activities included an Australia: world class
themed mini seminar series and collaboration with trend
influencers including the creator of the Kami no Shizuku
(The Drops of God), the wine‑themed manga (a comic, but of a
serious nature) that has created a huge buzz for wine lovers.
Media activity resulted in Australian wine topics featuring in
various media and in several radio interviews.
A unique aspect of the Corporation’s commitment in Japan is
to work with Australian allies such as Tourism Australia, Meat
and Livestock Australia, Austrade and well known Australian
brands to build the image of modern Australia. The consumer
Christmas event at the Australian Embassy in Tokyo where all
parties unified to send strong, refined lifestyle messages of
Australia to young, savvy consumers was a prime example.
35
THE ORGANISATION
STATEMENT ON GOVERNANCE
A Corporate Governance Statement sets out the governance
framework that is designed to ensure the Corporation fulfils
its functions with efficiency and integrity. This framework
includes a range of policies and procedures covering the
conduct of members and staff and various aspects of the
Corporation’s operations.
Members are bound by a Code of Conduct and policies
have been adopted providing for an annual review of their
performance and establishing their right to access independent
professional advice if required.
Board responsibility
The Members of the Corporation (the Board) are accountable to
the Minister for Agriculture, Fisheries and Forestry (the Minister)
and through the Minister to Parliament, for the operations of
the Corporation. The Board is responsible for the Corporation’s
overall strategic direction and directs its functions and the
achievement of its objectives by a process of policy decisions.
Board composition
The Corporation comprises eight non‑executive members
appointed by the Minister; a Chairperson, and seven members
appointed from persons nominated by a wine‑industry‑based
Selection Committee on the basis of expertise in winemaking,
grape growing, marketing, finance, business management
and administration or government policy processes and public
administration.
James Dominguez CBE AM was appointed Chairman from 1 July
2009, following the expiration of The Hon John Moore AO’s term
on 30 June 2009.
The members’ terms of appointment expire on 30 April 2011,
except for the Chairman, whose term expires on 30 June 2012.
The Australian Wine and Brandy Corporation Selection
Committee did not meet during the year under review.
Members’ remuneration is determined by the Remuneration
Tribunal pursuant to the Remuneration Tribunal Act 1973.
Management
Responsibility for the day‑to‑day conduct of the business is
delegated to the Chief Executive, who is appointed by the Board
and is accountable to the Board for ensuring their decisions are
translated into actions by the management team.
Andrew Cheesman was appointed Chief Executive on 24 June
2009. Prior to Andrew’s appointment, Corporation Secretary
Jock Osborne had been Acting Chief Executive since the
previous Chief Executive’s resignation in February 2008.
The management team is selected by the Chief Executive, in
consultation with the Chairman if appropriate, on the basis of
experience and expertise.
The Chief Executive’s remuneration is determined by
the Remuneration Committee in consultation with the
Board, while the management team’s remuneration is
determined by the Chief Executive in consultation with the
Remuneration Committee.
Meetings of members
The Board met formally on nine occasions during the year.
Members’ attendance at meetings is shown on page 39.
Audit
The Corporation’s Financial Statements are independently
audited by the Australian National Audit Office (ANAO) in
accordance with ANAO Auditing Standards.
Audit and Finance Committee
The Audit and Finance Committee, comprising three Members
of the Corporation, assists Members in determining whether:
• their actions comply with the AWBC Act and other
relevant acts;
• the accounting records are appropriately maintained;
• there are adequate internal controls to safeguard the assets
of the Corporation;
• the strategic planning documents and budgets have been
satisfactorily compiled;
• the Financial Statements and management reports give a
true and fair view; and
• there are reasonable grounds to believe that the Corporation
can pay its debts when they fall due.
The Audit and Finance Committee has 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 Remuneration Committee, comprising two Members of
the Corporation, provides guidance on remuneration matters,
including the remuneration of the Chief Executive and senior staff.
36
THE ORGANISATION
Other committees
Committees comprising Members and industry and government
representatives play a key role in the decision making
process. Apart from those mentioned above, the Corporation’s
committees comprise:
• Market Development Advisory Committee – oversees
the development and implementation of export market
development strategies and promotional programs on
behalf of the Australian wine sector and provides advice on
international trade policies and issues, particularly in regard
to access to overseas markets.
• Geographical Indications Committee (GIC) – a statutory
committee independent of the Corporation, the GIC
defines the names and boundaries of Australia’s wine
growing regions.
• Knowledge Development Advisory Committee – provides
guidance on the information and analysis undertaken
by the Corporation.
• Legislation Review Committee – ensures that the AWBC Act
and Regulations provide an effective framework for regulating
the Australian wine sector.
Membership of the Corporation’s committees, and committee
members’ attendance at meetings held during the year, is
shown on page 39. The Corporation thanks the members of
these committees for their contribution throughout the year.
Risk factors
The Corporation’s operations are financially dependent on the
prosperity of the Australian wine sector. The principal source
of revenue is from wine producers and exporters in the form
of levies, export charges, voluntary contributions to overseas
promotional programs and fees paid for export approval
inspections and documents.
A reduction in revenue as a result of a downturn in wine
production or wine exports is a risk to the Corporation. To
manage this risk, the Corporation maintains financial reserves
and monitors the situation to tailor the level of activities
undertaken to the amount of revenue anticipated.
Client Service Charter
Services are provided to the wine sector and wine sector
information is provided to the public. The Corporation is
committed to providing these services with a client focus whilst
conscious of the need to maintain the integrity and reputation of
Australian wine by enforcing regulations.
The Corporation aims to provide an efficient, prompt, helpful
service to clients, while respecting confidentiality and upholding
the law in an impartial and consistent manner. The Client
Service Charter is available on the Corporation’s website.
MEMBERS OF THE CORPORATION
The Members of the Corporation at the date of this report are:
Mr James DOMINGUEZ CBE AM (Chairman)
Appointed on 1 July 2009
James Dominguez has a financial background having
co‑founded the Stock Exchange Member firm Dominguez
& Barry in 1976 (later to become Dominguez Barry Samuel
Montagu then SBC Dominguez Barry and now UBS Australia).
He was also Chairman of Swiss Bank Corporation’s Australian
business and a director of Samuel Montagu & Co in London.
His investment banking background led to an active involvement
in Asia, an interest that he maintained after his move into
non‑executive roles, including membership of the Asia Pacific
Advisory Council of Fuji Xerox Tokyo and 10 years as director of
Tat Hong in Singapore. Other corporate involvement included
Nestle Australia and Cisco Systems Australia. His public sector
work included a number of advisory roles to Federal and State
Governments including his current position as Commissioner
(Chairman) for the Private Health Insurance Administration
Council, the regulator for the Australian health fund industry.
His directorships have encompassed diverse areas such as
aluminium smelting, coal mining, electronic data storage,
online stockbroking, power stations, property management and
telephone call centres. His current private sector directorships
include Arrow Voice & Data, O’Connell Street Associates, Pacific
Knowledge Systems and Wesbeam Holdings (Perth).
He is a former owner of Yering Station Vineyards where he was
responsible for re‑planting the vineyards in the Yarra Valley.
He also participated in the purchase of Orlando Wines from
Reckitt & Colman – later acquired by Pernod Ricard. His active
corporate life still left room for community activities such as
Chair of St Vincents Hospital and Fellow in the Senate (the
governing body) of Sydney University.
Mr Dominguez is the non‑executive Chairman of the
Corporation and he chairs the Market Development
Advisory Committee.
Dr Tony JORDAN
Appointed on 15 May 2008
Tony Jordan is Consultant to the global wineries of the Estates
and Wines group within Moët Hennessy, as well as to other
wine companies. He assumed his current roles in mid‑2008
after 21 years with the Moët Hennessy group. Commencing as
Managing Director/Winemaker for Domaine Chandon Australia
in 1987, the role was expanded to consulting on winemaking to
the Chandon wineries worldwide in the 1990’s. He then became
CEO of Domaine Chandon Australia, Cape Mentelle and Cloudy
Bay NZ in 2003. Tony’s early career included being a research
scientist in chemical physics, lecturer at Charles Sturt University
(where he was involved in establishing the Wine Science course)
and managing partner in Oenotec, a worldwide winemaking
consultancy. Tony is Chairman of Judges of the Hong Kong
International Wine Competition and a senior judge at Australian
and international wine shows. He is President of the Yarra Valley
Wine Growers Association and a past President of the Australian
Society of Viticulture and Oenology.
Dr Jordan is a non‑executive Member of the Corporation and a
member of the Market Development Advisory Committee.
Mr Kevin McLINTOCK
A graduate of Harvard Business School with 36 years experience
in the international wine industry, Kevin McLintock has been
Deputy Chairman of McWilliam’s Wines since October 2006.
He was Chief Executive Officer of the company from 1993 until
his retirement from executive service in December 2005.
He was a member of the Executive Council of the Winemakers’
Federation of Australia from 1994 to 2008 and in 2006/07 he
chaired the industry taskforce that produced the strategy – Wine
Australia: Directions to 2025.
Mr McLintock is a non‑executive Member of the Corporation.
Mr Andrew MOORE (Deputy Chairman)
Appointed 1 May 2005
With over 18 years’ experience in the wine and liquor industry,
Andrew Moore operates his own business, Build Your Own
Brands, specialising in international and domestic sales,
marketing, distribution, capital raising, acquisitions and
business plans. He was previously Managing Director of Xanadu
Wines Ltd where he listed the company on the Australian
Stock Exchange, raised capital, acquired Norman’s Wines
and Next Generation Wines and set up sales and distribution
networks. Prior to that, he was Tucker Seabrook Australia’s
37
State Manager/Director for Western Australia/Victoria
before becoming Regional Director for Grolsch Asia Pacific
in 1996. He is a past President of the Western Australian
Wine Industry Association.
Mr Moore is the non‑executive Deputy Chairman of the
Corporation and a member of the Market Development
Advisory Committee.
Mr Mark PURBRICK
Appointed 1 May 2005
Mark Purbrick trained as a winemaker at Roseworthy College
but for the majority of his working life has been involved in
hospitality, retail, direct marketing and executive management
activities. He is the Managing Director of Management Solutions
Australia and Regional Director of Profiles International. He was
previously Chief Executive Officer and a director of The Wine
Society and has served as Trading Manager for Cellarmaster
Wines (Foster’s Group Limited), General Manager for Basedow
Wines Pty Ltd and General Manager for Arrowfield Wines
Pty Ltd. With extensive involvement as an Australian and
international wine show judge, he has served on numerous
wine industry committees and boards, including the Australian
Regional Winemakers’ Forum.
Mr Purbrick is a non‑executive Member of the Corporation.
He chairs the Audit and Finance Committee and is a member of
the Remuneration Committee.
Ms Josephine ROZMAN
Josephine Rozman is a Chartered Accountant 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 is a non‑executive Member of the Corporation. She
chairs the Knowledge Development Advisory Committee and is
a member of the Audit and Finance Committee.
38
THE ORGANISATION
Ms Kate THOMPSON
successful stockbroking and corporate advisory business and
was a member of the Brisbane Stock Exchange for 12 years.
Kate Thompson is a commercial lawyer with over 15 years
experience, the last 11 of which have been spent working as
an in‑house lawyer within the wine industry. She is presently
the Legal and Corporate Affairs Director of Pernod Ricard
Pacific, the owner of 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.
Mr Moore was the non‑executive chairman of the Corporation
and he chaired the Market Development Advisory Committee
and the Remuneration Committee.
Ms Thompson is a non‑executive Member of the Corporation.
She chairs the Legislation Review Committee and is a member
of the Audit and Finance Committee.
Ms Natalie TOOHEY
Natalie Toohey is a stakeholder relations advisor with clients in
a range of industries including wine. She was head of corporate
affairs at Foster’s Group Ltd until December 2008. Prior to joining
Foster’s, she worked in Europe as a communication consultant
and spent almost 10 years with the Department of Foreign Affairs
and Trade in Canberra and overseas, working on multilateral
policy and negotiations. She has served as an alternate on the
Executive Council of the Winemakers’ Federation of Australia,
and chaired WFA’s Wine and Social Responsibility Committee.
During her five years with Foster’s, Natalie also participated on
the Board of the responsible drinking organisation DrinkWise
Australia, served as a member of the Corporate Affairs
Committee of the Australian Food & Grocery Council and was
appointed to the Victorian Government’s Liquor Control Advisory
Council. Natalie is a member of the Advisory Council for the
Centre for Social Impact at UNSW.
RESPONSIBLE MINISTER
The Corporation is responsible to the Minister for Agriculture,
Fisheries and Forestry and through the Minister to Parliament.
The Minister at the date of this report is the Hon Tony Burke MP.
ANNUAL GENERAL MEETING
OF THE INDUSTRY
The 22nd Annual General Meeting of the Industry (AGM) was
held in Adelaide on 4 December 2008.
The Chairman, Acting Chief Executive and departmental
managers presented reports on the current state of the wine
industry, the activities undertaken during the year and the
Corporation’s plans for the future. No motions were proposed
for consideration at the AGM.
George Mackey Memorial Trophy
A highlight of the AGM was the presentation of the George
Mackey Memorial Trophy for 2007–08 to the 2005 Penfolds
Yattarna Chardonnay. Established in memory of a former
chairman of the Corporation, this annual award is presented to
the best export wine of the year.
Ms Toohey is a non‑executive Member of the Corporation and
she chairs the Remuneration Committee.
FORMER MEMBERS
Other Members of the Corporation during the period covered by
this report were:
The Hon John MOORE AO (Chairman)
1 July 2006 to 30 June 2009
The Hon John Moore has had a distinguished career in
business and politics including terms as Minister for Defence
and Minister for Industry, Science and Tourism in the
Australian Government. Prior to entering Parliament, he built a
PENFOLDS WINEMAKER KYM SCHROETER
39
BOARD AND COMMITTEE MEMBERSHIP AND ATTENDANCE AT MEETINGS
Attended Held*
Board
Attended
Held*
Market Development Advisory Committee
John Moore (Chair – ceased 30/6/09)
9
Tony Jordan
8
Kevin McLintock
9
9
9
John Moore #
(Chair – ceased 30/6/09)
5
5
9
Stephen Couche (Deputy Chair)
2
5
Andrew Moore (Deputy Chair)
9
9
Allister Ashmead (ceased 15/10/08)
2
2
Mark Purbrick
8
9
Steven Barbera
2
5
Josephine Rozman
9
9
Kate Thompson
8
9
Andrew Cheesman +
(appointed 23/6/09)
1
1
Natalie Toohey
9
9
Anthony Davie
3
5
Andrew Guard (ceased 15/10/08)
0
2
Gordon Gebbie
2
5
5
Mark Purbrick # (Chair)
5
5
Robert Hill-Smith
4
Josephine Rozman #
5
5
Ian Hollick (ceased 15/10/08)
2
2
Kate Thompson #
5
5
Tony Jordan # (appointed 15/10/08)
1
3
3
John Moore (Chair – ceased 30/6/09)
2
2
Mark Purbrick
2
2
#
#
Knowledge Development Advisory Committee
Josephine Rozman # (Chair)
3
Andrew Kay (appointed 15/10/08)
2
Andrew Moore #
5
5
Jock Osborne + (ceased 23/6/09)
4
4
Stephen Strachan
2
5
Kerri Thompson
2
5
3
George Wahby
3
5
Alex Wright (appointed 15/10/08)
3
3
Tim Althaus (ceased 4/12/08)
0
1
Angus Barnes (ceased 4/12/08)
1
1
Darren De Bortoli (appointed 4/12/08)
2
2
Christopher Findlay (appointed
4/12/08)
1
2
Brenton Fry (appointed 4/12/08)
2
2
Darryn Hakof (appointed 4/12/08)
1
2
John S Harvey
1
3
W John Harvey (ceased 4/12/08)
1
1
Peter Hayes (ceased 4/12/08)
0
1
Legislation Review Committee
Kate Thompson # (Chair)
2
2
Tony Battaglene
2
2
Owen Malone
2
2
James Omond
1
2
John Power
2
2
Will Taylor
1
2
John Whelan
2
2
2
Paul van der Lee (appointed 4/12/08)
2
2
James Lovell (ceased 4/12/08)
0
1
Mark McKenzie
3
3
Anabel Shears Carter
(Presiding Member)
2
Stuart McNab (appointed 4/12/08)
2
2
Brian Engelfield
2
2
Bill Moularadellis (appointed 4/12/08)
2
2
Dennis Mutton
2
2
Jan O’Connor (ceased 4/12/08)
0
1
Andrew Pirie (appointed 4/12/08)
2
2
John Power
2
3
* Indicates the meetings held during the year that the member
could have attended
Brian Walsh (ceased 4/12/08)
0
1
# Indicates a Member of the Corporation
+ Indicates a Corporation employee
Chief Executive
Board
Trade Manager
General Manager Compliance & Trade
General Manager Market Development
Senior Analyst
Manager Information & Analysis
UK Office
Director – UK/Ireland/Europe
US Office
Director – North America
Canada Office
Japan Office
Regional Manager Japan
Ireland Office
China Office
Executive Officer Communications
Marketing Officers
Wine Inspectors
Compliance Officers
Analysts
Regional Manager Emerging Markets
Executive Assistant
Manager Int’nal Marketing & Communications
Manager Export Compliance
Auditors
Administration Officers
Systems & IT Officers
Finance Officers
Executive Assistant
Chief Financial Officer
Corporation Secretary/Executive Officer GIC
40
THE ORGANISATION
ORGANISATIONAL STRUCTURE
41
ENABLING LEGISLATION
The Corporation’s functions are:
Established under the Australian Wine and Brandy
Corporation Act 1980 (the AWBC Act), the Corporation’s objects,
functions and powers are set out in the AWBC Act and the
Australian Wine and Brandy Corporation Regulations 1981
(the AWBC Regulations).
• To promote and control the export of grape products
from Australia;
Objectives
• To conduct, arrange for, and assist in, research relating to the
marketing of grape products; and
The objects of the AWBC Act are:
• To promote and control the export of grape products
from Australia;
• 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;
• To enable Australia to fulfil its obligations under prescribed
wine‑trading agreements;
• For the purpose of achieving any of the objects set out in the
preceding paragraphs:
– to determine the boundaries of the various regions and
localities in Australia in which wine is produced;
– to give identifying names to those regions and localities; and
– to determine the varieties of grapes that may be used
in the manufacture of wine in Australia;
• To advance the objects of the AWBC Act by helping to ensure
the truth, and the reputation for truthfulness, of statements
made on wine labels, or made for commercial purposes
in other ways, about the vintage, variety or geographical
indication of wine manufactured in Australia; and
• To regulate the sale, export and import of wine:
– for the purpose of enabling Australia to fulfil its obligations
under prescribed wine‑trading agreements; and
– for certain other purposes for which the Parliament has
power to make laws.
Functions of the Corporation
The Corporation’s functions relate to defined grape products
that comprise Australian wine, brandy, grape spirit and products
derived in whole or in part from grapes that have been declared
by the AWBC Regulations to be grape products.
• 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;
• Such other functions in connection with grape products
as are conferred on the Corporation by the AWBC Act
or the Regulations.
The Geographical Indications Committee’s function is to make
determinations of geographical indications for wine in relation to
regions and localities in Australia.
Powers of the Corporation
The AWBC Act gives the Corporation the power to do all things
necessary to be done in connection with the performance
of its functions.
PLANNING AND REPORTING FRAMEWORK
The Corporation must prepare three to five year Corporate Plans and
Annual Operational Plans and report its performance in an Annual
Report. All documents are available on the Corporation’s website.
Corporate Plan
The 2006 – 2009 Corporate Plan, approved by the Minister on 7
June 2006, sets out the strategy to be followed in delivering the
objects of the AWBC Act over the three years ending on 30 June
2009. There were no variations to the Corporate Plan pursuant
to sections 31B or 31C of the AWBC Act.
Annual Operational Plan & Portfolio
Budget Statement
The 2008‑09 Annual Operational Plan, approved by the Minister
on 15 July 2008, 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 AWBC Act.
The Corporation’s annual strategy and budget are also included
in the Department of Agriculture, Fisheries and Forestry’s
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.
42
THE ORGANISATION
The Annual Report is prepared in accordance with the
requirements of the Commonwealth Authorities and Companies
Act, 1997 (the “CAC Act”).
OTHER REPORTING REQUIREMENTS
The Corporation employed 48 people at 30 June 2009.
A directory of employees at the date of this report is included
as Appendix 1.
Location
Australia
Females
Fulltime
Parttime
Fulltime
Parttime
Total
15
1
22
4
42
UK
Japan
Total
4
1
16
1
1
27
4
The Corporation is committed to providing a safe and pleasant
work environment for both staff and visitors as required by the
Occupational Health and Safety Act, 1991.
Because of its size, the Corporation is not required to establish
a health and safety committee and staff elected not to
establish designated work groups or to select health and safety
representatives. The Corporation consults with all staff on
health and safety matters and includes them in the decision
making process. Occupational health and safety procedures are
in place and the Corporation has developed written health and
safety management arrangements in consultation with staff.
Staffing
Males
Occupational health and safety
4
All necessary measures were taken during the year to ensure
the health, safety and welfare of staff and visitors. There were
no reportable injuries during the year and no investigations
were conducted.
2
Judicial decisions and reviews by outside bodies
48
The people that work on behalf of the Corporation in the United
States of America (5), Canada (3) and China (1) are employed by
Austrade and made available to the Corporation by agreement
and the Regional Manager Ireland consults to the Corporation.
Freedom of information
No requests for documents under the Freedom of Information
Act, 1982 (the “FOI Act”) were received during the 2008–09 year.
The following information is provided in accordance with the
FOI Act:
• The Corporation’s functions, organisational structure and
decision‑making powers are detailed in this report.
• Formal consultation arrangements are in place with the
national winemakers’ and grape growers’ organisations to
enable them to contribute to the formulation of policy. Wine
sector representatives sit on all advisory committees.
• Interested parties may contact the Chief Executive or any
Board Member to comment or make suggestions on policies
or procedures.
• Freedom of information inquiries and applications may be
directed to the Corporation Secretary.
• Corporate Plans, Annual Operational Plans, Annual Reports
and the Register of Protected Names can be viewed on the
Corporation’s website and are available for inspection at the
Corporation’s office.
The Corporation was not the subject of any:
• judicial or administrative tribunal decisions that have had,
or may have, a significant impact on the operations of the
Corporation; or
• reports by the Auditor‑General (other than the report on the
financial statements), a Parliamentary committee or the
Australian Government Ombudsman.
Ministerial directions
The AWBC Act provides that the Minister may give direction to
the Corporation 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 CAC Act, the Minister, and the Minister for Finance
and Deregulation, may issue directions to the Board, and
the Minister may notify the Board of any general Australian
Government policies that apply to the Corporation. At the date of
this report, the following notifications have 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 the Corporation to provide
annual Compliance Reports on legislative compliance and
financial sustainability.
• The Minister has notified the Corporation under Section
28 of the CAC Act that the following policies apply
to the Corporation:
– On 21 August 2002, Commonwealth Fraud Control
Guidelines 2002.
– On 8 November 2005, Australian Government Property
Ownership Framework.
– On 24 January 2007, Protective Security Manual
2005 (PSM).
Consultation payments to industry organisations
The Corporation has a formal relationship with the
Winemakers’ Federation of Australia Inc (WFA) – the peak
industry organisation representing Australian winemakers.
Consultation payments totalling $150,000 were paid to
WFA during the financial year in regard to a range of
matters including technical issues, health and social
responsibility activities, vine health and biosecurity issues and
environmental activities.
Ecologically sustainable development and
environmental performance
In accordance with the requirements of the Environment
Protection and Biodiversity Conservation Act 1999, the
Corporation reports that:
• it supports the principles of ecologically sustainable
development and seeks to ensure that its activities accord
with those objectives by taking economic, environmental,
social and equitable considerations into account in the
decision making process.
• its outcome – to enhance the operating environment for
the benefit of the Australian wine industry – contributes
to ecologically sustainable development by facilitating
the development of the industry in a sustainable and
responsible manner.
• it cares for the environment by minimising the consumption
of power and recycling waste products where practicable and
its activities have minimal impact on the environment.
Disability strategy
The Corporation’s policies, programs and services are
accessible to people with disabilities and meet its obligations
under the Disability Discrimination Act 1992. The Corporation 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.
43
Indemnities and insurance premiums for officers
The Corporation has Directors’ and Officers’ Liability insurance
but the insurer has recommended that details of the policy and
the premium paid not be disclosed. No indemnities have been
provided to any current or former officers.
44
THE WINE INDUSTRY
WORLD WINE PRODUCTION
Italian wine production increased by 1% to 4.7 billion litres.
In contrast, French production declined for the second
consecutive year, down 6% to 4.4 billion litres. The Italian share
of world wine production remained at 17% while the French
share fell one percentage point to 16%.
Production increased marginally in 2008
The 2008 harvest is the latest for which world wine production
data is available. According to the Corporation’s Global Wine
Supply Monitor, world wine production increased 0.3%
(81 million litres) to 27 billion litres in 2008, the first increase
since 2004.
The combined production of Italy and France was significantly
less than a decade ago – having declined by a quarter from a
reported peak of 12 billion litres in 1999 to 9 billion litres in 2008.
French wine production in 2008 was the lowest since 1994, while
Italian production was the fourth lowest in the same period.
In the period since 1994, world wine production has remained in
the 25 to 28 billion litre range except for 2004 when production
edged to just over 30 billion litres.
Italy overtook France, Australia sixth
Spain (up 2%), Germany (up 2%), and Romania (up 19%) all
recorded increases in production.
The top five wine producers in the world in 2008 were Italy (4.7
billion litres), France (4.4 billion litres), Spain (3.7 billion litres),
the United States (2.5 billion litres) and Argentina (1.5 billion
litres). Together they accounted for 62% of the wine produced,
down three percentage points from a peak of 68% in 2000.
Romania recorded the largest absolute increase in production
(up 119 million litres), albeit off a low base, while France recorded
the largest decline (292 million litres). The decline in French
wine production was chiefly responsible for the overall decline
for the top five European countries.
After being the world’s largest wine producer for almost a
decade, France was overtaken by Italy in 2008. Together, Italy
and France produced a third of the world’s wine in 2008.
Top five New World countries driving increase
Wine production for the top five New World wine producing
countries (US, Argentina, Australia, South Africa and Chile)
increased by 5% (365 million litres) in 2008 to 7.1 billion litres and
the combined share of world production of these five countries
increased by one percentage point to 26%.
Australia was the sixth largest producer with 1.3 billion litres
in 2008, just behind Argentina. Australia accounted for 5% of
world wine production, an equal high share with that recorded
in 2005 and 2006.
The US remained the largest New World producer, increasing
production by 2% to 2.5 billion litres.
Top five EU countries lose share
Wine production in Europe’s top five wine producing countries
(Italy, France, Spain, Germany and Romania) is estimated to
have declined by 0.4% (64 million litres) to 14.5 billion litres
in 2008, although their combined share of world production
remained at 54%.
Despite a 2% decline in production to 1.5 billion litres in 2008,
Argentina remained the second largest New World producer
(and fifth in the world).
Australia overtook South Africa to regain its position as the third
largest producer of wine in the New World (and sixth overall),
Figure 4, Six Largest Wine Producing Countries
35
7
30
6
25
5
Billion Litres
Billion Litres
Figure 3, World Wine Production
20
15
10
France
Italy
Spain
Australia
USA
Argentina
4
3
2
5
1
0
99
19
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
t
es
08
20
t
es
0
99
19
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
es
t
08
20
es
t
45
Australia was the sixth largest wine producer in the world
with 1.3 billion litres in 2008.
having recovered strongly from the low 2007 harvest with a 35%
increase in 2008, to 1.3 billion litres. Australia easily recorded the
largest volume increase (341 million litres), albeit coming off a
seasonally affected low base, and accounted for over 90% of the
increase in the production for the top five New World countries.
with the value of exports nearly double that of second ranked
Italy (US$5.0 billion). Australia (US$2.5 billion), Spain (US$2.3
billion) and Chile (US$1.3 billion) rounded out the top five. These
five countries accounted for just over three quarters of the value
of the global wine trade.
South Africa recorded a 5% increase in wine production to 1.1 billion
litres but the increase in volume (49 million litres) was small in
comparison to the Australian increase. South Africa dropped back
one place to rank fourth in the New World and seventh globally.
Bulk wine exports increase
Chile, one of Australia’s major exporting competitors, registered
a 5% decline in production in 2008 to 786 million litres. Chile
ranked number five in the New World and ninth overall.
Bottled wine held the dominant volume share of wine traded,
however the volume of wine shipped in bulk accounted for a
growing share. In 2008, 58% of global exports were bottled
(down one percentage point), 36% was shipped in bulk (up
one percentage point), while sparkling wine accounting for the
remaining 6% (unchanged).
WORLD WINE TRADE
AUSTRALIAN WINE PRODUCTION
Value increases despite lower volumes
Crush down in 2009
According to the Winemakers’ Federation of Australia’s 2009
Vintage Report, the Australian winegrape crush is expected to
decline by 7% from the 2008 crush to 1.71 million tonnes. Red
varieties accounted for nearly two‑thirds of the total decline,
with the red crush down 8% to 888,300 tonnes. White varieties
Figure 4, Six Largest Wine Producing Countries
also declined,
with the white crush down 5% to 817,700 tonnes.
According to the Global Trade Atlas, the volume of wine traded
globally in 2008 declined by 1% to 7.3 billion litres. Despite the
decline in volume, the value of exports increased by 7% to over
US$27 billion driven mainly by an increase in average price of
8% to US$3.72 per
litre.
Figure 3, World Wine Production
UK most valuable export destination
Shiraz
regains topItaly
spot
7
The top five markets by value for imported wine remained
30
unchanged in 2008. The United Kingdom (US$5.1 billion) was
25
the most valuable, followed by the United States (US$4.6 billion),
20
Germany (US$3.0 billion), Belgium (US$1.7 billion) and Canada
15
(US$1.6 billion). The US was the only destination to record a
10
decline in the value of wine imports, albeit marginal.
Billion Litres
0
es
t
Spain
Australia
USA
Argentina
Shiraz
regained its position as the most crushed Australian
6
variety
for the first time since 2006, pushing Chardonnay
5
into
second spot. Cabernet Sauvignon, Merlot and Semillon
4
completed the top five varieties crushed.
3
Although
Shiraz declined by 8% to 403,100 tonnes to represent
2
24%
1 of the total crush, Chardonnay declined by a larger amount,
down
51,425 tonnes (11%) to 398,576 tonnes. Cabernet Sauvignon
t
0
st
es
6
7e
08
05 24%
04
99
00
01
02 2003 also
00 to2126,370
00
fell 4%
20
20
20 dropped
19 to 247,500
20
20tonnes,
20 Merlot
tonnes and Semillon fell 20% to 76,879 tonnes.
5
Australia the third largest exporter
France
t
es
7
08
03 exporters
05 2006 200unchanged
04
The rankings
99
00 in the
01 top0five
02 wine
20
20
20 remained
20
19
20
20
2
in 2008. France (US$9.9 billion) remained the dominant exporter
Figure 5, Production EU and New World
Figure 6, Global Wine Trade
18
7
16
6
Volume (Billion Litres)
Billion Litres
8
14
12
Total Top 5 EU Producers
10
Total Top 5 New World Producers
8
00
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
10
Value
2
0
15
Volume
3
1
20
20
4
4
99
25
5
6
19
30
5
99
19
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
0
Value (USD Billions)
Billion Litres
35
46
THE WINE INDUSTRY
These five varieties together accounted for 73% of the
2009 crush.
Among the lesser crushed varieties, increases were recorded by
Sauvignon Blanc (up 3% to 63,253 tonnes), Muscat Gordo Blanco
(up 31% to 56,782), Pinot Gris/Grigio (up 38% to 40,546) and
Viognier (up 13% to 13,338).
Unusual weather conditions
In general, across Australia, the season was characterised by
unusual weather conditions. Over winter, rainfall was below
average and temperatures above average. Spring was relatively
warm and dry in the early stages and ended with a relatively
cool and wet November. The cool, wet conditions continued into
December in many grape growing regions.
The November/December rainfall was of greatest assistance
in the cooler‑climate districts where it improved soil moisture
profiles. For the Murray Darling and Swan Hill regions in Victoria
and the Riverland in South Australia, this rainfall allowed
a small increase in irrigation water allocations in January,
from very low levels. On the other hand, the Riverina in New
South Wales enjoyed maximum water allocation for most
of the season.
January was very dry with temperatures around average for the
first few weeks of the month. However, the last week of January
and first week of February saw an extreme heat event across
much of South Eastern Australia. Temperatures were above
38˚C for almost two weeks including a number of days with
heat spikes of around 45˚C. The heatwave occurred early in the
white harvest. While some of the white crop was affected, most
of it was harvested in ways that mitigated the effects of the heat.
The following six weeks were generally mild and dry allowing
the grapes, principally the reds, to recover from the heat stress.
Western Australia escaped the heatwave and generally
experienced an excellent growing season with good rains and
cool‑to‑mild temperatures.
The bushfires that occurred across regional Victoria around the
time of harvest had a devastating effect on local communities
however the overall impact on the national harvest was minimal.
The regions most affected by the bushfires account for less than
5% of the national harvest and relatively few vineyards in those
regions were affected.
Good‑to‑excellent quality
Australia’s 2009 vintage could be described as producing
wines that are generally of good‑to‑excellent quality, however
much depends on the individual region and variety. There were
highlights such as Western Australia, the Hunter and Tasmania
and many instances of high to outstanding quality in South
Australia and Victoria.
With over 60 wine regions in Australia and a wide range of
climates and weather patterns, there are always exceptions and
much depends on individual vineyards, canopy management
and access to water, especially in times of extreme weather.
The heatwave had varied effects although the general result was
a sharp reduction in yields. Reduced yields in some instances
however were caused by the drought and ironically, cold, wet
weather at flowering.
For the regions affected by the heat, overall the vines held
up well due mainly to the extreme heat occurring early in
the season, and the mild conditions after the heat subsided.
The lessons learned from restrictive water conditions in many
regions over the last few years and a similar heat spike in the
previous year, meant growers managed their vines well, with
many showing a remarkable capacity to limit the damage to
Figure 7, Value of Wine Imported By Top Five Markets in 2008
USD Millions
5000
2%
Imported
wine
Incremental growth in current year
4000
7%
3000
15%
2000
5%
Million Litres
6000
Figure 8, Wine Sales in Australia
Australian
wine
500
2007–08
400
2008–09
300
200
1000
0
100
-0.02%
-1000
ted
Uni
dom
King
s
tate
S
ted
Uni
y
man
Ger
ium
Belg
ada
Can
0
l
Tota
l
Tota
All
still
e
e
e
ine
ine
win
win
win
gw
ill w
still
ified
k st
rklin
tled
Fort
Cas
Spa
Bot
47
Shiraz, Chardonnay, Cabernet Sauvignon, Merlot and
Semillon accounted for 73% of the 2009 wine grape crush.
foliage and fruit and to show a good level of recovery given the
water resources available. Healthy canopies shielded most
varieties from any major damage. The later‑ripening regions,
such as the Adelaide Hills and Limestone Coast, recovered
very well. Sauvignon Blanc and Shiraz from Adelaide Hills
and Chardonnay from Limestone Coast were highlights from
those regions.
short duration of the smoke haze resulted in minimal smoke
effect on the surviving fruit. Selective harvesting and fruit
sorting were particularly important to avoid potential issues and
extensive grape and wine sampling was conducted in order to
ensure high quality grapes and wines.
Western Australia experienced a cool year and therefore had a
later vintage than normal with the dry ripening season allowing
for full‑flavoured, medium‑bodied wine styles. Aromatic whites
were good and Cabernet Sauvignon and Chardonnay from
Margaret River, and Chardonnay and Sauvignon Blanc from
Pemberton were particularly impressive.
Imported wine drives domestic growth
The warm inland regions performed well. In the most
heat‑affected regions such as the Riverland and Murray Darling
– Swan Hill, the
grapes
longer
to By
ripen
andMarkets
the best
Figure
7, Valuetook
of Wine
Imported
Top Five
in 2008
fruit came off later than normal, with pleasing results for
Shiraz
6000 particular.
2%
Incremental growth in current year
USD Millions
5000 Vale suffered more heat damage than most other
McLaren
4000
regions,
and access to water and canopy
management were
7%
3000
critically
important. However, the quality of later‑ripening
15%
5%
2000
varieties such as Grenache were excellent as they went
1000
through veraison during the heat event and the canopies were
0
-0.02% in wines that are full of flavour
able to hold up well, resulting
-1000
da
um
tes
and structure.ingdom
any
ana
Sta
elgi
erm
ted
dK
C
B
G
Uni
nite
U
In bushfire‑affected
regions such as the Yarra Valley, while the
bushfires impacted on the size of the crop, the high intensity/
Wine sales in the domestic market amounted to 489 million
litres in 2008‑09, an increase of 1.6%. The growth was driven by
imported wine which increased by 17% to 63 million litres, while
domestic sales of Australian wine decreased by 0.3% to 426
million litres. The growth of imported wine resulted in its share
of Australian wine consumption increasing by 2 percentage
points to 13%.
Reds down, white and sparkling up
The market for red wine within Australia declined by 1% with an
increase in Australian sales failing to offset a decline in red wine
imports. White wine sales increased by 3%, driven by a 32%
Figure
8, Wine
Sales more
in Australia
increase in imported white
wine,
which
than offset a 1%
decline in Australian white sales. Sparkling wine sales (including
Imported
Australian
Champagne)
grew by 3%, driven mainly
by imports.
wine
wine
Sauvignon Blanc overtakes Chardonnay
Million Litres
Tasmania also experienced a cool and late vintage. As conditions
were dry, most varieties ripened perfectly and with strong bright
fruit and clean acid balance. Chardonnay, Riesling and Pinot
Gris were stand‑outs in Tasmania.
AUSTRALIAN DOMESTIC MARKET
500
2007–08
Sauvignon
Blanc overtook Chardonnay as Australia’s most
400
2008–09
popular
variety
by
value
in
the
off‑trade
market.
However,
300
Chardonnay
was still by far the most popular in terms of
200
100 Shiraz remained the most popular red varietal
volume.
0 and was third overall. Cabernet Sauvignon and
by value,
e
l
l
ne
ine
ine
ine
win
Tota still wi
Tota
gw
ill w topkfive
ill w outstthe
Semillon/Sauvignon
rounded
ified
k st
ll
r lin varietals
ABlanc
tled
Fort
Cas
Spa
Bot
by value.
Figure 10, Australian Wine Sales
Figure 9, Imported Wine Sales in Australia
40
800
35
600
2008–09
25
Million Litres
Million Litres
700
2007–08
30
20
15
500
400
300
10
200
5
100
0
till
ite S
Wh
Red
l
Stil
ified
Fort
g
rklin
Spa
er
Oth
Domestic Sales
Exports
0
0
–0
99
19
1
–0
00
20
2
–0
01
20
3
–0
02
20
4
–0
03
20
5
–0
04
20
6
–0
05
20
7
–0
06
20
–0
07
20
8
9
–0
08
20
48
THE WINE INDUSTRY
AUSTRALIAN WINE EXPORTS
bulk wine in the export mix, together with a decline in both bulk
and bottled wine prices, contributed to a drop in the average
shipment price per litre.
Challenging trading conditions
The volume of Australian wine exports increased 6% to 750
million litres in 2008–09, while value declined 10% to A$2.43
billion on the back of an average price decline of 15% to
A$3.24 per litre.
In terms of colour, an increase in the volume of white wine
shipments more than offset a decline in red wine shipments.
The major markets
There were mixed fortunes for Australia’s two major markets,
the UK and the US. Both the volume and value of shipments
to the UK declined while volume increased and value declined
in the case of the US. While the UK remained number one in
volume terms, the US jumped over the UK to be number one
in value.
The Australian wine sector faced a challenging trading
environment in 2008‑09 that included the global financial crisis,
exchange rate volatility, continuing intense competition from
other countries, tightening margins, and supply and demand
imbalances. Despite these trading conditions, the volume
exported was still the second highest on record, while the
absolute value decline was less than in 2007‑08.
The top five destinations for absolute value growth in Australian
wine exports in 2008‑09 were, in order, China, Hong Kong,
Malaysia, Japan and Finland. China was the clear stand‑out with
the value of exports to the market increasing by A$32 million
to A$94 million resulting in China climbing three places to
become Australia’s fourth largest market by value. However,
the performances in these markets only partially offset the
significant declines in values shipped to other markets.
Bulk shipments the major driver
A significant increase in bulk shipments and a decline in bottled
shipments were the key outcomes influencing the 2008‑09
results. A number of factors contributed to the increase in bulk
shipments including: a rebound in the sizes of the 2008 and
2009 national harvests following the severely drought‑effected
2007 harvest thereby increasing supply pressures; a favourable
Australian dollar (particularly in the first half of the financial
year) which returned margins to the bulk wine market; some
companies electing to bottle overseas for economic reasons;
and bulk wine destined for buyers‑own brands, particularly in
the United Kingdom.
Figure 11, Australian Wine Export Approvals Major Destinations
$A FOB Million $A FOB Million
1000
The global financial crisis has impacted on many of Australia’s
key export markets and signs of conservative economic
behaviour are evident, boosting the lower‑priced bulk wine
shipments while cutting into the demand for the relatively
higher‑priced bottled segment. Overall, the increased share of
800
600
Figure 12, MAT Export Performance
Volume
6000
400
2000
3000
1500
2500
1000
2000
500
1500
0
1000
500
)
5.0
Figure 12, MAT Export Performance
4.0
Volume
Value
3.0
5.0
Average A$ per litre, FOB
2.0
4.0
1.0
3.0
00 –01 –02 –03 –04 –05 –06 –07 –08 –09
00 001 002 003 004 005 006 007 008
20
2
2
2
2
2
2
2
2
9–
9
19
0
00 –01 –02 –03 –04 –05 –06 –07 –08 –09
00 001 002 003 004 005 006 007 008
20
2
2
2
2
2
2
2
2
9–
9
19
ada
Chin
a
NZ
ada
a
Chin
NZ
US
UK
Can
US
UK
Can
Figure 13, Australia’s Trade Balance 2008–09 (Volume)
Value
Average A$ per litre, FOB
2008–09
800
200
200
0.0
2.0
1.0
0.0
Average A$ per Average
litre, FOBA$
( per
) litre, FOB (
Litres (
Million Litres ( Million
)
A$ Million ( ) A$ Million (
)
)
2500
2007–08
1000
400
0
3000
2007–08
Figure 11, Australian Wine Export Approvals Major Destinations
2008–09
Exports (750 ML)
Imports
Figure (63
13, ML)
Australia’s Trade Balance 2008–09 (Volume)
Exports (750 ML)
Imports (63 ML)
FINANCIAL STATEMENTS
Year ended 30 June 2009
INDEPENDENT AUDITOR’S REPORT
50
STATEMENT BY CORPORATION
MEMBERS AND CHIEF EXECUTIVE
51
INCOME STATEMENT 52
BALANCE SHEET
53
STATEMENT OF CHANGES IN EQUITY
54
CASH FLOW STATEMENT
55
SCHEDULE OF COMMITMENTS
56
SCHEDULE OF CONTINGENCIES
57
NOTES TO AND FORMING PART
OF THE FINANCIAL STATEMENTS
58
49
50
To the Minister for Agriculture, Fisheries and Forestry
Scope
I have audited the accompanying financial statements of the Australian Wine and Brandy Corporation for the year ended 30 June
2009, which comprise: a Statement by the Corporation Members and Chief Executive; Income Statement; Balance Sheet; Statement
of Changes in Equity; Cash Flow Statement; Schedules of Commitments and Contingencies; and Notes to and Forming Part of the
Financial statements, including a Summary of Significant Accounting Policies.
The Responsibility of the Members for the Financial Statements
The Members of the Australian Wine and Brandy Corporation are responsible for the preparation and fair presentation of the financial
statements in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997,
including the Australian Accounting Standards (which include the Australian Accounting Interpretations). This responsibility includes
establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are
free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial statements based on my audit. I conducted my audit in accordance with the
Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These auditing standards
require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the Australian Wine and Brandy Corporation’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Australian Wine and Brandy Corporation’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the Members, as well as evaluating the overall presentation
of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Independence
In conducting the audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the
requirements of the Australian accounting profession.
GPO Box 707 CANBERRA ACT 2601
19 National Circuit BARTON ACT 2600
Phone (02) 6203 7300 Fax (02) 6203 7777
51
STATEMENT BY THE CORPORATION
MEMBERS AND CHIEF EXECUTIVE
Independent Auditor’s Report (continued)
Auditor’s Opinion
In my opinion, the financial statements of the Australian Wine and Brandy Corporation:
(a)have been prepared in accordance with the Finance Minister’s Orders made under the Commonwealth Authorities and Companies
Act 1997, including the Australian Accounting Standards; and
(b)give a true and fair view of the matters required by the Finance Minister’s Orders including the Australian Wine and Brandy
Corporation’s financial position as at 30 June 2009 and its financial performance and cash flows for the year then ended.
Australian National Audit Office
John McCullough
Audit Principal
Delegate of the Auditor-General
Canberra
28 August 2009
AUSTRALIAN WINE AND BRANDY CORPORATION
STATEMENT BY THE CORPORATION MEMBERS AND CHIEF EXECUTIVE
In our opinion, the attached financial statements for the year ended 30 June 2009 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.
In our opinion, at the date of this statement, there are reasonable grounds to believe that the Corporation will be able to pay its debts
as and when they become due and payable.
This statement is made in accordance with a resolution of the Members of the Australian Wine and Brandy Corporation.
A CheesmanE E Sullivan
Chief Executive
Chief Financial Officer
25 August 2009
25 August 2009
J Dominguez CBE AM
Chairman
25 August 2009
M S Purbrick
Chairman – Audit and Finance Committee
25 August 2009
52
INCOME STATEMENT
for the year ended 30 June 2009
Note
2009
$’000
2008
$’000
INCOME
Revenue
Revenue from government
4A
160
78
Sale of goods and rendering of services
4B
5,947
6,620
Interest
4C
177
226
Rental income
4D
68
52
Industry levies and contributions
4E
8,293
8,180
Other revenue
4F
Total Revenue
215
230
14,860
15,386
160
–
Gains
Foreign exchange
4G
Total Gains
Total Income
160
–
15,020
15,386
EXPENSES
Employee benefits
5A
4,535
5,492
Suppliers
5B
8,931
9,288
Depreciation and amortisation
5C
387
406
Write-down and impairment of assets
5D
625
6
Foreign exchange losses
5E
–
101
Losses from asset sales
5F
16
1
14,494
15,294
526
92
Total Expenses
Surplus (Deficit)
The above statement should be read in conjunction with the accompanying notes.
53
BALANCE SHEET
as at 30 June 2009
Note
2009
$’000
2008
$’000
ASSETS
Financial Assets
Cash and cash equivalents
6A
Trade and other receivables
6B
4,643
3,439
986
1,136
5,629
4,575
7A
173
295
Total financial assets
Non-Financial Assets
Land and buildings
7B, C
384
343
Intangibles
7D
–
536
Inventories
7E
–
3
Other non-financial assets
7F
94
78
Infrastructure, plant and equipment
Total non-financial assets
Total Assets
651
1,255
6,280
5,830
1,457
1,164
LIABILITIES
Payables
Suppliers
8A
Other payables
8B
Total payables
157
381
1,614
1,545
Provisions
Employee provisions
9A
793
938
Other provisions
9B
151
151
Total provisions
944
1,089
Total Liabilities
2,558
2,634
Net Assets
3,722
3,196
EQUITY
188
188
Retained surplus
3,534
3,008
Total Equity
3,722
3,196
Current Assets
5,682
4,625
Reserves
Non-Current Assets
Current Liabilities
Non-Current Liabilities
598
1,205
2,265
2,384
293
250
54
STATEMENT of CHANGES in EQUITY
Asset Revaluation
Reserve
Retained Earnings
Total Equity
2009 $’000
2008 $’000
2009 $’000
2008 $’000
2009 $’000
2008 $’000
3,008
3,605
188
188
3,196
3,793
–
(689)
–
–
–
(689)
3,008
2,916
188
188
3,196
3,104
Revaluation adjustment
–
–
–
–
–
–
Sub-total income
and expenses recognised
Directly in Equity
–
–
–
–
–
–
Surplus (Deficit) for the period
526
92
–
–
526
92
Total income and expenses
526
92
–
–
526
92
Closing balance at 30 June
3,534
3,008
188
188
3,722
3,196
Opening balance
Adjustment for error
Adjusted opening balance
Income and expense
recognised directly
into equity
55
CASH FLOW STATEMENT
Note
2009
$’000
2008
$’000
OPERATING ACTIVITIES
Cash received
6,671
Goods and services
6,333
Receipts from government
249
109
Interest
184
224
8,259
8,293
Other cash received
283
282
Total cash received
15,646
15,241
Employees
(4,690)
(5,408)
Suppliers
(8,984)
(8,210)
Cash used
Net GST paid
Total cash used
Net cash flows from or (used by) operating activities
10
(357)
(411)
(14,031)
(14,029)
1,615
1,212
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment and intangibles
(411)
(325)
Total cash used
(411)
(325)
Net cash flows from or (used by) investing activities
(411)
(325)
Net increase (decrease) in cash held
1,204
887
Cash and cash equivalents at the beginning of the
reporting period
3,439
2,552
4,643
3,439
Cash and cash equivalents at the end of the reporting period
10
56
SCHEDULE OF COMMITMENTS
as at 30 June 2009
2009 $’000
2008 $’000
BY TYPE
Commitments receivable
(130)
(50)
(61)
(94)
(191)
(144)
Operating leases1
943
1,351
Total operating lease commitments payable
943
1,351
Net commitments by type
752
1,207
One year or less
(65)
(50)
From one to five years
(65)
–
(130)
(50)
One year or less
(36)
(37)
(25)
(57)
Total other commitments receivable
(61)
(94)
One year or less
535
575
408
776
Total operating lease commitments payable
943
1,351
Net commitments by maturity
752
1,207
Sublease rental income
GST recoverable on commitments
Total commitments receivable
Other commitments
BY MATURITY
Commitments receivable
Operating lease income
Total operating lease income
Other commitments receivable
Commitments payable
Operating lease commitments
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
General description of leasing arrangement
Leases for office accommodation
Lease payments are fixed with terms varying from 2 years to 5 years and includes leases of
three overseas offices.
Motor Vehicles – senior executives
Lease terms vary between 2 and 3 years with no renewal or purchase options available.
Premises Car Parks
Car Park leases exist for two sites of the Corporation and are fixed for 5 years. Available
spaces are sublet to staff at commercial rates.
Office Equipment
Office equipment under lease are for a period of 4.25 years with no option to purchase.
Telephone System
The telephone system lease term is 5 years with a 5 year maintenance agreement in place to
provide prompt service as required. There are no cancellation, renewal, or purchase options.
The above schedule should be read in conjunction with the accompanying notes.
57
SCHEDULE OF CONTINGENCIES
as at 30 June 2009
Claims for
damages or costs
Guarantees
Indemnities
TOTAL
2009
$’000
2008
$’000
2009
$’000
2008
$’000
2009
$’000
2008
$’000
2009
$’000
2008
$’000
Balance from
previous year
–
–
–
–
–
–
–
–
New
–
–
–
–
–
–
–
–
Re-measurement
–
–
–
–
–
–
–
–
Assets recognised
–
–
–
–
–
–
–
–
Expired
–
–
–
–
–
–
–
–
Total contingent
assets
–
–
–
–
–
–
–
–
45
45
–
–
–
–
45
45
Contingent assets
Contingent
liabilities
Balance from
previous year
New
Re-measurement
Liabilities
recognised
–
–
–
–
–
–
–
–
(5)
–
–
–
–
–
(5)
–
–
–
–
–
–
–
–
–
Obligations expired
(9)
–
–
–
–
–
(9)
–
Total contingent
liabilities
31
45
–
–
–
–
31
45
Net contingent
assets (liabilities)
(31)
(45)
–
–
–
–
(31)
(45)
Details of each class of contingent liabilities and assets, including those not included above because they cannot be quantified, are
disclosed in Note 11: Contingent Liabilities and Assets.
The above schedule should be read in conjunction with the accompanying notes.
58
Notes to and Forming Part of
the Financial Statements
Note
Description
1
Summary of Significant Accounting Policies
2
Events after the Balance Sheet Date
3
Economic Dependency
4
Income
5
Expenses
6
Financial Assets
7
Non-Financial Assets
8
Payables
9
Provisions
10
Cash Flow Reconciliation
11
Contingent Liabilities and Assets
12
Remuneration of Members
13
Related Party Disclosures
14
Remuneration of Executives
15
Remuneration of Auditors
16
Financial Instruments
17
Compensation and Debt Relief
18
Reporting by Outcomes
59
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.1
Basis of Preparation of the Financial Report
The Financial Statements and notes are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies
Act 1997 and are a General Purpose Financial Report.
The Financial Statements and notes have been prepared in accordance with:
• Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2008; and
• Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply
for the reporting period.
The financial report has been prepared on an accrual basis and is in accordance with the historical cost convention, except for
certain assets 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 report is presented in Australian dollars and values are rounded to the nearest thousand dollar unless
otherwise specified.
Unless an alternative treatment is specifically required by an Accounting Standard or the FMOs, assets and liabilities are
recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Corporation
and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements
equally proportionately unperformed are not recognised unless required by an Accounting Standard.
Unless alternative treatment is specifically required by an Accounting Standard, revenues and expenses are recognised in
the Income Statement when and only when the flow, consumption or loss of economic benefits has occurred and can be
reliably measured.
1.2Significant accounting judgements and estimates
In the process of applying the accounting policies listed in this note, the Corporation has made no judgements that have
significant impact on the amounts recorded in the financial statements.
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to
carrying amounts of assets and liabilities within the next accounting period.
1.3New Accounting Standards
Adoption of new Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the application date as noted in the standard.
New standards, revised standards, interpretations or amending standards issued prior to the signing of the statements by the
Chief Executive and Chief Financial Officer, that are applicable to the current reporting period did not have a financial impact
and are not expected to have a future financial impact on the Corporation.
Future Australian Accounting Standard requirements
New standards, revised standards, interpretations or amending standards issued by the Australian Accounting Standards
Board prior to the signing of the statements by the Chief Executive and Chief Financial Officer, that are applicable to future
reporting periods are not expected to have a future financial impact on the Corporation.
1.4
Revenue
Revenue from the sale of goods is recognised when:
• The risks and rewards of ownership have been transferred to the buyer;
• The seller retains no managerial involvement nor effective control over the goods;
60
• 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 entity.
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 with the transaction will flow to the Corporation.
Revenue from the wine grape levy and export charge are recognised upon receipt of funds by the Levies Revenue Service of the
Department of Agriculture, Fisheries and Forestry.
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 balance date. 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.
Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and
the services would have been purchased had they not been donated. Use of those resources is recognised as an expense.
Revenues from Government
Funding received as special appropriations or grants for the year is recognised as Revenue from Government unless they are in
the nature of an equity injection.
1.5
Gains
Other resources received free of charge
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 agency or Authority as a consequence of a
restructuring of administrative arrangements
Resources received free of charge are recorded as either revenue or gains depending upon their nature.
Sale of Assets
Gains from disposal of non-current assets is recognised when control of the asset has passed to the buyer.
1.6Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of
balance date 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.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in
respect of services provided by employees up to the reporting date.
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, 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.
61
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 liability for the superannuation benefits under the PSS is recognised in
the financial statements of the Australian Government and is settled by the Australian Government in due course.
The principal types of benefit provided for under the plans are accumulated retirement benefits for the private schemes and
defined retirement benefits for the PSS.
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 of the superannuation entitlements of the
Corporation’s employees.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final month of the year.
1.7
Leases
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 non-current 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.
Where a non-current 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.
1.8
Borrowing Costs
All borrowing costs are expensed as incurred.
1.9Cash and cash equivalents
Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an original maturity of three
months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash
is recognised at its nominal amount.
1.10 Financial Assets
The Corporation classifies its financial assets in the following categories:
• ‘at fair value through profit or loss’;
• ‘held-to-maturity investments’;
62
• ‘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 over
the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets ‘at fair value through profit or loss’.
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss where the financial assets:
• have been acquired principally for the purpose of selling in the near future;
• are a part of an identified portfolio of financial instruments that the Corporation manages together and has a recent actual
pattern of short-term profit-taking; or
• are derivatives that are not designated and effective as a hedging instrument.
Assets in this category are classified as current assets.
Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or
loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.
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.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the
other categories. They are included in non-current assets unless management intends to dispose of the asset within 12 months
of the balance sheet date.
Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised
directly in the reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest
method and foreign exchange gains and losses on monetary assets are recognised directly in profit or loss. Where the asset
is disposed of or is determined to be impaired, part or all of the cumulative gain or loss previously recognised in the reserve is
included in profit for the period.
Where a reliable fair value cannot be established for unlisted investments in equity instruments, cost is used. The Corporation
has no such instruments.
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’. They are included in current assets, except for maturities greater than
12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are measured
at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective
interest rate.
63
Impairment of financial assets
Financial assets are assessed for impairment at each balance date.
• Financial assets held 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 Income Statement.
• 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 Income Statement.
• Available-for-sale financial assets (held 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.
1.11 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.
Other financial 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).
1.12Contingent 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 existing liability or asset
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.
1.13 Financial Guarantee Contracts
Financial guarantee contracts are accounted for in accordance with AASB 139 Financial Instruments: Recognition and
Measurement. They are not treated as a contingent liability, as they are regarded as financial instruments outside the scope of
AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
64
1.14 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 of acquisition.
1.15 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, 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).
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.
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 are carried at fair value less accumulated depreciation and
accumulated impairment losses. Valuations are 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
depends 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 reverses a previous revaluation decrement of the same asset class that
was previously recognised through the operating result. Revaluation decrements for a class of assets are recognised directly
through the operating result except to the extent that they reverse 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:
2009
2008
Lease term
Lease term
Plant and equipment
3 to 7 years
3 to 7 years
65
Impairment
All assets were assessed for impairment at 30 June 2009. Where indications of impairment exist, an impairment adjustment is
made if the asset’s recoverable amount is less than its carrying amount.
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.
No indicators of impairment were found for assets at fair value.
1.16Intangibles
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 (2007–08: 3 to 5 years).
All software assets were assessed for indications of impairment as at 30 June 2009.
1.17Inventories
Inventories held for sale are valued at the lower of cost and net realisable value.
1.18Taxation
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
• except for receivables and payables.
1.19 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 the Income Statement.
1.20Insurance
The Corporation has insured for risks through the Government’s insurable risk managed fund, called Comcover. Workers’
compensation is insured through Comcare Australia.
1.21Comparative figures
Comparative figures have been adjusted to conform to changes in presentation in these financial statements where required.
1.22 Prior period error
Revenue from the wine grape levy and export charge are now recognised upon receipt of funds by the Levies Revenue Service
of the Department of Agriculture, Fisheries and Forestry. In 2007–08 and prior years the export charge levy was recognised
upon shipment of the wine as declared to the Corporation through the export approval process.
In accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, the Corporation applied
retrospective restatement. The comparative amounts for the prior period have been restated to correct the error caused by the
recognition of revenue from the wine export charge prior to it being received by the Levies Revenue Service of the Department
of Agriculture, Fisheries and Forestry.
The financial impact of the correction was a reduction in retained surplus as at 1 July 2007 of $689,000, an increase in the
2007–08 operating surplus of $85,000 and an increase in the 2008–09 operating surplus of $49,000.
66
2 EVENTS AFTER THE BALANCE SHEET DATE
There has been no event after balance sheet date, with the potential to significantly affect the ongoing structure and financial
activities of the Corporation.
3 ECONOMIC DEPENDENCY
The Corporation is controlled by the Government of the Commonwealth of Australia 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, Fisheries & Forestry and the
marketing component of the levy is paid to the Australian Wine and Brandy Corporation under the Australian Wine and Brandy
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, Fisheries & Forestry and is paid to the Australian Wine and Brandy Corporation
under the Australian Wine and Brandy Corporation Act, 1980.
2009 4
$’000
2008 $’000
INCOME
Revenue
4A
Revenue from Government
Department of Agriculture, Fisheries and Forestry
Agricultural Technical Co-operation Program
80
–
Other
19
19
Department of Foreign Affairs and Trade
61
59
160
78
Provision of goods – related entities
436
689
Provision of goods – external entities
26
82
280
321
Export Market Development Grant
Total revenue from government
4B
Sale of goods and rendering of services
Rendering of services – related entities
4C
4D
Rendering of services – external entities
5,205
5,528
Total sales of goods and rendering of services
5,947
6,620
Deposits
177
226
Total interest revenue
177
226
Sub-lease
68
52
Total rental income
68
52
Interest
Rental income
Operating lease:
2009 4E
2008 $’000
Wine grape levy
3,545
2,605
Wine export charge
2,611
2,914
266
507
Program memberships
1,871
2,154
Total industry levies and contributions
8,293
8,180
Export partner sponsorships
215
230
Total other revenue
215
230
Non-speculative
160
–
Total foreign exchange gains
160
–
3,751
4,134
256
253
User pay promotions
4F
$’000
67
Other revenue
Gains
4G
Foreign Exchange
5
EXPENSES
5A
Employee benefits
Wages and salaries
Superannuation
Defined contribution plans
Defined benefit plans
Leave and other entitlements
Separation and redundancies
Other employee benefits
Total employee benefits
5B
33
31
260
283
35
534
200
257
4,535
5,492
378
618
Suppliers
Provision of goods – external entities
Rendering of services – related entities
2,630
2,146
Rendering of services – external entities
5,066
5,729
591
540
249
242
Operating lease rentals – related entities
Minimum lease payments
Operating lease rentals – external entities
Minimum lease payments
Workers compensation premiums
Total supplier expenses
17
13
8,931
9,288
68
2009 5C
$’000
2008 $’000
Depreciation and Amortisation
Depreciation:
Infrastructure, property, plant and equipment
Total depreciation
230
213
122
122
352
335
35
71
35
71
387
406
625
–
Amortisation:
Intangibles:
Computer software
Total amortisation
Total depreciation and amortisation
5D
Asset write-down and impairment from:
Impairment on intangible assets
Impairment allowance account
–
6
625
6
Non-speculative
–
101
Total foreign exchange losses
–
101
Total write-down and impairment of assets
5E
5F
Foreign Exchange Losses
Losses from asset sales
Infrastructure, plant and equipment
Proceeds from sale
Carrying value of assets sold
Total losses from asset sales
6
FINANCIAL ASSETS
6A
Cash on hand and at bank
–
–
16
1
16
1
350
756
Deposits
4,293
2,683
Total cash and cash equivalents
4,643
3,439
2009 6B
$’000
2008 69
$’000
Trade and other receivables
Goods and services – related entities
43
77
Goods and services – external parties
744
721
Total receivable for goods and services
787
798
Other:
Interest receivable
10
17
Other receivables
191
323
Total other receivables
201
340
Total trade and other receivables (gross)
988
1,138
(2)
(2)
986
1,136
945
1,105
41
31
986
1,136
754
862
206
220
30 to 60 days
24
50
61 to 90 days
1
2
Less: Impairment allowance account:
Goods and services
Total trade and other receivables (net)
Receivables are represented by:
Current
Non-current
Total trade and other receivables (net)
Receivables are aged as follows:
Not overdue
Overdue by:
Less than 30 days
3
4
988
1,138
More than 90 days
2
2
Total impairment allowance account
2
2
More than 90 days
Total receivables (gross)
The impairment allowance account is aged as follows:
70
Reconciliation of the impairment allowance account:
Movements in relation to 2009
Opening balance
Goods and
Services
2009
$’000
Other
Receivables
2009
$’000
Total
2009
$’000
2
–
2
Amounts written off
–
–
–
Amounts recovered and reversed
–
–
–
Closing balance
2
–
2
Goods and
Services
2008
$’000
Other
Receivables
2008
$’000
Total
2008
$’000
Movements in relation to 2008
Opening balance
2
–
2
Amounts written off
–
–
–
Amounts recovered and reversed
–
–
–
Closing balance
2
–
2
2009 7
NON-FINANCIAL ASSETS
7A
Land and Buildings
$’000
2008 $’000
Leasehold Improvements
– at fair value
– accumulated depreciation
417
417
(244)
(122)
Total leasehold improvements
173
295
Total land and buildings (non-current)
173
295
No indicators of impairment were found for land and buildings
7B
Infrastructure, Plant and Equipment
Plant and equipment
– gross carrying value (at fair value)
805
555
– accumulated depreciation
(421)
(212)
Total Plant and Equipment (non-current)
384
343
71
All revaluations are conducted in accordance with the revaluation policy stated at Note 1. On 30 June 2007, an independent
valuation was undertaken by S. O’Leary (Australian Valuation Office). A revaluation increment of $43,000 for leasehold
improvements was credited to the asset revaluation reserve and included in the equity section of the balance sheet. A
revaluation decrement of $53,000 for plant and equipment was shown as an expense in the income statement.
No indicators of impairment were found for infrastructure, plant and equipment.
7C
Analysis of property, plant and equipment
TABLE A – Reconciliation of the opening and closing balances of property, plant and equipment (2008–09)
Buildings –
Leasehold
Improvements
$’000
Other
Infrastructure,
Plant &
Equipment
$’000
Total
$’000
As at 1 July 2008
Gross book value
Accumulated depreciation/amortisation and impairment
Net book value 1 July 2008
417
555
972
(122)
(212)
(334)
295
343
638
Additions:
by purchase
Depreciation/amortisation expense
–
279
279
(122)
(230)
(352)
–
(16)
(16)
173
376
549
Disposals:
by sales
Net book value 30 June 2009
Net book value as at 30 June 2009 represented by:
Gross book value
417
805
1,222
(244)
(421)
(665)
173
384
557
72
Table A – Reconciliation of the opening and closing balances of property, plant and equipment (2007–08)
Buildings –
Leasehold
Improvements
$’000
Other
Infrastructure,
Plant &
Equipment
$’000
Total
$’000
417
417
834
–
–
–
417
417
834
–
140
140
(122)
(213)
(335)
As at 1 July 2007
Gross book value
Additions:
by purchase
Depreciation/amortisation expense
Disposals:
by sales
–
(1)
(1)
295
343
638
417
555
972
(122)
(212)
(334)
295
343
638
Gross book value
2009 7D
$’000
2008 $’000
Intangibles
Computer software at cost:
Software purchased
Internally developed – in progress
Internally developed – in use
Accumulated amortisation
Total intangibles (non-current)
No indicators of impairment were found for intangible assets.
311
377
–
501
808
808
(1,119)
(1,150)
–
536
73
Table B: Reconciliation of the opening and closing balances of intangibles (2008–09)
Computer
software
internally
developed
$’000
Computer
software
purchased
$’000
Total
$’000
Gross book value
1,309
377
1,686
(808)
(342)
(1,150)
501
35
536
124
–
124
As at 1 July 2008
Additions:
by purchase
(625)
–
(625)
Amortisation
–
(35)
(35)
–
–
–
806
313
1,119
(806)
(313)
(1,119)
–
–
–
Computer
software
internally
developed
$’000
Computer
software
purchased
$’000
Total
$’000
Gross book value
1,124
377
1,501
(808)
(271)
(1,079)
316
106
422
185
Impairments recognised in the operating result
Gross book value
Table B: Reconciliation of the opening and closing balances of intangibles (2007–08)
As at 1 July 2007
Additions:
by purchase
185
–
Amortisation
–
(71)
(71)
501
35
536
Gross book value
1,309
377
1,686
(808)
(342)
(1,150)
501
35
536
74
2009 7E
7F
$’000
2008 $’000
Inventories
Finished goods held for resale
–
3
Total inventories (current)
–
3
Prepayments
94
78
Total other non-financial assets (current)
94
78
1,403
1,162
Other non-financial assets
No indicators of impairment were found for other non-financial assets
8
PAYABLES
8A
Suppliers
Trade and other suppliers
Operating lease rentals
Total supplier payables (current)
54
2
1,457
1,164
Supplier payables – related entities
648
299
Supplier payables – external parties
809
865
1,457
1,164
54
259
Total supplier payables (current)
Trade Suppliers
Settlement is usually made net 60 days for AWO Scheme suppliers and net 30
days for all other suppliers
8B
Other payables
Prepayments received/unearned income
GST payable to ATO
39
67
Other
64
55
157
381
Total other payables (current)
2009 9
PROVISIONS
9A
Employee Provisions
$’000
2008 75
$’000
48
51
702
674
43
32
–
181
793
938
Current
651
839
Non-current
142
99
Total employee provisions
793
938
Salaries and wages
Leave
Superannuation
Separation and redundancies
Total employee provisions
Employee provisions are represented by:
The classification of current employee provisions includes amounts for which
there is not an unconditional right to defer settlement by one year, hence in the
case of employee provisions the above classification does not represent the
amount expected to be settled within one year of the reporting date. Employee
provisions expected to be settled in twelve months from the reporting date are
$346,000 (2008: $369,000)
9B
Other Provisions
Restoration obligations
151
151
Total other provisions (non-current)
151
151
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.
76
2009 $’000
2008 $’000
10 CASH FLOW RECONCILIATION
Reconciliation of cash and cash equivalents as per Balance Sheet to
Cash Flow Statement
Report cash and cash equivalents as per:
Cash Flow Statement
4,643
3,439
Balance Sheet
4,643
3,439
–
–
Operating result
526
92
Depreciation/amortisation
387
406
Net write down of non-financial assets
625
–
16
1
150
288
3
64
(16)
(39)
Difference
Reconciliation of operating result to net cash from operating activities:
(Gain)/Loss on disposal of assets
Changes in Assets and Liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in other non financial assets
Increase/(decrease) in supplier payables
293
225
Increase/(decrease) in other payables
(224)
78
Increase/(decrease) in employee provisions
(145)
97
1,615
1,212
31
45
31
45
8
14
131
157
139
171
Net cash from or (used by) operating activities
11
CONTINGENT LIABILITIES AND ASSETS
Contingent Liabilities
Other guarantees1
Total contingent liabilities
1 The Corporation has a bank guarantee to cover credit facilities on the United
Kingdom credit cards.
Credit card facilities:
Used
Available
Total credit card facilities
Unquantifiable Contingencies
The Corporation has no unquantifiable contingencies
77
2009
NUMBER
2008
NUMBER
12 REMUNERATION OF MEMBERS
The number of members of the Corporation included in these figures
are shown below in the relevant remuneration bands:
NIL – $14,999
–
5
$15,000 – $29,999
7
6
$30,000 – $44,999
–
1
$45,000 – $59,999
1
–
8
12
Total number of members of the Corporation
2009 Total remuneration received or due and receivable by members
of the Corporation
$
233,322
2008 $
194,947
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 1999 Act 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.
2009
NUMBER
2008
NUMBER
1
14 REMUNERATION OF EXECUTIVES
The number of officers who received or were due to receive total remuneration of
$130,000 or more:
$145,000 – $159,999
1
$160,000 – $174,999
1
2
$175,000 – $189,999
1
–
$190,000 – $204,999
1
1
$220,000 – $234,999
–
1
$235,000 – $249,999
1
–
$310,000 – $324,999
–
1
$550,000 – $564,999
–
1
5
7
Total
78
2009 The aggregate amount of total remuneration (including
separation and redundancy/termination benefit payments)
of executives shown above.
The aggregate amount of separation and redundancy/
termination benefit payments during the year to
executives shown above.
$
2008 $
951,644
1,782,238
–
481,992
22,600
17,212
15 REMUNERATION OF AUDITORS
The fair value of services provided by the Auditor-General in auditing the
financial statements for the reporting period.
No other services were provided by the Auditor-General.
2009 $’000
2008 $’000
16 FINANCIAL INSTRUMENTS
16A Categories of financial instruments
Financial assets
Receivables for goods and services
4,643
3,439
787
798
5,430
4,237
1,457
1,164
1,457
1,164
177
226
Exchange gain/(loss)
160
(101)
Net gain/(loss) loans and receivables
337
125
Net gain/(loss) from financial assets
337
125
Carrying amount of financial assets
Financial liabilities
At amortised cost:
Suppliers payable
Carrying amount of financial liabilities
16B Net income and expenses from financial assets
Interest revenue
Note
2009
Carrying
Amount
Fair Value
$’000
$’000
79
2008
Carrying
Amount
Fair Value
$’000
$’000
16C Fair Values of Financial
Instruments
Financial Assets
6A
Receivables for goods and
services
6B
4,643
4,643
3,439
3,439
787
785
798
796
5,430
5,428
4,237
4,235
1,457
1,457
1,164
1,164
1,457
1,457
1,164
1,164
31
31
45
45
31
31
45
45
Financial Liabilities
(Recognised)
Suppliers payable
8A
Total financial liabilities
(Recognised)
Financial Liabilities
(Unrecognised)
Other guarantees and
indemnities
11
Total financial liabilities
(Unrecognised)
16DCredit Risk
The Corporation is exposed to minimal credit risk as the majority of loans and receivables are cash, commercial bills and
fixed term deposits placed with the Commonwealth bank of Australia and user-pay charges for wine export approvals and
promotional activities. All deposits are under the Australian Government Guarantee Scheme. The maximum exposure to
credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total default on payment and
$2,000 in 2009 (2008: $2,000) has been allocated to an impairment allowance account.
The Corporation manages its credit risk by undertaking background checks 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 short term commercial bills and fixed term deposits.
The Corporation has no collateral to mitigate against credit risk.
80
Credit risk of financial instruments not past due or individually determined as impaired:
2009
Not Past
Due nor Past Due or
Impaired
Impaired
$’000
$’000
2008
Not Past
Due nor Past Due or
Impaired
Impaired
$’000
$’000
Cash at bank
6A
350
–
756
–
Deposits
6A
4,293
–
2,683
–
Receivables for goods and
services
6B
553
234
522
276
5,196
234
3,961
276
31 to 60
days
$’000
61 to 90
days
$’000
Over 90
days
$’000
Ageing of financial assets that are past due but not impaired for 2009:
0 to 30 days
$’000
206
24
1
3
Total receivables for goods and services
206
24
1
3
0 to 30 days
$’000
31 to 60
days
$’000
61 to 90
days
$’000
Over 90
days
$’000
220
50
2
4
Total receivables for goods and services
220
50
2
4
Ageing of financial assets that are past due but not impaired for 2008:
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
meet from the current year’s revenue.
Operating deficits also require the Minister’s approval. Monthly financial reporting processes and quarterly financial
reforecasts are undertaken to ensure any increased risk is identified on a timely basis.
The Corporation is dependent upon the Australian wine industry for its revenue. Approximately one-third 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. These bases are subject
to the vagaries of seasonal conditions and global market conditions. Other then 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.
81
The following tables illustrates the maturities for financial liabilities for 2009:
On demand
$’000
Within 1
year
$’000
1 to 5 years
$’000
Over 5
years
$’000
Suppliers payable
–
1,457
–
–
Total suppliers payable
–
1,457
–
–
Within 1
year
$’000
1 to 5 years
$’000
Over 5
years
$’000
The following tables illustrates the maturities for financial liabilities for 2008:
On demand
$’000
Suppliers payable
–
1,164
–
–
Total suppliers payable
–
1,164
–
–
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 user-pay promotional funds are received, held and expended in those various currencies. Funds are largely
expended in the year in which they are received. Movements in currency rates between when the funds are received and expended
are recognised in the income statement as gains/(losses) on foreign exchange.
In addition, the Corporation holds financial reserves to fund working capital requirements and to cover revenue fluctuations caused
changing seasonal conditions and short term marketing opportunities.
2009 $’000
2008 $’000
17 COMPENSATION AND DEBT RELIEF
Payments made to the corporation during the reporting period
18 REPORTING BY OUTCOMES
18A Outcomes of the Corporation
The Australian Wine and Brandy Corporation is structured to meet one outcome:
To enhance the operating environment for the benefit of the Australian wine industry.
–
–
82
2009 $’000
2008 $’000
18B Net Cost of Outcome Delivery
Total expenses
Employees
4,535
5,492
Suppliers
8,931
9,288
Depreciation and amortisation
387
406
625
6
Foreign exchange losses
Losses on asset sales
Total departmental expenses
–
101
16
1
14,494
15,294
Funded by:
Revenue from government
160
78
Sale of goods and services
5,947
6,620
177
226
68
52
8,293
8,180
215
230
Interest
Rental income
Other revenue
Foreign exchange gains
Total departmental revenues
Net cost/(contribution) of outcome
160
–
15,020
15,386
(526)
(92)
APPENDICES
CORPORATE DIRECTORY
84
WINE INDUSTRY STATISTICS
87
GLOSSARY OF TERMS AND ACRONYMS 106
COMPLIANCE INDEX
107
ALPHABETICAL INDEX
108
83
84
APPENDIX 1
CORPORATE DIRECTORY
MEMBERS OF THE CORPORATION
MARKET DEVELOPMENT
Chairman
James DOMINGUEZ CBE AM
Paul HENRY
Deputy Chairman
Andrew MOORE
General Manager Market Development
Members
Tony JORDAN
Kevin McLINTOCK
Mark PURBRICK
Josephine ROZMAN
Kate THOMPSON
Natalie TOOHEY
Manager – International Marketing
& Communications
Lucy ANDERSON
Regional Manager – Emerging Markets
Ali HOGARTH
Executive Officer – Communications
James MARCH
Executive Assistant
Leeanne CALDECOTT
STAFF
CORPORATE SERVICES
Chief Executive
Andrew CHEESMAN
Corporation Secretary/
Executive Officer GIC
Jock OSBORNE
Executive Assistant
Kate PALMROSE
Finance
Chief Financial OfficerErnie SULLIVAN
Accountant
Andrew COXON
Finance Officer – Accounts Payable
Julie YANG
Finance Officer – Accounts Receivable
Michael KELLY
Systems and IT
Marketing Officer – Emma GUTHRIE
International Visits
Marketing Officer – International
Stacey HILL
Marketing Officer – Domestic
Belinda HAMLYN
Marketing Officer – Program Membership
(part time)
Anna HARVEY
KNOWLEDGE DEVELOPMENT
Manager Information and Analysis
Lawrie STANFORD
Senior Analyst
Peter BAILEY
Wine Industry Analyst
Mark ROWLEY
IT Project Manager (part time)
Ian DEAN
Lead Applications Developer
Leah van HEMERT
COMPLIANCE and TRADE
Stephen GUY
Senior Applications Developer
Sam NICOLITSI
General Manager Compliance and Trade
Trade Manager
Andreas CLARK
E‑Systems Engineer and Administrator
Nicholas JAMES
Manager Export Compliance
Jessica PATER
Systems Administrator
Sheree ARTHUR
Technical Auditor
David BOWLEY
Compliance Auditor
Brooke LAMPIT
Administration Services
Senior Administration
Officer
Kris HILL
Administration/
Records Officer
Sharon WOOD
Administration Officer
Nila CANNING
Administration Officer – Samantha LANGBEIN
Reception
Compliance Officers
Jane AINSLIE (part time) Kylie DARBY
Kate GOODFELLOW
Linda HUNTER
Dominique LUCAS
Janis McGOVERN
Melissa McGREGOR
Jessica NAVIDAD
Melanie CLARKE‑ SORGINI (part‑time)
Wine Inspectors (Casual – as required)
Ric ANDERSON
Vicki ARNOLD
Susanne BELL
Warrick BILLINGS
Aldo BRATOVIC
Steve CLARKE
Samantha CONNEW
Stephen COUCHE
Geoff COWEY
Christa DEANS
Nigel DOLAN
Peter DREDGE
John DUVAL
Mike FARMILO
Diana GENDERS
Colin GLAETZER
James GODFREY
Bernard HICKIN
Alan HOEY
Matthew HOLDSTOCK
Ian HONGELL
Tony INGLE
Greg Jackson
Kim JACKSON
Mark JAMIESON
Neil JERICHO
Rebecca KENNEDY
Jon KETLEY
Sam KURTZ
Peter LESKE
Andrew LOCKE
Helen McCarthy
Sally McGILL
Hylton McLEAN
Brian MILLER
Robin MOODY
David O’LEARY
Simon PARKER
Jane PAULL
Louise RADMAN
David RIDGE
Tom RILEY
Tony ROYAL
Robert RUEDIGER
Sam SCOTT
Mark SWANN
Michael SYKES
Kerri THOMPSON
Shelly THOMPSON
Chris TOLLEY
Nick WALKER
Warren WARD
Andrew WATERMAN
Andrew WIGAN
Kym WILSDON
Rebecca WILSON
Corrina WRIGHT
Don YOUNG
Dan ZUZOLO
HEAD OFFICE
National Wine Centre –
Industry House
Corner Hackney and Botanic Roads
Adelaide SA 5000
Telephone: (08) 8228 2000
Facsimile: (08) 8228 2022
Email:
[email protected]
Website: www.wineaustralia.com
Compliance Centre
85
Level 2, 18 Dequetteville Terrace
Kent Town SA 5071
Telephone: (08) 8228 2000
Facsimile: (08) 8228 2066
Email:
[email protected]
Postal Address (both locations)
PO Box 2733, Kent Town, SA 5071
UNITED KINGDOM/IRELAND/EUROPE
Director – United Lisa McGOVERN
Kingdom/Ireland/Europe
United Kingdom
Events & Itineraries Manager
Vacant
Market Program Co‑ordinator
Sarah WATSON
Office Administrator
Camilla COSTE
The Australia Centre
The Strand, London WC2B 4LG
UNITED KINGDOM
Telephone: +44 207 887 5259
Facsimile: +44 207 240 9429
E‑mail:
[email protected]
Website: www.wineaustralia.com/uk
Ireland
Regional Manager Ireland John McDONNELL
Ballyvaughan, Co Clare
IRELAND
Telephone: +353 65 707 7264
Facsimile: +353 65 707 7264
E‑mail:
[email protected]
Website: www.wineaustralia.com/ireland
86
APPENDIX 1
CORPORATE DIRECTORY
NORTH AMERICA
JAPAN
Director North America James GOSPER
Regional Manager Japan Hiro TEJIMA
United States of America
(By arrangement with Austrade)
Marketing Co‑ordinatorYuka OTSU
Market Development Manager
Mark DAVIDSON
Market Development Officer – East Coast
Suzy BARROS
Market Program Co‑ordinator
Antonia MUIR
Marketing Assistant
Sharon WILKINSON
34th Floor, 150 East 42nd Street
New York NY 10017
USA
Telephone: +1 212 351 6585
Facsimile: +1 212 867 7710
E‑mail:
[email protected]
Website: www.wineaustralia.com/usa
Canada
(By arrangement with Austrade)
Market Development Geoff McFADZEAN
Manager
Market Development Officer – Eastern
Marnie WILLIAMSON
Market
Development Officer – Western Shelley HAMER‑JACKSON
Suite 1100 South Tower,
175 Bloor Street East
Toronto, Ontario, M4W 3R8
CANADA
Telephone: +1 416 323 1893
Facsimile: +1 416 323 3910
E‑mail:
[email protected]
Website: www.wineaustralia.com/canada
4th Floor, Rune Yotsuya Building
2‑4‑1 Yotsuya Shinjuku‑ku,
Tokyo, 160‑0004
JAPAN
Telephone: +81 3 5367 3301
Facsimile: +81 3 5367 3303
E‑mail: [email protected]
Website: www.wineaustralia.com/japan
CHINA
(In partnership with Austrade)
Market
Development
Officer
Summer YAN
Australian Consulate General
Suite 2101, CITIC Square
1168 Nanjing Road West
Shanghai 200041 China
Telephone: +86 21 6321 1333
Facsimile: +86 21 6321 1222
E‑mail: [email protected]
Website: www.wineaustralia.com
APPENDIX 2
Index
Page
KEY STATISTICS
88
AUSTRALIAN VITICULTURE
Areas of Vines and Grape Production by Variety
89
Winegrape Production
90
AUSTRALIAN WINE AND BRANDY PRODUCTION
Grape Crush
91
Gross Wine Production
92
Beverage Wine Production
93
Brandy and Other Grape Spirit Production
94
AUSTRALIAN WINE SALES
Domestic Sales of Australian Wine by Type
95
Domestic Sales of Australian Still Wine by Type and Container
96
Domestic Sales of Brandy
97
AUSTRALIAN WINE CONSUMPTION
Australian Per Capita Consumption of Alcoholic Beverages
98
TRADE
Australian Wine Export Approvals – by Country, Volume and Value
99
Australian Wine Export Approvals – by Major Destination – Litres
100
Australian Wine Export Approvals – by Major Destination – A$ FOB
100
Brandy Imports Cleared for Entry
101
Wine Imports Cleared for Entry
102
INTERNATIONAL
World Wine Trade by Volume and Value
103
World Wine Trade by Container
104
World Per Capita Wine Consumption
105
87
88
APPENDIX 2
KEY STATISTICS
Units of
measurement
2005–06
2006–07
2007–08
2008–09
Vintage
Vintage crush
(a)
tonnes
1 901 560
1 397 350
1 831 523
1 706 052 (b)
Wine production (includes
distillation wine)
(a)
’000 litres
1 429 788
961 972
1 244 776
na
Brandy and all other grape
spirit production
(c)
’000 litres of
alcohol
8 181
4 464
na
na
Domestic sales of Australian
wine
(d)
’000 litres
432 371
447 832
427 514
426 216
Domestic sales of Australian
brandy
(d)
’000 litres of
alcohol
535
510
508
484
Australian wine export
approvals
(e)
’000 litres
735 718
798 443
708 913
749 676
Australian wine export
approvals
(e)
A$’000
2 799 343
2 989 901
2 683 182
2 426 875
Wine imports
(f)
’000 litres
27 134
34 338
53 052
62 191
Wine imports
(f)
A$’000
234 154
307 011
431 131
473 149
Trade
Data for prior years includes revisions
na Not available at time of publication
Sources:
(a) ABS Cat. No. 1329.0
(b) WFA Vintage Survey estimate
(c) ABS personal communication
(d) ABS Cat. No. 8504.0, 1329.0
(e) AWBC Export Approval Database
(f) ABS Special Report (Clearances)
89
AREAS OF VINES AND GRAPE PRODUCTION BY VARIETY – 2007–08
Area of vines at harvest
Bearing
Not yet
bearing
ha
ha
Use of grapes
Drying (a)
Table and
other
Winegrapes
tonnes
tonnes
tonnes
Red Grapes
Shiraz
42806
1171
441950
Cabernet Sauvignon
27309
244
258066
Merlot
10537
227
125285
Pinot Noir
4208
282
43923
Grenache
1977
34
19755
Petit Verdot
1330
24
23989
Ruby Cabernet
1140
2
18748
Mataro
764
20
8402
Cabernet Franc
654
39
4001
Sangiovese
495
22
5630
Durif
Other Red
Total Red Grapes
417
16
6410
355
4777
34419
29021
5352
98 045
2 437
4 777
34 419
984 121
White Grapes
Chardonnay
30820
744
428082
Semillon
6453
262
100031
Sauvignon Blanc
5327
1078
Sultana
4907
72
Riesling
4270
131
Colombard
2619
50
Muscat Gordo Blanco
2172
193
Pinot Gris
2078
758
26156
Verdelho
1712
49
20464
Viognier
1217
184
12359
Traminer
809
31
11563
Chenin Blanc
614
28
8537
Muscat a Petits Grains
Blanc
234
29
3017
Trebbiano
219
0
3012
Marsanne
207
5
1870
Muscadelle
153
2
800
Crouchen
117
0
2909
Doradillo
Other White
Total White Grapes
Total Grapes
Note: May not total due to rounding
(a) Fresh weight
Source: ABS Vineyard Survey
62420
42549
6024
17335
39305
59202
1536
8
39311
71
2
4152
426
7277
23170
1051
68 152
4 042
51 362
29 202
852 913
166 197
6 479
56 139
63 621
1 837 034
15491
90
APPENDIX 2
WINEGRAPE PRODUCTION (Tonnes)
SA
NSW
Vic
WA
Tas
Qld
Australia
(a)
2001–02
Red grapes
451 343
199 995
155 855
36 524
1 376
2 517
847 730
White grapes
238 300
215 032
182 681
27 036
1 770
1 847
666 771
Total grapes
689 643
415 026
338 536
63 559
3 147
4 363
1 514 501
2002–03
Red grapes
408 669
184 229
138 572
35 523
3 373
2 002
772 524
White grapes
203 428
178 298
143 869
27 161
3 018
1 208
557 076
Total grapes
612 097
362 527
282 440
62 684
6 390
3 211
1 329 600
2003–04
Red grapes
597 107
227 301
183 704
47 468
4 275
2 927
1 063 075
White grapes
282 968
223 215
201 192
40 055
3 586
2 235
753 482
Total grapes
880 075
450 516
384 896
87 523
7 861
5 162
1 816 556
2004–05
Red grapes
545 182
227 680
188 331
41 579
2 921
3 988
1 009 983
White grapes
310 856
248 294
204 632
38 369
3 215
2 701
808 443
Total grapes
856 038
475 974
392 963
79 948
6 136
6 689
1 818 426
2005–06
Red grapes
555 719
221 637
169 496
27 046
2 831
3 116
980 212
White grapes
325 628
251 945
185 302
33 795
2 740
1 648
801 462
Total grapes
881 348
473 582
354 797
60 841
5 571
4 764
1 781 674
2006–07
Red grapes
332 158
171 591
128 660
32 636
2 589
1 198
669 041
White grapes
251 182
231 186
179 841
35 615
2 469
1 007
701 649
Total grapes
583 340
402 777
308 501
68 251
5 058
2 205
1 370 690
2007–08
Red grapes
510 048
240 943
186 798
38 520
5 300
2 042
984 121
White grapes
299 064
295 046
207 753
43 676
5 449
1 265
852 913
Total grapes
809 113
535 989
394 551
82 197
10 749
3 307
1 837 034
(a) Includes Australian Capital Territory and Northern Territory
Source: ABS Vineyard Survey
91
GRAPE CRUSH (‘000 Tonnes)
Vintage
SA
NSW/ ACT
Vic
WA
Other
States
Australia
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009e
220
203
273
256
270
263
273
292
286
316
243
284
327
278
270
235
301
321
276
323
287
390
320
432
389
485
516
511
716
747
647
921
911
913
605
829
na
74
80
86
89
105
99
121
123
124
106
113
123
151
148
151
157
183
172
169
199
230
239
187
282
265
308
385
397
430
557
475
623
645
657
488
631
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
100
86
102
98
134
109
149
125
308
190
197
217
235
211
283
285
258
230
299
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
na
9
7
10
10
14
12
18
18
22
32
36
56
63
60
82
77
66
69
62
na
33
61
74
76
83
70
83
96
79
77
85
112
120
94
90
94
142
1
1
1
1
1
2
2
2
3
4
4
6
4
6
8
7
8
5
10
na
327
344
433
421
458
432
477
511
489
499
440
519
598
520
512
485
625
603
539
636
626
777
630
883
798
976
1 126
1 145
1 424
1 606
1 399
1 917
1 926
1 902
1 397
1 831
1 706
From 1990, data collected from winemakers crushing 50 tonnes or more, prior to 1990 – 400 tonnes or more
e WFA estimate
na Not available or recorded in ‘Other States’
Source: ABS Cat No 1329.0
92
APPENDIX 2
GROSS WINE PRODUCTION (‘000 Litres)
SA
NSW(a)
Vic
WA
Other
States
1972–73
176 514
59 637
25 840
na
4 209
266 200
1973–74
167 611
76 541
46 070
na
4 444
294 666
1974–75
227 861
74 314
54 278
na
4 724
361 177
1975–76
219 577
73 774
58 310
na
4 584
356 245
1976–77
236 090
78 555
65 650
na
2 753
383 058
1977–78
207 137
72 759
57 564
na
2 117
339 277
1978–79
207 114
81 124
na
na
na
335 092
1979–80
239 239
97 009
na
na
na
414 237
1980–81
224 540
91 993
na
na
57 740
374 273
1981–82
273 711
74 340
na
na
54 601
402 653
1982–83
203 160
75 663
na
na
61 253
340 076
1983–84
234 499
85 167
na
na
76 578
396 244
1984–85
262 927
107 368
na
na
80 196
451 211
1985–86
223 548
115 261
na
na
50 471
389 190
1986–87
226 323
113 252
na
na
61 484
401 060
1987–88
212 486
122 900
na
na
72 386
407 772
1988–89
262 180
136 888
na
na
100 865
499 933
1989–90
247 522
122 579
69 996
na
4 487
444 584
399 909
Australia
1990–91
203 179
122 741
71 520
na
2 469
1991–92
235 851
152 315
88 450
na
4 155
480 771
1992–93
207 214
173 746
76 998
na
3 878
461 836
1993–94
301 107
168 082
111 538
na
6 650
587 377
1994–95
264 947
139 604
90 865
6 648
732
502 796
1995–96
333 836
207 559
121 655
9 583
812
673 445
1996–97
306 772
193 746
105 912
10 617
332
617 379
1997–98
383 589
220 386
123 823
12 722
1 027
741 547
1998–99
408 319
278 138
278 138
20 173
989
851 143
1999–00
400 777
295 849
139 267
22 200
1 074
859 166
2000–01
552 081
323 360
161 899
37 178
2 019
1 076 538
2001–02
588 697
411 829
179 043
39 118
1 686
1 220 372
2002–03
541 607
348 320
155 471
38 032
2 555
1 085 985
2003–04
733 683
456 976
221 589
55 768
3 211
1 471 228
2004–05
697 449
464 720
218 511
50 503
2 643
1 433 827
1 429 788
2005–06
724 160
481 745
177 053
43 124
3 707
2006–07
447 624
325 535
143 442
43 113
2 258
961 972
2007–08
572 870
428 336
196 003
42 658
4 909
1 244 776
Includes fortified wines made from unfortified wine of the same vintage, unfortified wine, distillation wine for manufacturing brandy and grape spirit and wine
obtained from marc
(a) From 2001–02 includes the Australian Capital Territory
na Not available, recorded in ‘Other States’ and/or ‘Australia’
Note: May not total due to rounding.
Source: ABS Cat. Nos. 8366.0, 1329.0
93
BEVERAGE WINE PRODUCTION (‘000 Litres)
Unfortified Wine (a)
Red
White
Fortified (b)
Total
Total
Unfortified
1972–73
na
na
117 381
54 328
171 709
1973–74
na
na
136 001
47 954
183 955
235 301
1974–75
na
na
166 817
68 484
1975–76
na
na
163 655
68 137
231 792
1976–77
na
na
190 096
62 471
252 567
1977–78
na
na
183 605
42 672
226 277
1978–79
na
na
216 481
58 041
274 522
1979–80
na
na
266 753
54 746
321 499
1980–81
na
na
237 786
45 659
283 444
303 040
1981–82
na
na
251 133
51 907
1982–83
na
na
238 129
33 541
271 670
1983–84
na
na
237 124
21 279
258 403
1984–85
na
na
337 127
43 893
381 020
1985–86
na
na
294 686
41 692
336 377
1986–87
na
na
306 804
31 766
338 570
1987–88
na
na
322 993
31 403
354 396
1988–89
na
na
399 203
36 937
436 140
1989–90
na
na
349 913
32 904
382 817
1990–91
na
na
312 024
33 817
345 841
1991–92
na
na
390 857
30 776
421 633
1992–93
na
na
392 575
22 264
414 839
1993–94
na
na
500 076
30 458
530 534
1994–95
na
na
433 005
25 399
458 404
1995–96
na
na
577 272
28 874
606 146
1996–97
na
na
538 123
28 656
566 779
1997–98
na
na
651 291
28 947
680 239
1998–99
na
na
771 957
21 433
793 389
1999–00
na
na
779 149
27 222
806 371
2000–01
na
na
1 016 306
18 460
1 034 766
2001–02
666 100
484 754
1 150 854
23 247
1 174 101
2002–03
599 098
420 295
1 019 393
18 170
1 037 562
2003–04
808 963
572 101
1 381 064
20 025
1 401 089
2004–05
760 721
639 352
1 400 074
20 275
1 420 348
1 410 483
2005–06
776 027
621 727
1 397 754
12 729
2006–07
472 322
474 674
946 996
8 013
955 009
2007–08
662 653
559 073
1 221 726
14 806
1 236 532
(a) Includes sparkling wine
(b) Production from unfortified wine made in the specified vintage year
na Not available
Source: ABS Cat, Nos. 8366.0, 1329.0
94
APPENDIX 2
BRANDY AND OTHER GRAPE SPIRIT PRODUCTION (‘000 Litres of Alcohol)
Brandy
Other grape Spirits
Total
1972–73
3 589
9 419
13 008
1973–74
2 152
9 467
11 619
1974–75
1 784
13 572
15 356
1975–76
1 613
13 803
15 416
1976–77
2 127
14 750
16 877
1977–78
2 570
12 065
14 635
12 095
1978–79
2 208
9 887
1979–80
1 650
10 301
11 951
1980–81
2 330
10 814
13 144
1981–82
2 527
10 203
12 730
1982–83
1 387
7 881
9 268
1983–84
1 553
4 505
6 058
10 074
1984–85
2 103
7 971
1985–86
1 255
8 258
9 513
1986–87
1 453
6 646
8 099
1987–88
939
5 717
6 656
1988–89
856
7 614
8 470
1989–90
1 062
6 990
8 052
1990–91
1 333
6 710
8 043
1991–92
1 067
6 344
7 411
1992–93
1 216
4 602
5 818
1993–94
1 463
6 169
7 632
1994–95
1 036
4 860
5 896
1995–96
1 079
7 842
8 921
1996–97
816
5 659
6 475
1997–98
na
na
6 258
1998–99
na
na
6 230
1999–00
na
na
6 782
2000–01
na
na
5 096
2001–02
na
na
7 148
2002–03
na
na
9 632
2003–04
na
na
9 747
2004–05
na
na
10 079
2005–06
317
7 864
8 181
2006–07
252
4 212
4 464
2007–08
na
na
na
na Not available for publication
Source: ABS Cat. No.1329.0, personal communication
1988–89
Red still
wine
99 088
114 053
125 561
130 401
142 835
147 074
155 491
154 237
161 894
155 193
155 440
White still
wine
188 308
193 040
199 764
199 881
201 631
207 962
209 348
212 558
218 468
206 810
204 197
White still
wine
186 655
180 433
176 209
190 192
186 405
192 455
186 161
178 710
185 029
189 509
Sub Total
287 396
307 093
325 325
330 282
344 466
355 036
364 839
366 796
380 362
362 003
359 637
Sub Total
237 734
229 956
228 332
246 704
246 308
254 703
251 588
247 280
268 763
278 418
Sparkling
32 617
32 572
30 658
29 686
31 618
34 676
38 398
39 787
39 883
36 594
36 506
Sparkling
31 624
31 201
29 463
30 153
29 969
30 599
28 002
30 149
32 552
31 069
Fortified
Bottled (c)
8 482
7 898
7 354
6 487
6 622
6 714
6 179
5 906
5 551
5 315
5 061
Sherry
14 475
13 908
13 046
12 392
10 989
10 340
10 111
9 668
9 012
8 360
Fortified
Soft Pack
7 906
7 796
8 160
8 369
8 856
9 042
8 931
8 279
7 864
7 330
7 038
Dessert (a)
18 811
19 188
17 698
17 499
16 925
16 687
16 889
16 197
16 616
16 214
Fortified
Other (d)
7 532
7 293
6 674
5 529
5 368
5 447
4 825
4 325
3 973
4 217
4 217
Other Wine
(b)
4 412
6 620
6 675
5 879
5 549
6 463
6 959
7 278
10 200
12 055
13 757
Other Wine
(b)
6 483
6 355
7 733
8 082
7 892
7 210
6 771
6 168
6 641
4 749
Total all
wine
348 345
369 272
384 846
386 232
402 479
417 378
430 131
432 371
447 832
427 514
426 216
Total all
wine
309 127
300 608
296 272
314 830
312 083
319 539
313 361
309 462
333 584
338 810
Note: May not total due to rounding. These numbers represent sales by wineries that account for about 97% of total wine sales and exclude sales for ship and aircraft stores, sales of imported wine, exports and inter-winery
sales. Includes revisions.
(a) Port, muscat, madeira, tokay and white port.
(b) Includes carbonated, vermouth, wine cocktails, marsala, apertif and tonic wines. From July 2000 includes de-alcoholised wine and low and reduced alcohol wines.
(c) In glass containers less than 2 litres. Includes muscat, madeira, tokay, sherry and port.
(d) Includes tankers, cans and rigid containers including glass 2 litres and over
Source: ABS Cat No 8504.0
2008–09
2007–08
2006–07
2005–06
2004–05
2003–04
2002–03
2001–02
2000–01
1999–00
1998–99
Change in series
1997–98
1996–97
1995–96
1994–95
1993–94
1992–93
1991–92
1990–91
1989–90
Red still
wine
51 079
49 523
52 123
56 512
59 903
62 248
65 427
68 570
83 734
88 909
DOMESTIC SALES OF AUSTRALIAN WINE BY TYPE (‘000 Litres)
95
96
APPENDIX 2
DOMESTIC SALES OF AUSTRALIAN STILL WINE BY TYPE AND CONTAINER (‘000 Litres)
Glass (a)
White
Red
Total
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–00
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
2006–07
2007–08
2008–09
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–00
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
2006–07
2007–08
2008–09
1993–94
1994–95
1995–96
1996–97
1997–98
1998–99
1999–00
2000–01
2001–02
2002–03
2003–04
2004–05
2005–06
2006–07
2007–08
2008–09
Volume
48 136
51 856
50 588
55 212
59 352
63 354
69 371
74 123
75 657
81 678
84 225
89 477
92 951
100 294
93 934
96 750
28 155
30 581
33 705
41 144
46 746
53 713
63 469
70 506
73 622
79 752
82 832
91 146
91 821
101 915
95 581
96 273
76 291
82 437
84 293
96 356
106 098
117 067
132 840
144 629
149 279
161 430
167 057
180 623
184 772
202 209
189 515
193 023
Other containers
(c)
Soft pack (b)
%
25.0
27.9
28.3
29.8
31.3
33.6
35.9
37.1
37.9
40.5
40.5
42.7
43.6
45.9
45.4
47.4
45.2
46.7
49.2
49.1
52.6
54.2
55.6
56.2
56.5
55.8
56.3
58.6
59.3
63.0
61.5
61.9
30.0
32.8
34.1
35.9
38.1
40.7
43.3
44.5
45.2
46.9
47.1
49.5
50.4
53.2
52.3
53.7
Volume
137 762
129 323
124 357
126 492
125 269
117 954
118 409
122 452
122 776
118 893
120 935
118 803
118 220
116 195
110 367
104 386
32 579
33 545
34 020
41 574
41 295
44 564
49 806
53 538
56 085
62 788
62 795
63 032
61 116
57 276
55 336
55 994
170 341
162 868
158 377
168 066
166 564
162 518
168 215
175 990
178 861
181 681
183 730
181 835
179 336
173 471
165 703
160 380
%
71.6
69.5
69.6
68.4
66.1
62.6
61.3
61.3
61.4
59.0
58.2
56.7
49.9
49.9
53.4
51.1
52.3
51.3
49.6
49.7
46.4
45.0
43.7
42.6
43.0
44.0
42.7
40.5
39.8
39.8
35.6
36.0
66.9
64.7
64.0
62.5
59.8
56.5
54.8
54.1
54.2
52.7
51.7
49.8
48.9
45.6
45.7
44.6
Volume
6 557
4 982
3 765
3 325
4 888
7 000
5 260
3 189
1 447
1 060
2 802
1 068
1 388
1 979
2 509
3 061
1 514
1 301
845
1 016
868
811
778
1 517
695
295
1 447
1 313
1 300
2 703
4 523
3 173
8 071
6 283
4 610
4 341
5 756
7 811
6 038
4 706
2 142
1 354
4 250
2 378
2 687
4 682
7 032
6 234
%
3.4
2.7
2.1
1.8
2.6
3.7
2.7
1.6
0.7
0.5
3.0
3.0
3.0
3.0
1.2
1.5
2.4
2.0
1.2
1.2
1.0
0.8
0.7
1.2
0.5
0.2
1.0
0.8
0.8
1.7
2.9
2.0
3.2
2.5
1.9
1.6
2.1
2.7
2.0
1.4
0.6
0.4
1.2
0.7
0.7
1.2
1.9
1.7
(a) Break in series in 1998–99 – prior to 1998–99 bottled 1 litre, from 1998–99 bottled 2 litre.
(b) Includes all collapsible packs, plastic or otherwise.
(c) Includes tankers, cans, rigid containers and glass 2 litres and over (plastic, steel, wood and, prior to 1998–99, glass over 1 litre)
Note: May not total due to rounding. Includes revisions.
Source: ABS Cat. 8504.0
Total
Volume
192 455
186 161
178 710
185 029
189 509
188 308
193 040
199 764
199 880
201 631
207 962
209 348
212 558
218 468
206 810
204 197
62 248
65 427
68 570
83 734
88 909
99 088
114 053
125 561
130 402
142 835
147 074
155 491
154 237
161 894
155 440
155 440
254 703
251 588
247 280
268 763
278 418
287 396
307 093
325 325
330 282
344 465
355 037
364 836
366 795
380 362
362 250
359 637
%
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
97
DOMESTIC SALES OF BRANDY (‘000 Litres of Alcohol)
Australian Brandy (a)
Imports (b)
Total
Volume
%
Volume
%
Volume
%
1989–90
1 613
67%
793
33%
2 406
100%
1990–91
1 444
69%
636
31%
2 080
100%
1991–92
1 380
68%
662
32%
2 042
100%
1992–93
1 312
68%
629
32%
1 941
100%
1993–94
1 301
67%
634
33%
1 935
100%
1994–95
1 188
67%
590
33%
1 778
100%
1995–96
1 113
66%
583
34%
1 696
100%
1996–97
987
61%
628
39%
1 615
100%
1997–98
974
60%
661
40%
1 635
100%
1998–99
905
60%
598
40%
1 503
100%
1999–00
837
59%
577
41%
1 414
100%
2000–01
901
64%
504
36%
1 405
100%
2001–02
701
55%
577
45%
1 278
100%
2002–03
651
54%
557
46%
1 208
100%
2003–04
618
53%
540
47%
1 158
100%
2004–05
576
53%
519
47%
1 095
100%
2005–06
535
54%
457
46%
992
100%
2006–07
510
57%
392
43%
902
100%
2007–08
508
53%
452
47%
960
100%
2008–09
484
51%
462
49%
946
100%
(a) Quantities on which excise duty was paid
(b) Imports cleared for home consumption and goods cleared from Customs warehouses.
Source: ABS special report, Cat No 8504.0
98
APPENDIX 2
AUSTRALIAN PER CAPITA CONSUMPTION OF ALCOHOLIC BEVERAGES
Beer
Litres
Wine
Litres
Spirits
L al
1996–97
121.4
24.1
1.7
1997–98
119.9
25.0
1.8
1998–99
118.3
25.2
1.8
1999–00
116.8
26.0
1.7
2000–01
116.9
26.2
1.8
2001–02
113.4
26.0
1.9
2002–03
114.6
26.8
2.0
2003–04
110.0
27.5
2.1
2004–05
107.6
28.1
2.1
2005–06
107.2
28.1
2.2
2006–07
107.1
28.9
2.2
2007–08
106.6
28.3
2.2
L al. Litres of alcohol
Source: ABS cat. 4307.0.55.001, Apparent Consumption of Alcohol
Data refers to apparent per person consumption of these products by persons aged 15 years and over.
99
AUSTRALIAN WINE EXPORT APPROVALS, BY COUNTRY, VOLUME AND VALUE
2006–07
Volume
Litres
Mill.
United Kingdom
281.2
United States Of America
2007–08
Value
A$ Mill.
Volume
Litres
Mill.
976.3
267.9
220.4
956.1
49.6
266.8
Canada
2008–09
Value
A$ Mill.
Volume
Litres
Mill.
Value
A$ Mill.
888.1
265.5
723.2
182.6
745.5
236.3
741.2
46.1
259.9
44.6
213.5
Germany, Federal Republic
40.1
65.6
23.8
49.3
26.8
51.2
China
22.9
49.0
13.6
61.8
25.1
93.6
New Zealand
36.1
101.8
22.1
85.9
19.7
75.9
Netherlands
22.1
65.3
24.8
71.1
19.6
57.4
Denmark
17.7
48.2
27.6
61.4
19.3
43.4
Ireland
15.0
68.7
16.1
69.9
11.4
46.4
Japan
9.6
49.0
9.0
48.7
10.7
52.3
Belgium
9.6
25.7
10.4
25.5
10.3
24.7
Sweden
15.4
51.1
10.3
41.0
9.7
40.0
Hong Kong
4.0
26.4
4.8
33.8
6.0
43.0
France
10.4
14.7
6.4
12.5
5.6
11.3
Singapore
5.3
42.9
5.8
46.0
5.0
41.1
Finland
4.7
16.9
4.3
14.8
4.6
17.2
Norway
4.9
17.0
3.3
12.1
3.6
12.2
Switzerland
4.0
18.1
3.5
15.6
3.5
14.9
United Arab Emirates
2.1
9.2
3.3
14.7
2.7
12.3
Malaysia
2.5
19.6
2.3
17.5
2.2
20.8
Other
20.7
101.6
20.9
108.1
17.5
91.4
Total
798.4
2 989.9
708.9
2 683.2
749.7
2 426.9
Note: Top 20 destinations in 2008–09. Ranked by volume
Value is FOB. Includes revisions.
Source: AWBC Export Approval Database
100 Australian Wine and Brandy Corporation
APPENDIX 2
AUSTRALIAN WINE EXPORT APPROVALS, MAJOR DESTINATIONS, 2008–09 (‘000 Litres)
Wine
Still Wine
UK
USA
Canada Germany
China
New
Zealand
Other
Total
257 885
234 774
43 336
26 816
24 990
17 567
127 382
732 751
Red
150 425
126 010
31 222
17 313
17 938
12 690
85 402
441 000
White
107 460
108 764
12 114
9 503
7 052
4 877
41 980
291 751
Sparkling
7 205
1 159
928
18
91
1 766
3 769
14 937
Fortified
303
348
125
1
17
153
211
1 157
88
9
3
2
13
234
237
585
0
0
199
0
0
10
36
246
Carbonated
Sherry
Other
0
0
0
0
0
0
1
1
Total
265 481
236 290
44 592
26 838
25 110
19 729
131 636
749 676
AUSTRALIAN WINE EXPORT APPROVALS, MAJOR DESTINATIONS, 2008–09 (A$ ‘000 FOB )
Wine
Still Wine
UK
USA
691 582
732 230
205 835
China
New
Zealand
Other
Total
50 938
92 662
66 555
500 963
2 340 766
Canada Germany
Red
415 559
485 637
160 009
38 095
80 870
51 237
359 527
1 590 934
White
276 023
246 593
45 827
12 843
11 793
15 318
141 437
749 833
Sparkling
75 081
30 140
5 701
5 953
186
660
7 883
24 558
Fortified
971
3 195
804
17
211
863
1 259
7 321
Carbonated
505
54
20
15
64
610
1 468
2 734
Sherry
3
3
842
0
0
14
108
971
Other
0
0
0
0
0
0
1
1
Total
723 201
741 183
213 455
51 157
93 597
75 925
528 357
2 426 875
Annual Report 2008 – 2009 101
BRANDY IMPORTS CLEARED FOR ENTRY (Litres of Alcohol)
Source
1998–99
Bottled*
Bulk**
Total
Change in series
1999–00
57% (a)
57%,
80% (a)
Total
2000–01
57% (a)
57%,
80% (a)
Total
2001–02
57% (a)
57%,
80% (a)
Total
Change in series
2002–03 (b) Bottled*
Bulk**
57% (a)
57%,
80% (a)
Total
Change in series
2003–04
Bottled*
Bulk**
Total
2004–05
Bottled*
Bulk**
Total
2005–06
Bottled*
Bulk**
Total
2006–07
Bottled*
Bulk**
Total
2007–08
Bottled*
Bulk**
Total
2008–09
Bottled*
Bulk**
Total
France
Greece
Italy
NZ
Spain
Other
TOTAL
326 007
240 345
566 352
4 739
0
4 739
6 024
0
6 024
9 539
326
9 865
3 724
0
3 724
6 840
731
7 571
356 872
241 402
598 274
362 531
6 120
3 790
7 645
2 919
6 430
389 434
187 329
549 860
318 758
0
6 120
4 894
0
3 790
2 330
0
7 645
6 720
34
2 953
2 020
153
6 583
4 758
187 516
576 951
339 481
164 234
482 992
310 039
25
4 919
6 357
56
2 386
1 895
0
6 720
5 816
0
2 020
1 510
10
4 769
6 463
164 325
503 806
332 079
242 778
552 817
0
6 357
0
1 895
0
5 816
0
1 510
1 952
8 415
244 730
576 809
477 051
7 579
17 056
5 826
0
490
1 657
186
435
4 199
0
482
1 696
0
222
3 864
881
543
494 294
8 647
19 230
34 551
536 237
0
6 317
0
2 279
0
4 682
0
1 918
0
5 289
34 551
556 721
516 649
4 655
521 304
503 635
905
504 539
483 134
278
483 412
437 623
17
437 640
442 936
0
442 936
450 958
779
451 737
6 781
24
6 804
6 788
0
6 788
3 833
0
3 833
5 338
0
5 338
4 621
0
4 621
4 647
0
4 647
2 204
124
2 328
1 482
0
1 482
1 119
155
1 274
437
0
437
1 299
0
1 299
1 957
0
1 957
1 858
323
2 181
188
0
188
0
0
0
0
0
0
0
0
0
0
0
0
1 761
0
1 761
1 426
0
1 426
700
0
700
427
218
645
516
0
516
839
0
839
5 611
325
5 937
4 742
0
4 742
5 091
0
5 091
2 573
0
2 573
2 445
0
2 445
2 802
0
2 802
534 864
5 451
540 315
518 260
905
519 165
493 878
433
494 311
446 398
235
446 633
451 817
0
451 817
461 203
779
461 982
* In containers not exceeding 5 litres
** In containers exceeding 5 litres
(a) Alcohol content by volume
(b) In 2002–03, volume was measured by alcohol content for the month of July 2002, thereafter either as bottled or bulk.
na Not available – zero or included in ‘Other’
Source: ABS special report
APPENDIX 2
WINE IMPORTS CLEARED FOR ENTRY (‘000 Litres and A$ ‘000))
Still
Sparkling Carbonated
Sherry
Dessert
Total Vermouth &
Fortified Flavoured
Other
Total
Volume Total Value
1981–82
6 330
1 648
(a)
80
268
348
72
56
8 454
na
1982–83
5 370
1 836
(a)
70
184
254
77
61
7 598
na
1983–84
6 607
2 462
(a)
76
170
246
90
72
9 475
26 692
1984–85
8 787
2 974
(a)
130
205
335
135
106
12 336
36 042
1985–86
8 495
3 033
(a)
154
179
333
312
117
12 345
46 410
1986–87
5 042
1 966
(a)
86
118
204
261
194
7 667
37 585
1987–88
5 683
1 910
(a)
78
101
179
206
173
8 151
41 358
1988–89
6 086
2 262
(a)
102
209
311
262
814
9 735
46 871
1989–90
6 595
2 213
(a)
82
103
185
231
1,208
10 432
52 692
1990–91
5 604
1 890
(a)
82
108
190
224
1,091
8 999
46 779
1991–92
5 190
2 373
(a)
55
105
160
227
751
8 701
45 649
1992–93
4 710
2 343
(a)
51
56
107
200
467
7 828
46 984
1993–94
4 235
2 287
(a)
44
102
146
211
1,255
8 134
47 637
1994–95
9 410
2 682
(a)
70
201
271
235
1,408
13 997
61 057
1995–96
17 177
2 291
(a)
55
49
104
304
275
20 151
60 478
1996–97(b)
10 024
2 752
(a)
63
41
104
298
395
13 574
66 503
1997–98
21 391
2 996
207
105
30
135
612
302
25 642
92 973
1998–99
20 096
2 915
305
42
50
92
580
275
24 262
102 572
1999–00
13 087
3 827
181
na
na
521
814
1 176
19 607
113 869
2000–01
7 298
2 917
275
na
na
106
966
1 244
12 806
92 374
2001–02
8 589
3 284
291
na
na
201
1 382
755
14 501
115 718
2002–03
11 070
3 852
368
na
na
190
1 074
578
17 132
139 295
2003–04
11 817
4 789
286
na
na
734
525
600
18 750
152 534
2004–05
14 782
5 189
313
na
na
253
974
639
22 149
188 319
2005–06
19 596
5 927
260
na
na
133
871
389
27 176
234 319
2006–07
25 481
7 079
871
na
na
123
364
434
34 352
307 054
2007–08
42 331
8 269
1 046
na
na
159
746
541
53 093
431 372
2008–09
50 600
9 594
512
na
na
192
724
633
62 255
473 607
(a) Included in sparkling
(b) Revisions not incorporated prior to 1997–98
na Not available or included in Total Fortified
Note: May not total due to rounding. Excludes must.
Source: ABS special report
WORLD WINE TRADE BY VOLUME & VALUE
Importing
Country
Germany
Value
Million
US$
Volume (Million Litres)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2008
1 169
1 223
1 246
1 341
1 329
1 373
1 373
1 451
1 366
2 992
United Kingdom
988
1 033
1 131
1 206
1 173
1 137
1 137
1 168
1 153
5 132
United States
474
552
609
642
713
783
783
845
832
4 621
France
513
453
480
558
550
535
535
534
570
817
Netherlands
301
312
342
348
374
342
342
382
357
1 224
Canada
239
244
270
267
281
304
304
312
320
1 562
Belgium
259
277
266
283
290
294
294
311
313
1 651
Russia
157
185
254
319
416
251
251
267
280
720
Switzerland
186
183
183
179
180
175
175
186
183
1 102
Denmark
198
204
203
189
185
188
188
186
183
723
Sweden
135
152
156
153
159
166
166
179
181
685
Italy
69
91
150
164
174
147
147
175
181
474
Japan
169
168
161
167
158
166
166
167
172
1 322
China
29
30
41
44
54
116
116
149
165
381
203
Czech Republic
93
102
105
118
126
137
137
143
153
Portugal
167
135
135
157
140
90
90
125
140
114
51
52
57
65
69
72
72
88
82
215
Poland
Norway
51
51
58
60
65
66
66
72
74
363
Finland
43
46
51
51
55
56
56
64
65
238
Austria
59
53
54
71
71
71
71
77
64
247
Spain
22
22
26
26
32
58
58
62
57
303
Ireland
49
52
57
68
59
73
73
75
49
267
Other*
206
1 191
273
332
253
385
385
404
409
1 970
5 626
6 814
6 308
6 807
6 904
6 984
6 984
7 421
7 349
27 325
Total
“Other” comprises an additional 20 countries from Asia and Europe, ie it does not represent all other countries in the world
Source: Global Trade Information Services
APPENDIX 2
WORLD WINE TRADE BY CONTAINER (Million Litres)
2007
Importing
Country
Bottled
2008
Bulk Sparkling
Total
Bottled
Bulk Sparkling
Total
Germany
607
765
78
1 451
586
706
74
1 366
United Kingdom
891
198
78
1 168
871
207
75
1 153
United States
693
99
53
845
659
124
48
832
France
124
401
8
534
122
435
13
570
Netherlands
333
36
13
382
312
34
11
357
Canada
227
77
8
312
227
85
8
320
Belgium
200
77
33
311
200
76
37
313
Russia
225
26
16
267
226
35
19
280
Switzerland
84
88
15
186
83
86
14
183
Denmark
102
79
5
186
98
81
4
183
Sweden
92
80
8
179
95
79
7
181
Italy
19
146
11
175
16
155
10
181
Japan
120
26
21
167
120
29
23
172
China
42
105
1
149
58
106
2
165
Czech Republic
56
86
2
143
63
88
2
153
Portugal
34
86
5
125
23
112
5
140
Poland
71
11
6
88
67
11
4
82
Norway
36
34
2
72
36
35
2
74
Finland
33
26
5
64
35
25
6
65
Austria
44
16
16
77
38
10
15
64
Spain
31
25
6
62
29
23
5
57
Other*
Total
306
137
37
479
296
121
41
458
4 369
2 625
427
7 421
4 260
2 661
427
7 349
“Other” comprises an additional 20 countries from Asia and Europe, ie it does not represent all other countries in the world
Source: Global Trade Information Services
WORLD PER CAPITA WINE CONSUMPTION – Highest consuming countries (L/person/year)
Country
1999
2000
2001
2002
2003
2004
2005
2006
2007
Italy
55.0
54.7
52.6
50.1
49.7
48.4
47.7
46.7
46.1
2008
45.7
Portugal
53.9
52.7
51.4
51.5
52.1
49.1
48.1
46.5
45.8
45.5
France
52.5
50.0
48.4
47.1
46.1
44.8
43.4
42.3
41.5
40.9
Switzerland
41.1
41.3
41.6
40.1
40.6
40.0
38.8
38.3
38.2
37.9
Austria
34.4
34.1
33.7
32.9
32.6
31.7
32.9
35.2
36.0
36.5
Greece
33.5
33.7
34.0
34.3
34.9
35.7
34.8
34.6
34.7
35.3
Argentina
36.8
35.8
34.0
33.3
33.6
29.9
29.7
30.6
30.7
30.7
Denmark
29.9
30.9
31.4
30.6
30.5
30.0
29.7
30.0
30.2
30.2
Belgium
23.9
24.0
24.4
24.8
25.5
25.4
25.9
26.5
27.0
27.5
Germany
25.0
25.7
26.3
26.0
26.5
26.5
26.2
26.3
26.4
26.2
Spain
34.4
33.1
32.3
31.8
30.9
30.5
29.5
28.3
27.1
26.0
Hungary
18.0
17.1
17.6
18.2
22.0
19.4
22.5
24.2
25.0
25.7
Uruguay
26.1
25.7
25.0
24.0
24.4
25.2
25.5
25.8
25.5
25.5
Croatia
22.0
21.6
20.9
20.8
21.4
22.0
22.1
22.8
23.5
24.3
23.3
New Zealand
20.6
20.6
20.7
20.6
20.9
21.3
22.2
22.9
23.0
Netherlands
15.8
16.7
17.5
18.3
19.1
20.2
21.1
21.8
22.5
23.2
United Kingdom
16.8
17.4
18.5
19.7
20.5
21.1
21.9
22.1
22.4
22.6
Australia
18.8
19.5
20.1
20.4
20.8
21.2
21.1
21.0
21.1
21.2
Ireland
10.6
11.7
12.9
14.4
15.3
16.6
16.9
17.7
18.2
18.4
Romania
15.0
10.9
9.3
8.3
8.2
9.3
10.2
10.9
11.5
12.1
7.3
7.3
7.2
7.6
7.8
8.0
8.2
8.3
8.6
8.7
USA
Source: Euromonitor International
APPENDIX 3
GLOSSARY OF TERMS & ACRONYMS
AAT
Administrative Appeals Tribunal
ABS
Australian Bureau of Statistics
AGM
Annual General Meeting of the Industry
AWBC
AWBC Act
Australian Wine and Brandy Corporation Act 1980
AWBC Regulations
Australian Wine and Brandy Corporation Regulations 1981
AWO
Australian Wine Overseas program
Board
The Members of the Corporation
CAC Act
Commonwealth Authorities and Companies Act 1997
COPS
Centre of Policy Studies, Monash University
CIES
Centre for International Economic Studies, University of Adelaide
Corporation
FIVS
International Federation of Wine and Spirits
FOB value
Free on Board value
FOI Act
Freedom of Information Act 1982
GICGeographical Indications Committee
LIP
Minister
Minister for Agriculture, Fisheries and Forestry
OH&S
Occupational Health and Safety
OIV
International Organisation of Vine and Wine
RPN
WEA
Wine Export Approval system
WFA
Winemakers’ Federation of Australia
WGGA
Wine Grape Growers Australia
WWTG
World Wine Trade Group
APPENDIX 4
COMPLIANCE INDEX
Page
Commonwealth Authorities and
Companies Act 1997 Annual Operational Plan
Page
Australian Wine and Brandy
Corporation Act 1980
Assessment of Performance
10
Selection Committee Report
Audit Committee
35
Geographical Indications Committee Report
27
List of Final Determinations of Geographical indications
28
Ministerial Directions
42
Variation of Annual Operational Plan
41
41
Certification
Corporate Governance Statement
Corporate Plan
10, 41
2
35
10, 41
N/A
Developments since end of Financial Year
29
Variation of Corporate Plan
Disability Strategy
43
Enabling Legislation
41
Other Legislation or
Reporting Requirements
Financial Statements
49
General Policies of Government
43
Ecologically Sustainable Development & Environmental Performance
Indemnities and Insurance Premiums for Officers
43
Fraud Control
9
Judicial Decisions and Reviews by Outside Bodies
42
Freedom of Information
42
Legislative Functions
41
Legislative Objects
41
Funding of Consultancy Costs for Industry
Representative Organisations
43
Location of Major Activities and Functions
84
42
Meeting Attendance
39
Meetings Held
39
Members of Committees
39
36
42
Organisational structure
40
Portfolio Budget Statement
28, 41
Responsible Minister
38
Review of Operations
10
Risk Factors
36
Service Charter
36
Significant Changes in State of Affairs
29
Significant Events
29
Stakeholders
4
43
APPENDIX 5
ALPHABETICAL INDEX
Page
A
Annual General Meeting
Annual Operational Plan
Audit
Audit Report
Australian Wine Domestic Market Exports
Production
38
10, 41
35
35, 39
50
47
48
45
B
Board Attendance at Meetings
Composition
Meetings
Members
Responsibility
39
35
35
36
35
C
Canada Report
32
Chairman’s Report
5
Chief Executive’s Report
7
China Report
33
Clients
4
Client Service Charter
36
Committees
Attendance at Meetings
39
Membership
39
Compliance
4, 9, 21
Compliance Index
107
Consultancy Payments to Industry
Organisations
43
Continental Europe Report
31
Corporate Governance
35
Performance
10
Corporate Plan
10, 41
D
Developments since Year End
Directory
Disability Strategy
29
84
43
Page
Page
E
O
Ecologically Sustainable Development 43
Enabling Legislation
41
Environmental Performance
43
Objects of the Act
Organisational Structure
Overview
F
Financial Results
Statements
Fraud Control
Freedom of Information
Functions of the Corporation
P
28
49
9
42
41
G
Geographical Indications
27
Geographical Indications Committee 36, 39
George Mackey Memorial Trophy
38
Glossary
106
I
Indemnities
Insurance Premiums
Ireland Report
43
43
30
J
Japan Report
Judicial Decisions
34
42
K
Planning Framework
Principal Outcome
Principal Outputs
Powers of the Corporation
Regional Reports
Reporting Framework
Responsible Minister
Reviews by Outside Bodies
Risk Factors
Significant Changes
Events
Staff
Stakeholders
Statement on Governance
L
U
Management
Market Development
Market Development Advisory
Committee
Minister, Responsible
Mission Statement
Trade
23
36, 39
United Kingdom Report
United States of America Report
35
4, 7, 10
Wine Industry – Year in Review
Wine Inspections
World Wine
Production
Trade
36, 39
36
38
42
4
30
27
35, 39
41
38
42
36
S
T
M
41
10
10
41
R
4, 7, 18
Knowledge Development Advisory
Committee
36, 39
Legislation Review Committee
41
42
40
4
W
29
29
42
4
35
4, 9, 24
30
31
44
85
44
45
The Australian Wine and Brandy Corporation gratefully acknowledges the support of the following Partners
Foundation Partner
Design and Production Corporate Profile Pty Ltd
Partners
www.wineaustralia.com

Australian Wine and Brandy Corporation Annual

Transcription

Similar documents

Bangladesh Customs National Tariff Fiscal Year:2016