Increased opportunities in tourism for Australia’s small winemakers
The industry has seen strong growth over the last year, according to Wine Australia: Production and revenue have both grown 10%, according to its Small Winemaker Production and Sales Survey 2016-2017.
Small winemakers sell an estimated $1.3bn ($1bn USD) wine, most of that (86%) in the domestic market. Sales to retailers account for 45% of wine sales among small winemakers, with cellar door sales second at 30%. However, cellar door sales are showing the strongest growth: up 6% in revenue in the last year (compared to 5% for retail sales).
Cellar door: the ‘heart and soul’ of the brand
The majority of small winemakers (70%) have a cellar door, where wine can be sold direct to consumers; while one in three has at least one other attraction or service for visitors. A significant proportion offer personalized, customized and interactive experiences.
The opportunity for small winemakers to increase cellar door sales and provide an experience for tourists is in line with trends across the industry, says Wine Australia.
“Wine Intelligence has found that the role of the cellar door is increasing in importance for wine businesses. It is seen as the ‘heart and soul’ of the brand, providing an opportunity to engage consumers and build brand loyalty. Wine Intelligence has identified a strong opportunity for wine businesses going forward to focus on providing an overall, integrated tourism experience, including a focus on personalisation; an increased emphasis on hands-on experiences; pairing of food with wine; and linking with broader tourism in the local area.”
With a lower Australian dollar, increased demand for premium wines, and difficult vintages in competitor nations, exports offer another opportunity for small winemakers.
Australia's small winemakers
- Contribute 8% to total Australian winegrape crush
- $1.3bn ($1bn USD) in sales
- Production of 106 million liters (up 10% from 2016)
- Account for 35% of domestic sales value and 10% of export sales value
- 52% of small winemakers grow all or nearly all their fruit
- Employ around 16,500 people nationally, with around 9 employees per winery.
Small winemakers are defined as those who crush up to 500 tonnes.
Wine Australia’s export figures show that, in the year to September 2017, exports from small winemakers were up 10%.
Wine Australia CEO Andreas Clark said the findings of the report show that the growing enthusiasm for Australian wine in export markets and for regional wine tourism experiences has boosted the confidence of small winemakers.
“The report shows that while export markets currently account for 14% of their wine sales on average, our smaller winemakers are optimistic about the increasing sales opportunities from export markets and visits to cellar doors,” he said.
“The Australian Government’s Export and Regional Wine Support Package will provide further opportunities for wine export growth, with applications for the Wine Export Grants anticipated to open in January 2018, and the state-based and competitive grants leading to thousands more international tourists visiting our wine regions.”
