When researching my midterm
paper I recently I got the opportunity to correspond with Sheralee Davies, CEO
of Wine Tasmania. Wine Tasmania is an independent, non-profit organization,
financed by its member businesses, that promotes the interest of Tasmanian
wine. Below are a few key excerpts I thought would be worth sharing with the
class, and very much related to Terry’s talk on brand building. Visiting
Tasmania I felt a strong sense of community, craft, and a common story. Making
wine on an isolated island provides challenges around profitability and export
potential, but also provides an opportunity for tourism and a unique brand
identity. Wine producers in Tasmania have done an incredible job coming
together and leveraging the Tasmanian brand as an asset. I left wanting to
promote Tasmanian wine but also the place itself, and feeling that the two were
inextricably linked.
Sarah:
What are Tasmania's "unfair advantages" when it comes to wine?
Sheralee: Some are natural
- in a cool climate, vintage variability is significant. Yields may vary by as
much as 50% year on year and this makes it challenging, particularly from a
profitability perspective. As a cool climate, our risks are elevated, with
fruit hanging on the vine for a long term as it develops its intensity of
flavour and structure. Also, as an island there are logistical challenges and
costs associated with transporting wine, equipment, bottles (etc.) to and from
the island. We often talk about 'high risk, high reward'.
Sarah:
What is the "Tasmanian brand" and how is that an asset?
Sheralee: We have developed
a specific Tasmanian Wine Brand platform, which is aligned to the Tasmanian
Tourism Brand. I can't share the full details with you, as it's been developed
to provide a commercial benefit to Tasmanian wine producers. In summary, it
positions us as an adolescent, in light of our relatively short history, and
all that goes with it - anti-establishment, confident, wacky, unbridled,
rebellious. The key benefits are that it allows us to differentiate Tasmania
from other wine regions, unifies producers and is aligned to encouraging
tourism. Tasmania is the first thing we talk about in promoting our wines - not
just our wines, but the place, the people, the produce, the experience (etc.) -
it's incredibly important and powerful.
Sarah: How
do Tasmanian wineries plan to build brand equity internationally?
Sheralee: Collaboratively.
It starts with regional promotion of Tasmania, then each wine producer can
share their own stories and grow their own markets. The promotion of Tasmania
includes collaboration not just between wine producers, but also with other Tasmanian
produce, tourism offerings, attractions and experiences.
Sarah: I
would love to hear more about the potential for and pain points of exporting
Tasmanian wine, and inroads made here.
Sheralee: There is significant global
interest in Tasmanian wine and recognition of its quality due the very
significant and long term efforts of wine producers. However, we only produce
the rough annual equivalent of 630,000 dozen (9L) and most of our wine businesses
are micro or small. Additionally, our cool climate creates significant vintage
variation, meaning that availability of wine to sell changes year by year. Many
Tasmanian wine producers are therefore best to focus on the domestic market,
particularly through cellar door and direct sales - this helps their bottom
line as well as their relationship with customers. Exporting comes with a need
to service markets, to label wines differently, to obtain an export license,
local importer (etc.) - if wine businesses can sell in the domestic market,
this makes the best sense for many. There are approximately 15 'active'
Tasmanian wine exporters, who are doing an excellent job of promoting the
island's wines. Key current markets are the UK, USA, mainland China, Finland
and Hong Kong - the major focus for export is the value per litre, rather than
volumes.
Sarah:
Where do you see the Tasmanian wine market in ten years? What most excites you
about the future?
Sheralee: I expect
Tasmanian wine to be far more prominent in key export markets, for people to
have more knowledge about Tasmania, its wines and wine styles. I also expect
that more wine lovers will be visiting Tasmania to seek out more of our wines,
and that Tasmania will be recognised as one of the leading wine regions for
quality and excitement. There is so much change and development occurring -
more people moving to Tasmania to grow grapes and make wine, different clones
and varieties being planted, different winemaking techniques (etc) - the
innovation and where it will take Tasmanian wine is what is exciting.
