3.2.05

the spanish survived

Australia produces very fine wine; fine wine that stands well on the world stage and deservedly takes its share of international awards and repute.

However, to say we lead the world, or to say that our success overseas is an unbeatable challenge to the local winemakers of America and Europe is absolute rubbish, and a myth that I am quick to do my part in dispelling.

It is true that we hold some impressive statistics in terms of market penetration, or even in terms of the prices that some of our wine commands. A closer analysis, however, reveals some truths that aren't at all palatable.

Firstly, market penetration. Australia sells a lot of wine to overseas markets, particularly North America and the UK. What most don't seem to grasp, though, is that we are selling - almost exclusively - mass produced, easy drinking, inexpensive wine from safe and marketable grapes. This is not the wine I, or any self-respecting Australian wine drinker, would buy, or really even be able to drink comfortably when supplied gratas. To that end, it is time that we realised that while an amazingly high percentage of Australian wine sits above the bar of drinkability, this does not mean it is all that good or, more importantly, that it should be shipped off and pushed to others.

Often when I am overseas ordering wine the service staff will inform me, at times with great enthusiasm, how much they enjoy Australian wine. When I first experienced this I was overjoyed, but when I scratched the surface, and established what wine it was that they loved, I was plain concerned.

Essentially, the success of Australian wine overseas, the awesome penetration of external markets, is entirely the result of sly product positioning: a case of the biggest producers pushing cookie-cutter wine to a relatively undereducated market at a price which - at the moment - local winemakers can not compete with. Simply, the notion of the exotic, plus a low price point, is clearly, in this case, a gold mine.

There are more than a few things wrong with this formula but one need only focus on the two main points.
  1. Pushing an ordinary product is a dangerous game. When people eventually wise up to what decent wine is they will move on to bigger and better things. The problem is, they will move on with the preconception that all Australian wine is as they have tasted - simple, fruity, completely devoid of challenge. Fighting that image - that we deliberately beat into them in the first place - will be next to impossible, if only because Australia simply won't be able to export good wine - to convince them otherwise - as easily as they did the rubbish.

  2. All Australian wine will be expected to be cheap and wine at a higher price will be met with a cold shoulder. Why should I pay $90 for that Australian pinot noir when I can buy outstanding pinot noir from Oregon for $60?
The above highlights a future the Australian industry is not fit to participate in. The fallout form this turnaround will be tangible and widespread. The entire national wine infrastructure will be turned upside down and while we appreciators like to imagine our boutique wineries will be exempt from that turmoil, this country is just far too small for that to be the case.

Unfortunately, I think it's just a matter of time. I just can't see how greedy producers will change their ways when they have the full run of the market and there is simply no way that the external market consumer's palates won't mature and move on. There is just an undeniable air of inevitability here.

The question is where do we go from there. There's certainly plenty of chatter regarding the thoughts outlined above, but no one seems to want to step out alone with an opinion or theory on how to tackle the problems thereafter.

It seems obvious to me the only way out after the bomb drops is to enter an era of wine production where quality reigns over quantity, where we acknowledge we may not ever repeat the stupendous export figures of today and find comfort in that. From this, I believe, our position as premiere winemakers will take an even firmer root and our own local industry will benefit accordingly.

Funnily enough, part of the recovery will be linked to the second area of Australia's current success overseas: high prices for outstanding wines.

At least to some extent, the people who pay a lot of money for Australian wine overseas are doing so because they understand and appreciate what they are buying. This is the mindset into which the Australian industry must tap. They must do so because this, the educated appreciation of wine, is what it is all about. It's the wine, Stupid!

The more observant of you will be shouting but you said that they won't pay a lot for Australian wine when they can buy great wine locally for the same price or less. First of all, thanks, you're paying attention, that's great, second of all this remains true, but only of some wine drinkers, and Australia does not need to win over all wine drinkers.

Good wine is, well, good wine, and an educated wine audience will hunt down and purchase wine they know will appeal to them, and sometimes cost and ease of access is not so much of an issue. Sure, this may well be a marginal group of people, but as I mention above, we don't need everyone - fractions in North American population terms equates to tenable revenue in Australian scales and measures, and that is all we need to sustain a smaller, quality-driven industry.

I don't mean to paint an entirely rosy picture, because the reshaping of the industry that will come from an en masse rejection of Australian wine will be substantial and far reaching. There will be a thinning of the herd, so to speak, and some good guys will probably be uprooted in that process. That will be very sad, and doubtless most wine lovers will be affected in some way.

However, it pays to remember that you can't keep a good vintner down and in an industry focused on building outstanding wine, wine to tackle the world, the cream will rise. This will be a wonderful thing to witness not to mention essential for our long term future.

Who knows, maybe this change will see Australia finally producing greater quantities of wine that can be cellared for longer than 15 years. Drink now is really starting to wear a little thin with me.

But I guess I should build the cellar before I shout too loudly.

And it would probably help to own the home I live in before I start digging.

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