South Australian Wine Industry Snapshot

Wednesday, Aug 16, 2017

Inaugural study shows South Australian wine businesses are confident about growth but concerned about the high costs of doing business.

The South Australian Wine Industry Association (SAWIA) together with its Industry Partner, Bentleys, has today released the South Australian Wine Industry Snapshot –an inaugural study of the sentiments and views of the state’s wine industry.

The aim of this inaugural study is to provide wine businesses with the insights required to inform decision making and to monitor performance. The report also demonstrates how SAWIA and industry partners, such as Bentleys, can assist the SA wine industry in improving their business operations to assist profitability. 

Key findings of the report:

  • 75% percent of respondents operated in the seven largest wine regions with the balance coming from smaller regional areas;
  • Over one quarter of respondents have assets in the Adelaide Hills (27%) and McLaren Vale (25%);
  • When asked about the most pressing issues impacting SA wine businesses, 82% of respondents indicated negative impacts of energy costs, followed by energy security (60%) and labour costs (82%);
  • Major export challenges include profitability, managing credit risk, language barriers, and foreign currency;
  • Directions for growth including geographic expansion (30%) and increasing share in existing markets involving less risk (30%);
  • 44% of respondents indicate they will be impacted by proposed changes to the Wine Equalisation Tax;
  • 81% of businesses surveyed seek insights to inform business decisions from industry associations and groups;
  • 13% of businesses surveyed have a business continuity plan to manage key risks;