November (5) 2019

 

FEATURE ARTICLES                                                                                      

SA Wine Industry Snapshot reveals drop in confidence
Register now for Work Health and Safety Seminar
Pregnancy / health warning on wine labels
Getting ready for vintage
Liquor Licensing reform briefings
South Australian wine to star at La Cite du Vin
Export Market Development Grants – have your say 

INDUSTRY & GOVERNMENT

Limited places remaining in Wine Business Growth Program
3% annual growth targeted
Draft Planning and Design Code released for public consultation
Wine industry makes $45.5 billion contribution

EMPLOYEE RELATIONS & WORK HEALTH SAFETY

Comply with Chain of Responsibility Laws…. or else
Employees can’t demand flexible work arrangements
Managing non work related injury and illness     

SALES MARKETING & PROMOTION

Wine, art and science with a twist
Call for wine to use in educational courses
Malaysia / India / Maldives export opportunity
Average value of exports rise 16%
Competitions, promotional opportunities and social media

SUSTAINABILITY

Inquiry into Australia's waste and recycling industries
River Murray water allocations reach 94%    

OTHER

California fires – check your insurance cover now
Finlaysons Roadshow – Levelling the Playing Field
Changes to music licensing have commenced
Dates for your diary


 

Message from the Chief Executive

The Growth State regional roadshow has now come to an end, after visiting many regions around the state. The targeted 3% annual growth in gross state product represents a challenge with water being a key issue. Refer to the article in the Industry & Government section below for more information, including how you can still contribute to the discussion.

I was delighted to attend the McLaren Vale Wine Show Bushing Lunch, with the Bushing Monarchs crowned in front of some 600 people. CheeseFest and Ferment was held from 25-27 October, and with it was a Great Wine & Cheese Voyage through the East End of Adelaide (under Adelaide South Australia’s membership of the Great Wine Capitals network). It was great to taste many of our South Australian wines against comparable wines from other world wine capitals, with the tastings enhanced by professional commentary on the wines, capitals and local environments.  

Wine Australia recently released national and state reports for exports over the year ending September 2019, which showed that South Australia’s total value increased 10% to $1.846m whereas volume declined 8%. Refer to the Sales Marketing & Promotion section for more information.

SAWIA has been active in Pregnancy Labelling consultations undertaken by Food Standards Australia and New Zealand, raising significant concerns regarding the inclusion of a HEALTH WARNING rather than a PREGNANCY WARNING. We are also concerned with a range of other matters including additional costs for label design and printing. Refer to the Feature Article below for details.

A number of Bills are being considered within the South Australian Parliament, with proposed amendments to Labour Hire Licensing and Farm Trespass laws of keen interest to the wine industry. SAWIA will keep members up to date with any changes.

While we can’t possibly recognise all current and past members for their achievements and contributions to our industry, I would like to congratulate Paul Hotker and Bleasdale Vineyards (Jimmy Watson Memorial Trophy), Pam Dunsford (South Australian Legend of the Vine 2019) and Treasury Wines’ Rosemount Estate (Max Schubert Trophy).   

Refer below for feature articles on the upcoming Work Health and Safety seminar, Getting Ready for Vintage regional briefings, and the drop in confidence revealed by the SA Wine Industry Snapshot.

 


 

FEATURE ARTICLES 

SA Wine Industry Snapshot reveals drop in confidence

 

 

The third annual South Australian Wine Industry Snapshot – a collaboration between SAWIA and (Wine Industry Partner) Bentleys SA – was released in late October.
 
The report shows confidence among local wine businesses has declined as energy costs and water access and security continue to challenge profitability. This also reflects that, despite a high quality vintage, the unfavourable weather conditions resulted in significantly reduced production in some regions.


On a positive note, winemakers are taking advantage of free trade agreements in Asian markets to explore export opportunities, and participants flagged development of an additional 850 hectares of vineyard.

One hundred wine businesses participated in this year’s study. Key findings include:

  • 24% of participants are worried about the future of their business, compared to only 12.5% last year
  • 27% of participants indicated their business confidence has decreased this year, compared to 12% last year
  • Wine inventory levels are in balance, with more than 40% of participants indicating their inventory levels of white (43%) and red wine (45%) are about right
  • Energy costs are having a negative impact on 88% of participants
  • Almost half (48%) of participants are experiencing difficulty with recruiting staff
  • Two thirds (67%) of participants have expressed a need to improve business profitability, with 25% indicating that significant improvement is required
  • 83% of participants do not intend to change their water consumption through to 2028, despite some expansion of vineyards
  • More than half (51%) of participants consider continued local demand for South Australian wine to be a key success factor.

For more information, contact Brian Smedley (8222 9277 or brian@winesa.asn.au) or Tim Siebert of Bentleys (0417 802 654 or tsiebert@adel.bentleys.com.au).


 

Register now for Work Health and Safety Seminar

 

 

The key work health and safety event in the South Australian wine industry, SAWIA’s annual Wine Industry Work Health and Safety seminar, will be held on 6 November (Barossa) and 20 November (McLaren Vale).

Presenters from Finlaysons Lawyers, SafeworkSA, University of Adelaide, Pinnacle Workplace Consultants and ReturnToWorkSA will cover key topics, including:

  • Our ageing workforce, and how to sustain workers in good health and free of injury
  • Mental health and your legal obligations under the WHS Act
  • Contractor/labour hire arrangements and what it means for your WHS responsibilities
  • Benefits of early return to work.

The seminar is a great source of important information and practical advice for owners/managers, front line managers, HR managers, team leaders, work health and safety representatives, supervisors, team leaders and anyone else with responsibility for work health and safety or workers’ compensation.

Click here to register or obtain more information, or contact Business and Workplace Advisor Zvonko Levak on 8222 9273 or zvonko@winesa.asn.au.


 

Pregnancy / health warning on wine labels

 

 

SAWIA has been strongly representing members in pregnancy labelling consultations with Food Standards Australia and New Zealand.

In our recent submission we raised significant concerns about the inclusion of a HEALTH WARNING rather than a PREGNANCY WARNING, and with the additional costs arising from use of the colour (red) within the warning statement. This would significantly add to costs for label design and printing for all wine businesses.

SAWIA recognises that mandatory labels are coming, however the significant investment made by wine businesses through their voluntary labelling approach has largely been ignored.

The submissions of various entities will inform the final recommendation to a Ministerial forum. Once a decision is made, there will be a transition period of about two years likely to commence in March 2020.

More information is available in a Notice to Members available from SAWIA’s website. Alternatively, SAWIA members can contact Brian Smedley on 8222 9277 or brian@winesa.asn.au.


 

Getting ready for vintage

 

 

To help members prepare for vintage 2020, SAWIA has been putting final touches on this year’s Getting Ready for Vintage regional briefings.

Areas of focus include wages and awards, engagement of contractors, labour hire workers, working holiday makers and heavy vehicle chain of responsibility.

Dates and regions are:

  • Langhorne Creek: Friday 22 November
  • Riverland: Wednesday 27 November
  • Barossa Valley: Thursday 28 November
  • McLaren Vale: Thursday 5 December
  • Coonawarra: Tuesday 10 December

To register or obtain more information, click here or contact Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.


 

Liquor Licensing reform briefings


 

 

New liquor licensing categories, a new short-term liquor licence and penalties of up to $10,000 for failing to undertake a risk assessment and develop a management plan are just some of the important changes to South Australia’s liquor licensing laws that take effect in November.

To support producers in managing this change and complying with new obligations, SAWIA is offering regional briefings around South Australia. The sessions cover:

  • New licence categories relevant to the wine industry
  • Fee structure of licences and fee minimisation opportunities
  • How to make changes to a licence
  • Core licensee requirements such as direct sales and delivery (e.g., online and phone sales), junior workers and serving to minors prevention measures, responsible person obligations, responsible service of alcohol qualification and extent of recognition nationally
  • Risk assessment and management plan requirements and recommendations.

Click here to register or obtain more information, or contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

South Australian wine to star at La Cite du Vin

 

 

South Australian industry leaders are pouring an impressive selection of our state’s wines at France’s architectural temple of fine wine, La Cite du Vin in the claret capital of the world, Bordeaux.

This is a breakthrough moment for the SA wine community, starring as a feature region at a public and wine trade tasting expo at the annual general meeting of the elite Great Wine Capitals Network in the traditional French wine centre.


In a unique SA twist on the classic coals to Newcastle scenario, nine premium-region wines will be highlighted during the week’s meeting, at an international wine party alongside the nine other Great Wine Capitals members, and later at a La Cite du Vin solo expo.

French wine fans will get a chance to taste an Adelaide Hills sparkling, a Clare riesling, an emerging varietal white fiano variety from McLaren Vale, two Penfolds multi-regional SA reds, a couple of d’Arenberg reds, a bold Barossa shiraz, and a Coonawarra cabernet sauvignon. The tastings allow us to show off what is new and different about SA wines.

Adelaide was accepted into the Great Wine Capitals network in 2016 and allowed to represent all 18 designated wine regions in SA – unique in the group as the nine other members are only representative of a single region, such as Bordeaux in France, Verona in Italy, Mendoza in Argentina and San Francisco for the Napa Valley in the U.S.
 
Adelaide’s inclusion in the network is a collaboration of SAWIA, Primary Industries and Regions SA, South Australian Tourism Commission, Adelaide University and UniSA. Since 2019 the number of international tourists visiting a SA wine region has grown from 149,000 to 168,000, with 36% visiting a wine region stop at a winery – twice the regional rate in the rest of Australia. Australian consumers rate SA as the Wine State – 70% associate SA with credible wine regions and wineries, up from 60% three years ago.


 

Export Market Development Grants – have your say


 

 

An independent review of the Export Market Development Grants (EMDG) scheme and Australian Government Financial Assistance to SME exporters is occurring and you can have a say.

The review is being conducted by Anna Fisher (Co-Owner, Zonte’s Footstep), who is also serving on SAWIA’s Executive Committee. The review will examine how the Australian Government can best provide financial assistance to help SME exporters promote their products and services overseas and enter new export markets. The review will also consider ways to make it easier and simpler for businesses to access support, while streamlining service delivery.

While the Government boosted the EMDG scheme by $60 million in the 2019-20 budget, the scheme has not seen significant reform in over 40 years.

Have your say by making an online submission before 11 November 2019.

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INDUSTRY & GOVERNMENT

Limited places remaining in Wine Business Growth Program

Ready to grow your wine business but not sure where to start? The Wine Business Growth Program is here to help.

Your business will benefit from a free business evaluation with recommendations on how to enable growth, including management skills that would benefit from coaching. After that, you can apply for a funding grant that covers much of the cost of expert business coaching services specific to the business improvement recommendation(s).

To be eligible, you need to have a turnover between $300,000 and $3 million. There are only a few places left, strictly on a ‘first in first served’ basis. Don’t miss out on your share of $150,000.

To apply, download the short application form here or contact Mark Gishen on 8222 9278 or mark@winesa.asn.au.

 

 

This program is proudly supported by the Government of South Australia.


 

3% annual growth targeted

A target of 3% annual growth for the gross state product has been set in the South Australian Government’s Growth State regional roadshow. Not surprisingly, Food, Wine and Agriculture was identified as one of nine sectors having solid potential to grow.

The 3% target is a challenge for the wine industry, with water being a key issue. Other key issues were also identified, with a summary report to be issued in the near future. This is expected to help focus and guide support for South Australian businesses into the future.

The Growth State regional road show was held in locations around South Australia, with Brian Smedley of SAWIA attending the Clare Valley, Barossa, Riverland, Langhorne Creek and McLaren Vale sessions to hear the discussion first hand. Attendance from wine industry representatives was small, so it was up to those people to speak for the many that did not attend.

SAWIA members who were unable to attend the sessions can still have a say by contacting Brian Smedley on 8222 9277 or brian@winesa.asn.au. A short set of questions can be provided that will help you to respond.  


 

Draft Planning and Design Code released for public consultation
 
The State Planning Commission has released the draft Planning and Design Code, covering the rural and urban areas of South Australia, for public consultation.

The Planning and Design Code is intended to offer a single, consolidated set of planning ‘rules’ for assessing development applications across the state, and sets out the rules that determine what landowners can do on their land. The Code is expected to come into effect by April 2020 for Rural Areas, and July 2020 for Urban Areas. The draft Code and more information about the reforms
can be found here.

Some specific issues of relevance to wineries are:

  • New beverage production policies to guide development approvals
  • New policy initiatives for renewable energy facilities
  • Greater opportunities for tourism and other value adding enterprises.

SAWIA is reviewing the consultation documents with a view to preparing a submission, and we are seeking members’ views on the draft Code. Please provide your comments to Mark Gishen urgently on 8222 9278 or mark@winesa.asn.au.


 

Wine industry makes $45.5 billion contribution


 

 

Australia’s grapegrowers, winemakers and wine tourism operators contribute $45.5 billion to the Australian economy, while the sector supports 163,790 direct and indirect full and part-time jobs. This strong contribution to the overall Australian economy is highlighted in a recently released independent economic report produced by AgEconPlus.

The report, commissioned by Wine Australia, found that the wine sector’s economic contribution has grown by 13% since 2015, an average growth rate of 3% per year.

Wine Australia data shows that the value of exports grew even faster, growing 36% between 2015/16 and 2018/19 or 11% on average per year. Wine is now Australia’s fifth largest agricultural export industry.

The study also found that, for every job generated within the wine sector, the general economy gains an extra 1.35 jobs. This highlights the importance of a vibrant grape and wine sector to jobs, export earnings and the economy.

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 EMPLOYEE RELATIONS / WORK HEALTH & SAFETY

Comply with Chain of Responsibility Laws…. or else


 

 

The Chain of Responsibility Roundtable reminded grapegrowers and wine producers, together with carriers, harvest operators and drivers, of the legal requirement to comply with the Chain of Responsibility Laws when their grapes and wine are distributed on roads by heavy vehicles. That includes ensuring that grapes are not overloaded, that the load is safely restrained and that scheduling of work does not influence drivers to speed or drive while fatigued.

Organised in response to industry requests, the roundtable covered learnings and observations from the 2019 vintage. It included presentations from the National Heavy Vehicle Regulator on issues relating to load restraint and spillage, the investigations process and safety on the road. It also provided opportunities for the sharing of ideas and best practice.

The Roundtable was organised by SAWIA in partnership with the Wine Grape Council of South Australia and the National Heavy Vehicle Regulator, with the support of Barossa Grape & Wine Association and Riverland Wine.

For more information, SAWIA members can contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.


 

Employees can’t demand flexible work arrangements

Employers are not required to agree to an employee’s flexible work arrangement request according to a recent case in the Fair Work Commission.

Due to a change in family circumstances, the employee asked to start later and finish earlier each day while having time off every school holiday period. This request was denied on the grounds that the business had more need for staff at opening and closing times and there was a high demand for leave during school holiday periods.

The employee’s employment came to an end when agreement couldn’t be reached on a way forward and the employee lodged an unfair dismissal claim.

The Fair Work Commission found that the business did not unfairly dismiss the employee, nor did it unreasonably refuse the request for a flexible working arrangement.

For more information visit SAWIA’s website, or contact Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.


 

Managing non work related injury and illness

 

 

When an employee is injured or becomes ill outside of work, they can be away from work for an extended period of time. This can limit their ongoing ability to safely perform the essential functions of their role.

An employee cannot be terminated for taking their accumulated paid leave to recover from an injury or illness, even if they are away for an extended period of time. Where an employee has run out of leave, and has been away for more than three months, the employer may assess their employment.

Where an employee is permanently unable to carry out the inherent requirements and demands of the position, and all other avenues have been exhausted, termination by the employee or employer can be considered.

Employer initiated terminations may still be considered harsh, unjust, unreasonable or discriminatory depending on the circumstances. Employers should seek professional advice prior to any such termination.

For more information click here, or contact Business Services Manager Henrik Wallgren on 8222 9270 or henrik@winesa.asn.au.

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SALES MARKETING & PROMOTION

Wine, art and science with a twist


 

 

WineLab at UniSA’s MOD (Museum of Discovery) was a very well-attended pop-up event held on 18 October, providing an exciting opportunity to explore the link between wine, art and science for after-work drinks with a twist. The event was organised by SAWIA in collaboration with MOD.  

WineLab featured 11 wineries pouring wines while sharing insight about the role of art and science in the making, packaging and selling of their wines. Participating wineries were Shut the Gate, Longview, Karrawatta, Zonte's Footstep, Levrier by Jo Irvine, Deviation Road, The Pawn Wine Co., Bleasdale, d'Arenberg, Mitchell Wines and Dowie Doole.

Guests paid $5 on entry for a souvenir wine glass with wines available for purchase by the glass and bottle throughout the event. Free tastings were available for the first hour and a delicious grazing table was provided by Food Lore. Along with the wines, guests were offered the opportunity to explore their palate with a sensory experience provided by AWRI staff. Guests were also invited to expand their understanding of wine through a pop-up talk by Graham Ellender of the University of Adelaide, addressing the factors that influence our sensory perception of wine.  

For more information, or to participate in future pop-up events, contact Rhys Howlett on 8222 9271 or rhys@winesa.asn.au.

Development and delivery of this program and/or activity is one part of the South Australian Wine Industry Development Program as administered by SAWIA, and is only possible from the support and funding provided by the South Australian Government through Primary Industries and Regions SA.


 

Call for wine to use in educational courses

 

 

For more than 60 years, wines for SAWIA’s National Wine Education & Training Centre (NWETC) courses have been generously donated by the Australian wine industry. Each year we educate more than 2,500 people through our various wine education sessions, and we are currently seeking donations from businesses for wines to be presented in our classes.


This is a great way to get your wine in the glasses of people who want to learn more about wine. Attendees range from members of the general public through to hospitality workers, international students and winery staff – all are looking to expand their wine knowledge.

We’re looking for traditional regional heroes as well as new and emerging varieties, interesting blends and modern approaches to classic wine styles. While donations of any and all wines are very much appreciated, we are particularly low in stocks of sparkling, white and dessert wines.

We use two bottles of each wine per class, so a donation of a dozen bottles will see your wine poured in six of our classes or private tastings. Your contribution will greatly help us to meet our wine education objectives, as well as providing you with the opportunity to increase brand awareness and showcase products to our enthusiastic participants.

If you would like to contribute or need more information, contact Rhys Howlett on 8222 9271 or rhys@winesa.asn.au.


 

Malaysia / India / Maldives export opportunity

During the past month, SAWIA members would have seen an opportunity to provide wines to an Asian market-based partner with operations in Malaysia, India and the Maldives. The business has been looking for Australian entry-level wines, with their customers using them for house pour and banqueting in hotels in the three markets.

The opportunity has now closed, however SAWIA members should watch for emails about future opportunities.

SAWIA members can contact Rehnu Page on 8222 9277 or rehnu@winesa.asn.au to be advised of future opportunities as they arise.


 

Average value of exports rise 16%

 

 

In the year ended September 2019, the value of Australian wine exports increased by 7% to $2.89 billion, while volume declined by 8% to 774 million litres. Average value increased by 16% to $3.74 per litre, the highest level since mid-2008. This exceptional result in average value was driven by record-setting growth in exports above $10 per litre, which offset decreased shipments below $5 per litre.

The decline in the overall Australian export volume is due to the 2018 and 2019 vintages being smaller than in 2017, increased global competition and premiumisation / moderation trends in established wine markets.

South Australia is exporting 63% of Australia’s total, including packaged wine exports to China ($686m) and Hong Kong ($69m), UK ($82m), Singapore ($58m), USA ($57m) and Canada ($42m).

Click here to view the report.

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SUSTAINABILITY

Inquiry into Australia's waste and recycling industries

A federal inquiry is examining opportunities presented by waste materials, including energy production, innovative recycling approaches and export opportunities. The inquiry is also considering current impediments to innovation.

The Federal Government’s House of Representatives Standing Committee on Industry, Innovation, Science and Resources welcomes submissions until 31 January 2020. Details on how to make a submission are available here.

In the light of current focus on waste and recycling, in particular the discussion on the role of container deposit schemes, SAWIA is considering developing a submission and needs members’ views. To contribute, contact Mark Gishen on 8222 9278 or mark@winesa.asn.au.


 

River Murray water allocations reach 94%

 

 

The minimum irrigation water allocation for the 2019-20 water year is now 94%, up from the initial 14% announced in April.

The seasonal outlook is for November to January to be drier than average with warmer temperatures, although the water availability projections currently indicate that water allocations are still likely to reach 100%. However, water availability is likely to be limited heading into the 2020/21 water year.

Private carryover will be available for eligible water users, allowing unused water from 2018-19 to be carried over for use in 2019-20 (up to 20% of the volume on entitlement).

More information can be found here.

SAWIA will continue to ensure members are informed of any changes. Members can contact Mark Gishen on 8222 9278 or mark@winesa.asn.au with any questions.

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OTHER

California fires – check your insurance cover now

 

 

Several Sonoma County wineries in California, including one with historic buildings dating back to 1869, have been destroyed by the swift-moving Kincade Fire, which has burned more than 66,000 acres. This follows the 2017 fires in California that damaged or destroyed more than 25 wineries.

This is a timely reminder for all wine businesses to ensure appropriate insurance cover is in place. Review your business now and consider what could happen if a fire, earthquake, major storm event, flood or other incident occurs. All SAWIA members are encouraged to have Business Interruption insurance as it covers lost turnover across a wide range of possible events.

 

 

For more information about business interruption insurance, and/or to ensure that you have the right insurance cover for your business, SAWIA members are welcome to contact Phil Keenihan of MGA Insurance (SAWIA’s Wine Industry Partner) on 0414 331 489 or phil.keenihan@mga.com.

 


 

Finlaysons Roadshow – Levelling the Playing Field

 

 

SAWIA members are reminded that Finlaysons Wine Roadshow 27 is coming soon to the Riverland (6 November), Coonawarra (25 November) and McLaren Vale (27 November).

The Roadshow covers the impact on wineries in all regions, large and small, of the Final Report of the ACCC, which was released on 24 September. The Report has serious ramifications for the assessment, grading and pricing of fruit and the terms of grape supply agreements (including payment terms), among other matters. This material should not be ignored – the ACCC is a powerful regulator.
 
The CEOs of Wine Australia and Australian Grape & Wine will also take the opportunity to update attendees on their agendas, including the outlook for the industry in Australia and its key export markets.


Click here for details and to register.


 

Changes to music licensing have commenced

 

 

Businesses that play copyrighted music in their workplace need to have permission for the use of music, or be in breach of Australian copyright law.

Prior to July 2019, the most common way of doing this was to have licences from APRA AMCOS (composers and music publishers) and PPCA (recording artists and labels).

OneMusic Australia was launched on 1 July 2019 as a convenient option for businesses to be compliant. Other options are limited, such as having direct licensing arrangements with individual copyright owners whose music is played within the workplace.

Current APRA and PPCA licences will continue to run until their specified end dates, but renewals will fall under OneMusic Australia.

For more information, click here or contact Workplace Advisor Adrian Richards on 8222 9212 or adrian@winesa.asn.au.

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Dates for your diary

2019

2020