AN INDUSTRY STRATEGY FOR SUSTAINABLE SUCCESS
In 1996, the Australian wine sector published Strategy 2025 - a landmark document that created a new unity and purpose. The key target set was for Australian wine to achieve annual sales of $4.5 billion by the year 2025. This figure was actually surpassed in 2005, 20 years early.Australian wine is now expected to reach $5 billion in sales by the end of June 2007. Today, after a decade of unprecedented change in global wine trading conditions, we need to reassess the priorities and challenges facing Australian wine, most of which were anticipated in Strategy 2025. As a self-reliant sector that drives its own destiny, we must continue to react and adapt to changing market needsand conditions. Through the past decade, Australian wine has become subject to a significantly more competitive global trading environment, has been confronted by an imbalance between its supply and its demand, and has run up hard against the realities of climate change and scarcity of irrigation water. Against these, the sector has worked diligently to meet the demanding expectations of its majorinternational markets, and has seen the value per litre of its export and domestic sales decline in a dramatically altered market environment. The product of 18 months of intense research and consultation, Directions to 2025 clarifies the environment in which Australia is making and trading its wine. It sets a measurable course for the future, maintaining the vision behind Strategy 2025 and itsunprecedented success. Strategy 2025 called for value growth between 2002 and 2015 and Directions answers that call.
IDENTIFYING THE CHALLENGE Directions to 2025 is every bit as ambitious as Strategy 2025. Founded on the firm conviction that Australia must become a more significant participant in the regionally distinct and fine wine market, its target is to increase the value of the Australianwine trade over the next five years by a cumulative $4 billion. This would return the Australian wine sector to the appropriate return on investment it previously experienced, but has largely not been seen over the past five years. SCOPING THE CHALLENGE Directions to 2025 is a comprehensive blueprint for Australian wine to achieve a sustainable return for its 7,000-plus grape growers and 2,000-pluswine producers. It delivers a broad and sustainable strategy based on a clear understanding of such matters as market change, climate change, the environment and vine health. It is indeed a document for these times. Directions begins with the most detailed provision of market intelligence ever delivered to any wine sector, anywhere, via an online Information Resource Kit. It marries this knowledgewith an elevated priority towards economic, climatic and viticultural research. It seeks to rationalise and clarify the roles of the various industry structures and research organisations. It will align the activities of the various national, state and regional bodies and associations to streamline a high-level and consistent approach to the sector and to the market. Directions fully endorses theexciting new Wine Australia brand segmentation strategy that encourages consumers around the world to trade up through a clear communication of the four different “personalities” of Australian wine. This brand segmentation strategy is outlined in the consumer trends section on page 13.
Much of the success implicit in Directions is based on an extensive rollout of this brand segmentationstrategy through key international markets as well as the domestic Australian market, which accounts for around 40% of all sales. Directions also encompasses a targeted international and domestic marketing campaign that brings together the various opportunities, events and knowledge bases already in existence. Directions is supported by a world-leading range of resources for wine producers and...