The Australian wine industry – hit hard by an oversupply and many other challenges – could be on the cusp of “a reckoning”.
That is according to Lee McLean, CEO of Australian Grape & Wine, who spoke about the numerous challenges on the opening morning of the 19th Australian Wine Industry Technical Conference in Adelaide on Monday.
“Events like this help us to navigate choppy waters,” he said.
“Without question you’re going to hear about some of the challenges we’re facing.
“And there are a number of them.
“I’m not going to labour on this point though.
“Because each of you are living and breathing this in your businesses every day.
“But it’s fair to say that we’re quite possibly on the cusp of a reckoning in our industry.”
McLean says there is no easy fix.
“I think we can all agree there’s no silver bullet to dealing with this,” he said.
“But there are a few things that are being worked on at the moment which I think can underpin a recovery.
“Better data, better commercial relationships, the right regulatory settings from government and hopefully government support to help drive a sustainable recovery for our sector.
“And while we talk about challenges, we’ve also got to think a lot about the great assets we have in this sector.
“The diversity of our regions, of our communities, our wine science, the sheer quality of our wine.
“And most importantly our terrific people.
“These are assets that other producer nations around the world envy. And we’re very, very lucky to have them.”
McLean says the oversupply is a big issue – but just one of many facing the wine industry.
“But we’ve got to be mindful as well that there are a number of other issues that we need to be contending with right now,” he said.
“Some of these issues are over the horizon, others are coming at us like a freight train.
“It could be burdens of regulation.
“It could be labelling requirements.
“It could be the fact that we’re possibly entering one of the most volatile trading environments globally that we’ve seen in the last 70 or 80 years.
“It could be that while we believe that drinking in moderation is completely reasonable, others wish for us to refrain from having that glass of wine at all.
“These are just a few of the issues we’re dealing with.
“But we can’t stick our head in the stand and hope for these problems to go away.”
McLean said Australian Grape & Wine – the organisation he’s “really proud to lead” – is doing everything it can to contend with these issues and address them.
“It’s your organisation, it’s funded by voluntary membership fees,” he said.
“Without your support the Australian wine industry does not have a presence in Canberra where those big decisions that impact on your business, your livelihood, your communities, and the industry as whole, are often made.
“Our role is unique and it’s targeted.
“We focus on political engagement.
“We focus on influencing decision makers to make better decisions for our sector.
“And we give you a seat at the table.
“As the old adage goes if you’re not at the table, you’re likely to be on the menu.
“I know the pressures that are coming at all businesses are immense.”
McLean urged the industry to pull together to “try to shape our own destiny”.
“Try to shape a future in which our regulatory and political settings are likely to help us drive a much brighter future in which we can all be profitable and sustainable in the long term.
“But this only happens when there’s investment by the sector in the work that we need to do.
“One meeting with the Minister of a Parliament doesn’t change their mind.
“This requires ongoing, regular, professional, consistent engagement right across the Parliament.
“And right across all of those government agencies that people talk about.
“These are big decisions that have an impact on you.
“But it only happens when we’re supported. When Australian Grape & Wine has your backing.
“I’m really glad to see – speaking of support – so many of our members here today and I’m looking forward to catching up with as many of you as I can.
“But if you’re not a member – I really encourage you to think about joining.
“Come and talk to us. Join the team to help shape that brighter future for all of us. For your business, for your region, for your community and for the sector as a whole.”
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