Australian wine industry lobby group The Concerned Elders say the new Wine Australia Board is out of balance because of a lack of wine industry experience. This is an open letter by chair Louisa Rose.
We congratulate the five people chosen by the Minister of Agriculture to serve a three-year term on the Board of Wine Australia.
Individually each is worthy of a place at the table based on their CVs and past achievements, and we The Concerned Elders wish all strength to their arms in optimising the opportunities for the Australian wine industry.
When we view the Board as a team, there is much overlap in the skill sets and experiences of the three non-industry board members and the chair Dr Michele Allan.
All have sat on multiple boards, predominantly of Government bodies.
All have sat on agricultural commodity boards including dairy, wool, cotton, meat and livestock, sugar, grains and food and fibre or fast-moving consumer goods (FMCGs).
Most have experience within the tertiary education and research sector including Universities and CSIRO.
The Concerned Elders are not critical of any one of these non-industry directors and are confident each will contribute competently within the areas of their skill sets and experience.
We also note and agree that proper governance skills on any Board is necessary.
Notable however, is the absence from the Board of experience and skills in the areas of technical winemaking and the achievement and assessment of wine quality.
The two biggest challenges for the more than 2,000 winemakers in Australia are the impact of climate and weather on yield and quality and the achievement of differentiation in the marketplace based on the style and quality of wine made and the reviewers’ assessment of same.
These skills and experiences are deficient in the Board’s current profile, leaving only Ms Riley to prosecute any debate on behalf of the Australian grape and wine community.
Wine is not a commodity, it is an elaborately transformed agricultural product unique in that the origin, the varieties, the method of growing and making and the quality and style of the wine are all part of the brand story.
The grower/maker then stands in front of consumers in global markets to tell their story and sell their wine.
We note Mr Kay has significant past experience in this arena.
This is not true of dairy, wool, cotton, meat and livestock, sugar, grains and food and fibre.
Neither is wine an FMCG.
No one on the Board has experience of this fully vertically integrated business model and the drivers of success in the marketplace.
The majority of the non-industry directors have no experience in the establishment and operation of their own businesses other than consulting.
We believe two additional directors should be immediately appointed to balance the Board in favour of industry experience and to fill the skills gap in winemaking and the assessment of grape and wine quality.
We would also hope that the new Board would embrace this initiative to assist in their strategic decision making.
We understand Australian Grape & Wine wanted a seven-person Board and have been presented with five.
We wish the new Board well in its endeavours, but we are adamant it would be better balanced and a more complete team with two additional members who know something about the wine business, the effects of climate and weather on wine quality, the process of winemaking, and the improvement and assessment of wine quality.
These skill sets are essential to the success of Australian wine businesses. They are also essential to the Board of the industry’s statutory authority, Wine Australia.
Louisa Rose
Chair, The Concerned Elders
• The Concerned Elders represent over 30 current and former leaders of the wine industry. Qualifications in the group include owners of small, medium and large wineries and wine business, grapegrowing, winemaking, R&D, industry analysis and media. Many of us have significant experience serving on, in some cases chairing, industry boards such as the Australian Wine Research Institute, Australian Grape & Wine Association and its predecessors, and Wine Australia and its predecessors.