Policy & Issues
Growing Our Exports
In Late 2020, the Australian Government announced funding to support various sectors with expanding and diversifying their exports under its Agri-business Expansion Initiative (ABIE). Under the Department of Agriculture, Water and the Environment’s Agricultural Trade and Market Access (AMTAC) grants program, which falls under the ABIE banner, Australian Grape & Wine has secured funding to support grape and wine businesses impacted by the disruption of exports to the China market.
Australian Grape & Wine assessed the needs of the sector to ensure this funding is used effectively to support the sector’s market diversification efforts over the short-term, and the long-term. This funding is the first tranche in what we hope will be a two-stage project which aims to grow and expand Australian wine exports in line with the goals set in the grape and wine sector’s Vision 2050 document. .
Marketing and Promotion strategy for new and emerging markets
As the wine sector’s marketing body, Wine Australia collects industry levies to support Australian wine marketing and promotion, internationally. With the end of the $50 million package and the effective closure of the China market, resourcing for marketing has been reduced considerably when compared to recent years, and it is clear that Wine Australia cannot focus on every emerging market opportunity.
With this in mind, in the short term, Wine Australia is prioritising its investments of levy funds in the key markets of the United States, Canada and the United Kingdom.
This leaves opportunities for marketing and promotional efforts that Wine Australia cannot undertake. Australian Grape & Wine’s members have identified a range of other markets presenting real opportunities for export sales and future growth and this will be the focus of our activities funded by that ATMAC grant.
Concurrently, a number of state governments have announced funding and programs designed to aid producers with market diversification. While government investments in market diversification is to be commended, it is critical that multiple efforts to not lead to duplication or mixed messaging. This is important for grape and wine businesses, governments, and the Australian taxpayer. Australian Grape & Wine is seeking to ensure every dollar invested in market diversification activities is maximised for the benefit of grape growers and winemakers. Deliverable 1 will develop a strategy and action plan for new and emerging markets and seeks to coordinate available resourcing. By doing this, we will establish a high-level framework for which future resourcing and effort is more coordinated, allowing resources to be used more effectively and deliver tangible outcomes for the sector.
Short-term marketing and promotion pilot activations
Linked with Deliverable 1, this Deliverable will seek to address the short-term gaps in marketing and promotion in key emerging markets by delivering pilot retail activations promoting Australian wine. The initial markets being considered for these pilots are Japan and South Korea. It is anticipated this activity will market Australia wine to consumers through retail channels. These campaigns will be delivered as pilots and the outcomes critically assessed in consideration of the delivery of more activations in Stage 2 of the project.
Trade and market access strategy & action plan
Australian Grape & Wine has for many years undertaken a comprehensive Trade and Market Access strategy and work plan which has guided efforts to harmonise trade and remove trade barriers for the export of Australian wine. With the changing market conditions and industry priorities, it is important that this document is constantly reviewed to ensure it delivers on the changing priorities of the sector. The focus of this strategy will be on activities that can be undertaken in the short, medium and long-term, to encourage international cooperation and engagement, to remove trade barriers and unnecessary costs associated with export. Delivery of the outcomes and the Action Plan associated with this strategy will commence in Stage 2 of the project.
Supporting Australian wine producers to enter the USA market confidently, effectively and efficiently
With the USA remaining one of the most important major markets for the sector, yet one that is incredibly challenging to navigate for small and new to market producers, it was identified that there were some gaps in supporting mechanisms. This Deliverable will produce written and web resources that can be widely distributed to help small and medium wine businesses more readily understand their opportunity in the US market by a combination of state geography, channel and import model. These resources will be useful for companies seeking US Market entry to help with entry strategy and market understanding to support targeted decision-making, as well as those already in market, who are reviewing geographical and channel expansion within the US to build on early successes, or pivoting with changing circumstances.
Australian Grape & Wine will seek additional funding under ATMAC in early 2022 to deliver Stage 2 of the project. Stage 2 will build on the learning and strategies developed under the initial stage and commence a planned delivery of activities aimed at growing and expanding Australian wine exports.