This issue of VitiLines circulates for industry information a Co-operative Research Centre (CRC) structure to be considered later this year by the national CRC Committee. If given approval to be established it will shift emphasis to consumer requirements and marketing opportunities.
The
Co-operative Research Centre for Wine To enable the Australian wine industry to become the world's most influential and profitable supplier of branded wine through innovation and rapid uptake of knowledge and tools relating to consumer sensory preferences |
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| Introduction One of the challenges of an increasingly global market is to recognise opportunities for business improvement. Meeting this challenge need not be restricted, however, to the separate marketing efforts of competitors. Clarification of opportunities and even new markets can grow from collaborative effort and joint investment, which have been positive features of our industry for several years. These efforts can now be harnessed to meet such challenges as recognition of consumer preferences and preparation for change in the diverse world market. Examples of Australian wine industry R&D outcomes are improved production efficiency and discoveries about wine compounds, both of which can be built upon to the advantage of the industry as a whole as well as individual grape growing and winemaking businesses. The CRC for Wine On 2 July 2004, members of the Australian wine industry and the research community submitted the Stage 2 bid for a new Cooperative Research Centre, the Cooperative Research Centre for Wine. (CRCWine) Established by the Winemakers‘ Federation of Australia (‘WFA’) and the former Winegrape Growers’ Council of Australia (‘WGCA’), an industry-led Planning Committee worked with representatives from a number of research providers to pull together a bid for Cooperative Research Centre (‘CRC’) program funds to continue to expand the research program within the Australian wine and grape industry. The research to be undertaken by the CRCWine seeks world-class knowledge about areas that will have direct relevance |
to
the wine industry, working from three areas of benefit — an
understanding of the basis of consumer preferences in established
and emerging markets; developing efficiency gains across all the members
of the value chain; and increasing adoption among industry. CRCWine Participants Committing more than $50m towards the CRCW in cash and in-kind, the participants in the CRCWine are: • The Australian Wine and Brandy Corporation • The Australian Wine Research Institute • CSIRO • The Department of Agriculture WA with Curtin University and the University of Western Australia • The Department of Primary Industries, Victoria • Grape and Wine Research and Development Corporation • KPMG Corporate Finance • Monash University • National Wine and Grape Industry Centre, through Charles Sturt University • South Australian Research and Development Institute • Swinburne University • The University of Adelaide • The University of Melbourne • The University of South Australia • “WIRaD Pty Ltd”. The Commonwealth Government requires each CRC to have direct private sector investment. As a consequence, the Bid Planning Committee has proposed the creation of a company to be called WIRaD Pty Limited (‘WIRaD’). WIRaD will invest its funds directly into the CRCWine. WIRaD represents a unique model where industry has organised itself to speak with one voice in harnessing research outcomes |
for
the direct benefit of the wine industry —importantly driving
real economic outcomes. Aims of the CRCWine The CRCWine aims to provide the R&D springboard for new production standards to meet ever-changing consumer preferences to develop new global markets. Focused grape and wine research programs will target the development and application of practical innovations to support and underpin the integration of a flexible and responsive production chain from vineyard to consumer. The targeted outcome of the CRCWine is to improve the Australian wine industry’s capacity to predict and respond rapidly to emerging consumer trends, thereby establishing a new level of global competitiveness. From the research programs, the success factors for the CRCWine will be: > Consumer insights — objective consumer preference measures to be developed and used to define and align wine style and quality; > Integrated grape growing and winemaking efficiency — profitable, innovative practices along an integrated grape and wine production chain that rapidly deliver the targeted style and quality sustainably and with a minimal environmental footprint; and > Driving change through adoption — training of practitioners and the speedy diffusion of relevant know-how through the entire production chain. Anticipated key outcomes for the CRCWine are: |
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CRCWine
News - August 2004 Page 1 |
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| >identification
and weighting of the key factors that diverse consumer segments value
in Australian wine and where relevant, in wine grapes; > vineyard and winery production efficiencies achieving desired wine characteristics from fruit grown to a planned specification giving greater profit opportunity; and > adoption and integration of new knowledge and technologies for profitable and sustainable production by the Australian wine industry. Innovative viticulture and smart winemaking emanating from CRCWine initiatives are expected to increase financial returns for winemakers and grape growers. This will be through: efficiencies in the grape growing, winemaking and delivery components of the supply chain; development of measuring and monitoring quality mechanisms; practices that will allow higher yields of a particular quality; customer loyalty strengthened by a capacity to supply wine without faults and with the attributes they desire; expansion of Australia’s achievements in ‘over delivering’ at various price points; and development of new styles to capture new markets. An initial suite of projects across three programs has been identified. The rigorous selection process for projects required a sound business case showing expected research outcomes and their application and relevance to the challenges facing the Australian wine industry. Consumer insights This program will involve: > identifying factors that consumers and practitioners detect and value in wine by: - developing methodologies to analyse consumer preferences for wine in existing and emerging markets; and - defining in a practical manner the drivers of consumer preferences in existing and emerging markets; and |
>
developing objective measures for consumer and population factors
influencing wine style preference including consumer ‘flavour
printing’ through a genomics approach. Integrated grape growing and wine making efficiency This major program will involve: > optimising vineyard production efficiency and fruit quality by: - reviewing the production of grapes for specified quality attributes; - objectively measuring grape quality for streaming and price point delivery; and - reviewing viticultural responsiveness to future consumer trends and production pressures; and > optimising winery outcomes from fruit grown to a planned specification by: - identifying and measuring the key impact flavour compounds in key wine styles; and - assessing winery inputs on sensorial attributes of wine made from different viticultural origins. Driving change through adoption This program will involve: > the demonstration of the relative economic, social, and environmental comparative advantage to ensure that the research undertaken in the CRCWine is adopted in the quickest possible timeframe; > the sharing of knowledge to assist in decision making through the wine supply network to accelerate adoption; and > develop a body of appropriate research that can be easily accessed by industry and readily adapted to practise. Management of CRCWine The CRCWine will be a limited liability company. The Board of CRCWCo will be responsible for spending of CRCWine’s |
funds,
project monitoring and intellectual property protection and commercialisation. It is anticipated that in due course the Board of CRCWCo would comprise eight people with their responsibilities listed as follows: > Chairman to be appointed independently; > a Director from WIRaD; > a Director nominated by core research partners and drawn from their commercial area of operations; > four independent Directors selected for their relevant skills; and > the Chief Executive Officer. It is proposed that Board members be rotated regularly at intervals of not less than two nor more than four years A Scientific and Education Advisory Panel will be established. It will consist of high level Research and Educational members and will report directly to the Board as advisor on all matters relating to program strategy and performance measurement as it applies to Science and Education matters pertinent to the CRCWine stated objectives. More information about CRCWine This is an exciting and timely opportunity for the Australian wine industry. Should you have any queries in relation to the proposed CRCWine please do not hesitate to contact either Mr Chris Hancock or Ms Samantha Hellams c/- the Grape and Wine Research and Development Corporation, 67 Greenhill Road, Wayville SA 5034 on (08) 8273 0500 or samantha@gwrdc.com.au More information about WIRaD If you would like more information about investing in WIRaD, please do not hesitate to contact Mr Tony Battaglene of the Winemakers’ Federation of Australia on (02) 6239 8304 or tony@wfa.org.au or Ms Samantha Hellams of the Grape and Wine Research and Development Corporation, 67 Greenhill Road, Wayville SA 5034 on (08) 8273 0500 or samantha@gwrdc.com.au |
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| Timely
release of VitiNotes
New VitiNotes posted on the CRCV website include
a series on identifying and managing powdery mildew and downy mildew,
plus a series on the characteristics of rust mite and how to monitor
and manage this pest. Research has shown that targeting of rust
mite when they are exposed for a brief period in later winter to
early spring can be very effective. |
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Please click here for print version of VitiLines
VitiLines May 2004
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