Should Australia and NZ wines be marketed together?

Last week producers from Australia and New Zealand came together in London for an inaugural joint tasting of their wines. Does combining these two unique regions make sense, or do the risks outweigh the benefits? Sarah Neish reports.

On Thursday 30 January, more than 80 wine brands from New Zealand and 150 from Australia joined forces for the first time in a combined tasting at the Royal Horticultural Halls in London. Presenting their wines side-by-side were distributors for some of today’s most exciting winemaking locations: Marlborough, Margaret River, Hawke’s Bay, the Barossa and many more.

There was a palpable buzz in the room with the 750+ registered trade visitors able to glean the current state of play from each of these two big-hitters in one space. Rather than individual producers, the lion’s share of exhibitors were UK importers – Hallgarten & Novum, Fells, Berkman Cellars, Enotria & Coe etc. – whose portfolios encompass wines from both Australia and New Zealand.

Matter of efficiency

Chris Stroud, market manager, Europe, for New Zealand Winegrowers, told db that combining the two was “a matter of efficiency for the trade”.

“We used to run two separate tasting events, which involved twice the costs,” he said. “And it’s often the same visitors that come to both tastings.”

Ciara Wong, Metzendorff’s brand manager, New World, agreed wholeheartedly. “People’s time these days is limited and precious, so it just makes sense. You want to focus on the regionality of both countries, but a joint tasting makes the best use of everyone’s time.”

The event itself was about 18 months in the making, having dipped a toe in the water with combined Australia/New Zealand virtual tastings and masterclasses held during Covid lockdowns.

“For us it’s not about competition, it’s about celebrating both countries’ wines,” Stroud said. “Of course there are going to be differences between New Zealand and Australian wine, but that’s the whole point. We’re not the same.”

Dying art

Kathryn Cumming, brand manager for Berkman Cellars, suggested that trade shows dedicated to a solo region are becoming “a bit of a dying art.”

“They’re expensive to put on, and importers are investing more and more in holding their own portfolio tastings. Your return on investment is better as you’re able to be way more targeted and follow up directly on sales.”

The opportunity to capture the attention of sommeliers and wine press for two core markets for the price of one is likely to become increasingly appealing.

Not only this but according to Hatch Mansfield’s brand manager Nikki Wasylowski there’s another important benefit of a combined trade tasting.

“It allows you to pull in an entirely different audience,” she said. In Wasylowski’s experience, the stand-alone New Zealand tasing has previously attracted “larger retail buyers like Waitrose” to Hatch’s stand, while the annual Australia tasting “brings in more indie, on-trade and fine wine merchants.” Consequently, a joint event enables “cross pollination” across these different groups of buyers.

And of course buyers for many wine retailers – Majestic, for example – have long had joint sourcing responsibilities across both Australia and New Zealand, so it’s not exactly a radical prospect.

Size complex

However, not all believe that marketing Australia and New Zealand’s wines together is the right path to go down, with one producer telling db last year that it’s akin to “merging The Wallabies with the All Blacks.”

“I see little appeal in combining New Zealand and Australia for marketing purposes due to their many differences,” said Rich Burch, sales and marketing director for Burch Family Wines in Australia, which looks after brands such as Mad Fish and Howard Park. “Being geographically larger than Europe, Australia already boasts numerous diverse yet high-quality wine regions, making the inclusion of New Zealand unnecessary.”

Tim Pelquest-Hunt, chief winemaker for Orlando, part of Pernod Ricard Winemakers’ Australian portfolio, stressed the sheer size of the Antipodes, and why that makes it almost impossible to encapsulate ‘Australia and New Zealand’ under one roof.

“Australia and New Zealand cover a vast area of approximately 8 million square km, separated by about 2,000 km of the Tasman Sea,” he told the drinks business during an interview last year.

“The distance from Margaret River in Western Australia to Hawke’s Bay in New Zealand is comparable to the distance from London to Eastern Kazakhstan.”

One producer with interests in both Australia and New Zealand is Yalumba.

“As a proud family-owned business with wineries in both countries, we are experienced with taking a cross-country portfolio to market,” explained Jack Glover, HSFE executive director – marketing and sales. “However, I believe this strategy neglects the need to be individualistic about region, variety, category focus, and consumer segments.”

Trade Vs consumer

The vast majority of people that db spoke to for this article agree that while a combined approach might make sense for the trade, it could be a step too far for consumers.

“An Antipodean approach to fairs, shows, and tastings may be beneficial from a trade perspective but not the consumer,” said James Lindner, co-owner of Aussie producer Langmeil. “Australia alone has 65 diverse winegrowing regions in an area 26% larger than Europe, each with their own individual personalities, styles, and stories to tell.

“Would you position France, Italy, and Spain together as one region simply because they’re neighbours?”

Kathryn Cumming of Berkmann Wine Cellars echoed the need for “really clear communication for consumers.” For that reason, she believes, “it’s better to keep Australia and New Zealand separate for consumer-facing events, as each country is so nuanced.”

‘Culturally similar’

Educating the consumer as to the unique soil types, climates and microclimates found in each nation is key to fostering a greater appreciation of their wines.

“Aussies and Kiwis often find themselves perceived as culturally similar, sharing commonalities, and can even be mistaken as one entity, but their wine industries tell a different story,” said Julian Dyer, COO for the UK, Europe and Americas, Australian Vintage. “The preferences for grape varieties and consumer behaviours within each country highlight the need for differentiation in marketing strategies.”

Others like Hatch Mansfield’s Wasylowski say we shouldn’t necessarily rule out joint consumer events altogether, suggesting that we can credit consumers with “a bit more awareness as to not confuse the two.”

It may well, however, be a moot point as according to Chris Stroud of New Zealand Winegrowers, “we don’t have the resources to go out to consumers.” And even if those resources were available, differing legislation between Australia and New Zealand means that “we’d never get that far” in terms of collaborating on consumer events.

Creating a new wine region

With wine brands fighting for shelf space in the major multiples, could positioning Australia and New Zealand under one collective ‘Australasia’ or ‘Antipodean’ banner be beneficial from a shopper standpoint?

“While there may be merit in simplifying wine regions to make them more accessible to newcomers, combining Australia and New Zealand under a single marketing region would risk overshadowing the unique qualities of each country’s wines,” said Pelquest-Hunt of Pernod Ricard Winemakers.

“Introducing a term like ‘Wines of Australasia’ might dilute the individual identities and distinctive characteristics that both regions offer.”

“To truly excel in the premium wine market,” he added, “both Australian and New Zealand producers should focus on highlighting their unique terroirs and styles. Celebrating these differences will help maintain their appeal in a competitive global market and be central to the journey of premiumisation.”

Final note

Marketing New Zealand and Australian wines together has clear advantages, unless they are positioned as a single entity, which risks diluting the extraordinary characteristics of each winemaking country.

Marketing bodies must be careful not to confuse consumers with mixed messaging. However, for wine professionals there are considerable boons, not least where time pressures are concerned, and these could translate into greater media coverage for wines from both nations, as well as more New Zealand and Australian wine on UK restaurant lists.

“It was always going to be an experiment,” Laura Jewell MW, regional general manager, Wine Australia, told db of the joint tasting. “But feedback so far has been positive. Yes, we are competitors in the UK market, but we’re not clashing. There’s room for everybody.”

Summing the debate up quite perfectly is Michelle Geber, managing director of Château Tanunda in the Barossa Valley.

“While it would be great to present the wines together in tactical campaigns to reach a broader audience, this shouldn’t be at the cost of reducing the level of engagement or understanding of the differences between these two wine-producing nations,” she said.

“Our terroirs are incredibly diverse and complex, resulting in completely different wine styles between the two countries. Showcasing these differences is how we elevate perceptions of wine.”

 

 

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