As 2003 draws to a close, it’s not difficult to become reflective. This year has seen a number of challenges rise to impede what for a while appeared like Australian wine’s relentless and inevitable march across the global landscape. A string of difficult, drought-affected vintages, a rapidly appreciating Australian dollar, a Californian wine glut, and a change in the level of affection shown by many critics, traders and public towards Australian wine would each have made some negative impact on their own merits. Together, they are a force to be reckoned with. Add to this the ongoing difficulties faced by the overwhelming majority of small Australian wineries just to get their wares to market, a tightening domestic market that is no longer prepared to pay high prices for its wines, a reduction in tourism that is closing cellar-doors, and the resultant outcome that large numbers of small wineries will go bankrupt is seemingly inevitable. A tough year in the corporate and financial corridors has, in the minds of the investment community, turned the image of wine into the mud from which it came. Wine is no longer the glamour investment, as a share, as a commodity or as a lifestyle. The same companies still planting vineyards in regions like the Mornington Peninsula, which have always depended strongly on their ability to sell wine to adjacent and reasonably undiscriminating local markets, are now pulling out vines on other properties the rest of the week. I, however, remain bullishly confident that what we are now experiencing is nothing more than a predictable and inevitable cycle in the overall history of Australian wine. The causes might change, but the outcomes remain the same: every seven years or so Australian wine appears to go through a trough. It’s come out of it before, and it will do so again. Right now, there’s a need for investment in vineyards. Given that it’s harder to make profits from wine than it has been in recent years, winemakers and their fruit suppliers need to sit down together and figure out how to afford the necessary expenditure in these leaner times. Furthermore, there needs to be a clear, binding commitment between the parties as to how the inevitable profits will be shared. Now is as good a time as any to try to resolve the sometimes hostile relationship between wine makers and their key suppliers. As far as this business and the OnWine website is concerned, the last two years have been a difficult, but educational time. It has been very much more expensive than I had imagined to build and maintain the right level of web presence, and there is still much to do. Experiencing the growing pains not uncommon in small business, it has also been difficult simultaneously to tend to the daily business requirements, explore long-term opportunities and ideas, and to provide the material necessary to keep a steady and regular flow for my subscribers. The recent introduction of Peter Bessey to the team as general manager, joining Robyn Lee and Jane Morgan (the website manager), is intended to give me the time needed to get back to being a wine writer again, and to enjoy the regular production of these monthly updates. The New Year will also see some very exciting announcements from this office concerning some major international promotions of Australian wine. Until then, my best wishes for a safe and happy festive season. Because this newsletter has been published much later than expected, we are adding two months to all Level 2 subscriptions to the site. Furthermore, each month will now see the release of a ten-page (roughly) OnWine Report of consistent format and size, commencing January 2004. This will increase by a small margin the volume of articles and tasting notes published in the monthly updates each year. Again, my thanks and best wishes for your support and involvement in 2003. Jeremy Oliver.
