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Southcorp’s Victorian Expansion

The tempting thing for a company of Southcorp’s size and strength in Australian and foreign markets must be to focus on the key brands in its folio, almost to the exclusion of new wine concepts and future directions. After all, who can get enough Bin 389, Wynns Coonawarra Cabernet Sauvignon or St Henri? But such an approach would run the risk that other more innovative producers would take the lead in potentially profitable wine styles of the future. Not surprisingly, Southcorp isn’t letting the grass grow under its feet. But it’s the scale and variety of its developmental work that I’m staggered by. Let’s take a look at what Australia’s wine giant is doing in Victoria right now. Its highly publicised purchase of Coldstream Hills has not been the only new venture Southcorp Wines has undertaken in Jeff’s backyard. With very few exceptions, the Mornington Peninsula being the most interesting, Southcorp has new vineyard developments under way in most important Victorian regions. Glen Lofty is an undulating 300 ha property 20 km over the Pyrenees Ranges from the Blue Pyrenees Estate (formerly Chateau Remy). Of the 120 ha suitable for viticulture, Southcorp has already planted 105 ha, two-thirds of which are to shiraz. Naturally enough, the development includes chardonnay, merlot, cabernet sauvignon and some sauvignon blanc, but of most interest today are significant plantings of the white Rhone varieties: marsanne and roussane. Furthermore, Southcorp is contracted to receive 40% of the production of the adjacent Glenkara Estate vineyard, to be planted over the next few years to 100 ha of red varieties, especially shiraz. The soil types are generally a red orange modelled clay loam with good water-holding capacity, the climate is moderate and very consistent, the region has a reputation for shiraz and Southcorp harbours high expectations for the variety. Although Rutherglen is a declared phylloxera zone so unfermented juice and grapes cannot therefore be removed from its borders, and furthermore that Southcorp does not presently own a wine processing facility there, the company is pushing ahead in no uncertain terms to secure production from several new large developments there. The quest is again for shiraz. Rutherglen’s consistently warm climate adequately ripens fruit in all but the coolest and dampest of seasons and avoids the risks associated with several large company developments in cooler regions which reduce viticulture to more of a gamble. Although Rutherglen will not ripen large crops of red grapes, Southcorp winemakers have taken to the richness, texture and flavour of its shiraz as a potential significant blending component for its stable of rich properitory red brands. Viticulturist Michael Murtagh is developing two vineyards in the region, of 134 and 25 ha respectively, from which Southcorp will not only source an initial 500-600 tonnes of shiraz but frontignan and muscadelle for the two Rutherglen fortified specialities of muscat and tokay. Southcorp could well increase its Rutherglen shiraz requirements if the fruit from the region lives up to expectations. The company is presently discussing its wine processing needs with existing regional winemakers. Southcorp is presently trialling a number of strategically placed Italian and RhUne varieties around its Victorian vineyards for future assessment. Here’s an idea of what’s been planted. Sangiovese, nebbiolo, tempranillo and viognier have been introduced to the Great Western vineyard, while promising white wines from pinot gris (or grigio) has already been made from Drumborg and Tumbarumba (NSW) fruit. Viognier and petite verdot (the Bordeaux red grape) have both been planted at Coldstream Hills.

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