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Wine

Who makes my wine?

Walk the aisles of your local Dan Murphy’s or First Choice store and you won’t find a wine labelled “Dan Murphy’s Select” or “First Choice Home Brand”. But lurking on those shelves are more than 100 brands owned by the supermarket chains with no disclosure on the label. In an age in which we are more interested than ever in the origins of our products, how can we distinguish a small family estate from a supermarket brand?

The growth in supermarket “Buyer’s Own Brand” wines in Australia has been substantial, estimated to have mushroomed from five percent a decade ago to between 16 and 25 percent of the market today. The wine industry is concerned that this growing category of major retailers could mislead consumers.

In February 2016, a Senate Inquiry report into the Australian Wine Industry put forward a proposal from the Winemaker’s Federation of Australia (WFA) “that the Government amend labelling requirements so wine labels must declare whether wine is produced by an entity owned or controlled by a major retailer.”

“What we would like to see is that home brands are identified so consumers can make their choice,” WFA Chief Executive Paul Evans told the Inquiry. The enquiry’s report is not binding, but the government is expected to respond within six months. It can choose to accept or reject the recommendations.

Not so simple

The question of whether it should be the government’s place to legislate on this issue has been widely debated, but even if it is, the dilemma of how it could be defined and regulated is perhaps more pertinent.

Buyer’s Own Brand wines have a fully valid and important place in the market, and the major retail chains own perfectly legitimate wineries under which some of their labels are branded. Some retailers’ own brands are even made by small, private estates. Further, many high profile winemakers, including Giaconda, Clonakilla, Oakridge and St Hallett, make exclusive labels for particular retailers under the winemaker’s own brands. Such relationships are of value for all levels of the wine industry.

And if retailers are required to declare brand ownership, what of companies like Treasury Wine Estates, Accolade Wines and Pernod Ricard, who together own many more brands and a much greater market share than the supermarket groups? And, for that matter, what of the hundreds of private little “virtual” wine brands who own no vineyards, buy fruit and have it contract made in someone else’s facility?

The big issue behind this discussion is the market dominance of Woolworths (who owns BWS, Dan Murphy’s, Cellarmasters and Langton’s) and Wesfarmers (Liquorland, First Choice and Vintage Cellars) and the increasing presence of Metcash (Cellarbrations, IGA Liquor and Bottle-O), Costco, and ALDI stores in the wine market. It is estimated that Woolworths and Wesfarmers together share just under 60 percent of the domestic wine retail market, with some estimates putting this at 70 percent.

There is a bigger picture at play here, of which wine is just one small category. Controversy surrounds the supermarket duopoly and its increasing dominance across many categories. Legislative change for wine would not only be fraught with complications surrounding definitions and implementation, but such a precedent would have enormous ramifications for groceries, fuel, hardware, office supplies, insurance, etc.

HOW TO FIND WHO MAKES YOUR WINE

Without a mandate for transparency in labelling, what hope do you have of knowing who made your wine? This was the question that perplexed Murrumbateman winemaker Sarah Collingwood, who responded by creating “Who makes my wine”, a website listing all the brands owned by Woolworths and Wesfarmers.

When Sarah ultimately discontinued her site, wine writer Huon Hooke offered to host it. Some 280 brands are listed at therealreview.com, more than 100 of which are currently listed in Woolworths and Wesfarmers stores.

The Senate Inquiry into supermarket own brands has perhaps raised more questions than it has answered, and there is much for the wine industry to consider regarding achieving greater transparency in wine labelling.

THE DEBATE RAGES

“At the core of this debate is the accusation that Coles, Woolies and other retailers with ‘own brands’ have no investment in the wine industry, but are opportunists who buy ready-made wine and put their own label on it,” says Huon Hooke. “Of course, there are many so-called wine producers that do the same thing: they own no vineyards nor wineries, but act like negociants,” 

Larry Lockshin, Professor of Wine Marketing and Head of the School of Marketing, University of South Australia, agrees.

“There is no doubt that Buyer’s Own Brands, however they are labelled, take shelf space from branded wineries. But Buyer’s Own Brands are also made from Australian grapes, by Australian winemakers, in Australian facilities. Small growers have sold their wines (and later their grapes) to larger entities for hundreds of years. These entities: negociants, shippers, wholesalers and retailers have always created wine brands. The difference is that none of these historically has had the market power that a few retail companies in Australia currently enjoy.”

The issue of transparency is very different in the UK, James Tilbrook of Tilbrook Estate explains, “In the UK, supermarkets proudly display their brand and what the wine is called, e.g. Sainsbury’s Champagne. If it is good enough for them, why do Aussie supermarkets want to hide behind fake brands?”

Winemaker John Cassegrain also feels strongly about being honest with wine-lovers.

“The expectation from consumers is that they are buying hand-crafted wine from a vineyard estate, but the labelling of ‘home brands’ by the supermarkets is, in effect, cheating. They are not hand-crafted wines, in actual fact, they are manufactured wines, so to me it reeks of misrepresentation.”

“I think wine consumers need to understand what they are buying and where these are made,” agrees Leigh Dryden of Decante This. “There are so many ‘own brands’ out there it has become increasingly hard to tell the authentic from the bogus. Retailers, makers and distributors have nothing to fear of the truth.”

Even more vehement about the issue is Mornington Peninsula winemaker, Garry Crittenden.

“Speaking as someone with first hand experience of the way the major supermarkets treat their relations with wine suppliers, I can honestly say it beggars belief that, in the face of continuing opprobrium, they still treat the industry and their customers with an indifference bordering on contempt. But maybe it’s not so surprising when it’s simply part of the embedded culture surrounding supplier relations,” says Garry.

“Is it asking too much of them that they disclose a particular house wine is just that and the brand is owned by them? I can only hope that in his 2nd term as head of ACCC Mr Sims can dismantle some of the disingenuousness we see from these people.”

However, Hunter Valley winemaker Andrew Leembruggen,  believes the producers need to act themselves.

“I think wine businesses should adopt a labelling code of practice that has words or statements producers could use like ‘estate made and bottled’ or ‘estate made’.”

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Words by Mark Hughes on 16 Jan 2016
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Natural Wine
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Into the wild: Grenache
Words by Jackie Macdonald on 4 Mar 2016
On top of a small hill in a small town in the south of France sits a ruined medieval castle. Dating back to the 14th century, it was built for Pope John XXII. The name of this town is Chateauneuf du Pape. Get it? But the papacy wasn’t just responsible for the castle, they also planted vineyards in the area, presumably to fill the sacramental goblets, and the town is now a world famous wine destination. The high quality Chateauneuf du Pape red wines are some of the most expensive in the world and while there are up to nine red wine varieties officially allowed to be used in Chateauneuf du Pape, the most common is Grenache . One of the reasons for the prevalence of Grenache in this southern French region is the climate. Grenache loves the heat and in Chateauneuf du Pape, the stones that are common in the vineyard soils heat up during the day, then at night-time the heat slowly disperses, preventing the vines from getting too cold. The vines are also virtually free from pesticides as the prevailing Mistral wind prevents rot and fungal attack. While the history of Grenache in Australia is a few hundred years shorter, we can put our success with the variety down to weather and a lack of bugs too. You’ll find most of our plantings in the McLaren Vale and Barossa regions where the Mediterranean-style climate of warm summers and mild winters helps Grenache feel at home. “It’s also a variety that responds well to vine age,” explains Giles Cooke MW, winemaker and founder of Thistledown Wines. “As the vine ages, it is able to produce grapes that are fully ripe at lower potential alcohol levels than younger vines that tend to push a lot of energy into sugar production.” “But what’s that got to do with bugs?” I hear you ask. Giles has the answer: “Australia has some of the best old vine resources in the world due to the lack of phylloxera (an aphid-like insect that’s wreaked havoc in vineyards throughout the world).” Its lovely old gnarly look is part of what makes Grenache vines recognisable, but also have another distinct feature. While most grape varieties need a trellis to keep them off the ground, Grenache tends to grow upright and therefore it’s ideally suited to being grown as a bush vine. So it’s old, gnarly and wild. While bush vines are more labour intensive in that they have to be hand pruned, they have certain advantages, especially in Australia. These untamed beasts are drought resistant and can control their yield so that in a dry year they’ll produce fewer grapes than in a wet year. What’s more, their roots penetrate deep into the earth where they find water and rich nutrients. So if Grenache is so perfectly suited to Australia’s Mediterranean-style regions and we have some of the world’s oldest vines, why haven’t you heard more about it? Giles again: “Outside of Rhone and certain parts of Spain (Catalunya) it has been a workhorse variety capable of producing large quantities of highly alcoholic reds and Rosés. In Australia, its potential to make highly alcoholic wines lent it to fortification and so it was often anonymous.” Justin Ardill, winemaker at Reillys Wines also adds, “Historically, wines were labelled as per their style, rather than the grape varietal and since Grenache was used to create Australian Burgundy, the market is more familiar with the term ‘Burgundy’ than ‘Grenache.’” The tasting It’s possible then, if you’re of a certain vintage, that you’ve tried Grenache without even knowing it. But if you’ve never tried Grenache or would like to learn more about it, the Wine Selectors Tasting Panel has taken the legwork out of finding the best examples with the latest State of Play tasting. In the top 30 wines, you’ll find the majority come from McLaren Vale and Barossa Valley . There are a couple of Clare Valley wines, a McLaren Vale/Hunter/Orange blend, one from Nagambie Lakes and even one from WA’s Ferguson Valley. Another thing to note is that there are more blends than straight varieties. Grenache is commonly blended with Shiraz and Mourvedre (Mataro) to make GSM, but you’ll also find it with Merlot , Malbec and even the Portuguese variety, Touriga.   The predominance of blends was also the case when the Panel last did a Grenache tasting back in 2009 and Christian Gaffey had this explanation, “Blends are often more complete wines, more thought goes into the blend or perhaps the varieties are more complementary.” Winemaker Damian Hutton, whose Iron Cloud Purple Patch GSM is in the top 30, agrees on the point of the complementary appeal. “Grenache adds beautiful characteristics to the wines it’s blended with. In the Purple Patch GSM, Grenache contributes its classic bright, cherry and raspberry flavours. Shiraz provides structure, spice, and plum flavours. The addition of Mourvedre completes the blend with added structure and depth.” Straight talking There are staunch advocates for keeping Grenache straight, though. Ben Riggs, whose Mr Riggs Generation Series The Magnet Grenache was a highlight of the tasting, says, “Our personal philosophy is to express pure Grenache. As a single varietal wine it expresses much more sense of place.” On this point, winemaker Troy Kalleske agrees. “I think Grenache is extremely expressive of time and place. Grenache character can vary a lot from year to year depending on season and it expresses differently in different soils. So you never really know what you’re are going to get, and that’s enjoyable!” What you are guaranteed to get is an extremely food-friendly red. As Ben explains, “Grenache pairs beautifully rather than overpowers, it amplifies the flavours of the food, rather than being overbearing with its own flavours.” Damian and Troy add that the soft tannins contribute to its food-matching potential and they both recommend it with duck with bok choy. Justin agrees that Asian-style dishes work, but adds, “Grenache is also fantastic with barbecued meats, particularly charred meats as found in Greek souvlaki, yiros and roasted lamb. For Giles, “When chilled, a young Grenache is great with fish.” It makes me wonder if Pope John had a favourite food match for his Chateauneuf du Pape. I am guessing it was divine. Top 30 Grenache and Grenache blends (March 2016) Thistledown The Vagabond Grenache 2014 (McLaren Vale, $40) S.C. Pannell Grenache Shiraz Touriga 2014 (McLaren Vale, $30) Teusner Joshua Grenache Mataro Shiraz 2015 (Barossa, $35) Mr Riggs Generation Series The Magnet Grenache 2013 (McLaren Vale, $27) St John’s Road Motley Bunch Grenache Mataro Shiraz 2013 (Barossa, $22) Henschke Johann’s Garden Grenache Mataro Shiraz 2014 (Barossa, $51) Z Wines Roman Grenache Shiraz Mataro 2013 (Barossa, $25) Turkey Flat Vineyards Grenache 2014 (Barossa, $30) Gomersal Wines Grenache Shiraz Mataro 2013 (Barossa, $17) IronCloud Rock of Solitude Purple Patch GSM 2014 (Ferguson Valley, $32) Reillys Wines Old Bush Vine Grenache 2012 (Clare Valley, $25) Two Hands Brave Faces Grenache Mourvedre Shiraz 2014 (Barossa, $27) Vinrock Grenache 2014 (McLaren Vale, $30) Alternatus Grenache 2014 (McLaren Vale, $25) Landhaus Grenache 2012 (Barossa, $27) Tim Smith Wines Grenache 2014 (Barossa, $36) Serafino Grenache Shiraz Mataro 2013 (McLaren Vale, $28) Doc Adams Grenache Shiraz Mataro 2013 (McLaren Vale, $20) Handcrafted by Geoff Hardy Grenache Shiraz Mataro 2013 (McLaren Vale, $30) Hemera Estate Single Vineyard Grenache Shiraz Mataro 2013 (Barossa, $35) Yalumba The Strapper Grenache Shiraz Mataro 2012 (Barossa, $22) Kalleske Clarry’s Grenache Shiraz Mourvedre 2014 (Barossa, $21) Château Tanunda 1858 Field Blend 150 year old vines Grenache Mourvedre Malbec 2013 (Eden Valley, $250) Barossa Valley Estate Grenache Shiraz Mourvedre 2014 (Barossa, $26.99) First Creek Grenache Shiraz Merlot 2014 (McLaren Vale/Hunter Valley/Orange, $25) Running With Bulls Garnacha 2015 (Barossa, $20.95) Stone Bridge Wines Grenache Mataro Shiraz 2014 (Clare Valley, $26) Tahbilk Grenache Shiraz Mourvedre 2013 (Nagambie Lakes, $27.95) Richard Hamilton Colton’s Grenache Shiraz Mourvedre 2013 (McLaren Vale, $21) Charles Melton La Belle Mere Grenache Shiraz Mourvedre 2013 (Barossa, $22.90)
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