Numerous Margaret River vineyards and wineries have been sold recently or remain on the market as a “perfect storm” of damaging factors impose problems on the region’s winemakers and producers.
Numerous Margaret River vineyards and wineries have been sold recently or remain on the market as a “perfect storm” of damaging factors impose problems on the region’s winemakers and producers.
And it’s the smaller operators that are suffering the most, as they do not have their own winery or long-term fruit contracts locked in.
Vasse Felix owner, Paul Holmes a Court is far from a small producer, operating the oldest winery in the region (having been originally planted by Tom Cullity in 1967) that currently exports to more than 30 countries.
However Mr Holmes a Court said factors such as the national oversupply of grapes, the decreasing status of Australia’s premium wines, the growing dominance of large national retailers’ and the unprecedented popularity of New Zealand sauvignon blanc locally as being a “perfect storm” for those smaller businesses to deal with.
“These things are happening at once and it’s this perfect storm which makes it a pretty tough market to be in,” he said.
Mr Holmes a Court believes these factors will not be reversed anytime soon although the New Zealand sauvignon blanc “juggernaut” is already collapsing and diversified offerings – such as cellar doors, restaurants, galleries and even accommodation which some producers have developed – can help offset the impact of these turbulent times.
Margaret River Wine Industry Association president, Leah Clearwater said it is incredibly disappointing for operators dealing with these tough conditions (primarily the nation’s grape glut) being forced to either rip out vines or close down and sell up.
“There are more than a usual number of vineyards for sale, reflecting the state of the national industry,” she said.
“Anecdotally, there are a number of businesses in trouble in terms of not having fruit contracts in place and not being confident in gaining some (contracts) in the future.”
Ms Clearwater, who has been a viticulturist consultant for the region’s winemakers for the past six years, said it’s heartbreaking for some operators, who are passionate about their work and have heavily invested their own blood, sweat and tears into their operations, to pull the pin.
Acton South West director Brian Moulton said he currently has 14 commercial vineyards in Margaret River and two vineyards with attached wineries for sale with several multi-million dollar operations under offer or sold in recent months.
“By the end of January we had put four under offer; one had settled and three are unconditional,” he said.
“Times are tough for the smaller, uneconomic producers whose vineyards are too small to be profitable.”
Mr Moulton said enquiry rates are 10 times to what they were last year with overseas buyers from South Africa visiting this week and potential US suitors visiting in a fortnight.
