A six-figure drop in earnings by the Wine Industry Association of Western Australia’s Wine Education Centre has contributed to the association posting a trading loss of $72,051 last financial year.
A six-figure drop in earnings by the Wine Industry Association of Western Australia’s Wine Education Centre has contributed to the association posting a trading loss of $72,051 last financial year.
In the association’s annual report, WIAWA president John Griffiths says the Wine Education Centre has gone from an important contributor to the association’s income to a loss-maker.
Its earnings dropped from $133,430.
“The (significant financial) loss is largely attributable to the decline in the profitability of the WEC and the delay in identifying and addressing this,” Mr Griffiths says.
According to WIAWA chief executive officer Sue Vidovich, an assessment by the Chamber of Commerce and Industry has resulted in the implementation of several strategies that have now boosted the centre’s performance.
“There were a number of issues highlighted in the report,” she said.
“It was suggested that the position of a full-time manager be made redundant and I’ve taken over the management of it, and we have a part-time person who operates the day-to-day administration.
“We have a marketing manager who is now actively involved in the centre. Before they were not involved in the centre; they did marketing work for the association and events.
“Now we have a marketing manager who works across the board for the association, the WEC, and the events.”
The annual report details that numbers for the centre’s eight-week primary classes were at the lowest levels last year in the WEC’s 33-year history.
Ms Vidovich said the recent changes had boosted attendance for its current third-term classes.
“Attendance numbers have doubled from term two to term three,” she said.
Mr Griffiths also blamed the association’s poor financial year performance on a number of staff changes during the year, which included the loss of two chief executives, Sarah Dent and Kim Pervan, the resignation of president Andrew Moore just two months into the job, and the restructure at the WEC.
“These resignations created a loss of continuity and the loss of focus on the association’s business,” he says in the annual report.
A new executive committee has been elected with only two existing members from the previous term – Mr Griffiths, representing the Swan Valley region, and WIAWA treasurer Paul Thompson, representing Blackwood Valley.
Elected as vice-president was Vic Peos, who replaces Sally-Anne Nicholas as representative for the Manjimup region.
Former vice-president Merv Lange did not wish to sit on the new committee. Mr Lange said he’d been doing it for several years and it was time for new people to be involved.
Peel representative Bernie Worthington provided a similar motivation for not joining the new committee. Her position has been filled by Phil Franzone.
Other new committee members include: Australian Wine Holdings executive chairman Mike Calneggia, Channyberup Estate’s Graeme Sampson; Trevelen Farm Wines owner John Sprigg; Korijekup’s Michael Lowe; and Ross Lawrence from Fine Wine Wholesalers.
The WIAWA annual report listed a number of apparent blow-outs, including marketing expenses growing by $291,824, despite this being listed as an area that grew revenue by $252,153.
But Ms Vidovich said discrepancies in figures such as marketing expenditure were due to changes in the association’s reporting process.
“It’s a different reporting process so it’s not a true reflection,” she said.
