2021 SA Wine Industry Snapshot

2021 South Australian Wine Industry Snapshot identifies pressing need for wine market diversification

Bentleys SA and the South Australian Wine Industry Association (SAWIA) have released a new report that identifies how wine businesses in South Australia are adapting to counter the effects of the China wine duties, limited labour availability and COVID-19.

Through detailed interview surveys with 116 South Australian wine businesses of all sizes, the fifth annual South Australian Wine Industry Snapshot report has identified that wineries are addressing the impacts of 2020 and 2021 with an increase in strategic product and market diversification.

As well as product and market diversification, wine businesses are increasing investment in innovation and new technology, and upskilling in marketing planning, e-commerce and social media to reach more customers.

The report found that the primary strategies employed to adjust to a changing industry include: increasing market penetration (existing market, existing product); improving profit margins; geographic expansion (new market, existing product); product development (existing market, new product); and diversification (new market, new product).

2021 SA Wine Snapshot

Download your copy of the 2021 SA Wine Snapshot

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Conclusions

The report found that in 2021, wine businesses are still experiencing the negative affects of COVID-19 domestically and internationally.

They now have the loss of the China market to contend with combined with negative impacts of labour availability at an all time high (66%) since the Snapshot began in 2017. Businesses continue to face challenges servicing markets.

Long term planning, careful and evolving strategy including financial forecasts are key to success. Understanding the impact of market changes and new initiatives will allow decision makers to understand both the profit, cashflow and long term business impact.

The South Australian wine industry needs to enter new markets to counter these affects, and this is being addressed with the increase in diversification as a strategy.

While the Government has been able to secure new trade deals with the UK, continuing efforts are required to address barriers to market entry and achieving more free trade agreements.

Backgrounder

About Bentleys SA/NT

Bentleys SA/NT is an integrated business services and advisory firm helping businesses and individuals achieve their goals and aspirations, so they can get where they want to be.

Our advisory, accounting and audit services are strengthened by our expanding range of specialisations, enabling us to support the broad needs of individuals and enterprises at every stage of the business lifecycle. In addition to accounting, audit and taxation services, our specialisations include strategic business advisory, financial planning and wealth management including self-managed super funds, taxation consulting, R&D taxation incentive services, business and residential finance and corporate recovery services.

Bentleys SA/NT supports businesses and individuals throughout South Australia and the Northern Territory, and is a member of both the Bentleys Network and Allinial Global. With our local expertise, national presence and international capability, we work with enterprises at every stage of their business journey to help them prepare for tomorrow.

About the South Australian Wine Industry Association

From its beginnings in 1840, the South Australian Wine Industry Association is the peak body representing the viticultural and wine making interests of the state.
The association’s core functions are to provide leadership and strategy, to represent the industry and lobby on its behalf, and to provide leadership advice and support to South Australian grape and wine businesses, assisting them to prosper within a dynamic and diverse industry.

SAWIA has specialty services in government relations and advocacy, industrial and employee relations, work, health and safety, environment and consumer wine education.

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Media contacts

For an interview with Brian Smedley and Tim Siebert please contact:

Brian Smedley                                                            Tim Siebert
Chief Executive                                                          Partner, Business Services and Advice
South Australian Wine Industry Association              Bentleys SA/NT
[email protected] [email protected]
+61 403 147 362 +61 8 8372 7900

We, at Bentleys, are doing everything we can to help businesses come out of this challenging time in good shape.

We will continue to update our COVID-19 resource hub with important developments, so please return soon.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.

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