Bentleys Industry Research: South Australian Wine Industry Snapshot

Expanding into existing markets or to explore new markets

The South Australian Wine Industry Association (SAWIA) together with its Industry Partner, Bentleys, has released the South Australian Wine Industry Snapshot –an inaugural study of the sentiments and views of the state’s wine industry.

Mr Brian Smedley, Chief Executive, SAWIA said the aim of this inaugural study is to provide wine businesses with the insights required to inform decision making and to monitor performance. The report also demonstrates how SAWIA and industry partners, such as Bentleys, can assist the SA wine industry in improving their business operations to assist profitability.

The report found that almost three quarters (72%) of respondents are confident about their business prospects, with 32% of respondents intending to increase their FTE staff in the coming year outside of vintage and 64% intend to maintain their staffing.

With regards to business health, 83% of respondents indicated their businesses were generating profits, however, it is important to note from this percentage, 46% of respondents indicated that their business is profitable but needs improvement, suggesting a need for strategies to ensure business longevity.

“While profitability remains a significant concern, there is generally good levels of confidence among South Australian wine businesses, and it is pleasing to see that most are taking active steps to understand the key success factors that support growth,” said Mr Tim Siebert, Director Business Advisory, Bentleys SA.

“Sales growth was also flagged as an important issue with respondents indicating a focus on premium bottled wine production as a main business development priority. This is followed by export, as markets are evolving and opportunities are increasing for South Australian wine businesses to expand into existing markets or explore new markets.”

“SA wine businesses should take comfort in knowing that they are not alone when it comes to addressing challenges and concerns relating to their business and it is hoped this study will provide the necessary information and competitive comparisons required to help wine businesses make informed decisions,” said Mr Smedley.

Want to access a copy of the research report?

Key findings:

  • 75% percent of respondents operated in the seven largest wine regions with the balance coming from smaller regional areas;
    Over one-quarter of respondents have assets in the Adelaide Hills (27%) and McLaren Vale (25%);
  • When asked about the most pressing issues impacting SA wine businesses, 82% of respondents indicated negative impacts of energy costs, followed by energy security (60%) and labour costs (82%);
  • Major export challenges include profitability, managing credit risk, language barriers, and foreign currency;
  • Directions for growth including geographic expansion (30%) and increasing share in existing markets involving less risk (30%);
  • 44% of respondents indicate they will be impacted by proposed changes to the Wine Equalisation Tax;
  • 81% of businesses surveyed seek insights to inform business decisions from industry associations and groups;
  • 13% of businesses surveyed have a business continuity plan to manage key risks.

To discuss what these findings mean for your wine business, contact Bentleys today.

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