TRANSCRIPT 🔗
00:00:00
Speaker 1: David Pemberthy and Will Goodings six to nine five double a breakfast, well, terrific news in the last twenty four hours after five years from hell, the Australian wine industry, by which we pretty much mean the South Australian wine industry, because let's face it, all the good wine largely comes from here, is now back to pre COVID levels. It's exports to China have topped the one billion dollar mark, meaning that there's been a complete turnaround from the outer devastation that was wrought by the TARAFD during the Morrison government. We've got Mitchell Taylor who is the chief winemaker and also I believe the third generation managing director. Correct me if I'm wrong, Mitchell at the excellent Taylor's Wine Winery in Claire. Was that right? Mitchell? Third generation?
00:00:51
Speaker 2: Yeah, third generation managing director of our beautiful family estate in the Clare Valley. And I'm also the chairman of the Claar Valley Wine Makers. So we've got a reputation for the great reaslings but also the great breads. Yeah, for sure, we do so well in South was he?
00:01:10
Speaker 1: Yeah? Well, this is an amazing turnaround, isn't it. Can I just ask Mitchelle, are people sort of once bitten twice shy a bit in the industry still given the sort of volatility you know we hear about South China, Sea Taiwan, the relationship with the US. Are people just sort of making hay while the sunshines or do you think that there's a way of making this last again?
00:01:33
Speaker 2: No, Look, we are a bit cautious because we were out three years in the wilderness and our industry was one of the major focuses to be blocked out of the market. Just wasn't a blanket tariff like that's currently happening in the US. So we are cautious, and we're looking to diversify, particularly across all the Asian countries. So this is great news for the industry. We really need it. You know, great work was done by our trade minister and opening up our relationships in this area. I mean, yeah, Don Farrall.
00:02:09
Speaker 1: Know Don really well, because he's got his own winery the godfather in Claire hasn't he He has.
00:02:15
Speaker 2: So it's it's a pretty good drop. And yeah, Don John's you know, just behind the scenes, He's built those relationships and it's helped us when we've gone over into the market to start to rekindle our relationships with the people, the sub distributors and our importers that we had over three years ago. So I think the relationship part is so important in a market like China.
00:02:43
Speaker 1: With all the volatility, with tariff's being thrown around like like like candy at the moment by Washington, does it create new weird markets that wineries in Australia didn't necessarily know existed.
00:02:59
Speaker 2: Yeah, it does. One other market that is growing in the recent export figures, of course, is Canada, and we're prather the Kanaka. They're really under the pump from all is chaos and what they actually did, the biggest buyer in the world, the Liquor Control Board of Ontario, they actually threw off all the US wines off their shelves. So this has really helped South Australian wines in the market. Our depletions are starting to go up. But the only problem is there still is a lot of uncertainty. So everywhere everyone is trying to second guess where Trump's going. And it seems to change, you know, not you know, we used to say weekly, but there seems to be a new story coming out, you know, every twenty four hours. So this uncertainty makes it a bit hard for the planning and getting it. But look on the positive side that there are opportunity. He's also trading within the other Asian countries. You know, people are looking to be with reliable trading partners, so that should be good for the Australian wine industry. And also with the chaos of Trump, he actually while he hit US ten percent because I think he confused our GST as being a parrot that anyway, he's actually hit the European winemakers that go into the US market a lot harder than us. So there may be some opportunities there, but I think a lot has to happen with it all to settle down.
00:04:40
Speaker 1: Yeah, and just finally, Mitchell, is the profile of the Chinese wine buy a still similar to pre COVID, where in China the demand is for the more expensive high end wines. And is that helping you guys at a time when a lot of Australians are minding their pennies on account of costing increases.
00:05:01
Speaker 2: Yes, yes, while they're cautious, the gifting is still very important and we did these beautiful boxes for Chinese New Year with our Saint Andrew Sharras, and they were a great success because there was a lot of pent up demand. They had a really brutal COVID in China, so when they had this opportunity to travel and be with family and friends, they love grabbing a gift of expensive and high quality red wine, particularly the reds that we make in the Clare Valley. The Sharazas and the Cabinet Savignons were very very popular.
00:05:40
Speaker 1: Well, it's a good news story and one that's long overdue, given how Cuffe, our beloved wine makers did it over the last few years.
00:05:48
Speaker 2: Yeah, we need a bit of a break, so it's very encouraging and we've got to now build on the good work and try to get some momentum back because everyone is still a little bit cautious in the in the Chinese market. But when nellie back to where we were three or four years ago in the export figures excellent.
00:06:09
Speaker 1: Great to chat with you, Mitchell. Mitchell Taylor the chairman of the Clare Valley Wine Producers Association and also winemaker and MD of Taylor's Wine. Thanks for joining us for breaking it out.
00:06:19
Speaker 2: Thanks will thanks David