Marketing of Canberra Wine Region - Case Study Example

1.0. Executive Summary The Canberra region is blessed with good terrior and this has helped the region to grow in wineries over the past decade and to establish itself as a brand and good business hub. The soil and the topography of the area are very much fertile of producing quality grapes for some quality wine. The climate of the region is very suitable for the vineyards and there are a variety of grapes that are produced in the area. With the use of a good variety of yeasts and microbes the region has produced a range of wines with better fermentation providing good flavour and food values. The region has also developed as a great tourist destination for wine lovers and the brand name has increased the sales and marketing of the wines produced in the region. The makers have made such wine which the people have globally accepted and the vegetation of the region has provided it the name of ‘Bush Capital.’ Table of Contents 1.0. Executive Summary 02 2.0. Introduction 04 3.0. Canberra Wine Region 04 3.1. Soil 05 3.2. Geology 05 3.3. Topography 05 3.4. Climate and Microclimate 06 3.5. Microbes and Yeasts 06 3.6. Neighbour Vegetation 07 3.7. Grape Varieties 07 4.0. Impact on Sales, Marketing and Branding 07 5.0. Impact on Tourism 09 6.0. Conclusion 09 7.0. References 10 2.0. Introduction The business of wine is a very big and old one. The French companies have always ruled in this regards and the French companies seemed to have a copyright for the production and selling of quality wine to the world. But with the development of new world wine companies across the globe the basic concept of considering France as the home of wine has changed companies from the southern hemisphere have also taken share in this business. In this assignment we study about the Canberra Wine Region and the impact of the teroir on the sales, marketing and branding and the tourism of the region. A detailed study of the soil, geology, topography, climate and microclimate, neighbour vegetation and the grape varieties has also been elaborated. The tourism and sales of the region has certainly increased in the region and has generated more revenue for the region. 3.0. Canberra Wine Region The Canberra wines have quality derived from a unique Australian climate and environment and a range of soil which is very suitable for wine grapes. Winemaking started in this district about 160 years ago. The region has made a real mark in the wine industry over the years and cementing its place with reputation of Shiraz and Viogner blends. The region has over 30 boutique wineries with cellar doors operating (Visit Canberra, 2014). There has been an entry of new quality of wine in the world markets which comes from new wine producing country, Australia. Previously the French companies were considered as the leaders in wine production and the sole provider of quality wine to the world. Off late regions line Canberra, Australia has made a strong impact on the wine markets and the exports of France declined by 8% in 2004. The French concept of terroir is now becoming a concept which is successfully being applied by the new world wine regions with great effectiveness ((Johnston and Johnson, 2011). 3.1. Soil The soil content of Canberra is a good selection for winery. The soils vary from shale, clay loam to free draining sandy, granite based soils. The colour of the soil in this part of the world is brownish and the pH ranges from neutral to mildly acidic. The sub-soils are not water retentive and need for irrigation is high. The soil in this part of Australia has a distinguished feature from that of the Northern Hemisphere (Canberra District, 2013). 3.2. Geology The soil that is apt for the growth of wine grapes comes from rocks. The geological structure of the Canberra wine region has a very good region with rock to make the soil the best suited in the region and thus making the Canberra district wine region a home for 140 vineyards. Rocks have many small pores in them which can hold water and thus protect the vine during phases of drought. Rock also can change the temperature of a region as large rocks can hold heat during the day and radiate it back into the air at night. The Canberra region is blessed with rocks in the soil which is a perfect geology for wineyards. 3.3. Topography The topography of the region is quiet varied with undulating hills and distant views of the snowy mountains. The air has some important factors like slope, aspect and air drainage. Wine making is the most sensual way to understand a piece of land. 3.4. Climate and Microclimate The frequent occurrence of spring frosts, recurring droughts in spring and summer, cold nights and hot summer days, and a cool harvest season has made the region amongst one of the strongest Continental climate in Australia (Viticultural information, 2014). The region has vineyards planted near on and near the alpine slopes and the cool autumn temperature adds to the typical cool climate to assist in vineyard farming. Some vital statistics of Canberra District are depicted in the table below: Map Coordinates 35° 0’S Altitude 500 -800 m (1640 -2788 ft) Heat Degree Days Oct -Apr 1410 ( cut off at 19°C or 66.2°F) Growing Season Rainfall Oct –Apr 360 mm (14.1 inches) Mean January Temperature 20.2°C (68.3°F) Relative Humidity Oct –Apr, 3 pm Average 41.5% Harvest Mid March- End April 3.5. Microbes and Yeasts Vineyard and grape berry surfaces provide a physical environment for the establishment of complex microbial communities comprising yeasts, bacteria and filamentous fungi. The microbes and yeasts are used for the process of fermentation and it preserves the taste and enhanced the quality of the wine over the years. Sulphur dioxide that is used to bind the precursors and the oxides helps in making and preserving of wine (Barata, Malfeito-Ferreira and Loureiro, 2012). The yeasts species Saccharomyces cerevisiae has been used over thousands of years for the purpose of fermentation of wine. It enriches the flavours, aroma and textures and adds proteins, amino acids, fatty acids and vitamins. Wines with a wide range of yeasts will produce larger range of flavours in comparison to inoculated wines. If a nearby winery starts using a particular yeast strain it automatically makes into the neighbour wine fermentation as yeasts are airborne and mobile. Some of the different types of yeasts used in wines are vigorous fermentors, ethanol tolerant, cold tolerant, SO2 tolerant. 3.6. Neighbour Vegetation The Canberra District is an area of significant natural vegetation and has thus earned the name as ‘Bush Capital.’. The area is naturally blessed with forests and mountains surrounding the vineyards and this adds to the climatic condition for the wineries and also provides picture views. 3.7. Grape Varieties The abundance of climatic and topographic advantages has helped the region to produce healthy and superb fruit across a wide range of varieties. The fruit comes up with excellent flavours and colour at lower than usual Baumes, which making winemaking a craft with lower alcohol levels. Shiraz and Riesling varieties are the heroes of wines in the region. Cabernet and Merlot, considered as excellent fruits, have also thrived in these conditions. Semillon and Pinot Gris are also good options to be picked until May (Vintage Summary, 2014). 4.0. Impact on Sales, Marketing and Branding The Australian Terroir is very suitable for winery and vineyard farming. The terrior adds to the flavour of the wine as the grapes absorb the elements from the soil and this deepens into the grapes as they ripe and the flavours develop into the grapes (Cross, Plantinga and Stavins, 2011). This adds to the quality of the wine produced at the end of the process which backs the selling of the product and the taste and quality assures further demand for the wine from the Canberra region. The strong taste and flavour creates brand loyalty towards the Canberra region wine. The new world wine growers have rapidly taken over the French concept of terroir over the last decade and a half and have changed the general assumption of the world to consider wine as a uniqueness of the French. Grape growing was considered as a mundane prelude to the work of all powerful winemakers. But the new world has fast recognised the key to the quality of the ripe grapes for quality wine making. New techniques have been adapted by them to make an impact on the sales and marketing of the wine and also to develop a strong brand name with some uniqueness of its own. Examples like the Coonawarra Wine Region which showcases red dirt in all its marketing campaigns because the terroir of the Coonawarra region has a very thin layer of red soil which is perfect for red wine. The wine lovers across the globe are curious to know how why such small areas of terra rossa soil so suitable for such special wine. This has provided a different brand image to the Coonawara Wine Region (Farmer, D. 2014). Similar example is the Yaara Valley where the vineyard has been bio-dynamically managed for inception. Also the beautiful lush rolling hills o the backdrop add to the view of the winery which is an added features of the valley that adds to the marketing values of the wine. 5.0. Impact of Terroir on Tourism The wineries in the Canberra Region have become very significant in the wine business globally. This has not only emerged as a brand name but also a as a very big tourist destination in the modern world. One important factor in deriving such tourism is that people generally considered the French as the growers and makers of wine since time immemorial. But the new world wine makers have taken a serious share of the world wine business (Mitchell and Hall, 2006). The activities like wine tasting, winery dining and activities have become a very good source of attraction for tourist world over and to know more about the type of wine they drink. There are numerous wine drinkers with great passion for wine and this section of people are always ready to collect information regarding the variety of wine and the range of grapes produced. Wine tourism is an approach in the form of consumer behaviour (Getz and Brown, 2006). 6.0. Conclusion The assignment presents a very unique study of the terrior of the Canberra Wine Region which has developed into a strong market in the world of wine business and changed the concept from general approach to the French terrior. The added advantages due to the soil, climate and topography makes the study of the region more precise in the direction to understand the reason behind the growth of new world wine region. Also the advantages and the impact of the same upon the sales, marketing and branding and the increase in the tourism in those regions has been presented. 7.0. References Barata, A. , Malfeito-Ferreira, M. and Loureiro, V, 2012: The microbial ecology of wine grape berries. Int J Food Microbiol 153: 243–259. doi: 10.1016/j.ijfoodmicro.2011.11.025 Canberra District, 2013. Bidgeebong Wines, NSW, retrieved on 27-04-2014 http://bidgeebong.com.au/location/25-canberra Cross, R., Plantinga, A.J. and Stavins, R.N., 2011. What is the value of terroir? American Economic Review, Papers and Proceedings, 101, forthcoming. Farmer, D. 2014. The Red Soils of Coonawarra - Part of a Unique Terroir, retrieved on 27-04-2014 http://www.glug.com.au/index_regional.php?sec=regional_studies&art=coonawarra Getz, D. and Brown, G. 2006. Critical success factors for wine tourism regions: A demand analysis. Tourism Management, 27, 146-158. Johnston, B. and Johnson, J., 2011, Wines of the Canberra District: Coming of age, 3R Operations, Canberra. Mitchell, R. D. & Hall C .M. 2006. Wine Tourism Research: The State of Play. Tourism Review International, 9 (4), 307-332. Viticultural information, 2014. Canberra District Wine, retrieved on 26-04-2014 http://www.canberrawines.com.au/viticultural.html Vintage Summary, 2014. Canberra District Wine, retrieved on 26-04-2014 http://www.canberrawines.com.au/vintages.html Visit Canberra, 2014. Canberra and Surrounding: Canberra district wine region, retrieved on 27-04-2014 http://www.visitcanberra.com.au/canberra-and-surrounds/canberra-district-wine-region Read More