With approximately 2500 wineries spread over 63 different
wine regions of Australia, Australia is one of the producer, consumer and
exporter of wine in the world. Different grape varietals grown in different
parts of the country lend unique characteristics to the wines of that region.
Most of these wineries are small and medium scale with only a few being really
big. The more exclusive ones are associated in a grouping called First Families of Wines of Australia. Thousands of other wineries operating at smaller scale
are called the boutique wineries.
Generally, these sell wines at higher prices than big
players of the industry due to their higher costs of wine production. However, Boutique
wineries face a lot of problems due to their smaller scale of operation. These
challenges relate to their limited range of marketing efforts, investment
bottlenecks, shrinking government support and climate change.
Marketing Challenges
Australian wine industry has well developed channel of wine
distribution which can be used for sales across the country. Based on commissions,
this structure does not leave much in the hands of winery. To cut down on the
hierarchy of these channels, some of these wineries also make use of the online
marketing channels to directly get the orders from the customers. This, too,
requires investments in development of online property and marketing it
appropriately to get customers. Most of the boutique wineries do not even have
a website of their own. For this reason, these wineries tie-up with online wine
marketplaces where people come to buy Australian wines. These marketplaces
offer them the respite from investing in online marketing and offer their
expertise in digital marketing for promotion and sale of their products.
Technological
Challenges
Technological challenges for boutique wineries not only
pertain to the online design and development work but also to the installation
of appropriate machinery for viticulture and wine production. Due to financial
constraints, these wineries are not able to invest in sustainable, eco-friendly
technologies or even in those which can enhance their level of efficiency.
Climate Changes
One of the biggest threats to Australian wines is that of
change of climate. The small wineries are not in a position to invest in the
mitigation technologies which can provide protection for some time. The
challenge also pertains to declining in quality of wines and losing of unique
characteristics of the region. Declining yields due to warmer climates is
another area of concern.
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