A new initiative wants to make Victorian wine the number one choice for wine drinkers in Victoria

There are plenty of hurdles preventing Victorian wines from being poured into glasses. Some are connected to world trends, some are a lot closer to home. Finding a way through the obstacle course is at the heart of the just released Victorian Wine Strategy 2025–2030.

Funded by Agriculture Victoria (Ag Vic), the Strategy is the result of 12 months of consultation with members of the Victorian wine industry. It sets out four major priorities for the next five years for the $9.5 billion industry: 1. domestic and international trade; 2. innovation and sustainability; 3. visitor experience; and 4. people and community.

It wants to make Victorian wine the number one choice for wine drinkers dining out in Victoria. At the moment, it isn’t. 

Only 27 per cent of the wines available in Victorian venues are Victorian. South Australian, Tasmanian and even Western Australian wines feature more. Cue the Drink Victorian program, which started in 2021 and is set to become a cornerstone to encourage venues and events – including those conducted by the State Government – to do more.

Emily McNally and husband Nick from Jasper Hill.

Greater promotion of Victorian wine in international markets and growth in exports is central to the economic future of the industry. This is a lot harder than it looks on paper.

“I just don’t know how we all can survive in this business with such an oversupply of fruit and wines, from both here and overseas,” says Emily McNally of Jasper Hill.

Her thoughts are echoed by fellow Heathcote producer, Simon Osicka from Paul Osicka Wines. “At present, supply and demand are completely out of whack,” he says. “The industry needs to shrink, and also grow new markets. It will need to be a very different beast in the next three to four years.”

According to the Strategy, innovation and sustainability go hand in hand with more producers obtaining Sustainable Winegrowing Australia certification, among a raft of initiatives mentioned.

At Tahbilk, a carbon neutral winery, accredited since 2013 under carboNZero with Toitu Envirocare, sustainability is viewed as a major priority for industry success. Director Alister Purbrick is keen to see Victoria become a leader in sustainability practices. 

Alister Purbrick, Tahbilk.

Victoria has more regions – 21 – than any other state. It also boasts more cellar doors – 400. Sounds ripe for generating more visitation but, according to the Strategy, there is limited co-ordination between wine and tourism bodies and some regions are restricted in what they can offer, especially in accommodation.  And, there are ever-present labour and skills shortages. The plan is for more collaboration with tourism bodies, local government and First Peoples. The Strategy supports the State Government’s commitment to Yuma Yirrambol Strategy (Invest In Tomorrow) to recognise First Peoples-owned businesses.

For Natalie Pizzini at Pizzini Wines in the King Valley, her personal wish list is to see regional wine associations with funding to employ executive officers to run day-to-day activities and manage events.

“From Pizzini’s perspective, building awareness of the King Valley is just so important – having the resources to enable us to better be able to work together with other King Valley operators – strength in numbers – would be amazing,” she says. 

The Victorian wine industry contributes $9.5 billion to the Victorian economy each year. It supports more than 23,000 jobs. By 2030, it is estimated that it will generate more than 4,500 new jobs, additional domestic sales of $113 million and exports will increase to $84 million.

Natalie Pizzini, Pizzini Wines. 

The Strategy is built upon growth, pouring more Victorian wines into glasses. Achieving this at a time of falling wine consumption is one of the industry’s biggest challenges. 

Australian wine consumption peaked in 2010 at 30L per adult. That has now dropped to 25L. Declining wine consumption comes at a time of declining red wine demand, which has resulted in high stock-to-sales ratio for red wines, currently running at between two to three years’ worth of reds stored in inventory. 

However, demand for lighter white wines, sparklings and rosé wines is said to be growing. Victorian producers can produce all three in abundance and in quality. Expect to hear more about these styles in the future.

Expect, too, to hear a lot more about the state’s fabulous historic vineyards. South Australia may grab the attention with its ancestor vines but Victoria, too, is home to some of Australia’s oldest vines. It’s a story worth telling.

Steve Webber, De Bortoli.

“Promoting the absolute quality of wine currently being grown in Victoria is probably key to me,” says Steve Webber, chief winemaker De Bortoli, Yarra Valley. “Maybe a combined viticultural and winemaking focus may set us apart from other states.”

Victoria is a vibrant mix of big, medium and small wine companies. According to the Strategy, around 70–80 per cent of Victorian wine production is predominantly “commercial wines” from the Murray Valley and Swan Hill regions and is priced under US$10 a bottle. Between 20–30 per cent is priced as “premium wines” above US$10 a bottle. 

Export initiatives are often built around the premium wine story, while many export markets actually want cheaper, commercial wines. For small producers like Jeremy Schmölzer at Vignerons Schmölzer & Brown in Beechworth, increasing the average bottle price of exports could see greater all-round export market success for the industry.

"With export strategies often geared towards the story of small and premium, there's a consequent neat link between that messaging and sustainability - particularly carbon emissions,” he says. "Every doubling in bottle price is a rough halving of emissions relative to the value of wine sold. Win win.”

Tessa Brown and Jeremy Schmölzer, Vignerons Schmölzer & Brown.

The Victorian Wine Strategy 2025–2030 is essentially a wish list. To deliver the key objectives will take more funding for Wine Victoria.

There is no doubt the Strategy – and the extra funding – is needed.

“Is this the most challenging period in living memory the wine community has faced?” asked one Victorian winemaker when asked about the current state of the Victorian wine industry.

It may very well be.

And that sure makes the Victorian Wine Strategy 2025–2030 more relevant than ever.