More than one-sixth of Australia’s vineyards are unprofitable and supply exceeds demand by more than twenty percent, according to a frank new report from the nation’s leading peak bodies.

Entitled the ‘Wine Restructuring Action Agenda,’ the report suggests that the nation’s wine industry is suffering its toughest period in two decades. Released to all winemakers and grape growers last month, it was compiled jointly by The Winemakers’ Federation of Australia, Wine Grape Growers’ Australia, The Australian Wine and Brandy Corporation and The Grape and Wine Research and Development Corporation.

The report highlights a surplus in excess of 100 million cases, suggesting that this will more than double in two years at current rates of production. Excess annual production equates to between 20 000 and 40 000 hectares of vines, equivalent to total sales to the UK, Australia’s second largest export market after the US.

“Structural surpluses of grapes and wine are now so large that they are causing long-term damage to our industry by devaluing the Australian brand, entrenching discounting and undermining profitability,” the report says.

Ambitious sales growth hopes are not expected to absorb more than one-quarter of the excess, and natural attrition of production due to drought, water shortages and climate change is estimated to provide no more than ten percent of the required reduction. The report concludes that “it is imperative that the grape supply capacity corresponding to the uncompetitive surplus be retired from the wine industry.”

“It’s not as simple as saying that we have twenty percent oversupply so therefore twenty percent of vineyards must come out,” explains Stephen Strachan, Chief Executive of The Winemaker’s Federation of Australia. “This report is more about structuring the industry for the coming decades in order to get out of the cycle of excess fruit ending up as cheap wine.”

High cost structures in many regions have led to uneconomic fruit, threatening the viability of vineyards and wineries. “The industry must restructure both to reduce capacity and to change its product mix to focus on sales that earn viable margins,” the report states. “Tough, informed decisions must be made by individual growers and wineries, from as early as the 2010 vintage.” For some growers, this will mean changing varieties, reducing running costs or increasing fruit quality. Others may need to remove unprofitable vineyards or leave the industry altogether.

The impact will hit some regions harder than others. “For the Barossa it’s not like we have a large oversupply,” says Sam Holmes, CEO of the Barossa Grape and Wine Association. He estimates that twenty percent of Barossa fruit is sold at unprofitable prices. “If you’re growing low grade fruit in the Barossa you’re just not going to survive,” he says. “We need to respond by working with unsustainable growers to decrease their cost of production or increase the quality and price of their fruit.”

Others are less convinced of the merits of the report. “Even if we removed 20 000 hectares of vines tomorrow, we’re not going to fix the global oversupply,” says Shay McQuade, General Manager of the Riverland Wine Industry Development Council, which oversees one quarter of the nation’s wine production. “If we reduced the global oversupply by one percent, Chile or Argentina could reverse that in no time.”

For McQuade, the solution is to grow sales by changing the attitude of the market. The Riverland has recently developed its own ‘Strategic Plan for Wine Industry Development’, which focuses on building the market to increase demand rather than addressing supply.

This approach challenges the intention of the report, to “dispel any notion that the industry can trade its way out of its current problem.” Discussions are set to continue as the peak bodies liaise with regional associations and individual growers over the coming months to assess regional data and examine the performance and viability of individual vineyards.

“We’re not telling anyone what to do,” explains Strachan. “We’re here to offer one-on-one support for wineries and growers, to help them with ongoing decision making.” But he emphasises that this is not simply a matter of increasing market demand. “We are concerned about building a sustainable future for regions like the Riverland who face real challenges such as an increasing cost of water. Grapes that end up as ‘three bottles for nine quid’ in UK are not profitable. Someone in the value chain is losing money and at the moment that’s the grape grower.”

Alongside increasing water prices, the report highlights a number of factors as weakening the outlook for Australia’s long-term global competitiveness, including unfavourable exchange rates and increasing labour costs. It also suggests that Australian wine producers are likely to face higher costs for carbon emissions trading than their international commodity wine competitors. The release of the report coincides with vigorous debate in the Australian senate over Prime Minister Kevin Rudd’s Carbon Pollution Reduction Scheme and Emissions Trading Scheme, as Australian wine producers brace themselves for increased costs associated with environmental sustainability.

In the short-term, Strachan estimate that Australia’s 2010 vintage will be smaller than 2009 in spite of higher yield projections. “A number of larger wineries have indicated that they are lowering their requirements, so there are growers out there who produce grapes that won’t be processed,” he says. “This will mean that many growers are faced with some tough decisions.”

The pressure of oversupply has been felt across the wine world this year, exacerbated by a decrease in global consumption. A new EU compensation scheme to encourage growers to abandon uneconomical vineyards has led to an estimated 73 000 hectares of vines removed in Europe already this year.

Plans for a highway bypass that would threaten vineyards in South Australia’s Coonawarra region have been delayed indefinitely.

A Supreme Court ruling this week placed an injunction on the local Wattle Range Council, preventing the compulsory acquisition of prized vineyard land for the bypass.

The ruling represents a victory for Foster’s Group and Parker Coonawarra Estates, who lodged the court application on the basis that the proposed bypass “destroys irreplaceable terra rossa soil vineyards,” damages local tourism through reduced traffic and does not alleviate the dangerous mix of vineyard and tourist vehicles with fast moving trucks along the main strip of Coonawarra cellar doors.

The council accepted the ruling and agreed to pay costs.

Mayor of Wattle Range Council, Mark Braes, announced that the council would need to consider if it would proceed with the bypass. If it did, it would be required to recommence the process, including a “full and fresh consideration of all submissions received” in relation to alternative routes for the bypass.

The future of the proposal is unclear, although vineyard owners are concerned that the original process of compulsory land acquisition may simply be recommenced. They remain in discussion with council.

South Australia’s oldest commercial vineyard site has been sold to developers to be subdivided for housing. The Stony Hill vineyard at Old Reynella in McLaren Vale was first planted to Cabernet Sauvignon in 1838 by the district’s first settler, John Reynell. The announcement of the decision to develop the historical site has angered locals and wine lovers across the country.

“We’d like to see it preserved as vineyards as a tribute to our early history,” said local Member for Parliament and Chair of the Reynell Business and Tourism Association, Kris Hanna. McLaren Vale is under increasing pressure from the sprawling southern suburbs of Adelaide, despite assurances from politicians that vineyard sites will not be rezoned to residential land.

Nonetheless, the vineyard was sold by Constellation Wines to Pioneer Homes, which has lodged a council application for 41 high-density homes to be built on the site.

Constellation Wines Australia public relations manager Sheralee Davies said that the vineyard, totalling just 0.8 acres in size, was identified a number of years ago as unviable. “Water access is a challenge and the small vineyard has become increasingly expensive to maintain,” she said. The site is currently planted to nineteen- and twenty-five-year-old Cabernet Sauvignon vines, which would be removed under Pioneer Home’s development plan.

Davies explained that the company is focusing its resources on its Hardys Old Reynella headquarters and its public areas, located directly opposite the Stony Hill vineyard. “We have had to make some tough calls across the board and this is one of them,” she said.

While acknowledging that the site has historical significance as the original location of John Reynell’s vineyard, she stated that “we’re trying to run a business here and we need to be responsible in the way that we maintain it.”

It has been suggested that this vineyard was the original source of the Reynella clone of Cabernet Sauvignon, which has since been planted across Australia. However, it is more likely that this clone instead originated from the nearby Reynella vineyard, planted by John Reynell shortly after he planted Stony Hill. Constellation Wines has declared that it plans to continue to maintain the Reynella vineyard.

Australian growers are shocked over an announcement this week that the majority of the country’s plantings of the Spanish variety Albariño are, in fact, the French variety Savagnin Blanc. The mix-up was revealed by DNA profiling conducted by the CSIRO (Australia’s Commonwealth Scientific and Industrial Research Organisation), the body responsible for importing and releasing large numbers of the vines into Australia.

The authenticity of the vines was first called into question last year following a visit by French ampelographer (grape identification expert) Jean-Michel Boursiquot, who suspected that the Albariño vines appeared to be Savagnin, an obscure variety cultivated almost exclusively in the Jura in eastern France, where it produces the sherry-like vin jaune.

The CSIRO subsequently compared DNA samples from both varieties in Spain with those believed to be Albariño from its own collection and found a match with Savagnin. The study concluded that wines produced from vines sourced from this collection cannot be described as Albariño.

The announcement this week has commercial implications for the estimated dozen examples of the variety made in the country. Those sourced from this material will be required by law to tested, repackaged and relabelled.

“There will be repercussions for us financially,” said Barossa Valley winemaker Damien Tscharke, the country’s first and largest commercial producer of the variety, who has significant volumes labelled and ready for release under his Tscharke brand, including a major shipment destined for the US.

Tscharke’s vines were sourced in 2001 from the CSIRO, the major source of Australia’s plantings of the variety, as were those of McLaren Vale producer Chapel Hill. “We’ve had it sitting in tanks awaiting the announcement, scratching our heads and wondering what we’re going to do with it,” said Chapel Hill winemaker Michael Fragos. “We’ll just have to label it for what it is, market it as a new variety and see how it goes.”

Most other producers say they will take a similar approach and continue to produce the variety, which has recently risen to popularity in the Australian market. The vines’ ability to tolerate drought and heat makes it one of the most sustainable emerging varieties for the Australian climate, and this has encouraged further planting.

Tscharke quoted one unnamed grower who planted it for the first time this year as saying,
“I really don’t give a s**t if it’s Albariño or Savagnin – whatever it is it’s performing really well, consumers love it, so we’re going to stick with it.”

Others are more concerned about its name. Dr Andrew Pirie, chief executive at Tamar Ridge in Tasmania, will continue to produce the variety, but says he would prefer the name to have an ‘A’ in front of it. As would Tscharke, who has worked for a decade to pioneer the variety in Australia.

“It has come as a shock to me, and to other producers of this popular variety, that Albariño has been commercially released in Australia by the CSIRO possibly not true to type,” he said. “It puts a lot of doubt in consumers’ and retailers’ minds about the variety.” Tscharke has decided to undertake his own investigations into its identity, which it is not as black-and-white as it may seem.

“The CSIRO has conducted objective testing, so we can’t dismiss it,” he said, “but when I look at the vine and at the wine everything suggests that it is Albariño.” He points to the characteristics used to identify Albariño in Spain as consistent with his Barossa Valley vines: “Albariño clusters are conical and have wings whereas Savagnin clusters are cylindrical; Albariño has two clusters per fruiting branch while Savagnin only has one; and Albariño contains two seeds per berry, whereas Savagnin has one,” he explained.

The situation is further complicated by the tendency of vines to mutate and adapt to their environment. Peter Lehmann Wines viticulturist Nigel Blieshke has found that some of his Albariño grapes have two seeds and some have one – and his vines were not sourced from the CSIRO, and hence not likely to be subject to the identity controversy.

Both Albariño and Savagnin are genetic mutations of the Traminer variety, part of a family surrounded by well-documented identity confusion in many parts of the world, including Spain. It’s been suggested that the notorious genetic instability of this group means that it would be better regarded as a family of related clones rather than distinct varieties. This may be a subtle distinction, but it could have worldwide commercial implications for what a wine is permitted to be named and how it may be labelled. At a time when DNA testing is becoming commonplace, such distinctions are likely to become increasingly significant.

The CSIRO testing found differences between the DNA profiles of Albariño and Savagnin samples obtained from Spain. This finding disagreed with a 2002 Italian study by Imazio et al, which found the two varieties to be genetically identical, supporting the idea that Albariño may have originally came to Spain and Portugal as Savagnin cuttings from Eastern France.

“There has been some question as to whether some Albariño vines in Spain are Savagnin,” Fragos pointed out.

“You have to go back to the original source,” added Eden Valley grower Jim Irvine (Irvine Wines), “and if the Spanish can’t tell the difference, how the hell can we?!”

The original identification of the cuttings would have been made in Spain, not in Australia. There has been suggestion that the source of the vine material in Spain may be required to be audited, and this opens up all manner of potential implications.

Viticultural consultant Dr Richard Smart raised concerns over which Australian body has the responsibility for administering correct varietal identification. “It has not been possible for more than 10 years to find out which varieties have been imported into Australia, and there is no national germplasm collection to act as reference,” he explained. “Is this an appropriate situation for a wine sector in which alternative varieties might help restore a competitive edge?”

For Tscharke, the big question is not whether his vines are Savagnin, but whether they are, at the same time, Albariño. “At what point can you say that the clones are different grape varietals?” he asked. “I think it’s strange that the CSIRO can come out and say in just a few weeks that these are not the same varietal.”

Tscharke will call a meeting this week with South Australian and Victorian producers of the variety. “I’m going to try to take the lead on this and get support from other producers to embark on our own testing and determine the truth of the DNA of this cultivar,” he said. “I’m certainly not going to walk away from this variety. What we’ve grown this vintage is what I have always dreamed of some day producing. I just want to bottle it and get it out there – but first I need to find out what to label it!” Whatever that might turn out to be.

Months after a record heat wave in February helped spark a wave of devastating wildfires across Australia’s southern state of Victoria, the country’s wine industry is beginning to come to grips with the extent of damage to vineyards, wineries and lives. It was the deadliest bushfire disaster in Australia’s history, killing more than 200 people, devastating more than 1.1 million acres of land and leaving 7,500 people homeless.

The forested mountain areas north of the Yarra Valley were the hardest hit in terms of lost property and lives. Bushfire damage to vineyards was most severe in the northwest of the Yarra Valley. “We estimate that about 350 acres of vineyards have been affected,” says Yarra Valley Wine Growers’ Association vice president Graham Van der Meulen. That’s about 5 percent of the area under vine across the valley. “Regrettably, the Yarra Yarra and Roundstone wineries were destroyed,” Van der Meulen adds. The association reports that 29 wineries suffered damage to buildings or equipment.

Contrary to early fears that vines would not survive, it appears vineyards will recover within the next couple of years. “I don’t think the vines are dead, they’ve just been burnt,” says Steve Webber, chief winemaker at De Bortoli, who had fires tear through 5 acres of vineyard. “It’s only burnt the weeds, a few posts and the vine leaves. We’ve been irrigating and it wouldn’t surprise me if the vines start shooting green shoots again soon.”

Fruit from vineyards directly hit by the fires has been unsalvageable. “Tests on juice samples show that there is smoke character in grapes from fire-damaged vineyards,” says Dr. Tony Jordan, president of the Yarra Valley Wine Growers’ Association. “These grapes won’t be harvested. Similar sampling from a number of vineyards across the valley that were not fire damaged showed no smoke taint.”

The fires coincided with the start of harvest in the Yarra Valley. Even though most fruit escaped the smoke, record heat wave conditions diminished the crop through leaf burn and grape shrivel. Van der Meulen estimates that between 20 and 30 percent of the crop was lost due to heat across the whole valley.

For those less fortunate, gestures of assistance have poured in from around Australia and the world. The Australian Red Cross has raised more tens of millions of dollars for fire victims. Wineries have lent assistance of their own, offering barrels, fermentation space, fruit and even staff to affected wineries. Wine shops in Australia, California and other regions held fundraisers to help the industry, and the Australian people, get back on their feet.

A blistering heatwave has swept through south-eastern Australia, scorching vineyards and decimating harvest forecasts.

Adelaide’s temperatures soared above 104F for six successive days last week, topping a sweltering 115F and breaking the all-time heat record set in 1908. Melbourne also recorded its hottest heatwave in history, with three successive days over 111F and more forecast for next week.

“We’ve never seen anything like it,” said Geraldine McFaul, winemaker at Willow Creek on Victoria’s Mornington Peninsula. “Any exposed fruit has been completely fried – it looks like someone’s taken to it with a flame thrower!”

Pinot Noir was the worst hit variety in the region, although it will be difficult to quantify the full extent of the damage before harvest later this month. “It looks to me like something between 25 and 50 percent of the Mornington Pinot crop will be lost,” said Yabby Lake Group Winemaker and General Manager, Tom Carson. “It’s absolutely devastating.”

In the nearby Yarra Valley, the heatwave has claimed some growers’ entire crop. “We’ve lost 50 percent of our fruit,” reported De Bortoli Chief Winemaker Steve Webber. “It’s just shrivelled on the vines.”

Meanwhile, McLaren Vale and the Adelaide Hills have been the hardest hit of South Australia’s wine regions. “At this stage it looks likely that 70 percent of McLaren Vale’s harvest has been destroyed,” said Tim James, former Managing Director of Wirra Wirra.

Estimates are more optimistic in the Barossa Valley, although shiraz fruit has been sunburnt and some white varieties have been completely wiped out, according to CEO of the Barossa Grape and Wine Association, Sam Holmes.

“What has surprised us is that some vineyards have been completely unaffected,” he said. “Careful vineyard management has made a huge difference.”

The full extent of the impact on wine quality is yet to be determined. “I’m confident that we will make some good wines from the Yarra Valley fruit that’s left,” commented Webber. “It’s all about stringent hand-sorting of the fruit.”

For the world’s fourth-largest wine exporter, the 2009 vintage had been forecast to be a record crop with a large surplus. Estimates have now been downsized by twenty percent. “We don’t mind losing some fruit, as it brings supply and demand back into balance,” said Webber.

Vine damage has been exacerbated by dehydration due to the ongoing drought across south-eastern Australia. Adelaide has experienced its driest January in seventeen years, while Melbourne had its second driest January on record, with a rainless spell now 33 days long, and counting.

“Any vineyard that’s water stressed is going to have a very difficult run,” suggested Coonawarra Grapegrowers Association president, Stuart Sharman.

After Australia’s “one in 3000 year” heatwave of fifteen consecutive days above 95F vintage last year, concerns are being raised regarding the long-term effects of climate change. “It’s uncharted territory – nobody really knows what it means yet,” Chairman of the McLaren Vale Grape Wine and Tourism Association, Dudley Brown, told the ABC.

Climate Change Minister Penny Wong told the Canberra Times that the scorching weather proved the accuracy of warnings by climate change scientists. “11 of the hottest years in history have been in the last 12 years,” she said.

Others are less convinced. “Harvest started on the same day in 2008 as it did in 1908,” pointed out Kay Brothers Amery Winemaker, Colin Kay, who has climate records for his McLaren Vale vineyard for every year since 1891. “We had a similar heatwave in 1934.”

Other winegrowing regions have been more fortunate and are expecting very good vintages. In Western Australia, Perth recorded its hottest start to January on record while Tasmania reached its all-time record of 108F, but vineyards in these states escaped the heatwave. The Hunter Valley in New South Wales has enjoyed a cooler season, reporting an exceptional semillon harvest.

Vineyards and wineries in Victoria’s premium wine growing region of the Yarra Valley have been destroyed as bushfires continue to ravage the state, in what has been named Australia’s worst peace time disaster, claiming more than 200 lives and leaving 6000 homeless.

At least two wineries have been destroyed and many vineyards have been wiped out or badly damaged just weeks before harvest. Families remain unaccounted for and local winery and vineyard workers are feared to be among the victims.

“We’re just glad to be alive,” said Tom Carson, Winemaker and General Manager of Yabby Lake, who lost his vineyard and worked all night on Saturday to save his Yarra Valley home and two young children. “The fire moved at a pace that would have put Usain Bolt to shame. We were fortunate that our sacrificial shiraz block copped the fire front and helped to deflect it around our house and send it belting down the hill. We fought it off, and we won!” he said.

Others in the region were not so fortunate, with hundreds of homes destroyed and uncounted lives lost. Following a record heatwave and drought, strong winds on Saturday and an all time record temperature of 119.5oF generated a firestorm so fierce that many people didn’t stand a chance.

Roundstone winery at Yarra Glen was razed to the ground. “We’re still alive,” said owners John and Lynne Derwin, who also lost their house, restaurant and vineyard. “There’s lots of our friends that aren’t.”

Winery damage was also reported at Train Trak, Lance Family Vineyards and Punt Road. Domaine Chandon suffered some external damage to warehouses.

Scores of vineyards across the Valley have been damaged or destroyed, including those at Sticks winery, Yarra Yering, Yering Station, Mandala and a few rows of vines at Domaine Chandon. Foster’s lost a total of 40 hectares of pinot noir, shiraz and merlot plantings in two vineyards that supply fruit for the Coldstream Hills and St Hubert’s brands. “Our viticultural and winemaking staff continue to assess the impact of the fires and a full picture is not likely until the conclusion of vintage,” said Nicola McConnell, General Manager of Brand Communications for Foster’s Australia.

It remains unclear whether vines will survive for future crops. Gordon Gebbie, commercial director of Yering Station, said that eight hectares of the company’s vines that were burnt may be able to be saved.

As fires raged across the state, Rupert’s Ridge winery was destroyed and vineyards were wiped out in the south of the Heathcote wine region in central Victoria. In Beechworth in the north-east of the state, fires were blown away from vineyards by the prevailing winds, and no damage has been reported to date. At the time of writing, fires continue to burn around Beechworth and across the Yarra Valley.

The full extent of damage to vineyards will not be clear until the smoke settles and areas are reopened. Many of the affected regions remain closed off by police roadblocks as they have been declared crime zones amid suspicion that arsonists are to blame for some fires.

“Victoria is fortunate that the proportion of the state’s wine production that suffered direct impact from the weekend’s fires is small, and a full assessment of loss will be undertaken over the next few weeks,” said Joanne Butterworth-Gray, chief executive of the Victorian Wine Industry Association.

Vineyards not directly affected by the fires may be at risk of smoke taint, although this is not believed to be a significant threat. “We were lucky that a southerly wind meant that the smoke moved fairly quickly from the Yarra Valley,” explained Ms Butterworth-Gray.

Offers of support and assistance have poured in from across the wine industry. Foster’s has donated AUD750,000 to Victorian communities affected by the disaster. On Saturday, Rochford Wines cancelled a concert anticipated to attract 6000 people and donated the food to residents and volunteers affected by the bushfires.

“In times of hardship, the wine industry rallies, and I know the whole of the Australian wine industry will get behind and support their Victorian peers during this very difficult period,” said Stephen Strachan, Chief Executive of the Winemakers’ Federation of Australia.

Donations to the Victorian bushfire appeal can be made at www.redcross.org.au.

A new Phylloxera outbreak in Victoria’s prestigious Yarra Valley has sparked concern over the extent of the spread of the aphid across the wine region.

Phylloxera attacks non-resistant vine rootstock, ultimately destroying the vine. Because the symptoms are delayed, detection typically occurs some years after the initial infestation.

The find came exactly two years after the first discovery of Phylloxera in the Foster’s owned Beavis vineyard in the Coldstream area in the centre of the Valley in December 2006.

At the time, a “Phylloxera Infestation Zone” (PIZ) was declared and strict quarantine restrictions were placed on all vineyards within a three mile radius of the affected site. When further outbreaks were discovered in nearby vineyards in early 2008, Fosters immediately commenced destruction of all of the vines in the 32 hectare vineyard.

The new outbreak occurred in Foster’s Racecourse vineyard, some two-and-a-half miles from the Beavis site, and close to the edge of the original PIZ. It is believed that Phylloxera was transferred by tractor movements between the two vineyards prior to the 2006 discovery and subsequent establishment of quarantines.

An extension to the zone was announced last week following meetings between the Department of Primary Industries and the Yarra Valley Wine Growers Association.

At a public meeting, Dr Tony Jordan, President of the Yarra Valley Wine Growers Association announced that “given the experience of other areas where Phylloxera has been found, on the balance of probability, there will be further outbreaks and ultimately the whole Yarra Valley will have to be declared a Phylloxera zone.”

The extension of the zone comes at an awkward time as the Valley prepares for the commencement of vintage. The quarantines place strict control on the movement of equipment and grapes into and out of the zone, creating nightmares for wineries sourcing fruit from both inside and outside of the area. As an interim measure this vintage, permits will be issued to allow grapes to be transported out of the newly declared zone under stringent regulations.

“At this time of developing weakness in the Australian wine and grape industry… and at a time of world economic recession, the increased uncertainty because of possible (and likely) continuing changes to the declared Phylloxera zone(s) means some Yarra Valley wine or grape businesses will find it too hard to operate in the Valley,” said Dr Jordan.

While some seventy to eighty percent of the Yarra Valley’s vineyards remain on non-resistant rootstock, Jordan was quick to downplay alarmist suggestions that Phylloxera could wipe out the region.

“The Phylloxera detected in the Yarra Valley is a very slow-moving ‘Type B biotype’ which only spreads by human or machine contact, so no one is expecting it to move like wildfire as it did in New Zealand or California,” he explained. “Rutherglen has lived with the same Phylloxera for more than a century and by enforcing strict quarantines, it has vineyards that remain Phylloxera-free. We are confident that we will be able to control its spread.”

The discovery has sparked concern in Phylloxera-free South Australia, where the largest collection of old commercial vines in production in the world is planted on non-resistant rootstock. The Phylloxera Board of South Australia last week issued a warning to growers of the risk of the aphid being brought into vineyards by interstate tourists during the Tour Down Under cycle race.

McLaren Vale Grape, Wine and Tourism Association chair Dudley Brown suggested that the recent Phylloxera spread in the Yarra Valley increased the likelihood of it reaching South Australia, although the statistical risk of the aphid being transferred by tourists was low.

October 30, 2009, 2am. Alarms are sounding all over Marlborough. The livelihood of New Zealand’s premier wine region is under attack. Winemakers are on their phones. Panic is in their voices. Not an hour later, an air raid descends. Helicopters. More helicopters. 150. From as far as Auckland in the north and Invercargill in the south. Swooping over vineyards. Hovering, waiting. Then on to another vineyard. And another. There’s no relief until sunrise. And then, as quickly as they came, they are gone.

Like an opening scene in a war movie, this is a regular picture in Marlborough and across New Zealand’s wine lands. The enemy here is frost, burning tender shoots in spring; crippling vines in autumn. Helicopters are the saviours, fanning warm air from above and rescuing entire crops.

Wither Hills Viticulturist, Rex Butt, is always in the middle of it. Standing atop his jeep on a hill overlooking the vines, he has a full view of seventy frost lights indicating the temperature from weather stations dotted across the vineyard. He’s on the radio controlling eight helicopters at once. “It’s a dangerous exercise,” he says. “With so many helicopters in the airspace there are issues with air traffic control. We’re worried there will be an accident one day.”

And it’s expensive. Up to $3500. Per helicopter. Per hour. Every time there’s a frost. And every time there might be a frost. Multiply that across two months of spring and two months of autumn. Welcome to the white-knuckle ride that is grape growing in the most southerly winegrowing country on the planet.

New Zealand is so close to Australia that we might be tempted to think of it as another state of ours. But it’s far from it – as the Kiwis are quick to remind us. As wine growing goes, it’s another world over there. And if there’s one thing that distinguishes that world it’s the cold. There’s hardly a vineyard on the south island that doesn’t enjoy a view of snow peaks. When it comes to understanding the taste, texture and style of New Zealand wines, it’s the cold more than anything else that sets them apart. Bracing acidity, icy minerality and breathtaking freshness. Think Lord of the Rings snow scenes.

In the middle of those scenes, between white powder slopes, lies the adventure playground of Central Otago. Stash the skis, moor your jet boat and hang up your safety harness because there’s plenty of wine action to be carved up here. Vines in Central Otago are closer to the south pole than any others on the planet and vineyards cling to hillsides like giant solar panels to catch the sun and escape deadly frosts.

This is Pinot Noir country, and it’s here that you’ll discover some of the most intense, flavoursome Pinots in the world. Bitterly cold nights infuse a freshness into the wines while hot summer afternoons provide richness; it is this contrast of temperatures that is responsible for flavour concentration. Pinot vines take some years to establish themselves before they produce truly great wines, so it’s no surprise that it’s the old guard who set the pace in this relatively young wine region. Felton Road, Mt Difficulty and Rippon are names to look out for. In years to come, expect other vineyards to aspire to similar lofty alpine heights.

Pinot Gris has been regarded as the white grape of Central Otago, producing finely structured wines with intense flavours of pear and spice. However, in recent years it’s been eclipsed by the rising star of Riesling. In a medium sweet style, Central Otago Riesling’s ice pick of frozen lemon juice is controlled by honeyed sweetness, placing it firmly in a Germanic style. With a climate closer to that of Germany than any other in New Zealand, expect to see more of this style of Riesling in the future.

North Canterbury, above Christchurch, is another region increasingly gaining a reputation for its medium sweet Rieslings. Vineyards intersperse with dairy land to produce a patchwork across the Canterbury plains. This is the home of Pegasus Bay, a label synonymous with Canterbury’s finest Rieslings, with no less than four different styles released each vintage. In recent years, names like Bell Hill and Pyramid Valley have shown that Pinot Noir is equally at home in this part of the world. There’s more to come from Canterbury so watch this space.

New Zealand’s most famous region lies toward the north of the south island. Marlborough’s name is inseparable from Sauvignon Blanc across the wine drinking world, but this region is no one-grape-wonder. As vineyards rise ever further into the hills that border Marlborough’s sweeping valleys, Pinot Noir is shining brighter than ever. Far from the black-fruited intensity of Central Otago, Marlborough Pinot is graceful and introverted, with flavours of cherries and red berries.

Australia is drinking more Marlborough Sauvignon Blanc than ever, but this versatile region is working hard to ensure that it doesn’t put all its grapes into one basket. Spy Valley and John Forrest have achieved great things with Marlborough Riesling, and the region is home to impressive Chardonnay, Pinot Gris, Gewürztraminer and sparkling styles. A combination of high sunshine hours and cool nights gives each of these varieties the kind of concentration and distinctiveness that have made Marlborough Sauvignon such a sensation.

Close to the southern tip of the north island, Martinborough is New Zealand’s most established Pinot Noir region. There’s an internal harmony and an evocative grandeur to the Pinots of Ata Rangi, Dry River, Escarpment and Martinborough Vineyard. Framed by hills on three sides and ocean to the south, this is a cool, maritime area where Sauvignon Blanc, Chardonnay and even Merlot are made with restraint and grace.

There is really only one region that lifts New Zealand’s wine fame beyond white wines and Pinot Noir. On the east coast of the north island, Hawke’s Bay is much warmer than New Zealand’s southern regions, but still relatively cool compared with most of Australia’s red wine districts. Its epicentre of ‘Gimblett Gravels’ shares a soil structure and climate not unlike that of Bordeaux, so it’s no surprise that Merlot and Cabernet can ripen effectively here. But the region’s crown belongs to neither of these – that honour is reserved for Shiraz, or ‘Syrah’ as it is named here. Spicy, fine-spun and peppery, these are edgy wines more reminiscent of the Northern Rhone valley in France than Australian Shiraz. They are particularly well suited to small additions of Viognier in the ferment. Craggy Range, Bilancia, Trinity Hill, Villa Maria and Mills Reef lead the charge.

If Syrah is king in Hawke’s Bay, Chardonnay is queen. The great chameleon of grape varieties, there isn’t a region in New Zealand that doesn’t produce Chardonnay worthy of pouring a second glass, and Villa Maria and Vidal rank among the best in Hawke’s Bay. But New Zealand’s greatest hail from an unlikely location just out of Auckland. Kumeu River Wines was established some sixty-six years ago, and today produces eight different Chardonnays, from a bargain “Village” to an age-worthy “Matés Vineyard.”

The landscape of New Zealand wine is as diverse as the country’s dramatic scenery. Even the tourism destination of Waiheke Island off the coast of Auckland plays a part, with producers like Passage Rock firmly establishing Syrah in the fine wine stakes. “No one region is good for everything,” as Steve Smith, Chief Winemaker at Craggy Range puts it. “New Zealand is like a little France, from the cool of Champagne to the heat of the Rhone and everything in between.” This makes discovering its wines as exciting as skiing it slopes, as fascinating as exploring its trails and as breathtaking as watching 150 helicopters descend in the frozen moments before dawn.

There’s something strange brewing in them there hills. Two of the biggest, burliest winemaker blokes in the district have donned Toucan beaks over their moustaches. They’re hopping around with excitement about an idea they’ve dubbed “Strange Birds.” Strange, indeed, but it’s turned into a stroke of marketing genius for Queensland’s Granite Belt.

It all started last year on one of those afternoons when cellar door sales had been less than enthralling. Hidden Creek winemaker Jim Barnes sat down over a few drinks with Ridgemill Estate’s Peter McGlashan.

“It’s hard enough to sell the mainstream varieties,” bemoaned Barnes. “Let alone the alternative ones.”

“Why don’t we set up an alternative varieties trail?” suggested McGlashan.

The pair took the idea to a local designer with the brief that they wanted something quirky and unusual which would appeal to a younger generation. “We’re missing this generation,” Barnes told her. “We want them to be wine drinkers, not ‘Rum and Cola forever!’”

The concept that she came back with raised their bushy eyebrows. Their faces dropped when they first saw the image of a quirky bird and McGlashan is alleged to have murmured something like, “Get the flock out of here!” But with a little convincing The Strange Bird Granite Belt Alternative Wine Trail was given wings.

High on the plateau that traces the border between Queensland and New South Wales, the Granite Belt is a diverse patchwork of viticultural sites. Such is the variation in altitude and orientation that each vineyard could almost be considered its own unique subregion.

Symphony Hill Wines sources fruit from some of the highest vineyards in the country, at altitudes of up to 1050m around the township of Ballandean. According to winemaker Mike Hayes, these sites are up to four degrees cooler than other regions in the district. “That’s equivalent to the difference between Coonawarra and the Riverland in South Australia,” he pointed out. “And that’s a huge difference!”

It is this diversity that makes a focus on alternative varieties crucial for the more than fifty wineries in the Granite Belt. While the Hunter has Semillon, the Barossa is famous for Shiraz, Coonawarra is known for Cabernet and the Clare for Riesling, there is no single variety on which the Granite Belt can hang its winemaking hat. And there probably never will be.

Symphony Hill Wines embarked on a monumental experiment of planting forty-seven alternative varieties. Six years and dozens of tiny tanks later, the best results are coming from sangiovese, lagrein, souzão, carménère, montepulciano and nebbiolo. Not far down the same road, Hidden Creek is doing good things with tempranillo and talking about planting saperavi and barbera. Continuing further down the hill, Tobin Wines is pinning its hopes on merlot, while Golden Grove Estate is keen on malbec and has high hopes for nero d’avola.

Further north, toward the town of Stanthorpe, Kominos Wines has a focus on shiraz and hopes to import malvesia. Ridgemill Estate is excited about the prospects for albariño and vermentino. For the Granite Belt’s most famous producer, Robert Channon, the varieties are pinot gris, shiraz, cabernet, chardonnay and petit verdot and, of course, verdelho, the variety showing the most promise across the region.

All together, it’s a veritable fruit salad, and while there is still much work to be done in identifying the best variety for each vineyard, what is clear already is that the answer will not be the same for every site.

“You’ve got to know how each variety behaves in your own microclimate and your own soil,” McGlashan pointed out. “It’s all experimentation and that’s part of the fun of making wine.”

Fun to make they may be, but marketing and selling a diverse range of wines has proven to be a challenge for the region. Most wine drinkers have never heard of many of these varieties, and are put off simply by the prospect of pronouncing them.

This is why The Strange Bird Alternative Wine Trail is the most clever piece of marketing genius to ever emerge from the region. Visitors can pick up a brochure with a map of the twenty-one participating wineries, details of the “Strange Bird” wines that can be found at each, and useful information on how to pronounce them, where they come from, what they taste like and what foods to eat with them.

Wines included in the program are selected each year by a panel of winemaker judges and are chosen only from varieties which are uncommon in the region. This means, for instance, that Verdelho is not eligible because it is widely planted in the Granite Belt. This is unfortunate, because it means that the region’s flagship variety is excluded from its most important promotional initiative.

When I visited the Granite Belt, I encouraged its producers to consider adapting the selection criteria to a more global definition of alternative varieties. Not only would this circumvent the Verdelho contradiction but it would also solve another problem.

“The philosophy with Strange Birds is to promote the lesser known varieties in the region with the hope that they might become more popular and hence fall off the list,” Robert Channon explained to me. The trouble with this approach is that Strange Birds will ultimately be bound to the poorer varieties in the region, with those that achieve any level of widespread success being dropped the very next year.

This has led some to criticise the initiative as nothing more than a marketing ploy to get rid of varieties that they can’t sell, a suggestion that its initiators are quick to deny. A small change in the rules to a true definition of alternative varieties would curb this criticism.

In the six months since it was launched, the Strange Birds program has been tremendously successful, managing to kill two birds with one stone. Not only are participating cellar doors reporting renewed interest in alternative varieties, but it has also generated unprecedented interest in the region as a whole.

According to Barnes, “No one gives a rats about how many gold medals you have won at wine shows, so you need another hook to get them in.”

And Strange Birds has proven to be a much bigger hook than anyone expected. The Granite Belt has seen more wine writers in the last few months than in the past five years put together. Barnes spoke excitedly about a Japanese blog site “with all this strange writing and the Strange Bird symbol in the middle of it! It’s gone far further than we ever expected.”

Many visitors have made their way to the region after viewing a recent ABC Landline feature on the program. “It certainly seems to have caught the imagination,” said Robert Channon. “People are prepared to try things they might not have otherwise.”

For many, it’s their first trip to the Granite Belt. And it’s another world up there. Less than half way through the two-and-a-half-hour drive from Brisbane, the road winds its way through the dense rainforest at Cunningham’s Gap, rising dramatically from the plains below to an altitude of more than 800m. The temperature drops and the scenery changes as spectacular mountain peaks rise to meet the sky.

It’s a pretty drive from here to Stanthorpe, and it’s easy to forget that you’re so close to the heavens when even the lowest point in the area is 700m above sea level. This makes it a little cooler all year round, and you feel like you are a million miles from the sunny Gold Coast (when, in fact, you are only a couple of hundred kilometres away). It’s cool up here, and it even snows sometimes.

This makes for a thriving fruit-growing industry, and apple orchards are a common sight as you approach Stanthorpe. As are giant granite boulders that protrude from the hillside like massive globules of molten rock. Which is exactly what they once were – in a bygone era, the area was the site of active underground volcanos. The only remaining evidence is the “belt” of granite that runs through the region.

Venturing off the main roads, there are pretty little streams to be discovered, bubbling through valleys with granite-studded hills rising on both sides. Make your way up the hills for sweeping views of vines and orchards lining the valleys like a patchwork below. Late afternoon and early morning are the perfect times for photographs during autumn, winter and spring, when the gentle sun casts a warm orange glow on all in its reach, throwing long blue shadows that add to the drama of the eerie boulders.

It’s a fitting place for Strange Birds, which has captured the imagination not only of the visitors but also of the locals. In a region that doesn’t actually have any strange bird species, everyone has been asking which of the winemakers’ wives inspired the name! The father of the modern Granite Belt wine industry, Ballandean Estate’s Anjelo Puglisi, took a different take on it. “This Strange Bird thing is a bit bizarre,” he told me. “Any strange bird in my vineyard gets shot!”

Wherever the name came from, it’s worth a visit to discover the Granite Belt’s most exciting tourism initiative since the publication of the locals’ top ten local pashing spots in the back of The Granite Belt Ultimate Guide!

And while you’re checking out Strange Birds, look out for the launch of the Nude Food trail. The region is a hotspot not only for fruit and vegetables but also for a thriving pastoral industry. Specialty foods are beginning to move in on the area, including cheeses, olives, berries and even chocolate.

“The Nude Food Trail is our next phase of development,” explained CEO of the Queensland College of Wine Tourism, John Neville. “We are looking for ways to connect with growers and find innovative ways to link food and tourism.”

Expect to find a revival of growers’ markets, food and wine festivals, signature regional dishes in cafés and a renewed focus on local ingredients in restaurants.

Make the trip to the Granite Belt to discover Strange Birds and Nude Food. Just don’t confuse the two after a few drinks – or you’ll be left with Strange Food and Nude Birds!

On the hunt for Strange Birds

With more than fifty cellar doors in the Granite Belt, where do you start? Here’s a plan for the perfect day of bird spotting.

If you’re driving from Brisbane, head through Stanthorpe and down to the township of Ballandean. Spend the morning visiting wineries in the vicinity. Head along Sundown Road to Ballandean Estate and then make your way directly across the road to Golden Grove. On the other side of Ballandean, Eukey Rd will lead you to Hidden Creek and Symphony Hill. Make your way back to the New England Highway, and set your course for Stanthorpe.

Here you’ll find Banca Ridge Wines at the Queensland College of Wine Tourism. While you’re here, order the three course “Medley of Mains” for lunch at the bistro. With wine tastes to match, it’s $25 well spent. Your afternoon visits around Stanthorpe are Robert Channon and Ravenscroft. When you’ve finished tasting, settle into a night in front of the fire at Honeysuckle Cottages and treat yourself at Rocks Restaurant. It’s on the same property, so you won’t need to worry about driving after dinner.

Tyson’s Top Ten Strange Birds

Ten strange birds worth taking home:
Golden Grove Estate Tempranillo 2006/2007, $20
Golden Grove Estate Durif 2006/2007, $20
Ballandean Estate Family Reserve Viognier 2007, $22
Hidden Creek Rooklyn Tempranillo 2007, $22
Hidden Creek Viognier 2006, $23
Robert Channon Pinot Gris 2008, $23
Ravenscroft Petit Verdot 2006, $25
Symphony Hill Pinot Gris 2008, $30
Symphony Hill Reserve Petit Verdot 2006/2007, $45
Symphony Hill Wild Child Viognier 2006, $65

Verdelho tragically misses the cut for the Strange Birds, but don’t miss these three:
Ravenscroft Verdelho 2007, $18
Banca Ridge Gateway Series Verdelho 2007, $20
Robert Channon Verdelho 2008, $25