A third of the country’s wineries could disappear in the aftermath of the COVID-19 pandemic, according to Australian Grape and Wine, the industry’s peak national body.
“We’ve got 2,600 wineries at the moment and 30 per cent of that we could lose,” CEO, Tony Battaglene reported last week.
“That’s anything up to 700 or 800 businesses, it’s that serious. I’m very worried.”
However, Nuriootpa vigneron, James Rosenzweig from Rosenvale, a family owned vineyard and small scale winemaker, remains positive saying the Barossa had survived many challenges over the last 150 or so years.
“Today, grape growers and winemakers are united in the push for a successful Barossa with help from the BGWA and their new home in the Barossa Cellar, one has to be inspired,” said James.
“We must continue to look forward and rise to the challenges. I would like to think the region could pull through with fewer casualties than the national prediction.”
James said it won’t be easy and he doesn’t have the answers, but many small things will “start to add up”.
“Mother nature dealt a massive income blow to wine growers this year but from what I have seen, the quality of wine produced will be right up there. The challenge will be value adding what is in barrel and seeking customers who enjoy this quality level.”
COVID-19 has created major issues for many businesses, including his.
“Cellar Door closed after such a good start from our opening. Export stopped. Domestic sales are okay but it’s been really sad to see restaurants, hotels and the like have to close,” James said.
“Most business owners will go to bed every night asking where is the money coming from to pay staff and the bank tomorrow?”
The father of three said adapting to the crisis started by remaining positive and safe, followed by cutting costs where possible and being customer focused.
“We’re trying to understand what has to happen as best we can,” James said.
“Research and development has all but stopped, we repair rather than replace, traineeships have been put on hold, there’s employee multi-tasking, building not buying, value chain thinking.
“We are looking from outside the box....building premium with the value add because without the value add it is discount.”
In the office, James admits to not being overly big on technology but video meetings “had their place”.
As for the vineyard, it’s back to basics to ensure quality crops are grown.
“Luxuries like mulch will be stopped so we can keep staff.”
The 2020 pruning season will look different this year due to COVID-19 restrictions on gatherings and social distancing.
“Some vineyard owners will do as much as possible themselves rather than get in contract labour. Contract labour could become thin on the ground if someone gets COVID-19 in the team and puts everyone else in quarantine,” James said.
“We do all our reworking in house and young vine pruning where possible. Contractors are very important to our business and we will be engaging them again this year.”
Meanwhile, James is looking forward to his 19 year old son Jake, who is studying viticulture/oenology, stepping up as the third Rosenzweig generation to work the property in a post COVID-19 world.
“The brakes may be on for a few years in the Barossa but as far as the vineyard goes I think it will return to normal,” James said.
“Wine sales will have a new normal and there will be COVID hygiene practices carried over for good reason.
“It’s all about creating a positive opportunity in farming as negativity doesn’t build anything.”