1. Australia and New Zealand © 2007 Thomson Delmar Learning. All Rights Reserved. Chapter 13

2. © 2007 Thomson Delmar Learning. All Rights Reserved. Objectives After reading this chapter, you should be able to –outline the history of winemaking in Australia and New Zealand. –describe the climatic conditions of the grape- growing regions in Australia and New Zealand. –discuss the role that wines from Australia and New Zealand play in the global wine market.

3. © 2007 Thomson Delmar Learning. All Rights Reserved. Introduction (continued) Australia and New Zealand have much in common; both are located at the western edge of the South Pacific and share a similar heritage. Their viticulture and winemaking practices are different, and both are uniquely suited to their terroirs and wines. Being in the Southern hemisphere, the seasons are opposite those in the United States and Europe, with harvest occurring February to April.

4. © 2007 Thomson Delmar Learning. All Rights Reserved. Introduction (continued) Australia and New Zealand enjoy a temperate climate that is well suited to grape growing. Australia has generally warmer and drier weather. New Zealand, located to the southeast of Australia, is much smaller and has a cooler climate. The export market is important to both countries with Australia exporting 46 percent of its wine and New Zealand 49 percent.

5. © 2007 Thomson Delmar Learning. All Rights Reserved. Australia Australia is nearly as large as the continental United States, but the population is only two-thirds of California’s. The vineyards, along with the population, are concentrated in Australia’s southeast. The nation has a long history of winemaking and has undergone significant growth in the last 30 years. Since domestic consumption has been stable, much of this growth has been fueled by exports. Australia is the world’s seventh largest producer with 1,600 wineries producing 110 million cases annually.

6. © 2007 Thomson Delmar Learning. All Rights Reserved. Australia (continued) The majority of wineries have been established in the last 20 years and have limited production. –These wineries make only a small fraction of Australia’s wine. The five largest companies account for over 70 percent of the country’s wine production. –All the large producers are parent companies that own a number of wine brands. –Most are multinational corporations with winery holdings around the world.

7. © 2007 Thomson Delmar Learning. All Rights Reserved. Australian Wine—Historical Perspective (continued) In 1788, a group of soldiers, settlers, and convicts arrived to form a penal colony at Port Jackson where Sydney now stands. Grapes were planted but did not do well in the humid climate of Sydney Harbor. By 1791 Arthur Phillip, the governor of the settlement, had established a small vineyard 12 miles inland. –Here the weather was drier, and the vines were more successful.

8. © 2007 Thomson Delmar Learning. All Rights Reserved. One of the first commercial grape growers in Australia was John Macarthur. –Macarthur arrived in Sydney in 1790 and is better known for being the first to import Merino sheep, the mainstay of the nation’s wool industry. –In 1805, he was granted 2,000 acres of grazing land outside of Sydney. –In 1815, he journeyed to Europe to learn about wine- making and to obtain grape cuttings. –In 1820, he had established a vineyard and by 1830 was producing 20,000 gallons of wine a year. Australian Wine—Historical Perspective (continued)

9. © 2007 Thomson Delmar Learning. All Rights Reserved. Another early settler, Gregory Blaxland, established a vineyard in 1818 on the 450 acres he purchased in the Parramatta Valley. –Here he experimented with a number of grape varieties and crops and was the first to send wine from Australia to Britain in 1822. –The wines were fortified with brandy to protect them from spoilage. –In London his wines were awarded a silver medal in 1823 and a gold in 1828. –His success raised the attention of many in Britain and Australia. Australian Wine—Historical Perspective (continued)

10. © 2007 Thomson Delmar Learning. All Rights Reserved. James Busby immigrated to Australia in 1824 and is one of the best-known founders of Australian winemaking. –He established vineyards in the Hunter River Valley, which would become one of Australia’s most important wine regions. –He traveled to Europe to obtain more information on winemaking as well as cuttings of more than 500 varieties of grapes. –Busby also wrote a number of books about winemaking and grape growing in Australia. –In 1833 he immigrated to New Zealand. Australian Wine—Historical Perspective (continued)

11. © 2007 Thomson Delmar Learning. All Rights Reserved. By the 1830s, the entire continent had been colonized by Great Britain. –Vineyard development was progressing rapidly in the Hunter Valley, and vines were also planted in what are now Victoria, South Australia, and Western Australia. –Throughout the 1830s and 1840s, settlers arrived from many countries in Europe and were responsible for spreading agriculture across the continent. –It was during this time that many of Australia’s best viticultural regions were first established. Australian Wine—Historical Perspective (continued)

12. © 2007 Thomson Delmar Learning. All Rights Reserved. Growth was slowed by international and domestic tariffs. The Temperance Movement was active but was unable to pass nationwide prohibition. In 1877, phylloxera was discovered in Victoria. –It destroyed most vineyards of the region, but the infestation was slow to spread. –Today phylloxera is absent from the states of South Australia, Western Australia, Tasmania, and most of New South Wales. –Today there are strict quarantines to prevent its spreading. Australian Wine—Historical Perspective (continued)

13. © 2007 Thomson Delmar Learning. All Rights Reserved. In the early twentieth century, the industry continued to grow but also experienced setbacks from droughts, economic depression, and regional outbreaks of phylloxera. The Second World War cut production but brought a new wave of immigrants providing a new market for wine. This was similar to the United States: slow growth, lack of consumer interest, and wines of poor quality. Australian Wine—Historical Perspective (continued)

14. © 2007 Thomson Delmar Learning. All Rights Reserved. Australian Wine Today In the 1960s, interest in wine began to grow, and producers improved their product. –In 1968, table wines outsold dessert wines. –In 1975, exports were still only 2 percent of production. In the 1980s and 1990s, production increased. –Domestic consumption expanded during this time, and there was a rapidly growing market for exports. –Australian wines gained a reputation for good quality and value.

15. © 2007 Thomson Delmar Learning. All Rights Reserved. The Wine Regions of Australia Although Australia is a very large country, most of the continent is unsuitable for viticulture. –The north of the country has a subtropical climate that is too warm, and the interior is too hot and dry. –There are many areas where the soil and the climate are appropriate, but there is inadequate water available for irrigation.

16. © 2007 Thomson Delmar Learning. All Rights Reserved. The Wine Regions of Australia (continued) Grape growing is concentrated in the temperate climate located in the valleys along the country’s southeastern coast between Sydney and Adelaide. There are also viticultural districts in Western Australia near Perth, as well as on the island of Tasmania.

17. © 2007 Thomson Delmar Learning. All Rights Reserved. Geographic Indications The wines of Australia are labeled by the state they were grown in or by appellation in a system called Geographic Indications or GIs. –This method subdivides the territory of each state into a series of Zones, Regions, and Subregions. –This system of GIs is similar to the AVA system of viticultural appellations used in the United States. –As of 2004, there were 55 regions and 11 subregions in Australia.

18. © 2007 Thomson Delmar Learning. All Rights Reserved. Australian Labeling For appellation labeling, at least 85 percent of the grapes must be from the region. For varietal labeling, the wine must be at least 85 percent of the variety listed on the label. For vintage labeling, the requirement is 95 percent. As in California it is illegal to add sugar to the must before fermentation but permissible to add acid to lower the pH. Blends are required to list the major component first— for example, a Shiraz-Cabernet contains more Shiraz than Cabernet.

19. © 2007 Thomson Delmar Learning. All Rights Reserved. New South Wales (continued) The state has 15 different wine regions and produces about one-quarter of Australia’s wine. The wine industry of the state is centered about 90 miles north of Sydney in the Hunter Valley. –The Hunter Valley is hot and humid in the summer with a perennial risk of fall rains. –Despite these difficulties, the Hunter Valley is one of Australia’s best-known wine regions and produces a number of fine wines.

20. © 2007 Thomson Delmar Learning. All Rights Reserved. New South Wales (continued) The Hunter Valley produces a number of red varieties with Cabernet Sauvignon and Shiraz being the most prominent. –The Shiraz grape (also called Hermitage), known as Syrah to much of the rest of the world, is the most planted wine grape in Australia.

21. © 2007 Thomson Delmar Learning. All Rights Reserved. New South Wales (continued) Mudgee is west of the Hunter Valley, on the opposite side of the Great Dividing Range of mountains. –Surrounded by mountain ranges, its elevation varies from 1,600 to 3,000 feet and the higher elevation gives the region a mild climate with cool nights. –Mudgee’s vineyards grew extensively in the 1970s when many smaller wineries were established. –Mudgee is best known for its Chardonnay and Cabernet Sauvignon.

22. © 2007 Thomson Delmar Learning. All Rights Reserved. New South Wales (continued) About 200 miles inland is the Riverina region, this large district has a number of expansive vineyards. Riverina produces more grapes than the rest of the appellations in New South Wales combined. –Most of these grapes are used by large wineries producing inexpensive blends for export. –However, there is some small production of high-end dessert wines as well.

23. © 2007 Thomson Delmar Learning. All Rights Reserved. Victoria The wine industry of Victoria was begun in the middle of the nineteenth century. By 1900, vineyards had spread across the entire state and Victoria was producing the majority of Australia’s wine. The phylloxera epidemic wiped out a huge number of vineyards. Today it is one of the fastest growing wine regions, with a 10-fold increase from 1965 to 2000 and producing one- quarter of Australia’s wine grapes. The state has more than 500 wineries located in six different zones and 20 regions.

24. © 2007 Thomson Delmar Learning. All Rights Reserved. Victoria (continued) Appellations in Victoria include: –the Goulburn Valley in the northeast –the Yarra Valley just to the west of Melbourne –Western Victoria where the Grampians and Pyrenees regions lie –the small Mornington Peninsula and the much larger Gippsland on the southeastern edge of the state

25. © 2007 Thomson Delmar Learning. All Rights Reserved. Victoria (continued) Western Victoria is home to the Grampians region, previously known as the Great Western region, which is famous for its natural beauty and rich history of winemaking. One of the best-known wines produced in the region is a méthode champenoise sparkling wine called Great Western. Area wineries also produce red wines such as Pinot Noir, Cabernet, and Shiraz-Cabernet blends. In the higher elevations, Sauvignon Blanc is widely planted.

26. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia The state of South Australia lies between Victoria and Western Australia and contains 7 wine zones and 15 regions. –The state has more vineyards than any other in Australia and produces 46 percent of the nation’s wine. –South Australia is dominated by large producers. –It is also home to some of the country’s best grape- growing regions, making some of Australia’s most expensive wines.

27. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) The majority of South Australia’s vineyards lie primarily in its southeast corner. –The appellations of the Barossa Valley, Adelaide Hills, McLaren Vale, and Clare Valley are clustered around the city of Adelaide. –The area is also home to Roseworthy Agricultural College, Australia’s institution for the study of viticulture and enology. –Phylloxera has never come to the state, and consequently most vines are own-rooted.

28. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) The Barossa Valley is about 40 miles to the northwest of the city of Adelaide and is one of Australia’s oldest and most famous grape-growing regions. –First developed in the 1840s by German immigrants, the Barossa Valley is home to the headquarters of many of Australia’s largest producers. –The climate has warm summers and cool winters, and Chardonnay and Semillon are both popular. –In addition to the white varieties, the region also produces a number of red wines, including Cabernet Sauvignon and Shiraz.

29. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) Directly to the east of the Barossa Valley is the Eden Valley region. Here the elevation reaches 1,500 to 2,000 feet, the soil is less fertile, and the climate is cool. –These make the region ideal for white grape varieties such as Chardonnay and Rhine (White) Riesling. To the south is the Adelaide Hills district. Here the terroir is even cooler, and spring frost can be a problem in low-lying areas. –Varieties such as Pinot Noir and Sauvignon Blanc are planted along with the Chardonnay and Shiraz.

30. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) To the south of the Adelaide Hills is the McLaren Vale region. –The elevation is lower here starting at the coast and increasing to 1,100 feet on the east. –The appellation has a number of small wineries that produce a variety of red and white wines. The Clare Valley lies 75 miles to the north of Adelaide and is warmer than the vineyard lands that surround Adelaide. –Cabernet and Shiraz are popular, as well as Chardonnay and Riesling.

31. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) The Coonawarra and Padthaway regions are located 200 miles to the southeast of Adelaide. –The primary grape is the Cabernet Sauvignon; other varieties include Shiraz, Rhine Riesling, Chardonnay, Pinot Noir, and Merlot. Padthaway is located just north of Coonawarra. –Padthaway is actually two subregions, Padthaway and Keppoch. The climate is slightly warmer than Coonawarra. –Grape varieties include Rhine Riesling, Cabernet Sauvignon, Chardonnay, Shiraz, Pinot Noir, Merlot, and Sauvignon Blanc.

32. © 2007 Thomson Delmar Learning. All Rights Reserved. South Australia (continued) Riverland is a large growing region directly north of Coonawarra on the Murray River near the border with New South Wales and Victoria. –It is farther inland than the other appellations and has large vineyards that have high yields and produce inexpensive wines.

33. © 2007 Thomson Delmar Learning. All Rights Reserved. Western Australia Far from the urban centers and grape-growing regions to the east, there is a small but growing wine industry in the state of Western Australia. –Western Australia is home to seven wine regions and produces approximately 6 percent of Australia’s wine. –It is isolated by desert from the rest of Australia’s viticultural areas on the continent’s southwest corner. –The region is one of the warmest in Australia, and summertime temperatures can reach over 110°F. –The Swan District and Perth Hills produce a number of red and white wines, but are best known for their whites, particularly Chenin Blanc.

34. © 2007 Thomson Delmar Learning. All Rights Reserved. Western Australia (continued) About 250 miles south of Perth, there is another group of viticultural districts that include the Margaret River, Pemberton, and Great Southern. –The region did not begin to develop until the 1970s. –Today most of the wineries are small operations, and the area is still not home to any of large producers. –The area is best known for its red wines, such as Cabernet Sauvignon, Shiraz, and Pinot Noir. –White wines are also produced, and the Pemberton region is known for its Chardonnay.

35. © 2007 Thomson Delmar Learning. All Rights Reserved. Tasmania Tasmania is a large island south of Victoria. Wine was produced in Tasmania in the early 1800s, but it had all but disappeared by the 1860s. –The industry was not reestablished until in the 1950s. –It is Australia’s coolest area appellation and produces only 1 percent of its wine. –In 2002, there were 48 small wineries. –Because of the climate, early ripening varieties are grown here are such as Chardonnay and Pinot Noir. –Tasmanian Sauvignon Blanc produces intensely grassy wines similar to those of New Zealand.

36. © 2007 Thomson Delmar Learning. All Rights Reserved. New Zealand New Zealand lies 1,300 miles off the eastern coast of Australia at roughly the same latitude as Tasmania. Its southerly location and maritime weather gives the island a moderate but cool climate. New Zealand has grown grapes for nearly as long as Australia, but there was little development until the 1970s. Today the county produces about 6 percent the wine that Australia does.

37. © 2007 Thomson Delmar Learning. All Rights Reserved. New Zealand Wine—Historical Perspective The first vinifera vines were planted in 1819 by Samuel Marsden on New Zealand’s North Island. Australian vintner James Busby settled in Waitangi and made New Zealand’s first wine in 1836. New Zealand’s commercial wine industry was slow to develop. After phylloxera and powdery mildew arrived in the late 1800s, New Zealand growers imported native American grape varieties. Most growers did not use them as rootstock, but instead used them to produce wine along with French-American hybrids.

38. © 2007 Thomson Delmar Learning. All Rights Reserved. New Zealand Wine—Historical Perspective (continued) It was also allowable to add both sugar and water to make up for under-ripe grapes and to increase yield. These vines and cellar practices produced wines of poor quality that were often fortified with alcohol to cover up their inadequateness. In 1960, the most widely planted grape variety in New Zealand was the American variety Isabella. Only 12 percent of the wine that was produced was table wine.

39. © 2007 Thomson Delmar Learning. All Rights Reserved. In addition to inadequate vineyard and winemaking practices, New Zealand also had tariffs and legal restrictions that inhibited growth. Nationwide prohibition was narrowly defeated in 1919, but there were a number of laws designed to discourage the consumption of wine. –Wine could not be sold by the bottle until 1955. –Restaurants could not sell wine until 1960. –Supermarkets could not sell wine until 1990. New Zealand Wine—Historical Perspective (continued)

40. © 2007 Thomson Delmar Learning. All Rights Reserved. In the 1970s the wine industry started to put a greater emphasis on quality. –Vineyards were replanted with vinifera wine grapes. –The New Zealand Wine Institute was formed in 1975. –In 1982, laws were passed that limited the amount of water that could be added to wine; government subsidized growers pulling out unpopular varieties. –From 1973 to 1983, production grew more than 350 percent. New Zealand Wine—Historical Perspective (continued)

41. © 2007 Thomson Delmar Learning. All Rights Reserved. New Zealand Wine Today The rapid growth continued through the 1980s and 1990s, and at times supply outpaced demand. –Today New Zealand’s wines are popular throughout the world and often command high prices. –New Zealand’s is well suited to cool climate varieties such as Chardonnay and Pinot Noir. –It is also known for producing some of the world’s most flavorful Sauvignon Blanc. –These three varieties now account for 70 percent of New Zealand’s vineyards.

42. © 2007 Thomson Delmar Learning. All Rights Reserved. The Wine Regions of New Zealand New Zealand has two major islands stretching more than 900 miles north to south. –There is a great deal of variation in growing conditions due to the varied terrain and length of the country. –No part of the country is more than 90 miles from the coast. –This compares to roughly the same range in distance and latitude as Los Angeles, California, to Portland, Oregon.

43. © 2007 Thomson Delmar Learning. All Rights Reserved. The Wine Regions of New Zealand (continued) The grape-growing appellations are divided into 10 growing regions, six on the North Island, and four on the South Island. –The three largest regions—Marlborough, Hawkes Bay, and Gisborne—account for 80 percent of production. –Historically, vineyards had been concentrated on the North Island. –In recent decades, extensive planting has resulted in the South Island having more vineyards.

44. © 2007 Thomson Delmar Learning. All Rights Reserved. Gisborne The Gisborne region lies on the eastern edge of the North Island and produces about 12 percent of New Zealand’s wine. –It is a cool region that is best known for growing white varieties, which make up 90 percent of the vineyards. –Rainfall throughout the growing season increases the likelihood of rot. –Abundant water and fertile soils allow for higher yield, and the grapes are usually crushed by large wineries to make a value-oriented wine. –Chardonnay is the most popular grape, accounting for over half of the region’s production.

45. © 2007 Thomson Delmar Learning. All Rights Reserved. Hawkes Bay Hawkes Bay is on the southeast coast of the North Island just below the Gisborne region. –It is the second largest region in terms of production, growing nearly one-quarter of New Zealand’s grapes. –It has less rainfall and humidity and more sun than Gisborne. –Chardonnay is the most widely planted grape; however, red varieties such as Cabernet Sauvignon and Pinot Noir also do well. –It is widely considered one of New Zealand’s best wine regions and is home to more than 60 wineries.

46. © 2007 Thomson Delmar Learning. All Rights Reserved. Marlborough The Marlborough region lies on the northeast edge of New Zealand’s South Island where the Wairau River empties into Cloudy Bay. –Viticulture did not begin in the region until 1973. –The appellation produces 44 percent of the country’s wine. –The region is cool and dry with abundant sunshine during the growing season. –Marlborough has the reputation of producing some intensely flavored Sauvignon Blanc. –Sauvignon Blanc accounts for 55 percent of production, followed by Chardonnay and Pinot Noir.

47. © 2007 Thomson Delmar Learning. All Rights Reserved. Other New Zealand Wine Regions The remaining wine regions of New Zealand contain only 20 percent of the country’s vineyard land. These areas are growing rapidly, with many smaller premium wineries being established. This is evidenced by the fact that although these minor regions produce one-fifth of the vineyards, they contain nearly two-thirds of New Zealand’s wineries.

48. © 2007 Thomson Delmar Learning. All Rights Reserved. Other New Zealand Wine Regions (continued) On the North Island the appellations are: –Auckland/Northland, two small regions that run from the city of Auckland to the tip of the North Island. –Waikato/Bay of Plenty, to the north and east of the Hawkes Bay appellation and has only a handful of wineries and about 350 acres of grapes. –Wairarapa/Wellington, on the southern tip of the North Island.

49. © 2007 Thomson Delmar Learning. All Rights Reserved. On the South Island the appellations are: –Nelson, on the northern tip of the South Island east of the Marlborough region, has a varied topography with a number of microclimates and soil types. –Canterbury/Waipara, on the eastern side of the South Island, Canterbury has a cool climate, and Waipara is slightly warmer. –Central Otago, is the coolest and most southern of New Zealand’s wine regions. Pinot Noir is by far the most popular variety with 75 percent of the plantings. Other New Zealand Wine Regions (continued)

50. © 2007 Thomson Delmar Learning. All Rights Reserved. Summary Australia and New Zealand are often grouped together in the minds of American consumers, but their diversity in terroir allows them to produce a number of varieties of wine in a wide range of styles. Australia is better known for its Shiraz, Cabernet Sauvignon, and Chardonnay; New Zealand is recognized for its Sauvignon Blancs and Pinot Noirs.

51. © 2007 Thomson Delmar Learning. All Rights Reserved. Summary (continued) Both Australia and New Zealand have a growing wine industry and a reputation for quality and value on the worldwide market. The two countries also have strong domestic markets but are dependent on exports to sell almost half of the wine that they make. This export market is aided by a relatively low cost of production when compared to the United States and Europe, as well as a favorable exchange rate.