Vintner looks south as seasons shift
Chief executive David Dearie said the winemaker's land acquisition teams are looking to buy and lease vineyards in Tasmania.
Harvests were already starting as much as a 1½ days earlier each year as a result of climate change, he said.
Areas suitable for viticulture could fall by 68 per cent in Mediterranean Europe by 2050, and by 73 per cent in regions of Australia with a Mediterranean climate, according to a study published in the Proceedings of the National Academy of Sciences of the US.
The authors said New Zealand's vineyard acreage could more than double and it would also surge in northern Europe and western North America.
"As the world heats, Tasmania's very well positioned because of the cooler climate," Mr Dearie said. "We've got out of places like the Hunter; in the longer term I think it will be hot and dry and expensive."
The company sold its vineyards in the Hunter Valley, where the Lindemans brand originated, as part of a shift to more profitable growing regions.
Australia's most prestigious wine award in 2011 went to a shiraz from southern Tasmania, a region better known for cooler climate white wines and pinot noir grapes.
An earlier study, led by CSIRO researcher Leanne Webb, found that just under half of Australia's potential wine country could become unsuitable by 2050, though with the caveat that winemakers could adapt with new techniques and more dense vineyard development in the remaining suitable areas.
Treasury's growers are monitoring growing seasons to update their forecasts of local climate change impacts, and delaying pruning work.
Mr Dearie said Treasury needed to source more high-quality land to meet demand for premium wines and was looking in the United States, Australia and New Zealand.
While the company would also like to find vineyards in France as a means to gain access to the Asian market, prices were too high at present.
"We don't actually have the wine," he said.
"It's a question of making the wine first and then selling ourselves into the market."
The winemaker still has not found the limits of demand for its upmarket wines. It recently increased prices for its 2008 Penfolds Grange to $785 a bottle, a 26 per cent rise, as growing Chinese demand for high-end wines outpaces supply.
Frequently Asked Questions about this Article…
Treasury Wine Estates is shifting its land strategy toward cooler regions—actively looking to buy and lease vineyards in places like Tasmania, and scouting in the United States, Australia and New Zealand. Its growers are also monitoring changing growing seasons and delaying pruning to adapt to local climate impacts.
Tasmania is seen as well positioned as the world warms because of its cooler climate. Treasury specifically is targeting Tasmanian vineyards, and the region has shown strong results—southern Tasmania even produced a shiraz that won Australia’s top wine award in 2011.
According to the article, harvests are already starting as much as 1.5 days earlier each year. Treasury’s teams are updating forecasts of local climate impacts and changing vineyard practices to adapt to earlier and shifting seasons.
A study in the Proceedings of the National Academy of Sciences found that areas suitable for viticulture could fall by about 68% in Mediterranean Europe and 73% in Australian Mediterranean-climate regions by 2050. The same research projected vineyard acreage could more than double in New Zealand and grow in northern Europe and western North America. A CSIRO-led study also warned that just under half of Australia’s potential wine country could become unsuitable by 2050, though adaptation measures might reduce the impact.
Treasury sold its Hunter Valley vineyards as part of a strategic shift toward more profitable growing regions. Management believes some areas like the Hunter may become hotter, drier and more expensive in the longer term, so they are reallocating resources to cooler, higher-quality regions.
Rising demand for upmarket wines—particularly from China—has pushed Treasury to raise prices and seek more high-quality land. The company increased the price of its 2008 Penfolds Grange to $785 a bottle (a 26% rise) as demand has outpaced supply, highlighting the need to source more premium vineyard area.
Treasury would like vineyards in France to gain better access to the Asian market, but the company has found prices in France are currently too high, so it is prioritising other regions for acquisition.
The article notes several adaptations: monitoring growing seasons to update climate forecasts, delaying pruning to adjust to season shifts, adopting new viticulture techniques, and developing denser plantings in remaining suitable areas. These steps are part of how winemakers can respond to changing suitability of traditional wine regions.
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