The Australian Wine Research Institute

Australia’s leadership in wine science has been boosted by a seven year investment agreement between the Grape and Wine Research and Development Corporation (GWRDC) and The Australian Wine Research Institute (AWRI).

The focus of this agreement is to provide the AWRI and the GWRDC with the flexibility to operate in these rapidly changing times so that outcomes of value to Australian grapegrowers and winemakers, and the Australian community can be optimised. In this way, industry targets and national research priorities will be met in a timely and efficient manner.

The seven-year agreement will see about $65 million of industry R&D levies and Australian Government matching funds directed towards outcomes that will benefit industry located all over regional Australia. These outcomes include a greater understanding of what contributes to styles of wine preferred by different market segments, the capacity to eliminate faults, and new technologies to enhance Australias competitiveness and reputation as a reliable supplier of high quality wine.

AWRIs Managing Director, Professor Sakkie Pretorius, said the organisation, which recently celebrated its 50^th anniversary, now employed more than 80 people and enjoyed an international reputation in wine science. “In taking a long term outlook, the AWRI has built on its reputation by firstly developing a Business Plan (Towards 2015), and we have complemented this with a Seven-Year Research, Development and Extension Plan. This provided the GWRDC and the AWRI with a strong basis for the research agreement, and guidance to other parties who might co-invest or collaborate with the AWRI.”

The timing of this agreement is important to all stakeholders as it will underpin performance expectations that will contribute to the next GWRDC Five Year R&D Plan. This is being developed currently to commence in July 2007.

GWRDC Executive Director Dr Jim Fortune said that “it is great to see the industry engagement with the opportunities presented by strong R&D and extension activities at a time when commercial pressures are pretty tough. It is a sign of the maturity and strength of grapegrowers and winemakers that they see continued innovation as key to their future success in domestic and global markets.”

Dr Fortune went on to say that the work done by the Strategic Directions Group (developed and supported by the Winemakers Federation of Australia, Wine Grape Growers Australia and the GWRDC) and its recently published Prospectus Investing in Innovation has provided a focus for what might be achievable for the grape and wine industry from R&D along the value chain. “This is not just about giving directions, but also extending an invitation to those who might see further opportunities for R&D investment in the wine industry.

The GWRDC will work closely with the AWRI and all other providers of R&D to ensure that where possible the collaborative efforts that have driven Australian grapegrowers and winemakers are reflected throughout the full research portfolio.”

Professor Pretorius commented on the benefits of the Agreement by saying, “Research agreements such as this give major providers of R&D confidence to plan their activities and commit to projects that are demanding on resources and might be of long term nature. We have set ambitious targets to benefit the Australian wine industry, and we look forward to working with the GWRDC to deliver these outcomes.”

Parliamentary Secretary for Agriculture, Fisheries and Forestry, Ms Sussan Ley said that an improved understanding of the market and long term investment in innovation will build on the wine industry’s strengths, enabling it to meet current and future challenges.

“I congratulate The Australian Wine Research Institute and the Grape and Wine Research and Development Corporation for reaching this agreement, not least for the role it will play in ensuring the future of the industry.”

Further information can be obtained by contacting:

Professor Sakkie Pretorius, Managing Director
Tel: 08 8303 6610
or
Rae Blair, Group Manager, Communication and Information Services
Tel: 08 8303 6838; email:

(You can download a copy of this media release here)

AWRI Managing Director, Professor Sakkie Pretorius, announced the appointment to the AWRI Board of Mr Paul Conroy, Legal Affairs Director for Foster’s Group. “I am pleased to announce that Paul Conroy has accepted the AWRI Board’s nomination to join them as a ‘Special Qualifications Director’. Paul’s skills, expertise and passion for the industry will be an invaluable asset to the Australian wine industry’s own R&D organisation.”

Paul has had a successful legal career in a leading Australian law firm and had practiced as a corporate lawyer on the firm’s behalf in Australia, Asia and the UK. Following this, Paul has successfully operated in both senior legal and management roles reporting to the CEO in two significant Australian public companies. He has a deep understanding of the legal, corporate governance and change management issues that an international business faces, as well as proven experience at achieving practical results with management.

“The AWRI Board is currently in the process of finalising the appointment of its second ‘Special Qualifications Director’, which should be completed in the next couple of months,” said Professor Pretorius. “We are delighted that Paul has accepted the Board’s nomination, and I am personally looking forward to working with him, and to his contribution to the Australian wine industry in this capacity.”

The AWRI Board comprises some of Australia’s most well respected industry members as well as a representative from The University of Adelaide. The members are:

Jim Brayne (McWilliam’s Wines)
Paul Conroy (Foster’s Group)
Peter Dawson (Hardy Wine Company)
Robin Day (Domain Day)
Tim James (Wirra Wirra)
Geoff Linton (Yalumba Wines)
Stephen Millar (Constellation Wines)
Sakkie Pretorius (Managing Director, AWRI, ex officio)
Steve Tyerman (The University of Adelaide)

Further information: Sakkie Pretorius, Managing Director tel: 08 8303 6610.

The Australian Wine Research Institute (AWRI) announced today the results of the election conducted to appoint three levy representatives to the new AWRI Board. The new appointments are effective from 1 January 2006.

Managing Director, Professor Sakkie Pretorius, said “I am pleased to announce that Robin Day and Tim James have been returned to the AWRI Board for a further three years. Robin and Tim have been extremely valuable contributors to the success of the AWRI, and I am delighted that we have been able to secure their services for a further term.”

In addition, Stephen Millar, President and CEO of Constellation Wines, the world’s largest wine company, has been elected as a new member of the AWRI’s Board.

Stephen currently serves in leadership roles in numerous industry organisations. He is an Executive Council Member, and Chairman of the Audit Committee of the Winemakers’ Federation of Australia (WFA). He is also a Director of Drinkwise Australia – an Australian industry initiative to promote responsible alcohol consumption.

“Stephen brings to the AWRI Board high level corporate experience, outstanding strategic skills and a proven track record in leadership within the wine industry. I am very much looking forward to working with Stephen in the next phase of the AWRI’s growth”, said Sakkie.

The new Board comprises some of Australia’s most well respected industry members as well as a representative from The University of Adelaide. The members are:

• Jim Brayne (McWilliam’s Wines)
• Peter Dawson (Hardy Wine Company)
• Robin Day (Domain Day)
• Tim James (Wirra Wirra)
• Geoff Linton (Yalumba Wines)
• Stephen Millar (Constellation Wines)
• Sakkie Pretorius (Managing Director, AWRI, ex officio)
• Steve Tyerman (The University of Adelaide)

The AWRI Board will be supplemented with two additional Directors who will be elected by the new Board under the AWRI’s ‘Special Qualification Directors’ clause. “We expect these appointments to be made during the next few months”, said Sakkie.

Further information: Sakkie Pretorius, Managing Director tel: 08 8303 6610.

Genetically modified wine yeasts have arrived on the North American market; what does this mean for the Australian industry?

Until now, the GMO debate has largely been academic for Australian grape growers and winemakers but this is likely to change: Springer Oenologie (a division of Lesaffre Yeast Corporation) has released the first GM wine yeast, known as ML01, to the North American market.

For the time being release of ML01 to the North American market should make little or no difference to what is done in Australia; this yeast has not been approved for use in this country. Before GMOs (and GMO-derived products) can be used in food production or processing in Australia they are subjected to prescribed risk assessments and there is considerable public consultation required during this process.

In addition to this, even if a GM yeast was to get through the above approvals processes, it still would not be used to make wine in Australia; at least not at this time. The Australian wine industry’s position on the application of gene technology in grape and wine production is: .that no genetically modified organisms be used in the production of Australian wine¹. The reason for this is not that the industry is anti-GM but rather that it acknowledges the importance of safety and public acceptance before adopting any new technology in wine production. The industry takes the view that: ‘. there are potentially great benefits in employing gene technology‘ however ‘the industry is also conscious of the need for safety, openness and quality assurance in any use of gene technology‘.

In this context it is important to note that U.S. legislation does not require labeling to notify the consumer that Springer Oenologie’s ML01 yeast is a GMO. Therefore it is important for Australian winemakers to be vigilant in case some ML01 does find its way here.

Whether the Australian wine industry’s position on use of GMOs in winemaking is likely to change in the foreseeable future depends on the balance between risks and benefits associated with using such yeasts and whether local and overseas markets are seen to be ready to accept wines that have been made using GMOs.

What are the risks associated with using ML01? In terms of health risks there should be none. The two foreign genes incorporated into the wine yeast to make it MLF-competent come from organisms that are typically associated with foods and/or beverages. One comes from the yeast Schizosaccharomyces pombe, which is found in many alcoholic beverages, and the other comes from O. oeni, which is used routinely in the wine industry for MLF. A great deal of work has been done to show that the two genes are stable in their new background and the U.S. Food and Drug Administration designated it a GRAS (generally recognised as safe) organism in their response to Lesaffre’s submission to that office (although it should be pointed out that ‘GRAS’ is not recognised as a global standard).

It would seem from balancing some of the more obvious risks and benefits associated with the use of ML01, that having access to this yeast might be a good thing for Australian winemakers. However, even if ML01 was to be approved by Australian authorities for use in this country, public acceptance of GMOs in domestic and overseas markets remains a major hurdle, and until the industry can be assured of this it will toe a cautious line. Thus, for now it is important to adhere to the Australian Wine Industry’s position that no genetically modified organisms be used in the production of Australian wine.

Further information:

Dr Paul Chambers, Principal Molecular Biologist, The Australian Wine Research Institute
Telephone: 08 8303 6600; email: Paul.Chambers@awri.com.au
or
Rae Blair, Manager – Communication and Information Services, The Australian Wine Research Institute
Telephone: 08 8303 6600; email: Rae.Blair@awri.com.au