Desperate Vinexpo bosses have have offered the Australians a 20% discount in a bid to get them on board next year.
Chief executive Robert Beynat flew over to Adelaide last month to try to persuade the Australian Wine and Brandy Corporation to return to the huge Bordeaux wine fair.
The Australians – along with hundreds of other standholders – were victims of the notorious 'Hall 3 Incident', when the air conditioning failed in 45 degree heat during Vinexpo 2003.
As a result – and for other reasons – they along with Wines of South Africa and New Zealand Winegrowers pulled out of Vinexpo 2005.
Beynat told decanter.com he met AWBC boss Sam Tolley and general manager Paul Henry earlier this month.
'We had a three-hour meeting, and I again offered them a 20% discount.'
He said that although Fosters, de Bortoli and other big Australian companies were there, he was keen to get the major government bodies back in the fold. 'We want the flag,' he said.
The AWBC decides this week whether it will take up the offer.
Vinexpo chairman Jean-Marie Chadronnier will meet the Wines of South Africa this month, and Beynat has met Warren Adamson of New Zealand Winegrowers, who is 'hesitating', he said.
Asked why he thought the Australians might be holding back on another Vinexpo in favour of the London International Wine and Spirits Fair Beynat said, 'They have problems of overproduction. Wineries have problems paying growers. London is easier than Vinexpo: the language is the same, the ambience is different for an English-speaker. At Vinexpo you have to work harder - but it is the biggest.'
Vinexpo attracts around 40,000 visitors. Sixty per cent of the surface area of the fair is taken by French companies, of which 30% are Bordeaux.
Vinexpo 2007 takes place from 17 to 21 June.
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The Aussies not only prefer London to Vinexpo for "cultural" and language reasons but for the fact that London is a billion dollar market for them and one in which they have a leading 21% market share.
Australia´s FOB price per liter continues to decrease every year (now down to roughly U$3.80/liter in the US) while France maintains a lofty 10 dollars plus per liter in the US. As your article indicates, overproduction, competition, and rising costs appear to be the main Australian concern for now. They still are the New World leaders in the world´s two most important markets, the US and the UK and just like any country wishing to protect its "family jewels", Australia wishes increase leadership in various categories such as Dessert Wines (more than 740,000 cases in the US, almost twice as much as its nearest competitor) and Bulk Table Wine (2.5 million cases in 2005 in the US). Sending a small delegation to Vinexpo may be helpul and justifable. Perhaps their expenditures at this fair should be measured in relation to their French market share.
The French are just too partial towards France. Just like they originally were protectionists with their own auto industry regarding the entry of Japanese cars into their market, they will try to impose as many barriers as possible with marketing of wines from the New World. They have enough problems in regaining some of the market share they lost a few years ago to be worried about promoting the fast-growing NW market. Why support events which honestly do not have the NW best interest in mind? Exchange of academic, technical, agricultural, turistic, logistical, importer/distributor/retailer and regulatory information are exchanged at these events but there are other forums better suited for these international exchanges. Commercial opportunities?: virtually ZERO. For example, if Australia wishes to improve commercial wine relations with big markets such as Japan, India, Russia, Japan, they don´t have to travel half way around the world to discuss their next marketing strategy. Perhaps, negotiating the purchase of oak barrels, corks, capsules, bottles, winemaking and farming equipment, new fertilizers, accessories, winery designs makes Vinexpo a sine qua non event. If it´s to discuss imporving market share in Europe, the Australians must be evaluating if the enormous cost of attending is justifiable. Víctor Honoré, Buenos Aires, Argentina
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The Aussies not only prefer London to Vinexpo for "cultural" and language reasons but for the fact that London is a billion dollar market for them and one in which they have a leading 21% market share.
