Western Australia’s wine industry, once centered around the historic Swan Valley, has undergone a profound transformation since the 1970s. Today, this expansive state is home to nine diverse wine regions, producing just 2% of Australia’s national output yet contributing 20% of the nation's fine wines. Western Australia's unique climate, geography, and ancient soils create ideal conditions for crafting exceptional wines, from Margaret River’s world-class Cabernet Sauvignon and Chardonnay to the regionally distinct blends of the Great Southern and the emerging potential of Blackwood Valley. This evolution showcases the state's dynamic ability to overcome geographic isolation and carve out a distinctive mark on the world wine stage.

Under the leadership of Larry Jorgensen, Wines of Western Australia (Wines of WA) is playing an instrumental role in advocating for the state’s wine producers and regional associations. With a clear focus on strategic partnerships, policy advocacy, and sustainable industry growth, Larry Jorgensen and his team are committed to advancing the Western Australian wine industry both locally and internationally. From navigating complex regulatory landscapes to exploring promising export markets such as the UK, US, and Southeast Asia, Wines of WA remains dedicated to helping winemakers not just survive but thrive in an ever-evolving market. Larry’s leadership also emphasizes the importance of sustainability and market diversification, setting the stage for future success in the Western Australian wine sector.

Image: Blackwood Valley; Source: Wines of WA

How does Wines of WA advocate for and support wine producers and regional associations? What are some high-priority issues that you are currently focusing on? 

Wines of WA focuses on the following regarding advocacy and representation:

- Building and maintaining partnerships with stakeholders to support industry development including state government agencies (Depts of Ag, Tourism and State Development) and federal government agencies including Wine Australia, Austrade, and Dept Agriculture.

- Communicate and advocate for the industry's position on legislation and regulation that affects wine business operations. Our focus is largely on state issues (Liquor Control Act, Biosecurity, Business Compliance). We also support Australian Grape and Wine on national issues (health lobby, taxation, biosecurity, international market access, labour).

Where do you see the greatest growth opportunities for Western Australian wine exports in the near future? The US and UK are still Australia’s biggest export markets in terms of value and volume. Are you focusing on these markets more?

We currently have a co-funding partnership with the WA state government to grow the value, volume, and diversification of our export markets. Currently, the program allocates more funding to the UK and USA. However, we also see good opportunities in SE Asia. China also offers a "new opportunity" to regain previous market share.

Image: The Cook Government and Western Australian Wine Industry Partnership Grows Support for re-entry to China.

Are emerging markets like Thailand being considered, especially with FTAs in place? What is the scope there? Where are you currently seeking new export opportunities? How are markets like Hong Kong and Singapore performing?

As noted above, SE Asia is seen as an emerging opportunity. Proximity and increasing socioeconomic conditions contribute to this view. Hong Kong and Singapore are both mature and ultra-competitive markets where growth appears to occur through displacing a currently listed brand. These markets will grow organically and probably serve as "influencing markets" for emerging markets. Media from HK and Singapore appear to have relevance across the region.

With the recent removal of tariffs by China, what impact do you foresee on Western Australian wine exports? Do you expect China to become Australia's top wine export market again?

Early days. From a base of nothing, shipments into China for WA over the last quarter make it number five in value, displacing Canada and Japan. We expect this to improve again but do not expect China to become WA's top market again. This will probably also be true for Australia. Diversification is a mantra that hopefully, no one will forget.

Given the smaller wine import market in China and reduced market share, what is the current outlook for Australian wine in China?

An important top 3-5 market with a high value per unit.

With Australian wine exports declining slightly in value and volume (Wine Australia), and wine consumption down by 24.7% in 2023 compared to 2022, how are Western Australian winemakers responding to these challenges?

The export growth partnership noted above was developed with these challenges in mind. WA has a unique product offer that has not been clearly and assertively articulated. We feel that this is our best response to the current economic and social change challenges.

We additionally feel that we have lost touch with Australian domestic consumers and are developing strategies to address this.

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How are winemakers in Western Australia adapting to the growing trend of low and alcohol-free wine?

It is an interesting proposition to consider. For Australia generally, with plenty of sunshine and growing days to ripen fruit, producing low-alcohol wines is not a comparative advantage as it may be for New Zealand and Europe. We therefore have to consider post-growing and fermentation strategies/methods to produce low/no wines. These are generally expensive and require significant capital investment to implement. My sense is that along with low/no trends, there is also a "drink less better" trend. WA has a focus on wines made with a sense of place by people living in that place. We have an opportunity to articulate this. Most producers are aware of the trend towards lighter, fresher styles and WA is well suited to these.

What sustainability initiatives are currently being implemented by wine producers in Western Australia? Which sustainability programs would you recommend WA wineries adopt? Of the 11 opportunities outlined by Wine Australia for reducing emissions, which ones are wineries focusing on the most? 

Image: 11 opportunities outlined by Wine Australia for reducing emissions.

Our recently industry endorsed 10-year plan includes two goals focusing on sustainable growing and production. We are resourcing this through a multi-year project to work with producers to obtain certification to international level for sustainable production.

Our current focus is on Sustainable Winegropwing Australia, the nationally supported program co-managed by AWRI, Wine Australia, and Australian Grape and Wine. The best outcome will be that SWA is internationally recognised providing access to all markets and provides a pathway for producers to continually improve their sustainability credentials adding value to their business.

Image: Stakeholders of Wines of WA

There is no general agreement on what should be the focus on scope 1 and 2 emissions. Many are considering renewable on-site power generation as the most impactful place to start. Given our location and the requirement for significant transport of inputs in and finished goods out, scope three emissions have a much greater impact on our footprint. The sooner the transport industry is de-carbonised, the better.

What are the key goals and initiatives you are focusing on for the coming years?

We are focused on supporting adoption of sustainable practises. Additionally, we are focused on buidling/diversifying domestic and export markets through articulating our unique product positioning.

Here are some top-quality wines from Western Australia’s wine regions: 
 

Image: 2024 London Wine Competition Gold Winners: Singlefile 'The Vivienne' Denmark Chardonnay (Great Southern), and Choosy Beggars Cabernet Merlot (Margaret River), 

Conclusion: 

Western Australia's wine industry has come a long way from its roots in the Swan Valley, evolving into a global force that produces some of the world’s most coveted fine wines. From the rugged beauty of the Great Southern to the iconic surf breaks of Margaret River, Western Australia continues to push the boundaries of quality and innovation. The state’s wines, shaped by their unique terroir and crafted with precision, are a testament to the resilience and vision of its winemakers. As the industry continues to grow, Western Australia stands poised to further cement its place in the global wine landscape, offering wine lovers around the world a taste of its extraordinary legacy.

Larry Jorgensen continues to guide Wines of WA as the organization remains focused on addressing the key challenges facing the state’s wine producers. Through a strategic approach that emphasizes advocacy, sustainability, and growth in both domestic and global markets, Wines of WA is paving the way for a vibrant future. With a clear vision for promoting the unique qualities of Western Australian wines and helping winemakers adapt to emerging industry trends, Larry Jorgensen is leading the charge to ensure that the WA wine industry continues to flourish.

In conversation with Malvika Patel, Editor and VP, Beverage Trade Network