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Fabian Yukich

The Future of the New Zealand Wine Industry The Challenges for Winery Engineers. Fabian Yukich. Introduction. Objectives of NZWG Value of NZ Wine Industry Key drivers of our success Role of winery engineering Competitive advantage The way forward.

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Fabian Yukich

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  1. The Future of the New Zealand Wine Industry The Challenges for Winery Engineers Fabian Yukich

  2. Introduction • Objectives of NZWG • Value of NZ Wine Industry • Key drivers of our success • Role of winery engineering • Competitive advantage • The way forward

  3. Objectives of New Zealand Winegrowers To protect the competitive position of NZ wine To support the profitable growth of the industry To Create Value for our members

  4. New Zealand Wine Today • Over 70% exported • Over $1.3b in sales, from $100m in 1999 • Represents over 1000% growth <15 years • Achieved through the quality of our wines • Building reputation as a sustainable producer

  5. The Future for New Zealand Wine • $2 billion dollars by 2020 • Expansion in vineyard & winery development • Consumers will want to know more • Trends …lower alcohol lower calorie wines • Quality will still be the key driver for success

  6. Our Reputation Matters “…Without an ongoing strong international reputation NZ wines risk becoming a commodity…” “ …We do not have the economies of scale or proximity to our markets for long term financial viability based on commodity pricing”

  7. 1. The Quality of Our Wine • Foundation for NZ’s export wine industry • Unique aromas and flavours • Maritime Climate, Regional Diversity • Not just Marlborough Sauvignon Blanc

  8. Engineering Impacts on Quality Bottling Technologies Starts in the vineyard Winery Processes Storage & Transit

  9. 2. Culture of Innovation • Uptake of Technologies • Refrigeration • Stainless Steel • Mechanical Harvesting • Screw caps

  10. Engineering Facilitates Innovation Trials & Testing Ideas & Concepts Making it work Capturing opportunities Trails & Testing

  11. 3. Leaders in Sustainability • It’s the Right thing to do • Customers want it • Competitive Advantage

  12. Engineering Sustainability Bottling & Storage Winery Vineyard Investment for Long Term Benefit

  13. Competitive Advantage • Marlborough Sauvignon Blanc sets benchmark • 1st Mover on Sustainability • 20 years of building the foundations • Serious risk of losing the advantage. • Need to lead

  14. Risk of Complacency • Quality parameters always moving upwards • …Reputational risk • Rapid changes in all sectors of the industry • …Requires adaptation • 20 year Sustainability Journey… • …Others are moving into this space • Future economic strength of wine industry… • …depends on being world leaders

  15. The Role of Winery Engineering Impacts on

  16. Reducing Costs of Production Affected by : …Relative small scale & distance to market Look for adding value & reducing costs • Technology improvements • Systematic preventative maintenance • Asset management • Lean thinking of processes

  17. Health & Safety • Increased size & speed of operation • Risks around machinery, heights and confined spaces • April 2015- biggest shift in H&S legislation in 20 years • Move from hazard management to risk management • Need for positive and proactive reaction • Engineering has major role to play

  18. The Way Forward • $2 Billion by 2020 - How? • No Compromise on Quality • Innovate to stay ahead • Leaders in Sustainability • Best of technologies/lean business • Look after our people • Listen to the Customers

  19. Summary • Objectives of NZWG • Achievements to date • Goals for the future • Risk of Complacency • Quality, Innovation and Sustainability • Role of Winery Engineering

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