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Wine australia changes to pay as you go funding model - China Led Grow Lights - Led Street Lighting by wu chao





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Wine australia changes to pay as you go funding model - China Led Grow Lights - Led Street Lighting by
Article Posted: 10/20/2013
Article Views: 336
Articles Written: 1099
Word Count: 451
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Wine australia changes to pay as you go funding model - China Led Grow Lights - Led Street Lighting


 
Business,Business News,Business Opportunities
Wine Australia is changing its generic marketing activity on offerto a user pays format - the body argues it will give it a neutralposition and allow it to be more agile . Starting from the new Australian financial year on July 1,companies can select specific activities as opposed to signing upfor a full annual programme in each export market. But some expressed concern that boutique producers would miss outif they couldn t afford to pay. Speaking exclusively to Harpers, Yvonne May, European head of WineAustralia, said that seed money from the Australian governmentwould be used to fund core educational activity and communications.This would include the one-day wine school and a generic presenceat trade shows. It gives impartiality - we won t be getting a disproportionateamount of funding from a few big players, she added.

TheUniversity Wine Championship is just one of the events that willbecome a user pays activity - it s very approporiate to thebigger players , argued May. Overall she said the organisation would be a lot more agile .May refuted the idea that smaller wineries would be excluded ifthey couldn t afford to pay. Previously companies paid by slidingscale based on volumes imported into the market. Where before asmall winery may have paid £1,000 for activity across theyear, May said now they get to keep that in their pocket whilethe government funds the core activity and individuals can chooseto pay for extra events.

Tim Wildman MW, Australian wine expert and consultant, said themove would relieve some of the tension at the heart of theexisting funding model , where the largest companies paid thelion s share but didn t feel they were getting the love . But he worried whether the pay to play process would removequalititative selection. I m sure wine Australia will have astrategy to cope with this, but a user pay model does threaten theability for Wine Australia to put its best foot forward, headded. Meanwhile, Paul Shaafsma of Australian Vintage said the firm fully supports the user pay system. He said the initiativewould allow firms to choose which activity best suits theirbrand.

Paul Henry, strategy director at Winehero and formerly of WineAustralia, voiced concerns that user-pay schemes potentiallycircumvent what I believe to be the guiding principle of genericrepresentation: the ability to focus on what you do best, asopposed to what you do most. For more news and opinion on this story, see this week s issue ofHarpers, out on Friday April 20.

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