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Friday, 04 February 2011 11:05

Eating Food, Wine and Tax

Written by  Ken Eckersley

Eating Food, Wine and Tax.  [Published in Wine & Viticulture Journal, Vol. 26 No. 1, Jan-Feb 2011]

The Wine Tax Debate, that we will have to have, has apparently been delayed for a few years and the issues have been well presented by Keys and Strachan(WIJ May/June2010) and again Anderson and Strachan(WIJ Sept/Oct 2010).

Earlier this decade there was a bitter debate that divided the industry and pitted Costello(ie. Treasury) against Howard and led to the Government choosing a tax based on the wine’s value(“ad valorem”) rather than its alcoholic content(“volumetric”). A later decision, in effect, returned that tax (the WET rebate) to the smaller wineries.

Next time the debate is more likely to centre on whether all alcoholic beverages should be taxed the same or in the same manner AND whether the small wineries can hang onto their WET rebate in some form. Given that the vast majority of small wineries would go out of business if the rebate disappeared!

A tax on the Wine Industry, of course, is in addition to all the other taxes, GST etc., that a business has to pay. Presumably this is meant to cover a “social cost”, the new expression that replaces the sin/guilt/pleasure tax of old. Treasury will no doubt in the future be casting its eye over the carbonated drinks and fast food industries.

In this lull before the debate begins we have an opportunity to develop new strategies.

The first strategy is already under way; to separate wine from other alcoholic beverages. What proportion of wine consumers binge, commit violent crime, become hospital admissions, drink drive etc.? Also, the proportion of binge drinkers etc. that are wine consumers? Plenty of research to be done here.

Conveniently the positive side is often overlooked, such as the social benefits of wine, and dare it be said, health benefits too. Even the Wine Industry shies away. There is a fear that it is better to be under the Food Act than the Drug Act. Notice how heavily qualified the AWRI reports are on the subject. Expected allies like the medical profession and the Heart Foundation publicly are unsupportive, even critical, whilst privately they are some of the Wine Industry’s best customers. Time for another ‘International Conference on the Health Aspects of Wine’!

The second strategy is to change the game, by shifting the public’s perception of wine. We can move the goal posts that our detractors are aiming for.

If we increase the association of wine with food, then we will distance ourselves even further from the other alcoholic beverages. There is already an awareness of ‘Food and Wine Matching’, ‘Food and Wine Festivals’, ‘Food and Wine Markets’. It’s already out there that food and wine are a great combination and natural companions.

Let’s go one step further; that it is better to EAT wine than drink wine!!! This needs explaining.

For the last 25 years, amongst my many duties has been assisting at the cellar door.  This rewarding experience has taught me many things including that HOW people drink determined their experience of a wine.  (Yes, Riedel is partly right).  If the consumer swallows quickly or lifts their chin, just as they would with water or beer, they are in truth drinking.  When asked about their impression of the wine the response typically is a mouthfeel comment like light, heavy, dry, soft, bitter.  Aroma/flavour comments are rare.

For the past two years I have then suggested to more than a thousand people that they try an experiment with the same wine. The exchange goes roughly like this - “Keep your head level, place the wine at the front of the mouth, avoid swallowing, and pretend you are chewing a biscuit.”. “Is that different?”. Invariably the answer is ‘yes’. “In what ways?” – ‘Every way; more flavours and better mouthfeel’. “You have been eating wine instead of drinking it!”.

The response has been overwhelmingly positive. “Thanks”, “At last wine makes sense”, “Why hasn’t someone told me before?”, “That’s amazing!”, “I wish I had learned that at Wine School” etc.

The wine consuming public in the main under experience wine because, naturally enough, they are drinking it. My observation is that savvy wine people already unwittingly eat their wine, but they are a small minority. Wine professionals are dismissive of the eating idea because it seems to them so obvious and appear unaware of the different(lesser) experience of the typical wine consumer. No wonder all those studies show differences in ‘expert’ and consumer opinions about wines. My prediction is that if you matched up a group of consumers and experienced wine tasters, gave them say five wines to assess or rank, then showed the consumers how to ‘eat’ wine, run the wines passed them again, the consumer and experienced evaluations will be much closer. How about it AWRI?

The “Eating Wine” approach is simple, easily understood, and gives instant results. People are being turned ‘on’ and ‘by’ wine.

The theory supporting the above is laid out in “How to eat Wine, or how to become a wine connoisseur in five minutes” in the articles section of www.nicholsonriverwinery.com.au

So, not only do people enjoy wine with food but should also eat wine like food. What a double!

Our Wine organisations – WFA, AWBC- need to start a program of public education about how best to enjoy wine. Use cellar doors, journos and splash out on TV advertising. This has to be a major effort because the survival of the Wine Industry as we know it is at stake.

This is a game changing strategy.


Ken Eckersley

Winemaker

Nicholson River Winery


Last modified on Tuesday, 24 May 2011 12:34
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