New verification technology to be used for food exports

DataTrace technology is set to be used for Australian export food & wine authentication, Security & Safety.

DataDot Technology Limited (DDT) says it is pursuing opportunities in the growing export food and wine authentication market through its newly established joint venture with Beston Pacific Group. 

DDT and Beston subsidiary company, Grape Ensembles (GE), have jointly established Brandlok Brand Protection Solutions, and over the next nine months Brandlok will develop labels and other devices to authenticate and provide information on wine, dairy, seafood, health food and meat products to be exported to China, Southeast Asia, the Americas, Europe and Middle East. 

DDT has granted an exclusive 5-year licence of its DataTrace authentication technology to Brandlok for incorporation into the labels and devices to prove authenticity for these exported products so that customers can track and trace the ingredients from paddock to plate and verify for themselves that the products are safe to eat.

Bruce Rathie, Chairman of DDT, said that the Brandlok joint venture and its arrangement with the new company BGFC focused on food exports to China and other markets represents a significant opportunity to capitalise on major concerns regarding food security, safety and counterfeiting in these emerging export markets.  

“We have seen a number of food and other product counterfeiting issues especially in places like China.”

“This technology is a mixture of labels, barcodes and apps that can be used on mobile devices allowing them to check the authenticity of what they are buying,” he said.


Pure Blonde gets a carb make over

Pure Blonde, the original low carb beer, has had a makeover, now boasting an even lower carb content.

 Called ‘Pure Blonde Ultra Low Carb’, it’s a lager that contains 80% less carbohydrates than regular beer. 

According to Carlton & United Breweries, with 30% less calories than a regular beer; and 50% less calories than wine (per mL), it is “the perfect tipple for men and women who live a healthy balanced lifestyle.”
The first ultra low carb, lower calorie, and low gluten beer on the market, Pure Blonde Ultra Low Carb Lager contains no artificial additives or preservatives, the brewer said.

Cellar doors hold selling power for wine brands and regions

New research has shown that a visit to a winery's cellar door has a lasting effect on consumer behaviour, influencing their buying habits for months afterwards.

The Ehrenberg-Bass Institute tracked behaviour of more than 3,300 visitors to 79 cellar doors across Australia over a six-month period. The results reveal the power of the cellar door in promoting a winery or region's brand.

During the six-month period after a cellar door visit, the buyer group (54% of visitors) bought an average of 9.1 bottles of the winery's wine, and the likelihood of making future purchase is 47% on average.

Most importantly, 16% of cellar door visitors who had never bought the brand before began buying it after a visit – this gain can be directly attributed to the cellar door visit and experience.

Reasons for not buying wine include already having a stock at home (25%), preference for other wine brands or styles (20%), and non-availability of the wines at their usual retail outlet (15%).

After a cellar door visit, most wines are bought from large liquor chain stores (33%), but visitors also revisit cellar doors and buy wine (23%). The cellar door channel (including mail order and wine clubs) made up 31% of wine purchases.

Members of wine clubs buy 2.5 times more wine than non-members – about 15% of visitors to a cellar door were members of its wine club.

By the time six months had passed, 47% of visitors had consumed all the wine they bought at the cellar door. 68% consumed it at home.

A cellar door visit also changes patterns of wine consumption in consumers, encouraging consumption of higher quality and more expensive wines. Consumers were more likely to consume wine from the visited region, and their general consumption rose significantly.

The power of word-of-mouth is also increased by a positive visit to a cellar door. 83% of consumers who visited a cellar door recommended a visit to friends, family or work colleagues within three months of visiting, an average of 3.4 times.

Lead researcher Professor Johan Bruwer from the University of South Australia's Ehrenberg-Bass Institute said that the research shows a cellar door visit has a much wider impact beyond simply counter sales on the day.

“The question is how powerful is the effect of awareness, tasting, and overall experience at a cellar door in influencing future purchase behaviour of that brand. This project provides a measure of that impact across a significant period of time after that visit,” Professor Bruwer says.

“The cellar door does something quite special, it can give the brand a good story if those who visit and taste the wine have had a good, authentic, and memorable experience. People who visit a cellar door also become more educated about the wine region and this increases the consumption of wines of that origin.”


TWE reworks supply chain

TWE has put the Ryecroft winery, T’Gallant and Bailey’s properties up for sale as part of its strategy to focus on fewer brands.

The winemaker is making significant changes to its supply chain network in the USA and Australia and has identified further opportunities to reduce its overhead cost base.

TWE plans to accelerate its focus on the Luxury & Masstige versus Commercial portfolios globally, by making significant changes to its supply chain network and cost base in both the USA and Australia.


The packaging and warehousing of wines previously processed at Karadoc near Mildura Victoria, will now occur at TWE’s state of-the-art Wolf Blass facility in the Barossa, South Australia. The phased closure of packaging and warehouse operations at Karadoc is due to be completed during fiscal 2016.

As a result, the utilisation of the Wolf Blass packaging and warehousing facility will be significantly enhanced.

Furthermore, Commercial wine currently processed at TWE’s Great Western and Wynn’s Coonawarra facilities will be transferred to the Karadoc site, with Karadoc to become exclusively focused on the production of TWE’s Australian Commercial wine portfolio.

At the same time, the processing of Masstige wine at Great Western and Wynns Coonawarra will be transferred to Wolf Blass. This will, in turn, result in increased luxury wine processing and warehousing capacity at these sites.

United States of America

In the USA, TWE will consolidate its production facilities such that TWE’s Asti winery in Sonoma County, California, will become surplus to the company’s production needs.

Asti's wine production will be transferred to other wineries within TWE’s network, with the majority of Commercial and Masstige wine production transferred to Paso Robles and Luxury wine transferred to Beringer. This will increase utilisation at both facilities.

Collectively, these steps will further facilitate TWE’s separate focus on the Luxury & Masstige versus Commercial portfolios in the region.

Finally, packaging lines at TWE’s Napa Bottling Centre (NBC) are being consolidated to further optimise production efficiency.

Expected outcome of supply chain optimisation

These initiatives are expected to be complete by the end of fiscal 2016. The supply chain network optimisation benefits are not immediate, rather they are recognised through Cost of Goods Sold (COGS) at the time wines are sold.

As a result of actions to optimise the Company’s supply chain, TWE expects to recognise a provision in fiscal 2015 for a cash cost of approximately $35 million. The COGS benefits from this initiative will ramp up from fiscal 2016 and reach $50 million per annum by fiscal 2020.

TWE plans to reinvest some of the savings from supply chain optimisation into the company’s Commercial portfolio globally, while at the same time improving TWE’s base business and delivering enhanced returns to shareholders.

Furthermore, the Company does not expect a net incremental increase in capital expenditure to result from these changes.

Overhead reduction program

As reported at the Company’s interim 2015 result announcement on 27 February 2015, TWE remains on track to deliver $35 million in cost savings in fiscal 2015, as part of an overhead reduction program previously announced to the market in May 2014.

Following additional work to ‘right size’ the Company’s cost base, a further $15 million in overhead cost savings has been identified and is expected to be realised in fiscal 2016.

Accordingly, TWE has raised an additional provision of $15 million to support these savings.

Michael Clarke, TWE’s Chief Executive Officer, said “I am very pleased that we, at TWE, are now embedding a cost conscious culture. Not only are the cost reductions funding the 50 percent uplift in consumer marketing in fiscal 2015, the savings are also supporting actions to improve the quality of TWE’s base earnings, while delivering profit growth for shareholders.”

“The changes announced today are significant ones for our business and demonstrate our commitment to delivering on the Company’s strategic roadmap. By continuing to reduce costs, and optimising the scale and efficiency of our supply chain networks in major production areas, TWE is well placed to pursue growth opportunities that exist for our wine brands in key markets around the world.”