Vision
A thriving, diversified agricultural sector working closely and sharing the risks and benefits with processors.
Values
- Collaboration
- Supportive / connected
- Integrity / dignity / respect
- Inclusive / informed
- Sustainable
- Fair return for effort
- Progressive
The Problem and the Proposition
Due to a glut of grapes many grape growers have become unviable due to loss of grape supply contracts, few wineries buying in grapes or falling grape prices.
Rather than seeing these grapes being left on the vine to rot and a year’s labour and expense wasted, or worse – abandoned vineyards – Big Hearted Wine has developed a unique offer for grape growers:
“You grow the grapes and deliver them to us for free. We will make the wine for free and endeavour to find markets for the wine. After packaging, freight and marketing costs we will divide the proceeds equally”.
Outcomes
- Our vineyard partners are receiving the equivalent of up to twice the premium price per tonne had there been a buyer of their grapes.
- Big Hearted Wine is developing domestic and export markets for this wine.
- Big Hearted Wine is supplying this wine to other socially minded groups for fundraising. e.g. The People’s Solar – crowd funded solar for community enterprise, the Castlemaine State Arts Festival, etc.
Benefits to Growers
Viable, well paid vineyard businesses
- Continuing agricultural diversity
- Local skills retained
- Employment
- Stronger relationships with processors
Benefits to BHW
Greater utilisation and upgrade of our own resources
- Employment/skills development
- New markets for Australian wine
- Reduced cash flow requirements
Progress to Date
The enterprise started in 2011 with 6000 litres of wine produced from one grower when grape surplus issues started to become evident in my region. It takes around two years before a red wine is ready for sale so in 2013 we went looking for markets to sell this wine into. In late 2013 we met with a wine buyer for the Chinese market. After several sales, in April 2014 a distribution agreement was signed with this buyer that will account for about 25% of our enterprise production for the next two years. Sales to date of $102,000. Distribution to growers of $39000.
- In 2012 production of 50000 litres from 3 growers.
- In 2013 production of 55000 litres from 5 growers. First export sales to China.
- In 2014 production of 60000 litres from 8 growers. Development of a second label with grapes from Sunraysia. Huge enquiry from growers to join the enterprise as word gets around.
Challenges
- BHW production will need to grow substantially to deal with grower demand
- BHW marketing will need to increase substantially to find and develop new markets
- Build logistics and administration
R&D – A Commitment to Growing the Model
Research and development has been budgeted to leverage more funding for research into the development of this project, and a scalable and replicable business model across other areas of agricultural production.
Outcomes
- Our vineyard partners are receiving the equivalent of up to twice the premium price per tonne had there been a buyer of their grapes.
- Big Hearted Wine is developing domestic and export markets for this wine.
- Big Hearted Wine is supplying this wine to other socially minded groups for fundraising. e.g. The People’s Solar – crowd funded solar for community enterprise, the Castlemaine State Arts Festival, etc.
Big Hearted Wines interviewed in the Weekly Times- January 2015
Ron Snep (right) and his son, Jackson, process up to 400 tonnes of grapes annually in their winery at Maldon, paying growers once the wine has been sold.
January 2015 article on Welshmans Reef Social Enterprise.