The Australian Wine Research Institute has confirmed that it will be downsizing its workforce due to ongoing financial pressures related to levy revenue reductions. This falls half way through its current four-year agreement with Wine Australia, which was established in 2022 and will end in June 2026.
According to the Managing Director of the AWRI Mark Krstic, “this is occurring in response to an extended period of financial pressure, in part caused by reductions in levy funding due to recent lower vintages.
“We remain fully committed to our role as the industry’s own research organisation and are determined to continue supporting the Australian grape and wine community through world-class research, practical solutions and knowledge transfer.”
The AWRI has already entered into consultations with its staff regarding the change to its structure: “over a four-week period we will work through various options before confirming the outcome of the process,” said Krstic.
Part of AWRI’s strategy to downsize, outlined in an update to stakeholders on Monday, is to not replace staff members who retire or resign. Since 2022, this strategy has decreased the number of employees at the company by about 16.5%.
The AWRI has also openly criticised Wine Australia and Australian Grape & Wine’s draft One Grape and Wine Sector plan in the past. Commenting on the levy review and reform, the AWRI said “the lack of a proposal to revitalise or restructure the funding model is a significant oversight, undermining the plan’s overall potential for success. AWRI is aligned with the views of many thought leaders within the sector that reform of the levy system is a very high priority to be addressed by Wine Australia and Australian Grape & Wine with urgency.”
Martin Cole, CEO of Wine Australia, recently told Drinks Trade that “AG&W are doing a review of the levies in terms of that being fit for purpose in the future. We support by giving information and data statistics around that.
“We take a levy and do fund research for innovation and other things and we’re also responsible for promotion of wine, so we have to be careful not to get into the policy space… Where we can, we try to, you know, give that sort of impartial evidence base, but we’re very careful not to get into government policy. That’s not our role, really.”
To read more of Martin Coles’ insights read this Drinks Trade article and visit page 22 of Drinks Trade Winter Issue 91.
Drinks Trade also recently spoke to Mardi Longbottom, General Manager of Industry Development Support & Sustainability at the AWRI, about the recent accomplishments of Sustainable Winegrowing Australia, a coalition formed between Australian Grape & Wine, The Australian Wine Research Institute and Wine Australia. Read that interview here.
