JACOB'S CREEK SKIPPER LEAVES HIS TILLER

RETIRING WINEMAKER PHILIP LAFFER ON HIS BELOVED JACOB'S CREEK, WHICH STARTS ON MOUNTADAM AND RUNS DOWN PAST THE SCHILD FAMILY VINEYARDS INTO THE SOUTH PARA RIVER. IN A WORLD INCREASINGLY CURIOUS ABOUT TERROIR, ONLY A TINY VOLUME OF JACOB'S CREEK WINE COMES FROM ANYWHERE NEAR THIS TINY STREAM. LAFFER GOT IT ELSEWHERE.

Laffer's London Club Laugh-out How Tiny Creek Became Big River Slow Boat To China Next Big Back Whoosh
by PHILIP WHITE

Philip Laffer, 69, Group Chief Winemaker, Pernod Ricard Pacific, wound it back last week, announcing he’ll be spending a lot more time mucking about in boats, and it won’t be on his beloved Jacob’s Creek.

Affable, but stern, Laffer’s one of the most influential winemakers on Earth.

Like Peter Gago’s role at Penfolds, this is heady business. After vintage, it involves the supervision of the annual assemblage, when thousands of wines made by the small army of winemakers are blended to fit the company’s suite of brands.

The rest of the year’s spent filling passports with stamps and wearing out the R. M. Williams on endless promotional travel. So it was appropriate for Laffer to choose a London club for his valedictory. I hear that camp old panto stager-cum-wine star, Oz Clarke, delivered an enthusiastic roast.

I first encountered Laffer about thirty years back at Lindemans’ Karadoc winery near Mildura. His dad, a lecturer for a time at Roseworthy, had convinced him he wasn’t bright enough to be a vet, so after his Roseworthy studies he joined Lindemans in 1963.

Laffer was the first winemaker I’d struck in a hardhat and steel-caps; a shock until I realized the scale of Karadoc, with its million-litre tanks and overhead gantries cranking huge grape bins around. It was our first modern wine refinery, put together by Philip Shaw for the tobacco company, Philip Morris, Lindemans’ owner.

I’d hardly donned my Karadoc helmet than it became apparent that things would never be the same in the Australian wine business.

Somewhere out the back sweated a young Jeffrey Grosset; Barossa boy Philip John was there, too. Each winemaker seemed to guard their million litre tank, ensuring nothing went wrong until that great day of judgement, when the phone rang with the news that today was the day the gargantuan would be emptied, and its wine sucked down an underground pipe to fill silver pillows, pfffshhht, pfffshhht, pfffshhht.

But Lindemans was active in Coonawarra, too, where Laffer had been to establish vineyards in the mid-sixties. He built the Rouge Homme winery, which I visited to celebrate the win of the 1981 Jimmy Watson Trophy with the delicious 1980 Lindemans St George Cabernet Sauvignon. With viticulturer Barney Kidd, these pert dudes were determined to show the wine world a thing or two: they couldn’t wait to teach me about their new invention: minimal pruning.

This involved mechanically hedging towering vines, saving enormous amounts of money, and dramatically increasing crops. Coonawarra is still struggling to throw off this mantle: after some years it became apparent such viticulture required industrial levels of petrochemicals to control fungus, and a helluva lot more water to fill the berries.

Lindemans’ win of another Watson a few years later served only to extend the trend, but it soon became apparent the wines were becoming green and leafy commodities, in place of warming and soulful gastronomic luxuries.

Treated badly when Penfolds bought Lindemans in 1990, Laffer did a stint consulting, then joined Orlando Wyndham. In 1989, the giant Pernod Ricard, had bought the business, not so much for any recognition of the potential of Jacob’s Creek, but to distribute their pastis aperitifs in Australia.

Always a tad more strict and uncompromising than most of the daggy winemakers of the day, Laffer came home from the Harvard business college with an astronaut haircut and a new severity. He was ready to move.

As chief winemaker, he climbed aboard the Jacob’s Creek steed and charged the world markets with a fury. Orlando’s MD, Perry Gunner, had originally convinced a small British merchant, Caxton’s, to take one pallet of Jacob’s Creek; before long they were shipping a million cases.

Laffer restructured everything in the wine’s manufacture, from grape grading and purchasing, to building today’s stunning facility.

There were some fluffs, of course: a great swathe of vineyard they bunged into untried land near Langhorne Creek in the late ’90s was on the market within a decade of my receipt of the press release boasting of its 200,000 trellis posts, 1,000 kilometres of drip line, and 50,000 kilometres of wire.

It doesn’t seem all that long ago that Laffer, along with the likes of Constellation-Hardy’s MD Stephen Millar, were hollering about the Chardonnay shortage, begging growers to plant more. But last week he told the gentlemen in London that Australia now has enough, and that he won’t be dabbling in the wine business other than some consulting to Pernod Ricard.

'Australia doesn't need any more vineyards,' he said.

It seems he’ll keep an eye on Pernod Ricard’s big vineyard in far north China, and continue his interest in their Spanish growth.

But he leaves the brand - first launched in 1976 - as Australia’s most popular, currently selling more than 8 million cases in 65 countries.

One wonders what William Jacob would think.

NEW JACOB'S CREEK REFINERY BOSS, BERNARD HICKIN, AT THE BENCH

AUSSIE PLONKMONGERS LOSE THE PLOT

Ethanol Floggers Flog On ... Oz Pollies Taken For Suckers Again ... Forensic Enquiry May Shake These Dangerous Tendenciesby PHILIP WHITE - a shorter version of this appeared in The Independent Weekly


There is no better metaphor for the Australian wine industry than its National Wine Centre, which has finally become a busy pavilion for weddings. It lies there, ribs poking skyward, its drying gizzards wriggling with brides.

I have no statistical evidence to suggest the success of these marriages is any different to the national average: one in three generally ends in divorce.

It's all tiresomely suburban.

The Wine Centre’s biggest publicity – ever - followed the incident when Rick Phillips went in there and whacked our Premier, Mike Rann, about the face with a rolled-up Winestate magazine.

Phillips pled guilty, while his ex-wife, Michelle Chantelois, who’d been a barmaid in Parliament House, repeatedly claimed she’d maintained a sexual affair with Rann who repeatedly denies this, while publicly apologising for any distress it has caused her or her family.

And now, as if to complete its transformation from National Wine Centre to wedding and celebrity divorce factory this troubled facility is even flogging its wine collection.

Smart observers knew, when $50+ million of taxpayers’ money snuck that corpse into our sacred Botanic Garden a decade back, that this industry, its august councils, and the politicians it seduced, all deserved forensic scrutiny.

Who are these people? The hairdos have gone from Brylcreem combovers to spiky and shooshed, but the mentality is as constant as the suits.

They cannot halt the wine industry holocaust. For their shareholders, they encouraged it to fester, at the expense of our water, our environment and civic amenity, the salinity of our soils and aquifers, our public health, and our economies: national, town-sized, familial and individual.

The glittering refineries they inflicted on our rural vistas frankly reflect the chrome pillows blowing like leaves about aboriginal lands.

They built an industry that - by vast chemo-mono grapeyards - mines the arid Mallee for sugar, which is used to make ethanol, a highly-dangerous depressant and recreational drug. Over half the Australian business depends on this formula, and in bladder packs or cleanskins sells sweetened ethanol - which is three times the strength of your average beer - at about the price of bottled water. Or less.


They built an industry in the Australian desert which depends upon endless supplies of virtually free water, an international clientele with a constantly-intensifying addiction, and a pathetic Aussie dollar.

It also lacks basic gastronomic intelligence, expects the same of its clients, and presumes the absence of any smart competition from other countries.

Like, say the countries adjacent to the Andes, which happen to be full of snow which melts to make irrigation water. These grape regions are populated by peasants who work for almost nothing, and whose laws lack the scant environmental restrictions which somehow survive in Australia.

A telling gauge of how this industry’s authorities are respected is the advent of the Family First Winemakers. As this new coalition of the great wine families – Peter Barry, Hill Smith, Taylors, Tyrrells, Brown Brothers, d’Arenberg, McWilliams et cetera – barges forth to promote the “heart and soul” of the Australian business internationally, they attempt a task which the bodies they were implicit in creating have obviously failed to perform.

Who else gets a gong? Oh yes. On February 7th, Dr. Brian Croser AO (left) made a hissy speech blaming the big companies for mucking everything up. This was reported widely.

The Australian Winemakers Federation Croser established helped shove the Wine Center upon us, only to see it slide two years later, virtually bankrupt, into University of Adelaide hands for $1 a year.

When he was determinedly pushing the Wine Centre into the Garden, I questioned Ian Sutton, then Chief Executive of the Winemakers’ Federation of Australia, Wine Australia Pty. Ltd., Australian Wine Foundation and the Australian Wine and Brandy Producers' Association. I asked about the strangely optimistic business plan, and just how much consulting had been done to get the true feeling of the industry, much of which seemed a tad embarrassed about the whole thing.

"My job's not to consult the wine industry”, Sutton snarled. “My job is to represent the wine industry".

Croser was the University’s deputy chancellor at the time, determinedly pushing his agenda to have what was the fusty old winemaking school at Roseworthy fully absorbed by the glittering Adelaide campus. "Technologising", I heard one boffin describe it at the time.

Big companies? To the tune of hundreds of millions, it was Croser’s Petaluma group that slid through Lion Nathan into the hands of the mighty Japanese Kirin Brewery under the caress of his Petaluma accountant Andrew Cheeseman (right), who now heads the Australian Wine And Brandy Corporation.

Just days after his spray at the Big Guys, Croser made another speech: he’d suddenly discovered that Jacob’s Creek Chardonnay was much better than he’d previously considered.

His initial blast at the big companies would have infuriated people like Phil Laffer of Pernod-Ricard, the French families who own Jacob’s Creek, whose company secretary, Kate Thompson, sits on the board of the Australian Wine And Brandy Corporation. Along with Dr. Tony Jordan, antipodean lieutenant of Louis Vuitton Moet Hennessey.

Croser made the Adelaide Hills wine region. He planted the Piccadilly Valley with Jordan, and set forth preaching his gospel for decades, adding great value to his Petaluma. Over endless lunches at his Bridgewater Mill, he encouraged Dr. Ed Tweddell of Fauldings to invest massively in the hills, by setting up the Nepenthe viticulture company that planted vast swathes of vineyard whose fruit ends up now in Jacobs Creek or the carcass of McGuigan’s Australian Vintage. If Kirin doesn’t want it.

The latest top yarn concerning this lot is the Rabobank report of senior analyst Marc Soccio (left). It says the industry’s crook, although he thinks it’s not so much the buggered Riverlands, but cool places like the Adelaide Hills which are far too slow to uproot.

Like the river grapeyards, too much of this upland planting was committed by the wrong people in the wrong places for all the wrong reasons, like tax advantage, or fashion. Many of these doctors, lawyers, and wealthy retirees who dared, with the persuasion of people like Croser, to compete directly with seasoned generational growers in McLaren Vale and the Barossa, should never have entered the industry.

Tragically, we can't ask my good friend Dr. Ed Tweddell about this, as he committed suicide in 1995 (CORRECTION : 2005; not 1995). His son James, who ran the vineyard development company, now runs a nightclub in Queensland.

Rabobank seems confused about gradings of wine quality. Like the freshly-re-enlightened Croser, it obviously regards Jacobs Creek as premium. You can’t blame them: as Croser and his Petaluma chairman, Len Evans, ran the Australian wine show system for decades, megabulk brands like Jacobs Creek won bounteous bling.

Croser would never enter Petaluma in the wine shows. There are still people who remember his rage when he discovered his marketing manager, Bob McLean, had quietly entered Petaluma red in the Melbourne show. While the Petal was notably failing to win the Jimmy Watson Trophy inside, where Croser vented his feelings, ace Wolf Blass red man, John Glaetzer, was crawling around the bushes out the front, yelling “Where’s the dummy? Where’s the dummy?”

Glaetzer could afford to joke: he’d already won a record three Jimmies, and went on to win a fourth.

Individuals aside, this crazy amalgam of savagely competitive ethanol dealers needs a new sheriff. Those responsible for the current carnage should be forced to withdraw, never to play with such power again.

But the blithe refusal of the Rudd government to accept treasury official Ken Henry’s perfectly logical and fair excise regime for all alcohol taxation is crisp evidence that the ancien regime still rules: its lobbyists have been very hard at work reinforcing the constipating inertia extant. Henry’s proposal would have finally and sensibly rendered most of the unsustainable arid land grapeyards unprofitable, but bolstered the chances of small, premium producers.

The frisson of delight at the dribble now oozing down the big rivers proves there is no change, and no change likely. The same old suits sniff a new wave of dirt cheap Riverland premium. Maybe the piddly prices the National Wine Centre gets for its wine collection will best reflect just how premium all this premium really is.

While they’re saying twenty per cent of the national vineyard must go, it’s time somebody admitted the figure should be more like thirty or forty per cent. In lieu of any smarter method of devising the number, they could follow the success rate of the weddings in their National Wine Centre, loaded with an index locked to the tumbling prices of that premium wine collection.

But with all dread seriousness, the vine pull formula should be based on the number of jobs and dollars each litre of irrigation water creates. In places like Barossa and McLaren Vale, this ratio is normally exponentially ahead of any part of the Murray-Darling Basin, which now seems to extend to include the Limestone Coast. Not to mention the Adelaide Hills.

The glut these industrialists created sees professional growers, some four to six generations strong, suddenly being paid $300 a tonne instead of $3000. You don’t need so much premium fruit at $3000 now that you’ve decided the desert produces premium at $300.

Anybody taking water from the Murray-Darling should be forced to pay real prices for it. A litre of water should have a price. Period. Irrigators should pay a price a helluva lot closer to the amount that an Adelaide resident is expected to pay for what manages to ooze from the mains.

If you’re growing truly premium grapes in a unique place like McLaren Vale, where much of the irrigation water is recycled waste from coastal housing estates, you should be encouraged to remain in the business.

But the percentage of vineyard currently for sale in the Vale simply serves to prove that in the eyes of these industrialists, true quality, continuity and professionalism, let alone the environment, simply do not matter. The casual investor, the shareholder, is king.

The politicians are simply inept in addressing this. The only one to poke his head up with a sensible suggestion was Leon Bignell, the Labor member for Mawson, which includes McLaren Vale. The great Rudd/Wong/Rann triumvirate has failed to convince anybody. Tellingly, against all the pundits’ great wisdoms, after his statement, Bignell actually increased his margin in the recent South Australian election. Much greater egos saw their margins shrivel, and seats disappear.

When the wool business, the miners, or the wheat board makes a mess like this, there’s a very prompt independent enquiry. Heads roll. People are stood up and expected to explain their actions. Heros emerge.

Before Croser comes back to save the wine industry, there should be an independent judicial enquiry.

Take Some Essence Of Oak Chips, Add Weeds And Vanilla ...

by PHILIP WHITE - This first appeared in The Independent Weekly in May 2008

“Chardonnay will be the vanilla of the Australian wine industry”, the late Len Evans, OBE, preached for thirty years.

Who? This feisty ex-Mt Isa Mines storeman eventually ran Rothbury Estate, owned Evans Family Wines, chaired Petaluma, controlled the national wine show ring, became a highly influential mentor to hundreds of adoring winemakers and critics, et al. Like Sir John Falstaff, Evans smudged the boundary between ebullient and bumptious, and, after port, was borborygmic.

In Champagne, chardonnay’s used for champagne; in Chablis it makes lean, unoaked chablis, and in Burgundy, it’s used to make creamy, extravagantly oaked white burgundy. Like chardonnay, all these words sound nice, and while it was all fabulously expensive, fabulist Len loved shunning expense at the table.

But it snows in those places. Apart from bits of Tassie, like the Upper Tamar, and tiny slices of the mainland - high Orange or Tumbarumba - we could never grow chardonnay vaguely like the great French vignobles. So why chardonnay? It doesn’t snow along the Murray. Then, Len never drank much Murray.

Locally, Romney Park proves that on one tiny ridge near Hahndorf, you can make delicious chardonnay, as Ashton Hills does near Summertown. Penfolds makes mighty stuff from other Hills vineyards. Mountadam’s returning from a ten year slump. There’s Evans’ ex-pet, Lion Nathan’s Petaluma, with its alluring bunch of Riverland doradillo on the front label. After that I’m scratching.

Scarce cool country is not the only problem with Australian chardonnay. From the start, back labels invariably claimed this new variety was lovingly fermented and matured in new French oak, oak being the only thing available to legally impart vanillin. But as I wrote in 1991, when Len’s sermon was reaching crescendo, France typically harvested enough oak to make only about 250,000 new barrels – about 800,000 short of the amount of Burgundy-sized barrels needed to contain the juice of our 20,000 freshly-planted hectares of chardonnay. If indeed they eventually grew a berry. Forget barrels for the reds, or for the rest of the world. Or for the French, for that matter.

Luckily, Len had an attitude to oak that didn’t always require barrels. At a tasting at Rothbury in May 1983, I sidled out for a smoke when a courier arrived with four large plastic drums of liquid. Rather than interrupt my host, who was inside preaching, I signed for it, then read the chit, which said “Essence Of Oak Chips”. That’s cheaper than chips!

Evans’ acolytes and disciples always rather contentiously insisted that the customer demand for chardonnay was insatiable. Only a few years back blokes like Phil Laffer and Stephen Millar, bosses of Pernod-Ricard/Orlando/Jacob’s Creek and Constellation’s BRL-Hardy, were urging more plantings.

As these come into production, we now have 32,151 hectares, mostly in the wrong places. We might as well irrigate weeds. Constellation’s retreating from the River, and Fosters and Pernod Ricard have just told growers there that demand for the vanilla of Australia is plummeting. So the punter is not a mug.

Chardonnay’s not dead: Penfolds paid $5000 a tonne this year for cool district grapes for its top example, the Yattarna, and Chablis and Burgundy sales are soaring. Champagne’s so popular they’ve just made the district bigger. But while their new price for River chardonnay, $300 a tonne, might be rather fortuitous for the transnational winemakers, it won’t cover the grower’s costs.

One of the world’s oldest wine merchants, Berry Brothers and Rudd, last week released a report suggesting the Murray-Darling will soon be too hot for fine wine production, and - surprise, surprise - that the future lies in expensive luxuries from cool places like Tassie. This was timed to lob explosively in the middle of the London Wine Trade Fair.

Even more practically destructive was the CSIRO’s announcement that our own Rudd’s budgetry idiocy will close the vital Murray Valley viticulture research establishment, just when Stephen Strachan, boss of the Winemakers’ Federation, was busy reassuring everyone that “the industry’s doing a lot of research around climate change”.

The poor old River couldn’t take deadlier hits below the waterline. Alley juice for our bladder packs is already coming from third world vineyards where wages are miniscule and environmental controls non-existent; now our bottom-end bottles are threatened.

As for Berry Brothers and Rudd’s forecast that China will be the world’s major wine supplier in fifty years? Anyone who’s believed my musings since Remi Martin helped China plant its Dynasty vineyard - in a place where it snows - way back when Len began his vanilla sermon, would have to agree that the real number’s now about ten years.

I don’t gloat over the agonies of the gullible and unfortunate, but it’s becoming increasingly tempting to say “I told you so”. If only the Chinese had planted chardonnay and oak, Australia could have avoided much terrible grief. And saved quite a lot of water.

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