Amazing happenings at Murdoch James Estate

There are exciting times ahead at Murdoch James Estate.

New stairway down cliff under construction

We have recently purchased an adjoinging vineyard which now takes us up to 38 hectares of planted vines, and are building a new winery. Plus we are undertaking a major landscaping project to make the site look even more appealing to visitors. We have the goal of becoming New Zealand's best winery experience when people visit for our restaurant, tours or just for wine tasting. There is a big new deck going in, the cliff in front of the restaurant is being terraced and the entrance drive has been upgraded.

I can hear a few of you thinking "What on earth is Roger and the team at Murdoch James doing? There is a lot of unsold wine in the world, prices are low and most wineries are tightening their belts at present!"

New rock wall and fence at entrance

There are two parts to the answer. Firstly, we are expanding because have worked hard on exports and are now shipping ever increasing quantities of wine overeas, including to China where we have excellent contacts through our new owners.

And secondly, because our tours and restaurant are now often fully booked as word-of-mouth spreads the news on just how good an experience it is to visit Murdoch James Estate and to join with us as we share our love of food, people and wine.

If you live nearby and have not visited in a while, it is time you did - come and see what we are up too. Think about trying one of our 'Grape to Glass' tours for some quality time with us.

Our Man in Japan

Yesterday was one of the hardest days I have worked in a long time!  We participated in the New Zealand Winegrowers Toko Wine Fair, and the turnout was exceptional. There was a trade tasting first, from 12.30 to 5.00pm, than a short break, followed by a consumer tasting from 6.30 to 9.00pm. There were over 400 people at each event, tasters were often 2 or 3 deep in front of our stand, there was the excitement of working in a language we had little knowledge of, we were on our feet all that time, and no time for coffee or a snack - so, don't let anyone tell me that travelling and promoting wine is a junket!!

That said, while it was a very long day, it reminded me of the need to be out talking to all our customers worldwide. This event gave us the opportunity to present our wines to customers directly and to start continue building a bond with them. The wines were extremely well received and our importer Pony Group Inc has indicated they will add another 2 wines (Pinot Gris, Martinborough Pinot Noir or Syrah) to the two they already carry (Fraser and Blue Rock Pinot Noirs), so that was a great outcome. We have worked with the Pony company for about a year now and we could not wish for a better partner. A great hard working team, organised and capable of selling premium wines in a challenging market. Mr Wada is the sales manager (here in the photo on the left) and he is very supportive of our wines. We also had assistance from one of the Pony team as at each session and that was invaluable for someone whose Japanes does not go much further than 'konichiwa'. Tomoko (in the photo below) helped us in the morning session and one of her colleagues did the same in the evening session.


We found the Japanese public to be highly knowledgable about wines, and very keen to taste new releases from New Zealand and I am really enthusiastic about the prospects for our wines here. We presented the 'Fraser', 'Blue Rock' and 'Martinborough' Pinot Noirs, the Pinot Gris and the Syrah. What really motivated were the large number of people who came back later in the day and said our wines were among the best they had tasted at the show.

Tonight and tomorrow we have wine and food match dinners at Tokyo restaurants, then a few days break before we move onto Korea, so watch this space for more on our Asian sales adventures.

It's pruning time again!

Started puning this week and guess what!? After one of the very best spells of autumn weather on record, we have just had two weeks of almost solid rain, so the team are doing what they can in the few clear spells we have had. I admire their perseverance as the work solidly in the cold weather. I realise I am very lucky to have a lot of indoor work to do just now!

For me it is annual budget time for the business. It's a hard one this year, as we try to build a robust plan against a background of a global economic crisis, which seems never-ending; yesterday Greece and Spain, tomorrow who knows what. What I do know is that this crunch has had a huge impact on wine prices and has driven a shift on consumption patterns. No more $100 wines on corporate expense accounts, two $9 wines at the supermaret instead of one $20 one, and less dining out are just a few things I've noticed. Result? Less sales of premium wines, which are our main focus.

On top of that costs have increased; excise duty is about to go up to $1.95 per bottleand GST is about to increase to 15%. Think about that when you buy a $7 bottle of wine - nearly half is tax, and after the middlemen take their share, there is not a lot left for the winemaker! In addition, suppliers have increased costs of things like cartons, bottles and labels, and inputs like freight are also on the rise. Result? Slimmer margins and declining profitability.

This puts planning pressure on wineries and their budgets, and we are not immune to that.

All of which makes budgeting a challenge, particularly in a climate where banks are not that sympathetic either. All sounds a bit gloomy, but while things are tough our social media initiatives are really helping offset flat exports and slow domestic sales. Our Facebook, Twitter and Blog activities have introduced a lot of new people to Murdoch James Estate and our wines. We have shared experiences and ideas with lots of folk and made a lot of new friends. While it is hard to show with direct evidence that this contact is helping with sales, it is no coincidence that, since we embarked on our social media journey last year, our direct and internet sales have increased dramatically.

On top of that we have made great contacts to help with things like label designs, names for new wines and potential new distributors. It is all very exciting and stimulating, and certainly lift the cloud of economic gloom off our shoulders!

Murdoch James off to Vietnam

Well, vintage 2010 has started and I am reminded how I said exactly 12 months ago that I would blog every day on the 2009 vintage! Well, I'm not going to do that again this year - I learnt from bitter experience how challenging it is to publish interesting posts and still do the day job! But I will certainly continue the blog and try and post weekly.

It was easy to write this post as when I did it I was squeezed in a lovely economy seat on a flight to Vietnam. On one side of me fellow passenger is snoring loudly, while in front of me two babies are testing their lung-power. No snoring for me, so I thought "what a great opportunity to blog"......

I flew on Cathay Pacific, and when I read the newspaper on board I was a little concerned by the headlines: "Pilots hailed as hero's" which was reporting on a recent Cathay crash, but we got there safely. In fact, considering how full the flight was, and that I was in economy, I though both the cabin crew and the flight were superb. I strongly recommend them.

This basis of the trip is to go to Vietnam for two weeks to participate in the NZ Wine and Food Fairs in Ho Chi Minh City and Hanoi, and then off to Hong Kong to work with our excellent importer there (Nathan Fine Wines).

There is a very active NZ Trade and Enterprise team in Vietnam and they have organised both consumer and trade tasting events in each city. With the trade, they have invited 10 NZ wineries who have not exported to Vietnam before to participate, and they have invited wine distributors who have an interest in representing NZ wines to the tastings. On top of that, they have set up despatch of samples and promotional materials. I have been really impressed at their organisation and efforts - first class. It should all be synergistic. The NZ T&E Vietnam team are to be commended on this initiative. I will also see a number of other importers that I have set up appointments with individually too. So, it will be a busy week, and I hope to come out of it with with new business. On the personal front, I have not been to Vietnam before, so it is an exciting trip for me.

As I said, after Vietnam I fly to Hong Kong to work with our existing importer there. We have set up some staff training and sales calls, but the thing I look forward to mostly are the dinners our agent has set up with his key customers - tasting wines with food is the very best way to present the wines, so it will be a great opportunity. I saw yesterday one of the menus - a 6 course degustation menu  with each course partnered with one of our wines. I'll copy it into a future blog, just to make you all envious!