MJE Video on You Tube

We have just reached the end of vintage and have celebrated that milestone by twisting winemaker Carl's arm to make this video - enjoy!

Is it really two months since my last post?!

New winery under construction

The new winery is now making great progress, the landscaping is almost all complete, and the grapes are ripening - slowly in response to our cold, rainy summer. While slow ripening is not always a good thing (as eventually winter arrives and the grapes close down), this year 'slow is good'. Mainly because the winery construction is behind schedule, again in response to poor weather impacting construction. If we had to harvest the 2012 vintage at the normal time we would be in trouble. The classic case of "all clouds have a silver lining"!

With the transformation of the business, subsequent to our growing sales in Asia, I have been thinking about the future of the New Zealand wine industry a lot. Not all wineries as as fortunate as we are with rapidly expanding distribution, but some of the crazy stuff people that do not have good sales channels are doing to sell wine does great harm to the industry. It sets new price expectations, undermines the viability of the industry, will hurt us all and take a long time to recover from.

New dwarfs old!

If you think I am exaggerating. next time you buy a bottle of wine for $10 or less in the supermarket, or on one of the multitude of  discount wine websites, have a think about how much money trickles down to the winery after 15% G.S.T., over $2 per bottle Excise Duty*, the retailers margin, the cost of the bottle and label and the cost of making the wine? I can tell you it is not a lot, or in many cases, nothing. The obvious question is why do wineries do this, if it is as stupid as I imply? This is a theme I am going to explore in future posts which will look at Excise Duty*, bank lending policies, over-supply (the consumers greatest friend), the impact of bulk wine exports and the consequences of the 'must sell' approach many wineries are taking. Often cash flow is the driver, but at the cost of future profitablity

Interior of new winery underway

* Excise Duty is one of those hidden taxes all governments love. Like Excise Duty on Petrol it just keeps money flowing into government coffers in a manner not visible to the general public. And it is indexed to the consumer price index, so it increases nicely each year too, another plus for the tax collector. The Excise on wine is over $2 per bottle and the winery must pay this each time they make a sale. Do the maths; if you buy a $10 bottle of wine, over 20% is Excise, add that to the 15% G.S.T. and government is doing very nicely thank you!

Industry Blues not for Murdoch James

In the past 2 years, the New Zealand wine industry took a hammering from low priced competition, high exchange rates, the global financial crisis, over-production, high gearing, and banks not making credit available (interestingly these were the same banks that 4 or 5 years ago were throwing money at vineyards, but that's banks for you). The situation led to commercial practices (like bulk wine sales) that had a negative industry wide impact. Now the industry has to try to reverse the consequences of this 'perfect storm'.

Excavations for new winery underway

While not specifically structured to address the concerns raised above, a recent strategic review conducted for the wine industry by a firm of consultants, did touch on some of the points. Where they did, the review's observations on market potential and market development were not exactly earth-shattering.

It is difficult to find the detail in the midst of all the consulting jargon, but one observation was that China is a desirable market for New Zealand wineries wanting to grow their exports. Paying someone to tell us that China has big potential for NZ wine sales is not exactly a big return on the investment. The important point is that if wineries are just discovered Asia now, they have missed the boat; and late-comers will find it hard to make up lost ground.

That is why Murdoch James has not been sitting back and waiting. We have been travelling in Vietnam, Hong Kong, Japan, Singapore and China for the last 3 years, and the results justify all the effort. We will sell more wine in China in the month of February 2012 than our full year's output just 3 years ago. And through new ownership, Murdoch James has recapitalised to escape the financial problems holding back other wineries from participating in the huge growth of wine sales in China.

The foundation trenches for the concrete
footings are huge

The consequences are clear if you call by the vineyard. As mentioned in a previous posting, we have already spent a great deal on expanding the Cellar Door and on landscaping. Now we have commenced our winery expansion project. As the images show, it will increase the footprint of the winery significantly - about 3 times larger actually. This will enable us to process the much larger quantities we need for our new customers in Asia.

A mountain of steel reinforcing should
ensure no earthquake risks 

And it also equips us well for our existing buyers in Australia, USA and UK, because this expansion is not just about processing more quantity, it is also about investing in the equipment and technology to take a huge step up in quality.

If you are ever nearby, come and check out what we are up to. We would be pleased to show you around!

Last Sunday, 20th of November celebrated 20 years of Toast Martinborough.

It was a beautiful day with over 11,500 people sharing good food, wine and music with the region's wineries.

A wonderful day was had by all at our Toast Martinborough site this year. The crowd was huge and well behaved, the music great, and the food from Guten Apetit Catering was fantastic. 

Sadly at other locations a small minority spoiled the day for some, through over-indulgence. That we had none of that on our site shows just how well organised it was. A lot of the credit for the organisation of a very professionally run site must go to Nicola, a valued member of the Murdoch James team. And what better way to show our appreciation than with flowers!!!

We had several acts on stage, including the Thomas Oliver Band and Ladi6, and estimate over 50% of the total crowd joined us for at least part of the day. Like all festivals we had the crowd come in waves and at times the challenge was being able to serve them all in a timely manner. We were very quiet in the morning, when the crowd followed tradition, by starting at TK, then very busy mid-afternoon, then quiet again late afternoon as the festival goes moved on to other wineries to close out the day. At the busy times, Nicola's systems played their part.

It is hard to spell out in words what a terrific day Toast Martinborough is; the pictures tell a better story. Even better still, come next year, and see for yourself. But you have to be quick - tickets can sell out in less than half an hour after release!!

And for those folk who gave us feedback on what we could do better next year, rest assured we have taken the comments aboard.

They tell me it will look good when finished!

New Grand Entrance (to be) 

Many of you have asked for more information on what we are doing with building extensions and landscaping.

There are quite a few things under way. The tasting room is being extended to cater for the increasing number of visitor who join us for tastings or the incredibly popular 'Grape to Glass'tour. As part of that building project we are also constructing a new grand entrance, so that the first impressions when folk drive up to the winery is both welcoming and attractive. There is also a big deck (almost finished) being built outside the tasting room so tasters can relax and taste in a pleasant location. We will equip the deck with comfortable tables and chairs so tasters can sit and order a platter to enjoys as they do their tasting. With a weather forecast of a long, hot summer to come, I am sure the deck will get plenty of use.

New Steps Up Cliff

Then there is a big project of landscaping down the cliff in front of the restaurant. We are building rock retaining walls, steps, planting new shrubs, building a bridge - the list goes on. The stairs down the cliff are going to look simply stunning: huge cut macrocarpa timbers, in-filled with exposed aggregate, and lit at night. The bridge across the creek will make the lower vineyard area an even more attractive location for weddings and events.

At present the site looks like a construction zone, and as wedding season is almost upon us I am as nervous as our brides that it all be finished on time. I am assured by our builders and landscapers that it will be, but no rain please weather gods!

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.

'Moby Dick'

At Murdoch James Estate, we have one of the oldest if not the oldest, balloon presses in New Zealand. It is a Wilmes, made in Germany, and dates from the late 1950's we believe. This is not one of your modern computer controlled, hands-off, "press 'start' and come back later" wine presses. Our press needs an operator to be in attendance at all times to care of its every need. One well-known local blogger referred to it as 'Moby Dick'; a big presence, imposing, round and long, and somewhat daunting. I must admit, it certainly looks a lot like the great white whale. The name stuck and all our team now think of this wonderful machine by that name. 

But now 'Moby Dick' (thanks for the name to both Jared and Herman) is in serious trouble. The gearing between the electric motor and the press cylinder has broken and parts to fix it are not able to be found. Yet we are not giving up! We have started a global search for the parts.

But, like Thomas the Tank Engine, where Thomas's steam power was under threat from upstart diesel locomotives, if we cannot revive Moby he may have to be sold as scrap. And that would be a tragedy. Like Thomas, we want Moby to fight back too, and prove his worth. He has a place beside our new press to provide back-up. We want to save him and continue to use his talents where we can. Moby is gentle to the grapes when pressing, and as we have to be there all the time to tend to his needs, we can see exactly what he is up to and encourage the very best from him. 

 As to how can you help? Well, we hear every day about the power of social media to galvanise support for important causes. And, what more important cause than saving Moby from the 'harpoons' of the scrap metal merchants. If you know of anyone who might be able to help let us know. We will fly the parts in from anywhere in the world if they are in good condition.

 

Maybe you know of a relation to Moby who is past restoration, but could become a part donor and keep Moby alive for future generations? We are going to post on Facebook, Twitter and other social media sites to make sure we make every effort to save him, so pass the message on if you are motivated to do so. If you can help, call us at Murdoch James Estate (+646 306 9165) or e-mail me at info@murdoch-james.co.nz. We would love to hear from you!

Not all just hard work!

A few months ago, Nicola asked me if I would help Lynn (who runs our cellar door facility at the vineyard), with a Women's Expo in Palmerston North. What a chore I thought. Until I got there. I was one of only a few men in a room of hundreds of women. I apologise if it sounds a bit stereotypical but I think a lot of guys would have swapped places with me!

And it was a fascinating Expo too. The stands ranged from the expected (clothing, jewelry, food & wine) through to the less common (alternative healing, investing, dance exercise, miniatures and creative arts).

Recent research has shown that women are now the dominant purchasers of wine in NZ for home consumption, and also increasingly making the decision on what wine to pick from wine lists in restaurants. In that context, one important learning for me from the Expo was confirmation of the strong desire to learn more about wine by women. We had  great interest in the varieties we were showing, but the tasters were not only there to sample the wines.

They also wanted to learn; we were answering questions about the vineyard, our sustainable vineyard practices, wine-making, distribution and wine tourism.

It was great fun and we'll be back next year for sure.

New Beginnings!

What's new at Murdoch James Estate then?

Well, those that follow my blog will know, we are fully committed to sustainable practices, and to us that means more than just monoculture and industrial scale wine making. For a long time now we have partnered the grapes with sheep to mow the grass, and have run Angus cattle on our unplanted land. This year we are excited to have begun yet another venture in parallel with the vines. We have recently started to build a herd of Belted Galloway's. This is a very rare breed of Scottish cattle, a perfect fit for Murdoch James Estate and our Scottish heritage!!

These guys really stand out in any crowd. They have a distinctive white belt around a black body, a double coat to cope with all weather, and a really solid, low-slung build. We will be breeding and raising pedigree cattle that can contribute to the viability of this lovely breed. I would describe them as gentle giants - they have a great temperament, are happy on all sorts of pasture and can handle our cold winters.

Best of all, they look just great. We have started with a bull (Fidel is his name) and three lovely cows in calf (Fidel is the dad). Shortly, they will be joined by 15 more that we will be bringing to the vineyard from another breeder in the South Island. This herd will then form the nucleus of our new initiative. They are not cheap; cows can be well over $1000, and a good bull 2 or 3 times that, but money is not everything, and we are all very excited about this new venture. Photos of the new calves to be posted in Spring, so click and follow our blog, to be kept up-to-date on how they fare! 

Lab Work

I sometimes think a lot of folk get the impression that wine is all about growing the grapes in the vineyard and then converting them to wine in the winery. That is true to a large extent, as is the reality that the making of a great wine comes down to the creative talents of the winemaker. There are no formulas to follow slavishly, unless you are one of the big producers who are looking for the same basic wine year after year.

But there are a lot of technical things small wineries can do to help ensure we make a good wine and avoid risks. At Murdoch James Estate we have a small laboratory where we test sample from the vineyard before harvest to check sugar levels, and during ferments to track the conversion of those sugars to alcohol. We also test for things like acidity. This technical detail is then paired with winemaker Carl's judgement and palate to deliver the final wine.


For the vintage Maria, our Administration Assistant, worked with Carl in the winery over vintage to help with processing, plunging and pressing. But she also did most of the lab work; a very important task she completed with skill.






This year's grapes are now in, and nearly all the ferments are complete. It has been a lovely harvest and the Pinot Noir should be excellent this year. Fine weather made harvest a breeze, and the teamwork was terrific. Now the vineyard looks a treat as the autumn colours are coming out. In fact, when I was driving into work this morning, the poplars at the gate were stunning and I had to take a photo - not a bad place to work is it!!??