The challenges plaguing the wine industry are well documented. But for Paul Nelson and Bianca Swart of Denmark-based Paul Nelson Wines, one of the biggest problems isn’t rising costs, export woes, oversupply issues or even an increasingly unpredictable climate.
“The main problem we face is the ‘producer-wholesaler-consumer’ model,” Paul says. “The Australian wine industry is overrun by corporate conglomerates who use their market dominance, power and influence to drive down profits for farmers and drive up prices for consumers.
“Winemakers are forced to sell their wines for lower prices so they can get them in store,” he continues. “The wines are then marked up by the retailer to hit ever-increasing profit margins, and the consumer pays inflated markups. The system is designed to benefit the middleman while winemaker and wine drinker both get screwed.”
Their solution is Wine on Mars, a subscription-based platform launched last October that allows consumers to buy wines direct from independent producers without unnecessary markups. It’s also designed to support and invest in the futures of participating producers. “It’s really about collaboration,” Bianca says.
“We love wine, we're wine drinkers, but we're also wine producers, so we know exactly the tough spot that most producers are in when it comes to selling wine, working through distribution channels, and being left with razor-thin margins,” she adds.
“For too long, we’ve had to fight against each other for any kind of market share because it's so dominated by the big players. The idea is to build a community of authentic small producers that gives back to each other as well as to wine lovers who want to learn about and hear our stories. We want producers to be able to focus on making the best wine that they can, knowing they have support behind them.”
In fact, rather than pay to list their wines on the site, participating producers are essentially paid, with around 40 per cent of the $25 monthly subscription fee required by customers (they call them ‘Mavericks’) passed on to alleviate “the cashflow burden” commonly faced by small producers. This is in addition to what the producers make through wine sales, of which they receive the full, unclipped amount.
For Mavericks, their investment allows them to purchase wines for at least 25 per cent off retail, with a quality guarantee – only small, family-owned producers who have “boots on the soil” qualify, and all wines are evaluated blind by Paul, Bianca and a tasting panel before they're listed. Mavericks can also access private events and rare or exclusive bottlings.
“Through Wine on Mars, winemakers can offer their wines direct to wine lovers at prices that benefit BOTH drinker and producer,” Paul says. “It exists to champion the little guy, on both sides of the equation. No sales commissions, no markups, no price gouging.
“We want to build a fairer, more transparent landscape for Australian wine.”
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