Mention the name Brian McGuigan to many of the grape growers in Australia, particularly in the Riverland, and watch their face turned red and their blood pressure rise. The reason for this hatred is that McGuigan is credited with wantonly shafting growers during the grape glut a few years ago.

A pork chop at a kosher wedding would be more popular than Brian McGuigan in winemaking cirles. By March 2006 the situation was so bad that McGuigan hired a new CEO to replace himself. He remained on the board. Unfortunately for the company, it just wasn't Brian McGuigan’s name that was tarnished by his actions. Although the corporation will deny it, they needed to try and move away from the McGuigan Association. That's a bit difficult when some of your key brands have the name McGuigan.

Fairly recently, McGuigan Simeon changed its name to Australian Vintage Limited. Seems like a funny name, but that's beyond the point. Although they have changed the name, a leopard does not just change its spots, and this company is no different.

In the Barossa Valley, as a matter-of-fact directly across the road from the famed Torbreck, is a highly respected small producer called Schubert Estate. Their Goose Yard Block Shiraz is stunning. Schubert Estate is not called Schubert Estate because some Dicky Wacker thought the name sounded good and thought they would capitalise on the Max Schubert connection. It's owned by Steve and Cecilia Schubert. So what has this got to do with McGuigan/Australian Vintage Limited?

The Wine Blokes, a UK wine retailer just happens to be selling a wine called “Schubert Estate 2006 Adelaide Hills Reserve Chardonnay.” You can't blame the retailer for selling a brand of wine, and they probably have never heard of the real Schubert Estate, so they are blameless in this whole situation.

It also looks like the wine has been specially made for the Sunday Times Wine Club.

The Wine Blokes website page says:

“Brought to you by The Sunday Times Wine Club:

 ....Their acclaimed estate in the stunning Adelaide Hills region - “home to world class Chardonnays’ - produced this handcrafted gem that like fine Chablis is “elegant complex and long-lived” (The Independent). Gorgeous apple and lemon aromas with lovely vibrant citrus fruit and a subtle minerality.

World class Aussie ‘Chablis’ … from winemaking legends!”

First off, let's have a look the above description. I was under the impression that The Independent was a highly respected newspaper, but based on their report on this wine, I'm not sure about their vinous competence. I don't know how many world class Chardonnays are grown in the Adelaide Hills, but I wouldn't imagine it was too many. They also state the wine will be long-lived. The description on the Wine Club's website is exactly the same as the one listed above, but has additional details. The most interesting of those details is the wine clubs recommended drinking window, “Drink Before: End of 2009.” So much for being long-lived. And so much for The Independents vinous credibility.

The estate may be acclaimed, but I have certainly never heard about it, but that's not the point. The McGuigan Adelaide Hills Estate is not called Schubert Estate. If they try to call it that name in Australia, ‘Sue Grabit and Run,’ solicitors to the winemaking gentry would have a field day suing the ass off Australian Vintage Limited. And they would do it quicker than a ferret could shimmy up your trouser leg. I sure don't know about the legalities of the situation in an overseas setting, but it is quite evident that this leopard has not changed its spots and is still happy to engage in corporate bastardry.

I wonder how long it will take until their next name change and what they will call themselves then?

The final words goes to one Riverland grower who said, "Trying to fight McGuigan's is like going to bed with Satan – could be fun if you are a real bastard but for for those who do the real hard yakka it is hardly worth the effort.

From Chris P:

Enjoyed your “Corporate Bastardry” article.

By contrast remember how Peter Lehmann defied the instructions from his then corporate masters to shaft his Barossa growers. Instead he started his own business and honoured the handshake deals he had with them. It’s always a pleasure to support the good blokes in the business.

From Matthew:

Hey Ric, Interesting comments here. I know the guys at Sacred Hill wines in Hawkes Bay NZ quite well. I’ve always wondered how De Bortoli get away with their range named as Sacred Hill. Obviously, registering your trademark across countries is critical. It’s a fairly easy process as I understand it. Have you TM TORB? Maybe some loser may steal it one day!

From David G:

One of the problems is that trademarks and business names laws are for the most part national and you pretty much have to be a multinational to go through the efforts of registering in multiple jurisdictions to protect brand names. Then you must do just that... protect it via nastygrams and the like.

Penfolds, for example, sent a nastygram to Inman Family Wines because of their Olivet Grange Vineyard. Apparently they reached an agreement and it is now OGV on the front label and Olivet Grange Vineyard on the back label only
 

I doubt anyone would confuse the two (OGV is Californian), but they have to be seen to be protecting it.

Of course, the Schubert's are unlikely to have the resources of a McGuigan or a Penfolds.


 

Copyright © Ric Einstein 2008