A word to the savvy – do not overlook the value of your IP

In June the EIT in Napier held the Wine Business Symposium focusing on Building Wine Brands. The proceedings left a clear message of how important it is to create and protect strong wine brands.

We were told of how some consumers approach the wine aisle with “mild apprehension” or even “blind panic”. Your end consumer may take as little as 2.8 seconds (Brian Richards) to 36 seconds (Tony Spawton) to select wine. Either way, you have a very small window of opportunity to become the chosen one.

There is no doubt that brand “New Zealand” is a strong identifier on the world stage. “Last, loneliest, loveliest, exquisite, apart” – Rudyard Kipling’s evocative description of Auckland (in the poem The Song of the Cities) is still applicable to New Zealand and in part applicable to New Zealand wine.

However, brand “New Zealand” on its own is not enough. As a winemaker your brand needs to be strong enough to stand out in the crowded shelves found not only in New Zealand supermarkets and wine stores, but also in retail outlets in the UK and US where the consumer may not know much about New Zealand. According to NZ Winegrowers Association, the UK, US and Australian markets account for 80% of wines exported from New Zealand. Let’s not forget the emerging middle class in Asia. Wine is a gift given with honour in China and of course the colour red is of great significance in China.

A strong trade mark will distinguish your wine from those of other winemakers. The trade mark must be capable of being represented graphically and may comprise the name of your vineyard, wine maker and/or wine. What does your brand say about you and your product? There needs to be a story, a narrative of place - there is value in provenance. A brand needs to be consistent, have personality, and can become a classic. Is it strong enough to become an icon? A brand evokes emotions, perceptions and memories. Quality. Reliability. Connect with your audience.

Consideration should also be given to any colours and artwork used on your labels, capsules and cases. The wine bottle makes it to the table so the packaging and presentation is vitally important. It has been said that the label sells the first bottle but the winemaker sells the second.

As well as standard trade marks, it is possible to register Certification or Collective trade marks. While an individual winemaker or winegrower is unlikely to own either of these types of trade marks, they are marks that you might qualify to use and which in themselves can be strong marketing mechanisms.

A Certification trade mark is owned by a certifying body and indicates that the goods sold under that trade mark meet an objective quantifiable standard, such as being certified organic or carbon neutral. These aspects of a product are gaining more relevance as the consumer becomes more demanding about the source, process of manufacture and transportation of the products they buy. More and more consumers are demanding traceability. In some markets the retailers are highlighting the “food miles” issue. This need not be a barrier to New Zealand winemakers. There is an opportunity to be taken up and there is plenty of literature to support the counter-view that distance travelled is not as important as the transportation and production method (see for example: ethicalwine.com/carbonfootprints).

Other examples of Certification trade marks that have been registered in New Zealand are the names of various German wine regions such as Franken, Rheingau, Rheinpfalz, Mosel-Saar-Ruwer, Nahe, MittelRhein and Wurttemberg.

A Collective trade mark on the other hand, is a mark used by the members of a collective association. Such a mark may be registered by an association of winemakers in a particular area where all members of the association can label their wine as being from a particular region or sub-region. Examples of Collective trade marks which have been registered for wine in New Zealand include WAIHEKE ISLAND OF WINE and GIMBLETT GRAVELS.

Once registered, a trade mark registration is current for 10 years and may be renewed for successive terms of 10 years indefinitely. Therefore, a registration can become an important asset of your business. However, it is important to note that if the trade mark is not used for a continuous period of three years then it may be vulnerable to removal from the Register at the action of a third party.

A registered trade mark gives the trade mark owner the exclusive right to use that mark and to license other parties to use that mark. Any person who uses the mark without the authority of the registered owner may infringe the registration and such infringing use may be prohibited by the courts.

The Geographical Indications (Wine and Spirits) Registration Act 2006 provides for the registration of an indication that identifies a wine as originating from the territory of a country, or a region or locality in that territory, where a particular quality, or reputation, or other characteristic, of the wine is essentially attributable to its geographical origin. However, this Act has not yet come into force. Once the Act does come into force, it will be possible for both New Zealand and foreign geographical indications to be registered for wine.

As well as creating a valuable business asset, the registration of a trade mark in New Zealand provides another arrow in the quiver to protect your trade mark. The existence of a New Zealand registration also makes the process of registering your trade mark in your export markets more streamline.

New Zealand can and does punch above its weight. Do not be afraid of “premiumisation”. Thanks to Harvey Keitel for reminding us that it is important to take a stand when it counts. It is pleasing to see the industry has set 2012 as the target for sustainability. This will be another important feature to making New Zealand wine stand out from the crowd. The minefield of considerations relevant to a strong brand should not stop you seeking advice on whether you are able to protect your chosen brand as your own.

By Elena Szentivanyi. An edited version of this article appeared in New Zealand WineGrower August/September 2008.