3 November 2005
IN PALLISER ESTATE’S RECIPE FOR SUCCESS, INTERNATIONAL STANDARDS ARE AN ACCLAIMED INGREDIENT. STANDARDS ARE A “PASSPORT TO TRADE” IN WORLD MARKETS, AND HAVE CONTRIBUTED TO PALLISER’S VISION, GROWTH, AND RESOLUTE ENVIRONMENTAL POLICIES.
“If we don’t protect our environment now we won’t have an industry in the future.”
ON 85 SUN-BAKED Martinborough hectares, five varieties of Palliser wine are produced under two internationally recognised labels: Palliser Estate and Pencarrow.
But when Managing Director Richard Riddiford invested in Palliser, he never dreamed that 20 years later he’d be exporting a global brand to 18 countries.
“We suddenly discovered that we could make great wine and that we could export it to the world,” says Richard. “Now we are a growing, successful, profitable company and our product is hugely successful globally.”
Their goal is simple - to be the best winery of its type in the world. “We can’t just have a good product, there’s a whole lot of good wine out there. We must have a world-class product to succeed. Our KPI is what’s in the glass.”
But the next important step, he says, is to ensure that every other part of the business matches the quality of the wine.
Achieving Quality Management through ISO 9001
Palliser was the first winery in New Zealand to be accredited with the quality management systems Standard, ISO (International Organization for Standardisation) 9001, in 1994.
“We like to lead rather than follow, and we saw a lot of value in implementing good guidelines,” says Richard.
A few years later, Palliser was the first winery in the world to adopt the international environmental management Standard (ISO 14001), which led them towards the journey to zero waste.
ISO 9001 and ISO 14001 are now being implemented by over 630 000 organisations in more than 150 countries. ISO 9001 is an international reference for quality management requirements, focusing on customer satisfaction and continual organisational improvements.
“ISO 9001 has helped us examine and document everything. Before then, our people tended to carry systems in their heads,” says Richard.
He describes ISO 9001 as a necessary discipline, which forces you to have a good look at your business processes and how they can improve.
“Having a manual is crucial for the future, and the external audits associated with ISO don’t scare us. They’re a good source of new perspective and experience.”
Richard admits that implementing a new Standard can be time-consuming, but it saves time in the long run and makes running a business a lot easier.
“If you take the time to begin with, it will alter the entire culture of the business for the better.”
Improving environmental performance through ISO 14001
The environmental management Standard, ISO 14001, is all about minimising harmful effects on the environment.
ISO 14001 is now deeply ingrained in Palliser Estate’s culture and vision, and their environmental policies are inseparable from their brand.
Every bottle refers to Palliser’s policy, which focuses on environmental sustainability, quality and a commitment to zero waste.
“There are good economic arguments for doing every single thing we can to protect, enhance and improve our environment … and in our hearts we simply know this is the right thing to do,” says Richard.
In commercial-speak, embracing ISO 14001 is described as an entry price into world markets.
“Complying with the Standard is our passport to trade, and with more than half our products exported, this is essential.”
As Richard says, most New Zealand export earnings are land or water based, and most industries trade on the ‘clean green’ image…but how many actually live it is questionable.
“If we don’t protect our environment now we won’t have an industry in the future. The start point is that our environment matters - to all New Zealanders, to most exporters, and to the wine industry. We are completely dependent on the land, the weather, the soil and water.”
“We try to walk the talk, not just talk it. If we’re serious about ‘clean green’, we all have to do our bit.”
What this involves in practice for Palliser includes:
- doing everything they can to reduce any environmental impact from all their processes and inputs;
- maintaining water and air quality;
- reducing energy and material inputs;
- using environmentally sustainable pest,
- weed and disease controls; and
- ensuring all packaging materials are recyclable or biodegradable and implementing their own recycling procedures.
Palliser’s environmental commitment has cost them around $50,000 over fi ve years. And the journey to ‘zero waste’ is not without other barriers, among them double standards, inefficient local authority recycling facilities, and the fact that consumers may not be willing to pay a premium for environment-friendly products But there’s no question as to whether it’s all worth it.
“We want Palliser wine to be recognised as top class wine from a genuinely clean-green environment in 50 years time.”
Customers, he says, are buying an experience. “We tell the story of a small New Zealand winery doing the right thing for its environment and for generations of wine lovers to come.”
And Palliser is now challenging the entire New Zealand wine industry to do the same.
“There is simply no argument against environmental sustainability and zero-waste. The wine industry has everything to lose if it gets this wrong, and doing nothing is unacceptable.”
It is clear, as far as Richard Riddiford is concerned, that there is no place for mediocrity.
“Some call zero waste ‘an outrageous target’ but that’s fine with me. Palliser’s goal of ‘being the best winery of its type on the world’ is equally ambitious."