Brown Brothers harvest new opportunities in Asia, …

Brown Brothers harvest new opportunities in Asia, …

A rapid reset allowed Mirawa winemakers to recover their export revenues

One of Australia’s oldest winemaking families has emerged from a serious trade crisis with new sales and new partnerships in major emerging wine markets.

Mirawa-based Brown Brothers lost one of its largest markets when China imposed high tariffs on wine exports to the country. This is a recurring story at almost every winery in the country that handles exports.

King Valley Winery will not make a single sale to China in 2021, but a quick pivot to other markets means that everything will not be lost.

“Our exports were very strong in Singapore, South Korea and the United States,” said Dean Carroll, CEO of the Brown Family Wine Group. “We are the place we thought it would be, before tariffs, and that’s great.”

The encouraging results of the Brown Brothers are also thanks to the Australian Trade Promotion Agency. Agencies have responded to trade turmoil by rapidly expanding their services to support Australian agribusiness exporters through agribusiness expansion initiatives.

“The Australian Trade Promotion Agency has access to information that businesses may not have access to or may have difficulty accessing,” says Carroll. “They introduced us to distributors, helped coordinate government agencies, and shared knowledge to help them overcome challenges in foreign markets.

“That’s why the Australian Trade Promotion Agency is a valuable resource. Building a brand in a field you’ve never been to can be costly, time consuming and difficult. It’s a great benefit to research and make connections to get people to talk.

Quickly reset to recover lost business

Brown Brothers was trying to win a 20-year investment in China when it announced that it would impose tariffs on Australian wine exports.

“We were disappointed and frustrated,” says Carroll. “We were working very hard, and it was taken away for reasons beyond our control. But you have to keep it going. The world is a big place and I had to find the next opportunity to reset my export business. “

Brown Brothers quickly turned its attention to the United States and has been exporting since 2016. Winemakers wanted to bring Tasmanian wine to market for some time, but supply was limited. Wines that used to be for China are now heading for the United States.

“Our Devil’s Corner and Tamarridge wine first shipments arrived in early 2021,” says Carroll. “We are already looking at new opportunities for the Brown Brothers brand.”

Watch virtual events to find new partners

Brown Brothers has been exporting the brand of the same name to South Korea for 6 years. He was keen to introduce softer and sweeter wines to young consumers in South Korea’s famous and sophisticated market.

“Korea is an influential leader in music, television, film, fashion and lifestyle,” says Carroll. “We want to build a solid foundation here, so we can benefit from their positive impact on other Asian markets.”

Leveraging this new consumer segment was difficult when starting from scratch. Brown Brothers had to figure out who these consumers were and how to connect with them. We also wanted to partner with other distributors for additional brands we would like to bring to South Korea.

According to Carroll, it’s difficult to research the market and meet new partners when traveling abroad is banned.

The Australian Trade Promotion Agency has responded that it will invite Brown Brothers to a virtual business matching event in late March 2021. Winemakers have a long history of embracing innovation and wanted to try this new way of connecting with overseas partners.

Brown Brothers spent 20 minutes each with five potential distributors. The winemaker explained the source of the wine and walked through the tasting notes while the distributor sampled the product in real time.

After introducing virtual legwork, wineries are beginning to enjoy sweet success in new and important markets.

“These referrals were very helpful and led to a new distributor under the Tamar Ridge brand,” says Carroll. “We received our first order a few weeks ago. These products will be available online and on-premises, two channels used by young consumers.

Adopt a long-term perspective on market development

Vietnam is another market pioneered by Brown Brothers. With a history of the French colonial era, this country has a good understanding of wine. Taxes on alcohol and excises have been reduced, and market competition is intensifying.

“Vietnam attracts many tourists who understand wine on a local basis, so it will be a strong market in the future,” says Carroll. “Like South Korea, we believe that young consumers will drive the Vietnamese wine market and are aggressively targeting.”

When the Brown Brothers said they wanted to increase their presence in Vietnam, the Australian Trade Promotion Agency provided immediate assistance. The agency provided market information and worked with Wine Australia to provide the opportunity to meet new buyers.

“The support of the Australian Trade Promotion Agency has been very helpful, as the market is still quite immature and it is difficult to find market data and distributors,” says Carroll.

“In decades of experience in the wine industry, we have never met a trading agency as aggressive and commercial as the Austrade,” adds Bruno Baudley, general manager of the export market. .. “Spanish and French trade promotion agencies are not very active. The staff are also very manageable and truly enthusiastic about their support.

Leverage the knowledge of distributors

According to Carroll, wine exporters need to find a distributor who is willing to help them understand the market when establishing a business.

“We have wines that are important to us and we try to lead them, but we listen to the advice from our distributors,” says Carroll. “If they say that the Pinot Grigio market is more acceptable than Moscat, they understand the market better than we do, so we adopt it.”

Invest in the future

Brown Brothers will continue to invest resources in the underdeveloped parts of its business, such as Japan. We have been working with the same Japanese distributor for over 10 years and are ready to increase exposure and expand partnerships.

Winemakers are in contact with Chinese distributors to maintain TMALL’s flagship store. It employs Chinese people working on opportunities to keep the brand alive. “We still think it’s important to have a presence in the market,” says Carroll.

“Brown Brothers has been family-owned since 1889. The expansion and diversification of the export market will help ensure that we are here for another 130 years.”

Help your business go faster

The Australian Government has provided approximately $ 73 million to assist Australian farmers, fishermen, forestry workers and other food and agribusiness exporters.Australian Trade Promotion Agency Service scale-up As part of an agribusiness expansion initiative.

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About the Australian Trade Promotion Agency

The Australian Trade Promotion Agency (Austrade) is the Australian Government’s international trade promotion and investment attraction agency.

We provide companies with quality trading and investment services to grow Australia’s prosperity. To do this, we generate and provide market information and insights, promote Australia’s capabilities and facilitate connectivity through our extensive global network.

To discover how we can help you and your business Alternatively, please contact us at 13 28 78 (Australia).


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Australia turns China into WTO over wine obligations

Australia turns China into WTO over wine obligations

The government has filed a formal complaint with the World Trade Organization over the imposition of China’s anti-dumping obligations on Australian wine exports, the government announced on Saturday.

The decision to “defend Australian winemakers” follows another Australian WTO action protesting China’s tariffs on Australian barley, in line with the government’s “support for a rules-based trading system.” It was stated in a statement.

However, he added, “Australia remains open to working directly with China to resolve this issue.”

The move is the latest in an intensifying struggle between Australia and its largest trading partner, by Prime Minister Scott Morrison to countries where his government seeks to use “economic coercion” against it. Follow the warning to respond.

This action also took place just a week after a group of seven countries repeated Australia’s demands for a stricter position on China’s trade practices and its more aggressive attitude globally.

Beijing has imposed strict economic sanctions on various Australian products in recent months, including imposing tariffs and using destructive practices in some agricultural sectors such as coal, wine and tourism. ..

Many in Canberra have opposed the measure against Beijing’s operation to exert influence over Australia, refused to invest in China in sensitive areas, and publicly investigated the origin of the coronavirus pandemic. I believe it is the punishment I asked for.

The G7 Summit ended on June 12, with a US-led plan to counter China’s $ 1 trillion Belt and Road Initiative. This is a hallmark of efforts to expand economic influence around the world.

The group has promised hundreds of billions of dollars in infrastructure investment in low- and middle-income countries in the Build Back Better World (B3W) project.

The B3W was seen as head-on to compete with China’s widely criticized efforts to support small countries with unmanageable debt.

Morrison attends the summit as part of the G7 Plus formula, which also includes leaders from South Korea, South Africa and India, revealing that it calls on other countries to take joint action against China’s aggressive trade policy. Did.

“The most practical way to deal with economic coercion is to restore the World Trade Organization’s binding dispute resolution system,” he said in a speech shortly before the summit.

“If there is no effect on coercive behavior, there is little incentive for restraint,” he said.

Morrison received clear support in a government confrontation with China from US and French President Emmanuel Macron during his visit to Paris after the G7 meeting.

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Canberra Vineyards Start Exporting Wine to Southeast Asia …

Canberra Vineyards Start Exporting Wine to Southeast Asia …

April 2021

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The pandemic hit just as Shaw Wines’ plans to expand Asia got off to a good start. Premium family-owned vineyards wanted to build exports across Asia when COVID-19 stopped traveling and China imposed new trade measures. The owner, Graeme Shaw, did the following remotely with Austrade:

  • Find a reputable distributor in Singapore
  • Research markets throughout Asia
  • Conclude a multilateral contract.

Shaw Wines’ Riesling, Merlot and Malbec will soon be available in luxury hotels and wine shops in Singapore, Thailand, Malaysia and Vietnam.

“I might have tried to do this myself, but it would have been difficult,” Graeme says. “It’s difficult to build trust without meeting with our export partners. In difficult situations, Singapore’s Austrade has been very helpful.

Devise an export strategy in partnership with the Australian Trade Promotion Agency

In 2019, Graeme began working with TradeStart and Austrade to devise an export strategy for Southeast Asia. Canberra-based Shaw Wines has already exported to China and has experimented with several sales models, including mini-program sales via WeChat. Graeme sought insight into what works best in Southeast Asia.

“The trade adviser understood that I wanted to go gradually,” says Graeme. “We have decided on Singapore as our first market. Singapore has a mature wine market and is the gateway to expansion into Southeast Asia.”

Graeme and his advisors considered finding an established wine dealer to be the best first step. In March 2020, when the pandemic finished its international air travel, Graeme was about to leave for Singapore.

Remote work with Singapore-based trade advisors

Instead of delaying the plan, Graeme began working closely with Ryan Solomon, an adviser to the Singapore-based Austrade Agency. With industry contacts, Ryan began identifying potential partners.

“Ryan knew the right person to talk to, and he came up with a good list of distributor candidates,” Graeme says. “He talked with many distributors on my behalf, evaluated his abilities, and shared his thoughts.

‘The trade adviser also looked up the credentials. This was very important to us. I had to make sure I had Shaw Wines at hand. The brand’s reputation is very important as our wines have won over 1000 medals and trophies at international festivals.

How to find the best distributor

TradeStart and Austrade advisors have worked together to arrange a series of WebEx calls with four potential distributors. This allowed Graeme to understand how a potential distributor suggested selling his wine and controlling his brand.

“This was an important decision for us because we trusted our brand with our new partners,” says Graeme. “All four distributors were great. It was a testament to the foundation of the Australian Trade Promotion Agency in Singapore.”

Graeme says he was familiar with the Singapore market and found it worthwhile to have Ryan attend the conference.

“Ryan had a question that I probably didn’t even think of,” Graeme says. “This meant that we were always identifying risks and making sure they were under control.”

Use high-end tourism to increase brand awareness

Shaw Wines chose Cornerstone Wines, a well-established distributor. The company is part of Hock Tong Bee (Private) Limited, one of Singapore’s oldest and largest independent wine and spirits companies and an increasingly important regional player.

With relevant commercial expertise, the Australian Trade Promotion Agency helped Shaw Wines conclude a contract in February 2021. Through the partnership, Shaw Wines will be gradually sold in Singapore, Malaysia, Indonesia, Thailand, Myanmar, Cambodia, Vietnam and Laos.

“At the beginning of 2021, I was approved for the first export without stepping into Singapore,” says Graeme. “Currently the amount is small, but our goal is to grow steadily.”

Tourism plays a major role in brand development. Some of Shaw Wines’ existing strategies include skipping visitors from Sydney to the vineyards to provide a great gourmet experience. Graeme will extend its vision to visitors from Asia when international tourism resumes.

“We are increasing brand awareness by opening the doors of vineyards and cellars to high-end tourism,” he says. “Singapore is the target of this strategy. Over time, international tourism will help us market our brand in Asia.

Why work with the Australian Trade Promotion Agency?

Graeme recommends working with the Australian Trade Promotion Agency and TradeStart for similar companies or SMEs who wish to expand into Asia and require on-site expertise. He says this is especially valuable if new exporters are unable to meet potential customers and distributors in person.

“We worked very well among the three,” he says. “Working with the Australian Trade Promotion Agency has helped us gain confidence in Singapore’s wine market, which is already crowded with hundreds of wines and many distributors.

“We were feeling our way. Austrade helped us find good distributors in difficult times. We are not the only ones to choose distributors. To choose us. Also needed them. “

Graeme reports that the Australian Trade Promotion Agency has provided multiple levels of support throughout the export process.

“Given their market knowledge, the Australian Trade Promotion Agency provides us with good insights and advice on contracts. They help us label correctly and are always very thorough.” Graeme says.

“It’s dangerous to start exporting without visiting a new country and without local expertise,” he adds. “With the help of the Australian Trade Promotion Agency and TradeStart, we took only the calculated risk, which is due to the quality of the people who work together in Singapore and Canberra.”

About the Australian Trade Promotion Agency

The Australian Trade Promotion Agency (Austrade) is the Australian Government’s international trade promotion and investment attraction agency.

We provide companies with quality trading and investment services to grow Australia’s prosperity. This is achieved by generating and providing market information and insights, facilitating Australia’s capabilities and facilitating connectivity through an extensive global network.

To discover how we can help you and your business Or contact us at [email protected] Or 1328 78 (in Australia).


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