Australian Wine exporters toast a venture ripe for success in China
Vinternational directors Hamish Baldwinson Stephen Millar and Paul Zerella. Source: AdelaideNow
STEPHEN Millar's return to the wine industry through distribution company Vinternational is bearing fruit.
The former BRL Hardy and Constellation Wines Australia chief executive, alongside chief executive and son-in-law Hamish Baldwinson and winemaker Paul Zerella, is targeting the export of 100,000 cases of Australian and New Zealand wine this year on top of 100,000 to 200,000 cases expected to sell domestically.
Vinternational markets and distributes branded wine made at Langhorne Creek Winery, now called Project Wine. In the past year, it has sold brands such as Three Pillars, Parson's Paddock and New Zealand-sourced Kiwi Walk, in Australia through retailer Coles.
Wineries and grape growers have been hurting as export demand for Australian wine has flagged in recent years on competition from other New World wine countries and because of the strong Australian dollar.
Profit or loss from making and selling the wine was shared by grape growers providing the fruit and the company, Mr Millar said.
Mr Baldwinson, BRL Hardy and Constellation Wines Australia's export manager for Asian markets for 10 years until August 2009, is using his industry contacts, particularly in China, Japan and Korea, to build the company's export success.
"The beauty of the joint-venture arrangement is this gives growers a fighting chance to get a return rather than leaving grapes on the vine. We're saying pick your fruit and we'll jointly sell the wine," Mr Baldwinson said.
"We're sharing the upside and downside. I'm spending a fair bit of time on the road . . . there's nothing like face-to-face.
"Response has been very positive."
Mr Millar said the biggest opportunities in the short term were in Asia and Australia for Vinternational's focus for wines priced from "entry level" $5.99 to premium $14.99.
Project Wine, already a contract winery and storage facility for Orlando and other wineries in SA, New South Wales and Victoria, also makes about 20 wine brands from several areas.