Distrubutor deal allows winemaker to buy into China
While Chinese interests are buying boutique WA food companies and at least one winery, Australian-based global wine producer and distributor, Accolade Wines, has turned the tables by acquiring a majority stake in a Shanghai-based wine distribution business.
The number one wine company by volume in the UK and Australia, Accolade Wines owns Brookland Valley winery at Wilyabrup and retains the Amberley Estate label and part of the vineyards at Yallingup, although the cellar door complex and some of the vines were sold in 2010 and later rebranded as Aravina Estate.
Its other WA brands include the 175-year-old Houghton label which buys grapes from growers in the Margaret River wine region, Goundrey and Moondah Brook.
A spokeswoman for Accolade, which is headquartered in Reynella, SA, said it was hoped “some of our WA wines will make their way to China as we ramp up (distribution and sales)”.
Accolade chief executive officer, Troy Christensen, said last Thursday acquisition of Shanghai CWC Wine Trading Co Ltd would strengthen the company’s china platform and provide a “springboard” for expansion.
“We already have an established relationship with the business which has been distributing Accolade Wines’ products in China and Mongolia … but we will now be in a position to extend our presence in the market,” Mr Christensen said.
Commercial general manager, Asia, Freddie Choong said Accolade would now have offices in Shanghai and Beijing and expected to rapidly build market position.
“As Chinese wine consumers are now rapidly exploring the world of wine, this acquisition ensures we are well placed to provide an exciting suite of wines, from icons through to premium and commercial wines,” Mr Choong said.
Shanghai CWC Wine Trading manager Bong Ha, who will continue to manage the business, said Accolade had potential to “not only offer its existing wines to Chinese consumers, but to work with us to develop wines specifically for the Chinese market”.
A Wine Industry Association WA study, commissioned by the Agriculture and Food Department, last June identified China and South-East Asia as its primary export market, ahead of the UK, Ireland, US, Canada and some Europe Union countries.
Accolade Wines was formed 12 months ago to operate wine businesses purchased for about $290 million by a Sydney-based private equity fund from New York-based Constellation Brands – at the time the world’s largest wine producer – which divested 80 per cent of its Australian, UK and South African holdings.
Its Australian stable includes Hardys, Banrock Station, Omni, Berri Estates, Stanley, Leasingham, Tintara, Bay of Fires, plus the sparkling brands House of Arras and Yarra Burn. It also owns brands in South Africa, California and New Zealand.
nChinese-owned company Pegasus last year bought 72 per cent of Great Southern winery Ferngrove and is looking to buy out remaining shareholders, and Chinese majority-owned Bright Foods Group on November 30 acquired Margaret River Dairy Company, and a host of other food businesses and brands across Australia, when it purchased Manassen Foods.