Australia: Supply chain investment to secure wine future
Last Updated: 5 August 2014

National law firm, Hunt & Hunt Lawyers, recently advised 1847 Winery on the purchase of Yaldara Winery and brands from Australian Vintage, signalling confidence in global export opportunities for Australian wineries.

Marc Davies, the Hunt &Hunt Partner leading the transaction said, "Australian wine producers typically find distribution the most difficult aspect of their business, with the Australian dollar above historical levels and an oversupply of wine.

"1847 Winery was different in that it already had a unique distribution model into foreign markets via over 30 company branded retail cellar door stores, but unlike many wine producers it lacked security in its supply chain."

John Curnow, CEO of 1847 Winerysaid, "The winery acquisition provides 1847 with the certainty that ownership of our own winemaking and storage facility brings.

"Our wines, whilst known and renowned in export markets, are relatively unknown in Australia. The Yaldara addition, with its prestigious cellar door facility, now provides an opportunity for greater Australian awareness."

Other recent deals evidence smart buyers are securing their supply chains to support their distribution methods into International markets.

But even the best intentions don't necessarily result in securing a winery, explains Davies."Many negotiations never reach the deal stage."

"Acquisitions have the potential to stall if the negotiations are allowed to become drawn out or protracted, especially in the wine industry. To their credit, both parties took a commercial approach and we were able to finalise the Yaldaradeal in just over two months."

Building the reputation of Australian wine domestically and internationally has been a strong focus for the Agribusiness industry. Hunt & Hunt Lawyers work together with grape growers and wine makers to provide strategic, commercial advice.

Davies added, "Australia's wine and food sectoris extraordinarily well positioned to market in Asia and has seen major growth in demand. Our clients are adapting through strategies and activities to broaden market circles and increase trade."

About Hunt & hunt

Established in 1929, Hunt & Hunt is a vibrant national law firm that delivers tailored legal advice to clients throughout Australia. Our broad client base includes not-for-profit organisations, large and small businesses, government (Federal, State and local), major insurance firms and private clients.

With eight offices across Australia, an office in Shanghai, we employ approximately 60 partners and 400 professionals. Confident in our technical abilities, we build relationships founded on a genuine interest in our clients, characterised by understanding and trust. We have the requisite experience, resources and reputation to support a range of complex legal matters.

Hunt & Hunt is currently embarking on a partnership with the Export Council of Australia (ECA) to determine Agribusiness needs and drivers in South Australia.

Wine industry experience

  • Acted for 1847 Winery on its acquisition of Yaldara Winery from Australian Vintage Limited
  • Advised on the establishment of two managed viticultural funds for Australia's then largest independent grape grower.
  • Acting for buyers and sellers of vineyards and wineries in the Barossa Valley, McLaren valeand Langhorne Creek regions.
  • Advising established wineries on maximising their intellectual property, including advising on copyright and trademark issues.
  • Acted for a Chinese food company in its $120 reverse listing on the ASX.
  • Advising the Barossa Grape and Wines Association Inc. (BGWA) in relation to the preparation and negotiation of an agreement and other legal issues concerning the setting up of the Barossa wine school in Beijing.
  • Advising BGWA in relation to the setting up of the Barossa Trust Mark Inc. whose members are the BGWA, Food Barossa and Tourism Barossa.

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