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 more than 30 company branded retail cellar door stores, but unlike many wine producers it lacked security in its supply chain.”
1847 Winery chief executive officer John Curnow said the winery acquisition provides the company with the certainty that ownership of its own winemaking and storage facility brings.
“Our wines, whilst known and renowned in export markets, are relatively unknown in Australia,” he said.
“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,” he said.
“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 Yaldara deal 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 grapegrowers and winemakers to provide strategic, commercial advice.
“Australia’s wine and food sector is extraordinarily well positioned to market in Asia and has seen major growth in demand,” Davies said.
“Our clients are adapting through strategies and activities to broaden market circles and increase trade.”
Contact: Steve Sampson, general manager
Hunt & Hunt Lawyers
P: 61 2 9391 3007