Australia’s wine industry is globally renowned for the quality of its produce. Almost 60 percent of locally produced wine finds its way overseas to customers in more than 110 different countries, according to Wine Australia’s March 2024 Export Report.
These exports account for a significant portion of the local wine industry’s success and continue to provide new opportunities for growth and expansion.
Unfortunately, many wine businesses face difficulties funding global growth.
One reason for this is lengthy payment cycles and the impact that international trade can have on cash flow.
Implementing a global marketing strategy and shipping bottles of wine abroad can quickly put a strain on working capital.
This problem is also exacerbated by fluctuations in foreign exchange rates.
To offset these challenges, wine businesses need access to quick, reliable financing that provides them with the liquidity and capital they need to enter new global markets when the opportunity presents itself.
Seizing global opportunities
South Australian vigneron and winemaker Bec Hardy founded Bec Hardy Wines in 2015, continuing a family tradition that stretches back over 170 years. Nestled in McLaren Vale, Bec Hardy Wines produces a range of wine varieties, including Shiraz, Sauvignon Blanc and Merlot.
In 2020, Bec and husband Richard Dolan – co-founder and director of Sales and Marketing – began exploring new export markets. They soon found themselves discussing three opportunities with major US retailers.
At the same time, they also secured a separate deal to sell 400,000 bottles to an Australian online retailer.
Delivering on both the Australian and international contracts would require a significant increase in inventory, and financing to fund it.
Rather than simply choosing one opportunity, Bec Hardy Wines was able to secure the funding it needed through Export Finance Australia and provide wines to both the Australian online store and new customers in the US.
“Without the finance from Export Finance Australia, those profitable opportunities just would not have happened – it’s as simple as that,” Richard said.
“We would have been forced to choose between one profitable domestic transaction or three profitable export transactions.”
A perfect wine pairing
As Australia’s export credit agency, Export Finance Australia supports wine businesses with the finance they need to grow globally.
Export Finance Australia has teams based right around Australia, and they take the time to get to know their customers. They understand the Australian and global wine markets and work together with Australian wine businesses to match their export-related finance needs with the right finance solutions.
For wine businesses looking for finance solutions to grow globally, there are a range of solutions available. Everything from funding for market development, bulk wine purchases, bottling and packaging, to grape payments and increasing inventory for export – Export Finance Australia could support.
To be eligible for finance, your business must be registered, have two years of trading history and an annual turnover of $250,000 or more, and be able to demonstrate profitable operations.
Speak to the team at Export Finance Australia today. Call 1800 093 724 to find out how the team could support your business, or visit Export Finance Australia’s website to learn more about its finance solutions.
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