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 Winery said, "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 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 grape growers and wine makers to provide strategic, commercial advice.
Davies added, "Australia’s wine and food sector is 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."