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Vinarchy, the new newly formed Australian wine giant, plans to benefit from trade tensions between the United States and its neighbors as a request for brands such as Jacob's Creek in Canada and Campo Viejo in Latin America replaces sales of American wine.
Australia wines have merged with Pernod Ricard's wine operations to create the second largest specialist wine Producer worldwide, in an agreement and a name change finalized last month.
The Adelaide based company has an annual turnover of $ 1.5 billion and employs 1,600 people, with 11 vineyards in Australia, New Zealand, South Africa and Spain.
“(The merger) puts us in pole position to deal with the challenges we face as an industry,” said Executive President Ben Clarke to the Financial Times, referring to a low demand and geopolitical tensions that have included China slaps Punitive rates on Australian wine in 2020.
A consortium led by Bain has taken control of the distinction Last year, after the winemaker, which Carlyle bought $ 1 billion (640 million US dollars) in 2018, was lacking on a loan while industry had trouble. He then acquired Australian and New Zealand operations of Pernod Ricard for an undisclosed amount.
Clarke underlined Canada, where American alcohol is in disgrace in reaction to Donald Trump price. “There are not many bottles of American wines on the shelves in Canada for the moment, so we can take advantage of it,” he said.
Jacob's Creek, one of the three main main brands of Vinarchy alongside Hardys and Campo Viejo, is already a solid seller in Canada, where Australian wine represents 16% of volumes – similar to American Africa and South Africa – according to Wine Australia Trade Body.
Clarke said that his Spanish wine brands would also appeal to Latin American customers.
The chair was phlegmatic as to the taxation of a 10% price on Australian goods by the Trump administration, the appellant “clumsy but manageable”.
The American samples come while sales of wine in China began to explode after Beijing raised the 2020 prices last year. Wine Australia said last week that the export value increased by $ 2.6 billion from the year to March, driven by the resumption of trade with China.
According to the commercial organization, more than a 1 billion dollars of wine was dispatched to China during the year, although lower volumes than before the introduction of prices, according to the commercial organization.
Clarke said there was an opportunity for growth in China, but that country demand like Japan, South Korea and Thailand has remained strong. Australian producers have extended to these markets after the deadline of Chinese demand.
The president of the Vinarchy said that the new winemaker would focus on the integration of merged companies, which will allow dozens of smaller and non -profitable brands in the process, but it would also seek to develop through acquisitions.
“We see real opportunities in world wine,” he said.
