$10M EXPORT DEAL FOR SIRROMET

Written on the 23 July 2010

$10M EXPORT DEAL FOR SIRROMET

SIRROMET Wines will double its growth and export volumes to China following a four-year deal worth up to $10 million with a major Chinese distributor.

The winery exports 120,000 bottles into China annually with that figure likely to double over the next 12 months. The wines average $27 per bottle.

Sirromet national sales manager Rod Hill, says the deal will overtake domestic sales as the winery creates a niche in Asia for its premium brands in the Jiangxi Provence with the Dong Run Investment Holding Company.

“The deal will significantly add to the growth prospects of Sirromet wines and continue to build Dong Run Investment Holding Company’s reputation as Jiangxi Provence’s leading distributor and retailer,” says Hill.

Sirromet owner Terry Morris, says the deal will potentially open up broader opportunities in China as the company tempts the tastes of the discerning Chinese and fast emerging middle class.

“It’s terrific and the flow-on effect from this will give Sirromet exposure in other provinces also. They have embraced it and love the prestige that comes with the wine,” says Morris.

The agreement follows a trade delegation to China in May with Morris, Hill and Sirromet export manager Jenni McDonald.

Dong Run Group is one of the largest business groups in Jiangxi and covers department stores, retail, wholesale, international trading, property, hotels, logistics and construction.

The department store of Dong Run Group is similar to David Jones of Australia with the wholesale trading section sole agents for many world famous commodities in Jiangxi, such as Colgate, Procter & Gamble, Heinz, Hennesy XO and other leading brands. Sirromet now joins the list.

Chairman of Dong Run Group Jing Lin Zuo (pictured with Morris), visited the Mt Cotton winery last week with the director of the Pastoral Trading Company Luming Huang.

“Both parties are very happy with a very bright future ahead,” says Zuo.

While the offshore arrangement caps a stellar 10-year anniversary for Sirromet, its domestic visibility is a consistent challenge, as Queensland restaurants opt instead to stock southern wines.

“The domestic market is something that we’re working on, but Queensland restaurants have constraints and southern wines vigorously defend their market share. Obviously we would like to see Queensland restaurants stocking wine from the Granite Belt,” says Morris.


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter