South Australian winemaker Bec Hardy Wines will soon ship more than 133,500 bottles of South Australian McLaren Vale Shiraz, Adelaide Hills Sauvignon Blanc and Cabernet Sauvignon to major US outlets, after securing the second-largest contract in the world. exporting over the past 10 years of its Pertaringa brand.

The family-owned winery was formed in July 2020 when owners Bec Hardy and Richard Dolan took over management of the Pertaringa brand from Hardy’s father and industry pillar Geoff Hardy.

The eight-employee McLaren Vale-based company struck a lucrative procurement deal last month with the help of its US field consultant Ben von Doussa, whose appointment is partially funded. through a grant from the SA Export Accelerator Program.

It was confirmed the same week that the company had been named Regional Exporter of the Year at SA Premier’s Export Awards, its second export award in 15 months.

The agreement will include 1900 cases of Pertaringa ‘Undercover’ Shiraz and Pertaringa ‘Scarecrow’ Sauvignon Blanc, and nearly 10,000 cases of Pertaringa Lakeside Cabernet Sauvignon 2019.

Dolan tells SmartCompany it is the company’s largest transaction since launching in the middle of last year and the second in the 10 years he and Hardy ran the Pertaringa business before acquiring most of it in 2020.

The deal itself was the culmination of more than 12 months of work, said Dolan, who expects more U.S. deals to be confirmed in the coming months.

It’s a sign that demand for Australian wine in the United States is strong, with Dolan saying American buyers are looking for “value for money that competes very strongly with California as well as a unique and authentic history.”

Bec Hardy Wines exports to 12 other international markets, including Canada, Taiwan, Indonesia, China, Japan, Malaysia, Vietnam, New Zealand, Thailand, Singapore, Luxembourg and Hong Kong.

Canadian exporters account for the majority of the company’s exports thanks to a long-standing relationship, says Dolan, while the company also emphasizes Asian trading partners.

Bec Hardy receiving the Regional Export Award in September. Origin: supplied.

Diversification of export markets pays off for Bec Hardy Wines

Australian winemakers exported $ 2.56 billion worth of wine in 2020-2021, down 10% from the previous year, according to Wine Australia’s latest export report, which also showed volumes exports fell 5% to 695 million liters during the same period.

According to report, the United States was Australia’s third largest wine export market by value and second by volume last year.

While Australian exports have increased significantly to the UK, Singapore, South Korea, Malaysia, Taiwan and Hong Kong, this was not enough to offset a 45% drop in the value of wine exports to China, to $ 606 million, following the introduction of tariffs in 2020.

Export volumes were also affected by three consecutive vintages which fell in 2018, 2019 and 2020.

Dolan says Bec Hardy Wines continues to have strong export relationships in China and has “great confidence and enthusiasm in it as a long term market for Australian wine”.

“We look forward to meeting all of our friends there once we can travel again; we are certainly not good weather friends, ”he says.

However, Dolan says Bec Hardy Wines has also “been wary of over-reliance on any market” and therefore pursued a strategy of diversification, both nationally and internationally. .

“These sales to the United States show that we are executing this plan very well,” he says.

The pandemic presented challenges for a “person-to-person business” like Bec Hardy Wines, as Hardy and Dolan were unable to visit key markets to meet with customers. However, that means the company has explored other options, including finding partners in regions it trusts.

“With the challenge comes the opportunity and the opportunity to think differently – to take different approaches for existing markets and new approaches for new markets,” says Dolan.

As for his advice to other Australian companies looking to enter the US export market, Dolan says it is essential to “know your brand and find a partner there that you are sure is on your side.” ‘wave”.

The company’s US consultant, Ben von Doussa, is from South Australia and therefore understands both the local wine industry and the US market “in terms of taste, trends and nuances of the retail industry. detail, ”explains Dolan.

Dolan also recommends that other exporters make the most of the government support available and have a “solid strategy” that they can execute well.