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Challenges and opportunities in China

Guy Adams

Guy Adams

Guy Adams’ passport “shows the scars” of countless trips to China and he readily admits that he has only scratched the surface in his nine years engaging with that country. That said, China now represents 65 per cent of the export wine sales of Brothers In Arms, just shy of 40,000 cases annually.

The managing director of the Langhorne Creek winery is off to China again in May for the opening of the Export Growth China initiative – a Shanghai showcase of South Australia’s finest produce and products.

Brothers In Arms has taken on an ‘iconic brand partner’ role with the Export Growth China program and has teamed up with a small company which is producing a frozen health drink in the Murraylands.

Drawing on his past experience in China, Adams will help introduce the small family company to the complex market that is China where opportunities and challenges abound in equal measure.

Adams told Business Insight that Chinese buyers are seeking to understand the background, people and places associated with the products they buy. He said they want to see that there is a narrative behind products and Brothers In Arms, with its 125-year heritage, has a story to tell.

“Of the vines that were the original planting on our property in 1891, the Cabernet sauvignon part of that planting is the world’s oldest, family owned Cabernet sauvignon that is still producing,” Adams said.

“So those vines have some significance and are one of the reasons behind the ‘iconic’ brand.”

Business SA has joined its Chamber of Commerce counterparts nationally to participate in the Export Growth China program that will support businesses to have their products displayed and marketed in a high end showroom in the Shanghai international zone where many Chinese wholesale buyers are based.

Adams said the Shanghai initiative would not only provide exposure for Australian companies but also add credibility to ‘brand’ South Australia and Australia.

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“I think it is important in Asian markets to be seen to have some sort of credibility when it comes to not only our own business but also who we are associated with,” he said.

“I think that’s where the Chambers of Commerce (involved in Export Growth China) will help because it will build that bit more credibility behind us all,” he said.

“We just have to make sure we do the ground work to basically cement where Australia and South Australia are when it comes to a quality base of fine food and product.

“It is all about relationships, all about being seen. China is not an overnight wonder. It takes a lot of shoe leather, a lot of meeting and greeting and discussions to build confidence and trust.

“I’ve been going there for about nine years but I’ve only learnt about 3 per cent of what China is all about. Every time I go I learn something new.”

Business SA chief executive Nigel McBride said Business SA was looking forward to the Export Growth China Shanghai showroom being opened by the Premier Jay Weatherill after the trade mission to Shandong in late May.

The mission to Shandong province – a coastal province in east China with a population of 100 million – on 25-27 May 2015 will participate in the second Shandong-South Australia Cooperation and Development Forum to be held in Jinan and Qingdao over three days.

Further information about the Shandong mission can be found here.

 

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