A Fruity Problem

One of Australia’s most well known wine producers was faced with a sizeable problem.  Bottled wine sales had been slow for two years; the coming local harvest was going to be one of the highest yielding in 10 years.  The local market could not absorb the excess supply; the producer had recently expanded into a number of highly competitive export markets and did not want to increase supply to these sales channels.  The producer was being squeezed domestically and internationally.

Research indicated the wine could be sold into third world markets, however the financial impact would be substantial, these markets typically yielding less than half the wholesale price.

Working closely with Active International and our specialist wine consultants, the wine was sold into more than 50 countries, ensuring that as far as possible the price integrity for the brands was maintained.  Through this transaction, Active International was able to pay the wine producer the full wholesale price in a trade credit.

The producer currently uses that trade credit to part pay for media and freight expenditures, for production and trade marketing expenses, both locally and in overseas markets.