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Australian winemaker wants to avoid 218% Chinese prices

Australia’s largest wine producer wants to expand its business in China by using shipments from other markets to avoid taxes imposed by Beijing outside the Pacific.

Accolade Wines, owners of Hardys and Echo Falls, will ship wine from Chile and China to China, which will allow it to be shipped. tax up to 218% set in November after diplomatic disputes erupted.

As a result, exports of Australian wine to China decreased by 96% annually to only $ 12m between December and March, according to data from Wine Australia, a government agency.

The program is part of the Accolade trial that it was bought and Carlyle’s local group of people at a cost of $ 1bn (US $ 778m) in 2018, to further surpass its Australian and UK markets and sell the best wines.

The company is also considering public start-up offerings, in Hong Kong for a possible location.

“We think we can play a bigger role in China,” said Robert Foye, chief executive of Accolade, who acknowledged that the company was delaying China’s decade. an explosion of wine. “I just think [Accolade] he did not have a global management team that knew how to run the business. ”

Foye believes the Chinese wine market could grow for another 15 years due to the general population and the average population.

Accolade, which generated $ 1.2bn a year last year, also promotes sales in Asia, the US and other markets, Foye told the Financial Times.

Matthew Reeves, co-founder of the IbisWorld research team, said small-scale Australian manufacturers were heavily taxed, but one of the country’s largest producers was able to market to the Chinese market. from everywhere.

“Accolade is backed by securities and is therefore a good way to bring in China from other areas,” he said.

Foye, who created China’s successful business venture as Chief Operating Officer at Treasury Wine Estates before being fired for violating internal rules, Accolade compiled a list of demands. The company has products in Chile, the US and South Africa and wants to add the best wines suitable for Chinese bags, like reds and fruits, a sweet taste, he said.

Accolade bought two Australian rivals, Rolf Binder Wines and Katnook Estate, last year.

However, Mr. Foye acknowledged that Chinese taxes are slowing down, because most of the products are made in Australia.

Accolade aims to boost sales in EU and UK foreign markets to 60% of the total group in three years, from about 40% in 2021.

The other manufacturer lost $ 11.6 million a year until June 2020, accounts show.

Business growth doubled in 2020 profits before interest rates, taxes, cuts and recovery, according to Moody’s Investors Service. The accounting agency reduced the parent debt of Accolade to B3 from B2, at a much lower rate, almost a year ago, citing price-fixing, production problems and the coronavirus epidemic.

Mr. Foye said the group predicts 25 percent growth year-on-year by June and is focusing on its market index.

“I want to do an IPO. And that’s what we will do at Accolade Wines. We will do this in the next two or three years on the Australian Stock Exchange or I would like to go to the stock market in Hong Kong.”

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