A video case study on Burch Family Wines

By Brian Lemay No comments


TRANSCRIPT [VOICEOVER] Australia’s award-winning wines
are among the best in the world, known for their quality, diversity and value. [VOICEOVER] Australian wine is increasingly
popular with North Asia’s growing middle-class consumers, who are developing a taste for
high-end premium products. [VOICEOVER] Australia’s free trade agreements
with China, Japan and Korea will see wine tariffs of between 14 to 20 per cent eliminated. [VOICEOVER] This will open up exciting new
opportunities for expansion and job creation for winemakers across the country, including
Burch Family Wines. [JEFF BURCH] I’m Jeff Burch, the CEO of
Burch Family Wines, a family wine company in Western Australia. [JB] We have three brands: Mad Fish, Howard
Park and Marchand & Burch. And we run a group of vineyards in the Great Southern and Margaret
River and two wineries in Western Australia. [JB] We’ve been exporting for 20 years and
we currently sell to 22 different countries but we’ve focused very heavily over the
last 10 years on Asia – that’s where the growth is, that’s where the future is. [VOICEOVER] Burch Family Wines is already
benefitting from the free trade agreements with Korea and Japan. When the Korea Agreement
entered into force, the 15 per cent tariff on wine was immediately eliminated. [JB] The Korean free trade agreement had an
impact when it was announced. Suddenly our importer was a lot more receptive, he was
talking to us, he was coming down. [JB] We’ve already noticed a 50 per cent
increase in sales on the back of the free trade agreement and I think there’s a lot
more we can do. [VOICEOVER] Japan is also a growing market
for Australian wine. The Japan Agreement will phase out the 15 per cent tariff on bottled
wine. [JB] Japan historically for us was a relatively
small market but we’re now seeing much greater interest from larger distributors and trading
partners and we are in discussions with them, so we’re very, very encouraged with the
development there. [VOICEOVER] Building on its growing success
in Japan and Korea, Burch Family Wines is now focusing its attention on another lucrative
Asian market with enormous potential. [JB] The big prize for us is China. [JB] When I’m in China talking to government
people and business people who are all very connected to the government, they are seeing
the opportunities and moving in a direction to capitalise on those opportunities, and
I think that’s very exciting. [VOICEOVER] China is one of Australia’s
largest wine export markets. Exports are expected to grow under the China Agreement, as tariffs
of up to 20 per cent are phased out. Burch Family Wines is preparing to take full advantage
of the agreement. [JB] We’ve put a lot of resources into the
market with our brand ambassador in Beijing, many more trips to China, we’ve invited
a lot of the Chinese distributors down to Margaret River and we’re positioning ourselves
for the next few years. There’s strong interest in wine in China and there’s a strong need
for education and that’s what we’re doing as part of our branding. [JB] The government has created the opportunities
but it’s up to the individual businesses to now do the hard yards. The free trade agreement
is a fantastic opportunity for Australian businesses to get out there and have a serious
go. We’ve now got a level playing field, we’ve got great interest from our trading
partners but it’s up to the business community in Australia to get off their backsides and
get out there and have a go at it. [END TRANSCRIPT]

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