MEDIA RELEASE 20 June 2006
BBX wants to buy Australian wine
BBX will expand their barter activities in the wine industry through the
establishment of their Australian Wine Fund. The fund will allow wine producers
to not only trade their wine with Australian BBX members, but to export surplus
stocks to emerging world markets.
Some stocks purchased by the fund may be immediately traded while premium
selected stocks may be held for up to 2 years to be traded direct to restaurants
when they are considered to be at full maturation.
This move comes at an opportune time for Australian wine producers who have been
facing the increasing problem of oversupply resulting in large amounts of unsold
wine in storage.
Tim Creasy, Executive Director at BBX said that the fund will allow wine
producers to sell their surplus stocks into the barter system to increase their
throughput and reduce storage holding costs.
“We aim to purchase at least $1 million worth of wine prior to 30th June and a
further $5 to $10 million in the next six months. We already have an export
order to supply wine stocks into the Chinese market”, he said.
BBX estimates that wine trading will provide a valuable income stream for the
company and could produce up to 30 per cent of their revenue in the 2006/07
David Lonergan from Rubicon Vineyard in NSW, comments that bartering has helped
his business by providing him with opportunities he never knew were possible.
“I’m reaching a lot of markets that traditionally I wouldn’t even get near. I’ve
been selling wine to restaurants and other BBX members in Adelaide, the centre
of the wine industry,” said David.
Mark Apthorpe from Apthorpe Estate also comments on the accessibility that the
wine fund has brought to his business.
“I have a lot of wine to sell and I don’t have to put as much effort selling it
as it can all be done online”, said Apthorpe. “This provides me with additional
funds and contacts with people that I would not usually get”, he added.
Establishment of the Wine fund enables BBX to promote Australian wines to its
franchisees around the world. Since BBX listed on the ASX last August,
applications have been received from Mexico, China, India, Portugal, Kuwait,
Singapore, Iran, Egypt, Lebanon and Armenia. Several informal approaches have
also been received from other countries.
BBX are currently underway with their process of lodging an application for a
wholesale liquor licence with the licensing court of NSW.
For more information regarding the BBX Australian Wine Fund please contact Ron
Tarbet on 0403 672 635 or Tim Creasy on (02) 9476 6655, or visit
Released for BBX by Dennis Rutzou Public Relations.
For further information please call Fiona Pennington or Dennis Rutzou on (02)