MEDIA RELEASE 25 August 2005
Wineries benefit from barter during industry crisis
As the wine industry faces uncertainty with a 15 per cent drop in domestic
wine sales, barter continues to provide an effective business solution for
wineries looking to manage problems such as excess supply of grapes and wine
stock.
Business Barter Exchange (BBX), one of the largest exchanges in the country,
operates BBX Vines Online, which specialises in servicing the wine sector by
providing a channel through which wineries can sell their product to the
restaurant and hospitality market through barter, or the use of trade dollars
($T).
A total of 1,800 cases are currently in stock and over T$2 million of wine has
been sold through barter transactions in the last two years. Six new wineries
have recently joined Vines Online, including Rubicon Vineyard.
David Lonergan from Rubicon Vineyard in NSW, who sells a 2004 Semillon and 2004
Red Blend, says that barter provides wineries with new business opportunities.
“Since joining Vines Online I’ve been very impressed with the increase in my
customer base. I never dreamed my wine would be served in a good restaurant on
the Gold Coast and now we have a substantial market there,” David said.
“I’m reaching a lot of markets that traditionally I wouldn’t even get near.
“Another example is that I’ve been selling wine to restaurants and other BBX
members in Adelaide, the centre of the wine industry,” said David.
Barter is much more sophisticated compared to its original form, with a trade
exchange using trade dollars to assign value to the transactions that take place
between members of the exchange.
This means that rather than using cash, David can use trade dollars to pay for a
number of goods and services for his business and personal use.
“The great thing about barter is gaining access to a number of people from all
types of businesses.
“Through BBX, I’ve been able to update our computer system and business website.
I’ve also used trade dollars to pay for signs for the vineyard,” David said.
“I recommend BBX Vines Online as an effective and unique way for wineries to
balance their selling activity, especially in these troubled times,” he said.
Ronnie Tarbert from BBX believes that Vines Online is a good solution for
wineries that are finding it tough.
“As an alternative selling channel, barter trade can overcome the current
problems of excess supply and limited retail outlets,” Ronnie said.
BBX debuted on the Australian Stock Exchange on 12 August following a successful
IPO, which closed oversubscribed and raised $6.85 million. Now in its 13th year,
BBX has branches throughout Australia and New Zealand, catering for about 4,400
member businesses that trade their goods through the exchange. BBX can be
contacted at its head office on (02) 9476 6655.
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Released for BBX by Dennis Rutzou Public Relations.
For further information please call David Lizzio
or Aleks Czerwinski on (02) 9413 4244.
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