Gemtree Wines

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Gemtree Wines was established in 1998 as an extension to the Buttery family’s grape growing business, which had supplied  grapes to wineries in South Australia’s McLaren Vale district since 1980.

A family-owned business, Gemtree has a strong focus on sustainability and has evolved into a successful wine brand that grows varieties including shiraz, tempranillo, sangiovese, merlot, cabernet sauvignon and chardonnay.

Along with producing organic wines from its own grapes, Gemtree also sources grapes from other vineyards within the South Australian region to produce bottled and bulk wine.

An ongoing export opportunity

Gemtree has an arrangement with a US wine company, based in California’s Napa Valley, to supply around 900,000 litres of South Australian wine each year for a popular US brand.

The US wine company is engaged in winemaking, design and packaging, and provides wine and finished case goods to retailers, wineries, restaurants and start-up brands.

All wine supplied by Gemtree under this contract is sourced from premium wine regions in South Australia.

A need for financing

In order to meet the US company’s monthly distribution schedule, Gemtree has to make and source enough wine to fulfil the entire year’s order upfront, which increases pressure on its working capital.

Gemtree’s overseas bank provided working capital support for the vintages delivered in 2013 and 2014, however tightening credit conditions made it more difficult for its bank to approve bank guarantees for foreign companies.

When Gemtree’s Australian bank was unable to provide the finance it needed, due to a limited risk appetite, it referred Gemtree to us for help.

Export Finance Australia’s support ensured we could confidently move
forward with our customer to deliver on this very
important export contract. Christine Seys, Chief Financial Officer, Gemtree Wines.

We provided Gemtree with a working capital guarantee to support its 2015 delivery, allowing it to fulfil this very important export contract and ease the pressure on its working capital.

Gemtree’s ability to deliver on bulk contracts is vital for its export growth, as it builds a strong reputation for on-time delivery to international markets.

Along with expanding its exports into Europe, South America and Africa, Gemtree has a joint venture with Sichuan Taifeng Group in China, which provides an excellent platform to increase Gemtree’s distribution into Asia.

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