Wine exporter opts for own offices

South Africa’s wine
exporters are up against
major competition in
Asian markets where the
likes of Australia and
Chile are making major
inroads, according to
Tim Hutchinson, CEO of
Douglas Green Bellingham
(DGB).
“Australia has targeted
this region in particular
because it’s their back yard
while the Chileans have
some big advantages over
us,” said Hutchinson. “For
example, they pay no duties
when importing into China.”
He said at the same time
countries like Chile were
seeing government and
business working together.
“It’s an extremely integrated
approach to marketing
and growing their wine
exports. If one looks at trade
agreements alone – South
Africa has two. Chile has 17.”
He said in an effort to
grow its footprint DGB had
taken a slightly different
approach. “We are not
taking the traditional agent
and distributor route. Of
course we do use them,
but we have opted to open
offices in the countries to
which we are exporting
and we have employed
local people who have the
experience and knowledge of
that particular market.”
He said it was an
approach that was paying
dividends as the East was
not an easy market.
“It is very diversified
with real barriers to entry
in some countries. Having
local people who understand
these intricate details has
been beneficial to our
growth strategy into this
region in particular.”