Gemtree Wines
Gemtree is a family-owned wine producer with a strong focus on sustainability that grows varieties including shiraz, tempranillo, sangiovese, merlot, cabernet sauvignon and chardonnay.
Need
In order to meet the distribution schedule of a US wine company, based in California’s Napa Valley, Gemtree has to make and source enough wine to fulfil the entire year’s order upfront, which increases pressure on its working capital.
Solution
With the full support of its bank, we provided a working capital guarantee, allowing Gemtree to access funding for its upfront production costs.
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.
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
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.
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.
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.
We previously provided a working capital guarantee to support Gemtree’s 2014 vintage, and while its bank continues to be supportive of Gemtree’s bulk export contract, it was unable to provide the finance that Gemtree needed for the 2015 vintage without Export Finance Australia’s support.
With the full support of its bank, we provided Gemtree’s bank with a working capital guarantee, allowing Gemtree to access funding for the 2015 vintage’s upfront production costs from day one of its operating cycle.
And with some new overseas buyers secured and discussions underway for the export of wine through a new online platform, the growth signs are very positive for this South Australian organic winemaker.