Tomich Wines sign $6 million partnership to expand sales in China

Tomich Wines will expand its presence in the Chinese market following a new joint venture called Tomich Newland Beijing.

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Adelaide Hills family winery Tomich Wines has cemented a $6 million partnership with Chinese businesswoman Lin Shao for a new joint venture company called Tomich Newland Beijing.

The joint venture will focus on premium Tomich wine sales, education and tourism.

Since Tomich Wines started selling wine into China in 2007, the company has built up a solid foundation of brand awareness within the market, which has led to the opening of three cellar doors in Shanghai, Chengdu and Chongqing.

Ms Shao, who runs a Beijing media and civil business, pursued the new partnership to capitalise on this brand traction. The agreement will also expand the wine marketing company Australian Winery Network, which was launched by Tomich Wines and partner Tianbo Zhang in 2017.

The Australian Winery Network has led many South Australian wineries on a series of China-focused trade shows across the past two years.

Tomich Wines chief executive Randal Tomich recently signed the agreement with Ms Shao in Adelaide, in the presence of Premier Steve Marshall and Trade Minister David Ridgway.

“It’s always great news when local companies can announce ventures like this,” Mr Ridgway said.

“It’s not only great news for Tomich, it’s great news for South Australian exports.”

The Tomich family run a 320 acre vineyard at Woodside, as well as a tasting room and showroom at Unley.

The company also sources grapes from across South Australia for its wine portfolio.

Mr Tomich, third-generation winemaker, went on his first trip to China in 1992 and the growth in the Chinese market means it now accounts for about of third of Tomich Wines’ business.

“We started doing business in China in 2007,” Mr Tomich said. “In the last three years, we’ve set up an office and warehouse in Qingdao, which is a sister city of Adelaide.

“We see this agreement an opportunity to solidify our presence in China and expand our reach through the five-star channel, positioning Tomich as one of Australia’s favourite brands.”

Mr Tomich said growth in the Chinese market had been consistent, rising by about 30 per cent each year.

“Last year we moved to supplying the upper end of the market, with bottles priced $25 and above,” he said.

He can see great opportunities for continued growth in the Chinese market.

“The custom of drinking wine is very different in China, it’s generally centred around special occasions,” he said. “The preference is also to drink rich but lighter bodied wines.”

The Chinese market is predominantly for red wines, with shiraz and cabernet shiraz in particularly good demand.

Tomich Newland Beijing will officially commence operations from July 1.