Accolade Wines has flagged a desire to list on the Australian or Hong Kong exchange as the company builds up its plans to use its offshore wineries to fill the gap in China’s market left by bans on Australian wine.
Accolade Wines, owner of the popular Hardys brand, was bought by private equity group Carlyle for $1bn in 2018, and is led by former Treasury Wine executive Robert Foye, who said recently the company was looking to a listing within the next few years.
The value of Australia’s wine exports to China crashed 96 per cent in the March quarter compared to the same period in 2020, from $325m to $12 million during the same period this year.
That has hit China-exposed wineries hard, particularly the listed Treasury Wine, with Mr Foye flagging a desire to cut the lunch of his former employer and grow Accolade’s business despite punitive Chinese tariffs of up 220 per cent that have closed access to the market for Australian wineries.
Accolade also sources wines from South America, Europe and New Zealand, and Mr Foye told the Financial Times this month he believed the private equity-backed company could grow its business in China substantially as the country’s middle class expands.
A Hong Kong listing would perhaps be more likely to support that strategy, and Accolade would also likely need to expand its ownership of overseas wineries before it could provide enough volumes to make real inroads into China.
Accolade has already signalled its acquisitive nature under Mr Foye’s leadership.
In March it snapped up Rolf Binder Wines in the Barossa Valley in a deal believed to be worth about $20m, and flagged a desire to scoop up more local brands to swell its portfolio.
Since Mr Foye took charge of the company, Accolade has also bought Katnook to add to its stable of premium wineries which includes Grant Burge, St Hallett, Petaluma, Banrock Station as well as brands such as Hardys, House of Arras and Jam Shed.
In March Mr Foye said had experienced strong growth in the first half, with the company targeting earnings growth of around of 25 per cent in the current fiscal year.
Anglo ready to announce winner of coal mine auction
A decision by Anglo American about its Queensland-based coal assets is believed imminent, a week on from when final bids were due.
KKR seeks to offload Colonial First State stake
KKR is understood to be creating a data room for at least one prospective trade buyer to consider the $3bn-plus wealth management business, Colonial First State.