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Grape expectations for Origin Wines

The national expansion of wine wholesaler and distributor Origin Wines into New South Wales and Victoria has positioned the unlisted public company well to capitalise on the ever growing $5.5 billion dollar industry.

Predicting the wine glut would return to equilibrium in 2007, the company’s move south from Queensland will maximise its national presence by offering an extensive range of quality Australian products.

Managing Director Scott O’Hara said the company has received a great response from its suppliers, business partners and hospitality members on its national move.

“We believe in the success of the entire supply and delivery chain,” Scott said.

“The national expansion has established a greater number of distribution channels for our suppliers, and is providing restaurants and cafes with wine from some of Australia’s most recognised wine growing regions.

“Our focus is on meeting the growing demands and market shift towards quality Australian wines, and ultimately to provide an innovative and cost effective distribution strategy to get our products to the marketplace” he said.

Directors Scott O’Hara and Adam Miers said they established the wholesale business from their shared interest in wine and in response to the unique opportunities within the wine sector.

“We shared an interest in wine and the synergy of our working backgrounds created a strong management team with great expertise in sales and distribution,” he said.

“Adam was general manager for one of the largest shipping container companies in the Asia Pacific and I was working in large account contract sales.

“We realised there were a growing number of Australian wine producers who had exceptional product, yet due to a range of factors that govern the market, they struggled to get it into appropriate distribution channels.

“This resulted in Origin Wines being formed in February of last year.

“We started the company by investing heavily into it ourselves, and now 12 months later, as an unlisted public company, it is generating a reasonable return. Our financial projections see Origin Wines turning profitable in mid 2008,” he said.

Origin Wines’ future growth plans include tackling overseas markets by undertaking the set up of offices in the US, UK, China and Singapore.

As the fourth largest exporter of wine, and with the 61% increase in wine exports between year 2002 and 2006, Scott said Australia’s global position in the international market ensured the company is well positioned to experience its desired growth rates.

“Since our inception into the marketplace last year, our growth plans have progressed quicker than we had ever anticipated and makes us confident of the future of Origin Wines” Scott said.

“The strength of the partnerships we have built with our suppliers, investors, business partners and clients, along with our clarity of vision, ensures Origin Wines will experience extraordinary growth,” he said.

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