Certified Legendary Thread China History in the Making

[simba_]

Why?

why? 2016 they called the china expansion a sideshow. 2017 they signed a huge deal with china airlines. 2018 they talk about expanding into japan. they're dickheads

 

[Alberton Proud]

It's a kind of greeting. Used to always see Goth's doing it at the Proscenium.

I miss Enzo's smiling face at the door

 

[Contested Marx]

Or a Chelsea smile.

Or a Hackham Hickey

 

[OneGreatClub]

why? 2016 they called the china expansion a sideshow. 2017 they signed a huge deal with china airlines. 2018 they talk about expanding into japan. they're dickheads

All the while saying mockingly that they will leave China yo Port.

 

[RussellEbertHandball]

Another China story on Landline on Sunday this time about Australian wine, the record quantity being exported to China now over $1bil per year for year ended 30 June 2018. China imports just over $1bil of the $2.7b Australia exports and the industry saw a 55% increase in export sales to China.

The Chinese aren't just drinking in big quantities, they are also buying established wineries as well as buying vineyards from growers, and in Mildura, Shanghai stock exchange listed Weilong Wines have set up a $120m processing plant and planting new vines to supplement their bulk wine production in China. They are looking to have everything ready so they can process 80,000 tonnes of the 2019 vintage from Mildura and other regions.

The Chinese are the biggest grape growers in the world but over 85% of those grapes are table grapes. They have taken to wine like no other country - volume wise the last 20 years. They intend to be the biggest wine making country in the world. They import a lot of French wine and Oz is number 2, but sell at a slightly higher average rate per bottle. And the Chinese have a thirst for reds.

The Barossa Valley is their favoured Oz destination for wine - home of the big bold reds. Port's China game partner Auswan Creek (Swan Wine Group) were mentioned, but Chateau Yaldara purchased a few years ago and preceded by the purchase of a small winery 1847 by the same wealthy investor Arthur Wong, was the main winery featured in the story. They now export 90% of their production to China. I like the part of the story they talk to a wine business broker based in Adelaide who regularly receives calls from wealthy Chinese wanting to buy Penfolds - the winery - not bottles of wine.

I know the club has linked up with an Adelaide Hills winery to help them export to China, - Penny's Hill Winery, I posted the stories back in February on page 293 of this thread and other wineries are using our network established with Mr Gui and the Chinese Chamber Of International Commerce. So looks like no shortage of opportunities for Port to link up sponsors and members who are in the wine industry

Lockhart Road I dont know if the Chinese government has imposed their block on the ABC's website in Hong Kong, but I can't find a written version or twitter post with short video for you to look at if indeed you are blocked.

https://www.abc.net.au/news/2018-10-28/china-invests:-buyers-moving-into-australias-wine/10439294

Edit I found a short story by reporter Prue Adams written on Saturday.
https://www.abc.net.au/news/2018-10-27/china-invests-wine-barossa-valley/10429078

 

[bomberclifford]

The Chinese are the biggest grape growers in the world but over 85% of those grapes are table grapes.

I find this really intriguing. One of my clients is a fruit growing conglomerate out of Renmark and one of their biggest exports is table grapes to China. Their entire business is underpinned by that one product.

 

[VineValerian]

Need to chum up with as many SA wineries as we can to meet demand.

BTW, how does the China connection financially advance us. All these companies we introduce to Chinese investors - are any of them providing anything back to Port in return? Do we levy a commission on any commercial activities flowing from the Oz-China liaison? Are we getting any mega deals happening between Australian and Chinese businesses?

I mean, a 3% commission on a billion dollar business deal amounts to - I think - around $30 mill? Would go a long way towards the Alberton precinct redevelopment and indigenous Academy infrastructure construction

 

[El Zorro]

Need to chum up with as many SA wineries as we can to meet demand.

BTW, how does the China connection financially advance us. All these companies we introduce to Chinese investors - are any of them providing anything back to Port in return? Do we levy a commission on any commercial activities flowing from the Oz-China liaison? Are we getting any mega deals happening between Australian and Chinese businesses?

I mean, a 3% commission on a billion dollar business deal amounts to - I think - around $30 mill? Would go a long way towards the Alberton precinct redevelopment and indigenous Academy infrastructure construction

Fee for service (introductions) plus a commission. I assume the commission structure changes depending on the deal structure and ongoing business model.

 

[RussellEbertHandball]

I find this really intriguing. One of my clients is a fruit growing conglomerate out of Renmark and one of their biggest exports is table grapes to China. Their entire business is underpinned by that one product.

That 85% I stated above includes not only table grapes, but grape juice and grapes used to make raisins. A more accurate statement is that only 15% of the grapes grown in China are used for wine (and fortifieds) production.

Your client has probably taken advantage of a combo of the clean green image advantage Oz has, the growing consumption levels of Chinese middle class as they become wealthier, the free trade agreement which is a big reason why Australian wine exports have more than trebled since it was signed in 2015 and changes in export protocols as driven by the Australian Table Grape Association. Their press release 11 months ago.

http://www.australiangrapes.com.au/news/revised-china-table-grape-protocol-to-yield-dividends/
“The ATGA and the Plant Division have been working solidly over the last 12 months to get in place these important revisions to the 2011 protocol, which will be a real enabler for significant growth for the Australian table grape industry,” said Mr Scott.

At seasons end for 2016/2017 harvest, the Australian table grape exports totalled 106,841 tonnes, worth an estimated $373 million. “China is our largest market. Last year’s harvest saw 40% of our total exports going to markets in China,” said Mr Scott. ATGA now predicts an increase of 20,000 tonnes to China in the next two to three years. “We estimate that with these changes to the protocol, the value of the exports will be worth an additional $100 million to the industry,” said Mr Scott.

The agreed revisions relating to fumigation and cold treatment will allow for exports directly into China. “In particular new markets will be opened up in northern China, servicing what are known as second tier cities,” said Mr Scott. “The revisions to fumigation post-harvest and the introduction of four days cold treatment are a game changer because it will open up a whole new market in China for our growers and they will be able to deliver to market after only 4 days,” said Mr Scott. “Also of note is the move to allow 18 days cold storage at 3 degrees. Previously growers have had to cold store for 21 days at 2.1 degrees,” said Mr Scott. “This change will facilitate greater flexibility in transportation of produce to market and assistance growers to meet customer demands in a timelier manner.” said Mr Scott. The revisions also recognise the Riverland as a Pest Free Area, meaning that growers in that region can now air freight without having to undertake post-harvest treatment.
http://www.australiangrapes.com.au/news/revised-china-table-grape-protocol-to-yield-dividends/

 

[RussellEbertHandball]

Need to chum up with as many SA wineries as we can to meet demand.

BTW, how does the China connection financially advance us. All these companies we introduce to Chinese investors - are any of them providing anything back to Port in return? Do we levy a commission on any commercial activities flowing from the Oz-China liaison? Are we getting any mega deals happening between Australian and Chinese businesses?

I mean, a 3% commission on a billion dollar business deal amounts to - I think - around $30 mill? Would go a long way towards the Alberton precinct redevelopment and indigenous Academy infrastructure construction

Here is what Penny's Hill said about how their deal works

https://www.bigfooty.com/forum/threads/china-history-in-the-making.1128595/page-293#post-54247001

And here is how the CRED E-shop system will work
https://www.bigfooty.com/forum/threads/china-history-in-the-making.1128595/page-323#post-55764781

and
https://www.bigfooty.com/forum/threads/china-history-in-the-making.1128595/page-325#post-55778108

 

[Grave Danger]

 

[Papa G]

Fee for service (introductions) plus a commission. I assume the commission structure changes depending on the deal structure and ongoing business model.

Careful... might trigger a Royal Commission....

Reckon wines and wineries are the last place our China team should be concentrating their efforts tbh. The horse has bolted and every dickhead is trying to get piece of it.

 

[RussellEbertHandball]

Careful... might trigger a Royal Commission....

Reckon wines and wineries are the last place our China team should be concentrating their efforts tbh. The horse has bolted and every dickhead is trying to get piece of it.

?????

If there are Chinese investors looking to buy wineries and there are Australian wineries looking to export wine to China, and SA is the biggest wine producing state, in our backyard, why wouldn't we look at linking up the two if there is an opportunity and we can get a commission from that? Its not as if the club is spending all its time trying to market a winery to an investor like that wine broker from Langely & Co. in the Landline story. They are spending time trying to link people within our network. Just like the Penny's Hill deal. It might be worth $30k - $100k which is better than nothing, and would require bugger all time from one of our corporate sales guys.

The wine stuff links in with selling the Oz and South Oz life style stuff and other business opportunities. Its a small part of a lot bigger picture. Wine is a good front door product. The wine industry basically marketed - Australian Sunshine in a Bottle - lifestyle to the world in the 1990's and 2000's especially to North America, UK and Scandinavian countries before China became a behemoth. It marketed the Oz lifestyle and culture to the world. Isn't that basically what our China strategy is trying to do?

 

[Doctor Feel]

Careful... might trigger a Royal Commission....

Reckon wines and wineries are the last place our China team should be concentrating their efforts tbh. The horse has bolted and every dickhead is trying to get piece of it.

This. I've been doing a fair bit of work with Wineries and there are only a few independent wineries that are worth anything. The rest are already owned by the big staple goods companies like Woolworths.

Woolworths may be interested in exporting the wine, naturally - but none of these connections need to be facilitated by us. Woolworths is more than capable and China already know what they are doing in this regard. So we wouldn't be offering anything these guys already aren't doing. We've got to look elsewhere for i'm afraid.

Accolade wines probably one of the few independents worth a damn. It's a shame Coopers aren't really interested in exporting and growth, most of their funds go towards product testing and achieving 'perfection' apparently. Well, that and funding the lifestyles of the now thousands of Coopers who receive a share of the company at age 18.

One of the only brewers in Australia that aren't owned by ******* Lion Nathan.

 

[El Zorro]

Careful... might trigger a Royal Commission....

Reckon wines and wineries are the last place our China team should be concentrating their efforts tbh. The horse has bolted and every dickhead is trying to get piece of it.

A few Chinese business migrants own small wineries or wine export businesses as they need to show legitimate businesses activities, including investing, employing staff in Australia, etc. It's natural for them to export to China. I'm not sure how serious they are and how profitable these businesses are. They are low hanging fruit but not sure if they are a target for the club. There were a few in attendance at the China business networking events organised by the club.

 

[Lockhart Road]

Reckon wines and wineries are the last place our China team should be concentrating their efforts tbh. The horse has bolted and every dickhead is trying to get piece of it.

Small beer as far as I’m concerned.

Our China Strategy is all about securing the Club’s future.

Lots of small deals that require more work and higher maintenance in common or garden products is not going to secure anything; fewer very large deals in specialist areas with bigger lump sum revenue will.

 

[RussellEbertHandball]

Small beer as far as I’m concerned.

Our China Strategy is all about securing the Club’s future.

Lots of small deals that require more work and higher maintenance in common or garden products is not going to secure anything; fewer very large deals in specialist areas with bigger lump sum revenue will.

Those big deals wont happen in Oz. Its why, as you have argued, we need people on the ground in China with relevant China business experience of at least a decade long. I dont think the club gets it or wants to risk it. But if our corporate team in Adelaide can rack up a few $30k-$100k deals it all helps. They aren't the ones who are going to land the big fish.

 

[Lockhart Road]

Those big deals wont happen in Oz. Its why, as you have argued, we need people on the ground in China with relevant China business experience of at least a decade long. I dont think the club gets it or wants to risk it. But if our corporate team in Adelaide can rack up a few $30k-$100k deals it all helps. They aren't the ones who are going to land the big fish.

The deals will indeed happen in Australia ... with a corporation that has its operations at both ends of the bridge. Take EnergyAustralia as a perfect example.

 

[RussellEbertHandball]

The deals will indeed happen in Australia ... with a corporation that has its operations at both ends of the bridge. Take EnergyAustralia as a perfect example.

That's a 2 years sponsorship - which had to be prized open at the China end after EA went cold here in Oz.

The big 5 year $10m-$15m type deals ie the ones I reckon you are really talking about, will need HQ type approval and likely for them to do the principal negotiations. We don't want a Sally Zou type wealthy individual big deal where we are subject to the whims of an individual but more a corporation multi national type deal? Where was the Cathay Pacific deal firmed up? Hong Kong or Australia?

 

[Papa G]

https://www.theaustralian.com.au/sp...l/news-story/1f9bcc069744ec962847c0987cfb640a

Australian Open’s record Chinese sponsorship deal

Australian Open officials announced in Shanghai last night one of the biggest sponsorship deals in its history with an aspirational Chinese distillery that dates back to The Ming Dynasty.

At the Chinese launch of the Australian Open, which yesterday announced a record prizemoney pool of $60.5 million for the 2018 tournament, it was announced Luzhou Laojiao will become an associate sponsor of event billed as the grand slam of the Asia-Pacific for the next five years.

Coveted corner signage for the distillery’s high-end liquor 1573 in English and Chinese will be showcased on Rod Laver and Margaret Court Arena, while its branding will also extend across Melbourne Park throughout the Open in the space formerly occupied by Jacob’s Creek, whose association with the tournament recently ended.
........

I believe we may have been in contact with this same Chengdu distillery re sponsorship of the Power Footy Programme in China. For children and juniors. Seems to fit.

RussellEbertHandball. These are the guys we should be pursuing. These guys are a centuries old Baijiu producer. Baijiu, for those that don't know, is the national spirit of China. Absolutely terrible stuff, but it is their national drink. This company is 50% govt owned, 50% Private. They supply all levels of government. They supply the army. They are considered the top end of Baijiu. They are as well a "connected" company as you can get in China. They have the distribution abilities of something comparable to Coke or Pepsi.

Now as replacement sponsor for Jacob's Creek at the Australian Open, I highly doubt they'll be serving up Baijiu instead of Chardonnay at Rod Laver Arena. Now trace that back to the boutique McLaren Winery they have a controlling interest in.....

 

[Lockhart Road]

That's a 2 years sponsorship - which had to be prized open at the China end after EA went cold here in Oz.

The big 5 year $10m-$15m type deals ie the ones I reckon you are really talking about, will need HQ type approval and likely for them to do the principal negotiations. We don't want a Sally Zou type wealthy individual big deal where we are subject to the whims of an individual but more a corporation multi national type deal? Where was the Cathay Pacific deal firmed up? Hong Kong or Australia?

EA was a three-year joint major. It was negotiated in Melbourne. An email from the head office in Hong Kong helped get it started. Cathay Pacific was negotiated in Sydney and is extended annually, fingers crossed.
We employ the wrong people on international sales and have a ballsed-up system with nobody actually in charge. There is no sign anything is about to improve.

 

[Lockhart Road]

RussellEbertHandball. These are the guys we should be pursuing. These guys are a centuries old Baijiu producer. Baijiu, for those that don't know, is the national spirit of China. Absolutely terrible stuff, but it is their national drink. This company is 50% govt owned, 50% Private. They supply all levels of government. They supply the army. They are considered the top end of Baijiu. They are as well a "connected" company as you can get in China. They have the distribution abilities of something comparable to Coke or Pepsi.

Now as replacement sponsor for Jacob's Creek at the Australian Open, I highly doubt they'll be serving up Baijiu instead of Chardonnay at Rod Laver Arena. Now trace that back to the boutique McLaren Winery they have a controlling interest in.....

They have contributed A$100,000 to Power Footy in Sichuan. Why, I have no idea.
The Club has not made such deals clear. Our media operation also needs a complete revamp.

 

[RussellEbertHandball]

RussellEbertHandball. These are the guys we should be pursuing. These guys are a centuries old Baijiu producer. Baijiu, for those that don't know, is the national spirit of China. Absolutely terrible stuff, but it is their national drink. This company is 50% govt owned, 50% Private. They supply all levels of government. They supply the army. They are considered the top end of Baijiu. They are as well a "connected" company as you can get in China. They have the distribution abilities of something comparable to Coke or Pepsi.

Now as replacement sponsor for Jacob's Creek at the Australian Open, I highly doubt they'll be serving up Baijiu instead of Chardonnay at Rod Laver Arena. Now trace that back to the boutique McLaren Winery they have a controlling interest in.....

The Australian Open is a world wide event that gets blanket coverage for 2 weeks and Tennis Australia has an office in Shanghai and other Asian cities as it promotes and markets it as The Asia championship/ Asian Grand Slam and ties in working with other tournaments across Asia over the tennis year. So it makes sense they get involved with something that big.

If you have contacts and knowledge about them and their SA connections ring the club, and talk to our corporate sales guys. They might have never heard of them. s**t even if they end up buy a box out at AO out of that initial contact then that's better than nothing.

 

[Papa G]

They have contributed A$100,000 to Power Footy in Sichuan. Why, I have no idea.
The Club has not made such deals clear. Our media operation also needs a complete revamp.

So this huge company has donated $100k (a drop in the ocean to them, but not an insignificant number) and there has been no follow up on the company that is in a massive JV with them right in their own back yard? Actually, I know the answer.

 

[RussellEbertHandball]

They have contributed A$100,000 to Power Footy in Sichuan. Why, I have no idea.
The Club has not made such deals clear. Our media operation also needs a complete revamp.

So someone else is chipping in $100,000. Do we know who and why that is?

Launch of Power Footy schools football program into Sichuan Province
22 August 2018
Category: People-to-people
Sector: Sport
Country location: mainland China
Grantee: Port Adelaide Football Club

Project description
Port Adelaide Football Club (PAFC) will develop and execute an Australian Rules program under the banner of Power Footy in schools in Sichuan Province. This project will include the execution of the program in participating schools in curriculum and as an after school activity.

PAFC will also develop links with sports universities in Sichuan Province to facilitate Australian Rules football to become a part of the curriculum for physical education teachers. This would ensure that teachers capable of teaching Australian Rules football would graduate each year, and be accessible to participating schools.

PAFC staff and players (past or present) would travel to Sichuan on a regular basis, for stakeholder management, promotion and expansion.
Key dates
Program announcement, Adelaide, 6 August 2018
National Power Footy Carnival, Shanghai, 7 June 2019
Ongoing program, Sichuan Province, September 2018 to August 2021
Social media: Website, Twitter, Instagram, Youtube, Facebook
Grant Offer: $60,000 (multi-year funding - $20,000 over three years)
Total project value: $260,000
https://dfat.gov.au/people-to-peopl...s-football-program-into-sichuan-province.aspx

We are playing St Kilda on Sunday 2nd June 2019. The $60k grant is mentioned in this story on the club's website the next day which covers the grant, the expansion in 2019 to 30 schools in Zheijang and Sichuan provinces but it also said

http://www.portadelaidefc.com.au/news/2018-08-24/ports-power-footy-expansion
...... In early August, a significant Chinese company that supports the Power Footy program travelled to South Australia and met with the University of Adelaide, with discussions now underway to send 100 Power Footy graduates each year to the university, creating around 29 jobs in South Australia and attracting a $13 million-dollar boost to the state’s economy.
......
Christopher Findlay AM, Executive Dean, Faculty of the Professions at the University of Adelaide welcomed the program’s expansion. “Power Footy is a tremendous conduit for cultural exchange and improved understanding,” he said. “The Adelaide Business School is delighted to see the Power Footy program expand into Sichuan. “The expansion into new provinces will open new doors and introduce fresh contacts and talent. “All this has the potential for innovative business and economic ideas and outcomes for our State.” ...........
http://www.portadelaidefc.com.au/news/2018-08-24/ports-power-footy-expansion