Certified Legendary Thread China History in the Making

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3 weeks ago I went to Penfold's at Magill - took my brother in law from Qld and my old man who worked there between 1960-69 and a few years in the mid 80's. I have since then spent time looking at Treasury Wine Estates and their restructuring reducing their brands re international sales growth from about 50 to 15, concentrating on the higher end products the last 3 years, and shocked to see their market cap is now $11 bil when it was around $2bil, 4 or 5 years ago. Growth has been driven by restructuring, Penfold's and China. Today in The Australian Business section front section story - nothing new for Lockhart Road but CEO tells others things they must factor in;

Treasury's secret to cracking China

Treasury Wine Estates chief executive Michael Clarke, who has driven the global wine company’s juggernaut success in China, where drinkers are lapping up his portfolio of premium Australian and French wines, believes Australian food producers looking to make it big in the populous Asian nation must become “part of the fabric”. Coming off the back of a stellar December-half result, with earnings from Asia now accounting for almost half of Treasury Wine’s total group pre-tax profits, Mr Clarke said local food businesses looking to make it big in China must show long-term commitment to the region, backed up by investment and patience.
.....
“I think there a couple of lessons. I think you have to show that you are committed, that you go for it full tilt and not just put a toe in the water,’’ Mr Clarke told The Australian.One way Treasury Wine — whose leading wine brands include Penfolds, Wolf Blass and Saltram — has shown its commitment to China was in Mr Clarke’s decision to rip up its old distribution model. While the group had previously operated through a third-party distribution network in China, it decided to handle the pipeline itself and take its relationship right up to the front doors of wholesalers and retailers.

“We changed our model [in China] five years ago and said ‘we are going to be our own distributors. We are not going to rely on third parties but do it ourselves’. “And we would work with the market — wholesalers, retailers, state-owned enterprises. We work closely with state-owned enterprises, very closely, and so we are not a Chinese company but we have become part of the fabric of China with our team. “And therefore we have close relationships with our retail and wholesale partners.’’ Controlling your own distribution in China can also be highly profitable. “In China we use a wholesale model where we are the distributor. Unlike our competitors we do not rely on a third-party distributor to sell our brands and therefore we do not incur the approximately 50 per cent distributor margin. “Instead, we partner with retailers, wholesalers, and state-owned enterprises, and we actively manage those relationships directly, making decisions on how and where our brands are sold with specific portfolio and channel strategies.
.....
The success of that model in China speaks for itself when sifting through Treasury Wine’s most recent financial results. In the December half, sales into Asia, mostly driven by China, leapt 32.4 per cent to $393.8 million. Earnings from the region were up 30.9 per cent to $153.1m, representing almost 50 per cent of total earnings for the winemaker.
https://www.theaustralian.com.au/bu...t/news-story/62a04aa45a1155da559813183bea77ee
I cut and pasted the Oz's story on 4th March and just checked the China page. Treasury Wine Estates via Penfolds brand has jumped on board the Shanghai game. So they should given how well SA wines are doing in China for TWE.

https://www.portadelaidefc.com.au/china/partners

1553835804850.png
 
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Lockhart Road there has been a bit of movement at the station since 6th March as per webarchive snap shot of the China Partners page, as you would expect as we get closer to the game like in the previous 2 years.

https://web.archive.org/web/20190306102034/https://www.portadelaidefc.com.au/china/partners

So added to the Shanghai game
Penfolds
Rio Tinto
Urbanest have added to their ISP involvement
Robert Oatley (A Margret River wine company with presence in McLaren Vale)
MFC
+ bottom left hand side of picture above that cant make out their logo.

As predicted by Lockhart Road Singapore Airlines have come on board, but only as a China Power Club members since 6th March not full on premier partner like Cathay Pacific. Also joining the CPC is DW FoxTucker and Gaucho's which I think SPP gave a little plug on Instagram a few days ago.


1553836252859.png
 
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Lockhart Road there has been a bit of movement at the station since 6th March as per webarchive snap shot of the China Partners page, as you would expect as we get closer to the game like in the previous 2 years.

https://web.archive.org/web/20190306102034/https://www.portadelaidefc.com.au/china/partners

So added to the Shanghai game
Penfolds
Rio Tinto
Urbanest have added to their ISP involvement
Robert Oatley (A Margret River wine company with presence in McLaren Vale)
MFC
+ bottom left hand side of picture above that cant make out their logo.

As predicted by Lockhart Road Singapore Airlines have come on board, but only as a China Power Club members since 6th March not full on premier partner like Cathay Pacific. Also joining the CPC is DW FoxTucker and Gaucho's which I think SPP gave a little plug on Instagram a few days ago.


View attachment 644043
Let me categorise the above as I see it:

Program Partners:
As I’ve just posted on the Autopsy thread, this is now ‘International Student Program’ plus Terry White Chemist.

Shanghai 2019 Partners:
Their contribution goes into a central kitty from which the expenses for staging the Match etc. are drawn.
How many of these entities have been secured by 1) PAFC 2) St. Kilda 3) The AFL ?
What will be left over? What will be our share?
And, don’t forget, the annual Shanghai Match is supposed to be only a part of our overall China Strategy.

China Power Club:
Window dressing. More work and hassle than it deserves.
Sign-ups pay $10k per annum out of which what’s left after event/s expenses?
Constant turnover in names, minimum continuity.
Singapore Airlines - would be ‘paying’ max 15 complimentary premium economy seats to Shanghai and back per year. Cathay Pacific were contributing far far more than this, and making me feel proud. Get them back now that they’re announcing record profit for 2019, having shovelled all losses and liabilities into last year, and taking over HK Express.
 
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Shanghai 2019 Partners:
Their contribution goes into a central kitty from which the expenses for staging the Match etc. are drawn.
How many of these entities have been secured by 1) PAFC 2) St. Kilda 3) The AFL ?
What will be left over? What will be our share?
And, don’t forget, the annual Shanghai Match is supposed to be only a part of our overall China Strategy.
Is this where Koch thinks he is going to make $500k profit from? Because there is nothing else in the mix, a) when he announced it late last year and b) in your list above, which you confirmed it, that would give any guarantee it is going to be achieved.
 
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Is this where Koch thinks he is going to make $500k profit from? Because there is nothing else in the mix, a) when he announced it late last year and b) in your list above, which you confirmed it, that would give any guarantee it is going to be achieved.
Koch knows not from where it’s coming. He’s only passing on what he’s been told by Steve Dawes, Andrew Hunter, Shane Smith, KT, et al. Of these, I’d suggest that Et Al whoever he is knows more than the others lumped together.

Koch gets told what he wants to hear. Or he hears only what he wants to hear. I imagine it goes like this:
KOCH: “Come on, come on, how much?”
DAWES: “We’re working on it.”
KOCH: “Don’t gimme that stall. I’m on radio in ten. How much!?”
DAWES: “Well ... taking all possibilities ... positive possibilities ... into account, and allowing - “
KOCH: “How effing much!?”
DAWES: “Er ... break even if we’re lucky.”
KOCH: “I’ll tell ‘em half a million.”
 

Janus

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Let me categorise the above as I see it:

Program Partners:
As I’ve just posted on the Autopsy thread, this is now ‘International Student Program’ plus Terry White Chemist.

Shanghai 2019 Partners:
Their contribution goes into a central kitty from which the expenses for staging the Match etc. are drawn.
How many of these entities have been secured by 1) PAFC 2) St. Kilda 3) The AFL ?
What will be left over? What will be our share?
And, don’t forget, the annual Shanghai Match is supposed to be only a part of our overall China Strategy.

China Power Club:
Window dressing. More work and hassle than it deserves.
Sign-ups pay $10k per annum out of which what’s left after event/s expenses?
Constant turnover in names, minimum continuity.
Singapore Airlines - would be ‘paying’ max 15 complimentary premium economy seats to Shanghai and back per year. Cathay Pacific were contributing far far more than this, and making me feel proud. Get them back now that they’re announcing record profit for 2019, having shovelled all losses and liabilities into last year, and taking over HK Express.
I’ll say that the CPC is a novel idea poorly executed, and that’s why there is such a high churn rate.

It should be the absolute minimum requirement for access to the club’s networking events, but instead it comes across as a cheerleading exercise as people watch the club actually do work for businesses that don’t contribute one single cent to the bottom line in the hope of that small 5% return.

The events that the CPC get invited to would cost four fifths of **** all to put on as well. It would be lucky to be $1000 in value, because the major events are being hosted regardless (Before the Bounce, Gala Dinner, Shanghai Lounge, Best and Fairest, Season Launch, Power goes, Networking event). If they dropped the price to $5k they’d have a higher level of retention and more people signing on if they were going to keep it the way it is right now. If they don’t want to drop the price, they need to raise the value.

I was thinking about this today - that what the club should be offering is a tiered solution:

Tier One - CPC. Basically an entry point to the club’s networking events both here and China. No work done by the club other than tickets to events. Cost to club $1k, $5k price point. (This is what CPC is at the moment)

Tier Two - Business matching. Access to network events, but with a more targeted focus - introductions to businesses in China/Australia that would be able to assist with exporting product. Consider it like a concierge service, but the baseline - no real effort is involved other than the introductions...the business has to make it work. $10k + 5% of profits price point. (This is how the club sells the CPC, which is probably why you think it’s more hassle than it’s worth.)

Tier Three - Business enhancement. Same as tier two, but now the club is taking an active involvement in the partnership by offering the services of those with experience in dealing with business in China/Australia - review of business plans, advice etc. $10k + 10%-20% of profits price point, depending on the size of business.

If the club wants to sell this unique concept of China to businesses, it needs to put in the effort to make it a reality. It should be endeavouring to consistently turn CPC sponsors into higher sponsorship categories.
 

Enviable Tradition

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Koch knows not from where it’s coming. He’s only passing on what he’s been told by Steve Dawes, Andrew Hunter, Shane Smith, KT, et al. Of these, I’d suggest that Et Al whoever he is knows more than the others lumped together.

Koch gets told what he wants to hear. Or he hears only what he wants to hear. I imagine it goes like this:
KOCH: “Come on, come on, how much?”
DAWES: “We’re working on it.”
KOCH: “Don’t gimme that stall. I’m on radio in ten. How much!?”
DAWES: “Well ... taking all possibilities ... positive possibilities ... into account, and allowing - “
KOCH: “How effing much!?”
DAWES: “Er ... break even if we’re lucky.”
KOCH: “I’ll tell ‘em half a million.”
Well we budgeted for a million at the start of the year.

We have nothing so far but half a year left so I guess a half a million...

Sent from my SM-G960F using Tapatalk
 
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I’ll say that the CPC is a novel idea poorly executed, and that’s why there is such a high churn rate.

It should be the absolute minimum requirement for access to the club’s networking events, but instead it comes across as a cheerleading exercise as people watch the club actually do work for businesses that don’t contribute one single cent to the bottom line in the hope of that small 5% return.

The events that the CPC get invited to would cost four fifths of **** all to put on as well. It would be lucky to be $1000 in value, because the major events are being hosted regardless (Before the Bounce, Gala Dinner, Shanghai Lounge, Best and Fairest, Season Launch, Power goes, Networking event). If they dropped the price to $5k they’d have a higher level of retention and more people signing on if they were going to keep it the way it is right now. If they don’t want to drop the price, they need to raise the value.

I was thinking about this today - that what the club should be offering is a tiered solution:

Tier One - CPC. Basically an entry point to the club’s networking events both here and China. No work done by the club other than tickets to events. Cost to club $1k, $5k price point. (This is what CPC is at the moment)

Tier Two - Business matching. Access to network events, but with a more targeted focus - introductions to businesses in China/Australia that would be able to assist with exporting product. Consider it like a concierge service, but the baseline - no real effort is involved other than the introductions...the business has to make it work. $10k + 5% of profits price point. (This is how the club sells the CPC, which is probably why you think it’s more hassle than it’s worth.)

Tier Three - Business enhancement. Same as tier two, but now the club is taking an active involvement in the partnership by offering the services of those with experience in dealing with business in China/Australia - review of business plans, advice etc. $10k + 10%-20% of profits price point, depending on the size of business.

If the club wants to sell this unique concept of China to businesses, it needs to put in the effort to make it a reality. It should be endeavouring to consistently turn CPC sponsors into higher sponsorship categories.
Thank you, Janus. I appreciate your thesis and, if we had a major sponsor or two from China by now to not only balance things but pay the China team’s salaries, it might work.
As things are we have a football club prioritising on peanuts and appertisers and waving away the main course. This is perhaps what happens under a CEO who doesn’t eat red meat, drink red wine or run up red flags. Joke.
We have nobody with the experience or ability or contacts to introduce one party to the other - something you deem to be the key to success - especially when all but one of our ‘China people’ are restricted to working from desks at Alberton ... let alone maintain the connection and grow the business into the future.
Honestly, considering the limitations of and the rub-off from the China management we’re paying for at present, if we did have somebody truly capable they wouldn’t hang around postcode 5015 for long.
Here let me register my mistrust of anyone in a senior or semi-senior postition who does the opposite - hangs around too long putting the Peter Principle to the test.
My priority, as you know, is think big, do big, win big. I won’t have it any other way.
 

Janus

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Thank you, Janus. I appreciate your thesis and, if we had a major sponsor or two from China by now to not only balance things but pay the China team’s salaries, it might work.
As things are we have a football club prioritising on peanuts and appertisers and waving away the main course. This is perhaps what happens under a CEO who doesn’t eat red meat, drink red wine or run up red flags. Joke.
We have nobody with the experience or ability or contacts to introduce one party to the other - something you deem to be the key to success - especially when all but one of our ‘China people’ are restricted to working from desks at Alberton ... let alone maintain the connection and grow the business into the future.
Honestly, considering the limitations of and the rub-off from the China management we’re paying for at present, if we did have somebody truly capable they wouldn’t hang around postcode 5015 for long.
Here let me register my mistrust of anyone in a senior or semi-senior postition who does the opposite - hangs around too long putting the Peter Principle to the test.
My priority, as you know, is think big, do big, win big. I won’t have it any other way.
Most definitely :) They need to be focusing on the major sponsors first so they can put the programs in place to have a long term future.

Instead, they are thinking that by starting small and working up, they will be risk adverse. We need boots on the ground in China. We need relationships with organisations in Hong Kong and Shanghai. We need to be fixers.

We need a whole group of people who think like you do. A team of professionals who can say to potential sponsors 'This is what we have to offer. This is our expertise, our experience. You're selling X? We know Y...and that's how you can turn X into Z.'

Think big, do big, win big. Then you can make big.
 
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Most definitely :) They need to be focusing on the major sponsors first so they can put the programs in place to have a long term future.

Instead, they are thinking that by starting small and working up, they will be risk adverse. We need boots on the ground in China. We need relationships with organisations in Hong Kong and Shanghai. We need to be fixers.

We need a whole group of people who think like you do. A team of professionals who can say to potential sponsors 'This is what we have to offer. This is our expertise, our experience. You're selling X? We know Y...and that's how you can turn X into Z.'

Think big, do big, win big. Then you can make big.
Could not have said it better myself. Rest my case. :cool:
 

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Most definitely :) They need to be focusing on the major sponsors first so they can put the programs in place to have a long term future.

Instead, they are thinking that by starting small and working up, they will be risk adverse. We need boots on the ground in China. We need relationships with organisations in Hong Kong and Shanghai. We need to be fixers.

We need a whole group of people who think like you do. A team of professionals who can say to potential sponsors 'This is what we have to offer. This is our expertise, our experience. You're selling X? We know Y...and that's how you can turn X into Z.'

Think big, do big, win big. Then you can make big.
Nope. You have it all wrong.
Increments - small ones. That's the answer.
Tippy toe through the quagmire and in 30 years or so we may make a bit of dosh from this.
 

Tibbs

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Nope. You have it all wrong.
Increments - small ones. That's the answer.
Tippy toe through the quagmire and in 30 years or so we may make a bit of dosh from this.
My experience is that when you "tippy toe through the quagmire," you end up just getting stuck in the mud!

Go in full pelt, or don't go in at all!
 
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Yeah I get all the give before you take, sports diplomacy stuff but also time now for coin from our efforts.

In addition Quagmire- giggity giggity.
 
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See in todays Advertiser that SA Government .. Trade Tourism & Development is giving Port Adelaide $250,000 for this game.
It’s from Canberra, not SA Govt.
Cash for AFL China match

PORT Adelaide Football Club will receive $250,000 to promote its upcoming premiership season game against St Kilda in Shanghai, China.
Trade, Tourism and Investment Minister Simon Birmingham will today announce the funding for marketing and promotional activities to entice more Chinese travellers to Australia. The match will be broadcast on Guangzhou TV and Shanghai TV on June 2.
“We are committing up to $250,000 of annual Austrade support towards this initiative, in addition to $400,000 … for Tourism Australia to be the official tourism sponsor of the 2019 Toyota AFL premiership game,” Mr Birmingham said.
 

smithy7

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It’s from Canberra, not SA Govt.
Cash for AFL China match

PORT Adelaide Football Club will receive $250,000 to promote its upcoming premiership season game against St Kilda in Shanghai, China.
Trade, Tourism and Investment Minister Simon Birmingham will today announce the funding for marketing and promotional activities to entice more Chinese travellers to Australia. The match will be broadcast on Guangzhou TV and Shanghai TV on June 2.
“We are committing up to $250,000 of annual Austrade support towards this initiative, in addition to $400,000 … for Tourism Australia to be the official tourism sponsor of the 2019 Toyota AFL premiership game,” Mr Birmingham said.
Woops .. Stuffed up there .. well he is a South Australian Senator :p
 
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Got bored with the footy and am watching Andrew Forest's Global Rapid Rugby comp on SBS1.

The game kicked off last night 7.40 Perth time and was the first game of the comp after last weekend Western Force played a world 15 team.

Last nights game was Western Force vs South China Tigers from Hong Kong. I assume they are heavily backed by the HKFC. Lockhart Road? HKRU are the governing body of the comp.

There are teams from Perth, Singapore, Fiji, Samoa playing out Auckland and Hong Kong. Teams are planned for Malaysia, USA and Japan are looking longer term for China, India, South Korea and UAE to host a team. All current teams are private consortiums so I assume same for future, teams. There are 4 main rule changes, biggest one is 70 not 80 minutes and a 9 pt power try launched from within 22 metres of own try line. See
https://en.wikipedia.org/wiki/Global_Rapid_Rugby#Law_variations

I know the game was screened on SBS' live stream last night but I don't think it was on there last night. They had EPL on SBS1 at the time. Edit and I dont think SBS Viceland showed it live. Gordon Bray is calling the game with others so it might have been on Fox Sports.

They have a count down clock not count up clock like in Tests and Super Rugby comp. Western Force won 45-22 after being 30-22 up at half time.

Forest has put in a reported $50m to kick it off. Will be interesting if in a few years that $100m+ USD Jack Ma is pumping into Rugby in China will see a team out of China, maybe his home town of Hangzhou.
 
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Got bored with the footy and am watching Andrew Forest's Global Rapid Rugby comp on SBS1.

The game kicked off last night 7.40 Perth time and was the first game of the comp after last weekend Western Force played a world 15 team.

Last nights game was Western Force vs South China Tigers from Hong Kong. I assume they are heavily backed by the HKFC. Lockhart Road? HKRU are the governing body of the comp.

There are teams from Perth, Singapore, Fiji, Samoa playing out Auckland and Hong Kong. Teams are planned for Malaysia, USA and Japan are looking longer term for China, India, South Korea and UAE to host a team. All current teams are private consortiums so I assume same for future, teams. There are 4 main rule changes, biggest one is 70 not 80 minutes and a 9 pt power try launched from within 22 metres of own try line. See
https://en.wikipedia.org/wiki/Global_Rapid_Rugby#Law_variations

I know the game was screened on SBS' live stream last night but I don't think it was on there last night. They had EPL on SBS1 at the time. Edit and I dont think SBS Viceland showed it live. Gordon Bray is calling the game with others so it might have been on Fox Sports.

They have a count down clock not count up clock like in Tests and Super Rugby comp. Western Force won 45-22 after being 30-22 up at half time.

Forest has put in a reported $50m to kick it off. Will be interesting if in a few years that $100m+ USD Jack Ma is pumping into Rugby in China will see a team out of China, maybe his home town of Hangzhou.
HKRFU and HKFC are two separate and separated entities. HKFC supports Rugby in general but not specifically, and has its own teams participating in various divisions of local Rugby, with ‘Club’ being 1st Division.

This week is Rugby Week with the Tens international tournament being staged at HKFC on Wednesday and Thursday, then the Carbine Club Rugby Lunch in the HKFC Sports Hall on Friday, followed later that afternoon by the start of the HK International Rugby Sevens at the Government Stadium (moving to Kai Tak Sports Park, Koch’s favouite arena, in 2022 or 2023).

I have an invite to the Carbine Club Rugby Lunch on Friday, so will ask about Forest’s involvement in and ambitions for, plus general opinion on, the South China Tigers.
 
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.....I have an invite to the Carbine Club Rugby Lunch on Friday, so will ask about Forest’s involvement in and ambitions for, plus general opinion on, the South China Tigers.
Might be worth a read of all of this SMH article from end of January before you go to the lunch. The full launch of original 8 teams which now might be 10. has been delayed until next year and this year is a modified comp of only 5 teams. Originally it was going to be a full rebel comp but now Oz an NZ Rugby are getting behind it.

https://www.smh.com.au/sport/rugby-...by-competition-postponed-20190131-p50uqt.html
The delay will also tie in better with the interests of Rugby Australia and New Zealand Rugby, both of whom had told Forrest they would not sanction more teams in their territories until next year. Both unions have changed their tunes on the competition since the early days of suspicion and mistrust. RA now sees Rapid Rugby as capable of doing important market development work in Asia that the union itself cannot afford to undertake. Whether fans will keep faith with the concept is another matter, but Hodgson said a travelling 'Showcase Series' planned for this year would demonstrate the potential of the product when all the entrants have solid bases behind them.
https://www.smh.com.au/sport/rugby-...by-competition-postponed-20190131-p50uqt.html

Now this is the sort of foresight and courage the club and AFL need to take the game to the international stage.

Rapid Rugby head of rugby Matt Hodgson will continue to work with marquee players around 2019 and 2020. "Like me, the players and teams were ready to go but I am confident the 2019 series will be a great demonstration of what a full season of increased ball-in-play time, attacking, aggressive, high scoring rugby will look like."

Forrest was upbeat despite the call, saying he always knew organising 60 games of rugby in eight international territories in just 15 weeks was going to be a tough ask.
 

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Not that thrilled about this.
We had better start making some BIG money soon.
I’m not sure the extra travel, disruption and timimg of the bye helps us one iota football wise. Might even find the Saints start beating us over there.
I’m pretty pessimistic about the whole thing, but I guess we have to try something.

Simplistically .... give me 15 million for facilities over a million a year to invest in these China games any day of the week.
 

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I’m pretty pessimistic about the whole thing, but I guess we have to try something.

Simplistically .... give me 15 million for facilities over a million a year to invest in these China games any day of the week.
You realise that 15 million is dependant on the Libs winning the election, don't you? An election they will most likely lose massively?

I'll take the 5 million from Labor for our centre over the 15 million from the Liberals for Adelaide's centre any day of the week. The money from the government for the China game, however, is already committed.
 
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