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Grapes, wine and cash must keep flowing along the supply-chain

Cash-flow is essential to all businesses along the grape and wine supply chain, and every business needs to make sure they are paying on time, and in full, to clear a path for businesses to recover from the challenges of coronavirus, bushfires, smoke and drought.

“All businesses in the wine sector are doing it tough at the moment,” said Tony Battaglene, Chief Executive of Australian Grape & Wine. “But, our sector is resilient. We’re all in this together, and we will get through these difficult times and recover strongly” said Mr Battaglene.

Most grape growers, winemakers, wine industry suppliers, restaurants and distributors have noted cash-flow is their primary concern during the coronavirus crisis, with many facing difficult decisions relating to retaining staff or even staying in business.

“In times like this, meeting our contractual and moral obligation to pay on time and in full is critical” said Mr Battaglene. “Businesses do not have the option to make a unilateral decision to introduce longer payment terms. If you are having cash-flow issues, pick up the phone and negotiate”.

“Every link in the supply chain relies on the others to be profitable and sustainable. If payments aren’t made at points along the chain, we risk not only the futures of individual businesses and their employees, but the viability of the sector as a whole” said Mr Battaglene.

Businesses that have not received payment for goods or services rendered, have a number of options available to them, such as those listed here by the Australian Government Department of Industry, Innovation and Science. Further to this, the Australian Competition and Consumer Commission (ACCC) may take an interest in anti-competitive, or unfair business practices.

“Grape growers deserve to be paid by winemakers, and winemakers deserve to be paid by their distributors, restaurants and retailers, on time and in full” said Mr Battaglene. “Now, more than ever, we need to pull-together and help each-other out to drive a prosperous and sustainable future for Australia’s 6,000 grape growers and 2,500 winemakers”.

Source: Australian Grape & Wine

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