Handpicked Wines bets on luxury drop with a private equity discard
William Dong, the chief executive of Handpicked Wines, says the company wants to expand after acquiring House of Arras, having identified the high-end wine segment as one that can defy economic downturns.
Mr Dong, who trained as a financial mathematician in the United Kingdom before founding Handpicked, acquired the Tasmanian sparkling wine business from The Carlyle Group’s Accolade Wines in August.
William Dong, CEO and owner of Handpicked Wines, which in August bought Tasmanian sparkling wine producer House of Arras from Accolade Wines. Louie Douvis
“When you jump into a Ferrari your heartbeat goes faster,” he said. “Premium products bring an emotional engagement for the customer.”
Accolade has been battling high debt at a time when the commercial wine sector is being hit hard by oversupply and lower demand. It sold not only House of Arras to Handpicked but the Bay of Fires winery in Tasmania.
Mr Dong said he was initially wary of buying House of Arras from Accolade, which owns brands including Hardy’s, St Hallett, Petaluma, Banrock Station and Grant Burge. “We were a bit sceptical about it. At first, we thought maybe it’s a bit too hard,” Mr Dong said, adding that visiting the operations in Tasmania and winemaker Ed Carr “gave us comfort”.
With the addition of House of Arras, Handpicked’s revenues will reach more than $30 million annually. House of Arras sells almost all of its products in Australia. “There’s a lot more that can be done,” Mr Dong said of exports. “It just needs some longer-term care. We should make it a household brand.”
When Mr Dong started Handpicked, he would use contracted winemakers to make batches of wine. The company made its first vineyard purchase in 2013 on Victoria’s Mornington Peninsula.
Read more on afr.com
