How Travel Is Helping This Winemaker Beat Inflation

International wine tariffs and rising production costs haven’t stopped Jason Schwarz from continuing to grow his eponymous wine label, Schwarz Wine Co. Here, he shares his tips for travelling and managing a small business with the help of Qantas Points and the American Express® Qantas Business Rewards Card.

“My family’s grown grapes for six generations, so I’ve always been around viticulture,” says Jason Schwarz, founder of Schwarz Wine Co. “One year, someone asked me, ‘Why don’t you buy some produce from your dad and make wine?’ So I did and fell in love with it.”

In 2001, Schwarz blended and sold his first bottles, starting with shiraz, and sold the first 65 cases to distributors in Australia and importers in the US and UK. Now the business processes 70 tonnes of grapes during a harvest season, producing between 4,500 and 5,500 crates.

The winery's focus has also shifted and expanded from “big, bold red wines” to lighter, more fruit-focused drops. “Now I’m trying to get everything I can out of the fruit and really put that on show,” says Schwarz, who has expanded the brand’s offering by developing his own winemaking style and continuing to experiment. Schwarz now bottles chenin blanc, riesling, rosé, grenache blanc, grenache, shiraz, mataro and a GSM blend.

However, the business’s growth hasn’t been linear. The market has been affected by three years of tariffs that prevented Australian wines from being imported into China coupled with inflation and customers facing a cost of living crisis. This resulted in a larger supply of local wine for Australian retailers and restaurants to choose from, with bigger players able to outprice small producers thanks to their greater volumes and wider margins. “All of a sudden, there was much more competition from recognisable brands at the price point where I sell my wines.”

“We’re now having to find ways to cut costs and develop relationships in different markets in order to compete with some of the country’s larger winemakers and better manage our money while devising fresh tactics to drive new business.”

The key to managing the business’s expenditure? Having no pre-set spending limit¹ and up to 51 days to pay for purchases² on the American Express Qantas Business Rewards Card – which is especially helpful at production time. 

“We have a lot of expenses over a 12-week period in autumn,” says Schwarz. “We need to pay for grapes, bottling, labelling and hiring equipment – because purchasing good equipment is cost-prohibitive if you’re a small winemaker. Having up to 51 days to pay² makes it that much easier to manage our cash flow.” 

Schwarz has also found that flying all over Australia with his sales representatives has yielded much more success for the brand. “We’ve learnt that we sell more wine when I’m there to represent the company in a face-to-face meeting – probably because I live and breathe it.”

Flying from South Australia to the east coast capitals of Sydney, Brisbane and Melbourne to meet with vendors is easier – and more cost-effective – with the Qantas Points the business earns with the American Express Qantas Business Rewards Card. Schwarz earns up to 1.25 Qantas Points per $1 spent on everyday business expenses and 2 Qantas Points per $1 spent on Qantas products and services.³

With the tariffs recently lifted, Schwarz hopes to continue to find new revenue streams locally and overseas. “We’ve been looking to reach more customers in the US and the UK and have our eyes on Japan, Korea and hopefully Taiwan. The Qantas Points and travel perks we get with our Card are helping us get there.”

Unlock the possibilities

Jason Schwarz shares his top tips for developing products, making travel cost-effective and improving cash flow.

“Invest in new products”

Schwarz is always looking out for the next innovative thing his winery can do. It’s what led him to create white grenache, which is still a work in progress. “When I first asked my grape grower to plant white grenache, it was a bit of a risk,” he admits. “But I think it’s important that we invest in trying different things. The American Express Qantas Business Rewards Card’s no pre-set spending limit¹ gives me the flexibility to experiment. It provides access to a dynamic line of unsecured funding that grows with your business needs. I just bought some new French oak casks to age the wine in. At $4,000 a barrel, it was helpful to be able to manage that expenditure with the Card.”

“Automate your expenses”

“We put all of our subscriptions and administrative bills through our Card,” says Schwarz. “No pre-set spending limit¹ is great because we can put these costs on the Card knowing there’s wiggle room if they go up.” And the ability to automatically feed payments into software such as Quicken™, Microsoft® Excel, MYOB®⁴ and Xero makes reconciliation a breeze.

“Find a community to help your small business”

Small businesses often lack the support networks of larger organisations. For winemakers like Schwarz, having a communal space like the Artisans of the Barossa  – where other vintners from the region can share equipment, talk through issues such as rising inflation and split the costs of owning a winery – is important. “The Barossa is very community-focused and it's good for business. The white grenache I’m growing has attracted interest from other winemakers who want to buy some. It’s a great way to save money and generate leads.”

“Use Qantas Points to help travel”

While the American Express Qantas Business Rewards Card comes with additional perks, like complimentary membership to the Qantas Business Rewards program⁵ and two complimentary domestic Qantas Club Lounge passes annually⁶, the ability to earn Qantas Points on everyday business expenses³ – and Triple Qantas Points from flying when you book eligible flights with your Card⁷ – delivers the most value for Schwarz. “Having the Qantas Points there makes it easy for us to travel across the country, forge relationships with vendors, restaurants and distributors and ensure that more people try our wine.”

“Adjust staffing to match the busy seasons”

The wine tariffs have had wide-ranging impacts on how Schwarz runs his business. “It means buying fewer grapes and making less wine to limit our upfront costs and wastage.” Another way Schwarz streamlines his operation is by flexing his staff count to suit the needs of the season. “In the winery, I need an additional full-time and part-time staff member to help out during the 12 weeks that we make the vintage. That, and using our Card on outgoings wherever possible, has helped the business manage cash flow through the busy season.”

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