Issue link: http://read.dmtmag.com/i/197178
he considerable cost and rapid depreciation of wine barrels make leasing an attractive option for many wineries. And while the idea of barrel lending isn't new, barrel leasing in combination with a comprehensive financing and inventory management program is the novel idea behind one company that has set its sights on the U.S. market. Founded in France 10 years ago, H&A Financing & Services quietly opened its first U.S. office in Santa Rosa, Calif., in late 2010. Today, its innovative three-pronged approach to the operational management of barrel inventory is off to a roaring start. "The company developed as a way to optimize customers' use and management of their barrel inventory," explained Ken Seymour, managing director, USA division. This optimization stems from three areas of H&A's expertise: financial management/leasing, inventory management and barrel resale. H&A's unique leasing/management model is well established in Europe, where it currently serves about 1,000 clients, and is now swiftly taking hold in this country. Just two years ago, H&A signed its first two U.S. clients. By the end of this fiscal year, the company expects that number to be more than 100. MATCHMAKING How does the lease work? To begin with, H&A creates a program tailored to a potential client's leasing needs based on the quantity of barrels desired, the length of time the barrels will be in use, and the winery's budget. "Once we understand how they work from both the technical and accounting side, we can match them with a program," Seymour explained. The next step is for H&A to approach its stable of lenders to finance the lease at a competitive interest rate. (Its three primary lenders in North America are AT A GLANCE + A unique barrel leasing/management model, well established in Europe, is catching on in the United States. + Instead of acting as a lender, H&A connects the winery client with the right lender. + The company has no allegiance to any particular cooper, so winery clients make their own barrel selections. + The program amortizes the cost of leasing barrels over the course of the winery's lease term. + When clients are finished with their barrels, H&A handles the removal and resale. w w w. v w m m e d i a.com N ov - D ec 2013 | V INE YA RD & W INE RY M A N A G EM EN T 95