Home' National Liquor News : NLN JULY 2016 Contents 22 | JULY 2016 NATIONAL LIQUOR NEWS
BRANDED SALES BOOST REVENUE FOR AVL
Australian Vintage Limited (AVL) has reported a total revenue
increase of eight per cent to the end of April 2016 on the back of
strong branded sales.
The increase in revenue is a reflection on higher branded
sales in the UK, Europe, Australasia, and North America,
however it was partially offset by lower bulk wine sales.
Neil McGuigan, chief executive officer of AVL, said:
"Australasia/North America sales are up eight per cent on last
year with bottled sales up 19 per cent and cask sales down 20
per cent. Cask sales are down due to significant pricing pressure.
"Sales of our bottled product into UK/Europe are up 19 per cent on last year due mainly to the increased
sales footprint in the UK market. Bulk sales into this market are down by 77 per cent compared to last year as
we continue to focus on changing from a bulk wine producer to a branded business.
"Sales of our three key brands, McGuigan, Tempus Two and Nepenthe continue to grow with sales to the
end of April up 20 per cent on last year."
Meanwhile, the company terminated its Del Rios vineyard lease and paid the $4.9 million termination fee
earlier this year. This termination together with the recent expiry of other onerous third party grower contracts
will provide significant savings in future grape costs.
"The company continues to focus on increasing branded sales and at the same time improving the
efficiency of the business and improving the quality of our outstanding wines. We remain confident that our
core strategies are correct," said McGuigan.
"Subject to no material changes to the current exchange rates we remain confident that our 2016 net profit
before one off items will be up 10 to 15 per cent on last year's $7.1 million net profit after tax and before one
Australian wine enjoyed one of its most successful
trade activities as record crowds of more than
17,000 influential trade visitors attended Vinexpo in
Joanna Zheng, product senior director at Amazon
China said the Wine Australia pavilion seemed to be
the most popular at the fair.
"The representatives from Australian wineries are
very passionate about their wine, and they interacted
a lot with visitors. I can see that Wine Australia and
the wineries and exhibitors they partner with are
holding their hands together to bring the fine image of
Australian wine to another high level."
Hiro Tejima, Wine Australia's head of market Asia Pacific, said: "Vinexpo Hong Kong has always
been an important trade event for us but 2016 has been simply stunning for Australian wine.
"There was a very special vibe about our stand that no other stand had, which is indicative of the
strength of the Australian wine category in this region. Many of our 27 exhibitors commented that the
visitors were remarkably more serious about exploring new business opportunities and partnerships,
than they had been in previous years."
With a number of free trade agreements in place in the region and a 37 per cent increase in the value
of Australian wine exports to the Asian region over the last 12 months, exhibitors at the Wine Australia
Vinexpo stand maximised their export opportunities, uncovering commercial leads for their brands,
making new contacts and strengthening existing trade relationships.
This year, the Wine Australia stand had a dedicated masterclass area where seven masterclasses were
conducted by visiting and local tutors, including Corinne Mui from the Asia Wine Service and Education
Centre and Eddie McDougall, founder of The Flying Winemaker, a local television series and online wine store.
Australian wine exports to Asia are now valued at $756 million, with higher priced wines over A$10
per litre making up 49.5 per cent of this total.
& SON AND
Samuel Smith & Son and
Negociants Australia have
announced changes to
their portfolios effective
from 1 July, 2016.
After a successful
23 year distribution
Wirra Wirra is moving to
the Samuel Smith & Son
portfolio, effective 1 July.
Making them the first
McLaren Vale winery
to be featured in the
Samuel Smith & Son offering.
Paul Midolo, director strategy and
trading said: "We are very happy that
our family business will continue to
represent Wirra Wirra in the domestic
marketplace and the Samuel Smith &
Son team are excited to add this iconic
McLaren Vale brand to their portfolio."
The Smith & Hooper brand, currently
represented by Samuel Smith & Son,
will be moving to the Negociants
Australia portfolio. Negociants Australia
are delighted to have the opportunity
to distribute these premium wines from
Barringwood from Tasmania will
commence national distribution with
Negociants Australia, also effective 1 July.
Ken Withers, general manager
Negociants Australia said: "We are very
excited at the opportunity to represent
this family-owned premium Tasmanian
producer. Their long-term vision,
commitment to Tasmania and fine wine
will add further depth and value to the
Negociants Australia offering and align
closely with our long term strategy."
National distribution for Dandelion
Vineyards, Heirloom Vineyards and
Sister's Run also commences from 1 July.
Rymill Coonawarra, due to a change
in market strategy, will cease their
distribution partnership with Negociants
Australia, effective 30 June.
Withers said: "Change in today's
wine trade is a constant and we at
Negociants Australia and Samuel
Smith & Son are very excited about the
refreshed offers we take to market on
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