Australian Vintage posts strongest results in four years

After several problematic years caused by the glut of wine and China’s tariff penalties, Australian Vintage has produced its strongest results in four years. The post Australian Vintage posts strongest results in four years appeared first on The Drinks Business.

Feb 21, 2025 - 11:44

Australian Vintage posts strongest results in four years

After several problematic years caused by the glut of wine and China’s tariff penalties, Australian Vintage has produced its strongest results in four years. Aussie currency Australian 50 100 dollar notes.

In the half year to Christmas, the owner of the McGuigan brand wines reduced its losses to AU$8 million compared with an AU$11 million deficit in the first half of 2024, Recently reappointed chief executive Craig Garvin said the results revealed progress in the company’s plans to restore shareholder value and position itself for growth. Garvin, who was fired by the previous board, said the results show that Australian Vintage is an agile industry leader and that the business is focused on delivering profitable growth and strong cash flow control. “Since returning to the business in October, I have made it a priority to visit our key markets twice and meet with all key partners to ensure our commitment and connection at the highest level,” Garvin said.

China and Asia focus

“China and the rest of Asia represent a significant upside to our business in the short to medium term”, he said. The company predicts that shipments to Asia will increase by double digits for the full year. He also forecasted that Australian Vintage would generate positive cash flow in the first six months of 2025, thus achieving free cash flow neutrality for the full financial year. Having been jilted at the merger altar last year by the Bain consortium that bought Pernod Ricard’s Australasian wine businesses, Garvin hinted that he was interested in new partnerships. “As the industry continues to consolidate globally, we remain proactive in evaluating opportunities that drive long-term value. Our processing capabilities, wine expertise, and assets are world-class and a strategic advantage when paired with the right incremental volume,” he said.

Innovative launch

Additionally, he trailed hopes for a big breakthrough in a new category for the wine industry. Australian Vintage is already a large player in the no and low sector and is targeting “mid-week wine occasions”, “millennials” and “lapsed wine drinkers,” with the launch of its single-serve Poco Vino, which Garvin says will be “the most exciting launch in AGV’s history”. A selling point will be its “made where sold” feature. Initially, wine sourced from France and Italy will go on sale in Europe, and, notably the UK. Meanwhile, Napa Valley will supply the US product while Australian wines will be used for the Asia Pacific region. Garvin said that Poco Vino will also drive “significant cost efficiencies while aligning with consumers’ willingness to pay a higher price for convenience.” He said that big UK retailers had agreed to stock Poco Vino when it launches later this year.