Australian Vintage has underlined the problems facing wine producers in Australia by confirming its undertaking of a “strategic review”.
The move, confirmed in a filing to the Australian Securities Exchange this week, comes against the background of what the company describes as a “challenging business environment”. The review is being framed as an attempt to “unlock” shareholder value going forward.
Among the options being considered is “third-party interest from domestic and international parties, in part or in whole, for the company,” the McGuigan brand owner said. Updates can be expected in due course.
“Australian Vintage is operating within a challenging business environment given continued inflationary impacts, consumption trends in the value segment facing pressure, market dynamics impacting the ability to take further price and excess wine capacity further impacting industry economics,” the filing states.
In a trading update last month, the company forecast a dip in sales for the current full year to between AUD255m [US$170m] and AUD260m. For the 12 months of 2022, sales came in at AUD260.1m. The group also highlighted that the latest harvest had been “one of the toughest in Australia in many years” due to adverse weather conditions and flooding.
In May, Australian peer Treasury Wine Estates commenced a review of its own, on the ‘Treasury Premium Brands’ business division.
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