Sales in six months to end of December come in flat, -0.6% at AUD137.1m [US$92.3m]
Australian Vintage is pinning hopes on its no- & low-alcohol NPD going forward as its six-month sales for the second half of 2022 came in flat.
The wine company, which is working through a premiumisation strategy, noted stronger performances at the higher end of its portfolio in the half-year. While the Nepenthe and Tempus Two brands were credited with delivering sales rises, the cheaper McGuigan stable declined 11% on the corresponding period a year earlier, although this was “in line with … our expectations”.
While noting the impact of Brexit on its supply chain to the UK, Australian Vintage also laid claim to holding market leadership in the country for 'no & low' wine, with McGuigan Zero the biggest-selling alcohol-free still wine. In the coming months, the UK will be the location for the launch of 0%-ABV brand Not Guilty.
Elsewhere, domestic sales were more fruitful for Nepenthe and Tempus Two than McGuigan, which fell back by a quarter. The group also expressed optimism that the high tariffs imposed on Australian wine in China in late-2020 could be coming to an end.
"There are some encouraging signs in China with a potential easing of the trade restrictions," the company said. "Australian Vintage has adopted a be-ready position and is actively working with COFCO, our importer, to pursue potential opportunities when trade re-commences."
Australian Vintage's official fiscal H1 results announcement.
Company presentation on recent performance.
What to watch for in wine and spirits in 2023 – Market Intel
