Global wine company AVL Wines is expanding into the drinks category, launching four spirit and ready-to-drink cocktails to diversify its portfolio. The company owns McGuigan, Tempus Two, Nepenthe, and Barossa Valley Wine Company.
AVL Wines owns McGuigan, Tempus Two, Nepenthe, and Barossa Valley Wine Company. In 1H FY22, the ASX listed company said additional costs related to logistics and Covid restrictions impacted results by $6 million.
AVL CEO Craig Garvin said the underlying business was performing well, and without those factors the company’s NPAT would have been $14 million, up seven per cent on the prior period.
Local sales of McGuigan were down four per cent in the half, but Tempus Two was up 20 per cent and Nepenthe up 30 per cent.
In the UK, the McGuigan Zero wine range is the biggest selling non-alcoholic wine, with the new drinks business designed to use the alcohol from the Zero range.
The company increased its marketing spend in the first half by 37 per cent, with that set to drop in 2H as earlier investment delivers results.
Snapshot
- Total revenue down 7% to $138m;
- NPAT was down 25% to $10m;
- EBITS down $3.6m to $16.8m;
- Operating cash flow down $31.7m to -$0.8m; and
- Net debt up $30.8m from December 2020.
Garvin said the move into drinks was in response to rising popularity of spirits and ready-to-drink beverages.
“This is a great example of leveraging our know-how and world-class assets to deliver products that consumers are demanding. This move supports the strategic intent of AVL to diversify its portfolio and create a consumer led branded business,” he said.
AVL’s new drink ranges include:
Tempus Two Gins – at Tempus Two we do things differently. We don’t follow tradition, we go beyond it, and make any occasion a celebration. Creating a premium range of gins that capture the distinct characteristics of its leading wine varietals. This range includes the world’s first Prosecco Gin, Shiraz Gin, as well as a Botanical Gin.
Rescued Spirit Co. – do your planet a flavour with a sustainable and playful brand that ‘rescues’ citrus fruits from local producers in the Murray Darling to give them a second lease on life. This range of fresh and flavourful gins and vodkas are made using renewable energy and 100% recyclable materials.
Gelato Drinks Co. – a range of fun, creamy and indulgent gelato flavoured drinks that will transport your palate to Italy, almost!
Mr Stubbs – a range of bar-worthy RTD cocktails crafted to be enjoyed at home. Simply shake and serve.
