Australian Vintage bets on single-serve wine boom to return to profit
Australian Vintage is banking on strong demand for its new single-serve brands to drive a return to profitability. The winemaker has revised sales forecasts upward after UK sales exceeded early expectations.
It said its new Poco Vino and Lemsecco single-serve offerings will be key in driving the business forward with budgeted sales growth upgraded from AU$6m to AU$15m.
Poco Vino has beaten early expectations in Australia, the UK, and Asia, prompting the upgrade of sales projections, while Lemsecco, a sparkling blend of Prosecco and Australian citrus, is expected to generate AU$6 million in net sales.
In its statement, AVL said that its higher expectations for 2026 do not “truly reflect the scale and potential of this innovation [Poco Vino] for the Group.”
It added: “Current expectations are based on a small and defined distribution set in Australia and the UK for a partial period of the 2026 fiscal year only. Since AVL last gave guidance on this product’s revenue contribution, early sales in the UK have exceeded estimates by four times.
Global rollout to drive further expansion
“Further acceleration, that will most likely spill over into growth for future years, will be driven by confirmation of more stores in core markets of Australia and the UK, as well as new distribution partners in NZ, Thailand, Malaysia, China and Europe. Additionally, AVL is in the final stages of rollout in the USA, Indonesia, the Philippines and across the Middle East.”
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It also has plans “to launch additional SKUs in sparkling wine, premium ranges for global travel retail, hotel and on-premise accounts.
“All of this growth will be serviced by three dedicated manufacturing hubs located in Amsterdam for Europe and the UK, Napa Valley for the USA and Merbein for Australia, leveraging the planned ‘make where sold’ model to limit shipping lead times, increase profitability and speed to market.”
Recent financial performance and outlook
In the year just closed, the company recorded revenue of AU$257.2 million, down 1% on 2024, but underlying earnings showed signs of improvement, rising to AU$15 million and the net loss was slimmed to AU$6 million.
The company is targeting 5% to 8% revenue growth this year, fuelled by strong early sales of newly launched products and ongoing expansion in international markets.
It predicts a free cashflow neutral position by the end of this new financial year, rising to AU$10m+ in FY27 and AU$20m+ per annum in free cashflow generation by the end of FY28.
It also said that it expects “considerable growth in McGuigan and Not Guilty zero alcohol wines across the UK, with planned expansion into Canada and the USA.
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