Australian Vintage sales dip 1.7% as turnaround plan targets stronger second half
Australian Vintage has reported slightly lower first-half sales but said net debt remains in line with guidance. The McGuigan owner is banking on innovation and premiumisation to drive a stronger performance in the second half.
Australian Vintage, the owner of the McGuigan brand, has reported that in the six months to the end of December, sales fell by 1.7% compared with 2025 but that it held its net debt to AU$110m, in line with its guidance.
One-off restructuring and marketing expenditures totalling AU$18m held earnings for the half year at break even point, which was AU$11 million lower. Cash and net debt, the company says, “remain in line with guidance”.
Based on that outcome, the company says it is on track for a strong second half and that its cash flow will be neutral at the end of the year after excluding investments such as the purchase of the MacFish brand.
Shares slide amid restructuring push
Australian Vintage’s shares have halved in value over the past year, from AU$0.16 to AU$0.08, following the results.
After a troubled couple of years in which it was jilted at the merger altar by Accolade (now Vinarchy), AV has set itself on a drastic turnaround programme, moving away from the below A$10 per bottle sector as drinkers shun commodity reds in favour of “lighter styles with white, rose and sparkling varietals taking preference.”
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Shift toward innovation and distribution growth
The group says it is concentrating on lowering stocks by cutting supply contracts further while “moving aggressively” into range and distribution expansion, acquisitions and innovation.”
In particular, it is betting big on its Poco Vino small ready-to-drink format, which is already selling 12,000 units a day and is predicted to add an extra AU$15m in sales in a full year.
At the same time, AV says its Lemsecco spritz offering has achieved “strong momentum” with sales growing at three times last year’s rate, which was soon after launch.
UK market performance in line with demand
In the UK, the company says it is growing “broadly in line” with demand for Australian wine and is using sponsorship with the English Cricket Board to promote McGuigan wines.
It says Mad Fish also expands the UK portfolio into higher price points and white varietals.
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