In an update made to the ASX today, Australian Vintage Limited (ASX: AVG) has addressed recent media speculation about a potential transaction between Australian Vintage and Accolade Wines.

Australian Vintage confirmed that it is in exploratory discussions with Accolade Wines.

“As noted in AVG’s Half Year 31 December 2023 results released to ASX on 21 February 2024, AVG’s Strategic Review has identified a number of initiatives with the potential to maximise shareholder value, including potential transformational mergers,” the statement read.

“AVG confirms it is in exploratory discussions with Accolade, however these discussions are still at a very early stage, and there is no certainty that any transaction will eventuate.”

Accolade Wines has stated that it does not comment on speculation.

The speculation arose following AVL’s half year results, which were released on 21 February. In AVL’s strategic review, the group identified potential initiatives to maximise shareholder value, including potential transformational mergers.

The half year results reported revenue in line with the 2023 financial year, and an improvement in margin and underlying earnings, despite challenging trading conditions.

In Australia, despite strong competition in all segments Australian Vintage reported market share growth of two per cent, while the overall market declined by five per cent.

AVG said its super premium wines above $15 have grown by 11 per cent year-on-year versus a total market decline of one per cent. With its branded products retail scan sales for Tempus Two were up seven per cent, Nepenthe was up 20 per cent and Barossa Valley Wine Company was up four per cent on the prior year.  

Despite increased competition, AVL said it remains the leading no-and-low wine supplier in Australia, delivering 15 per cent growth versus the prior year. 

Following the results announcement, Australian Vintage also announced that it had achieved B Corp certification across its Australian operations and global pillar brands.

Leave a comment

Your email address will not be published. Required fields are marked *