Australian Vintage’s small format wine brand, Poco Vino
Australian Vintage (trading as AVG) updated investors on its half-year results yesterday, detailing its plans to combat the wine market shift and adapt to challenges within the industry.
“At a consumer level there is significant growth in wine,” Australian Vintage stated in its presentation. “But the category must evolve to meet global consumer changes: format, flavour, sparkling and lighter is critical.”
The company said it was taking action to “derisk oversupply” by responding to shifts in consumer preferences, such as by not renewing certain contracts, and exiting another vineyard lease.
One of these actions was the acquisition of MadFish, known for its whites and lighter style wines, which Australian Vintage noted would reduce its reliance on “red-heavy products” in the under $10 category.
With a focus on innovating for fast growth, Australian Vintage touted the success of its Poco Vino range, which targets younger consumers. The company stated that globally, around 500 bottles of Poco Vino were sold each hour, a figure it says is “accelerating”. Its Lemsecco Spritz is also showing growth, with sales increasing three-fold on the previous year.
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