The deal was announced as part of an update to shareholders where Australian Vintage said it is “in the early stages of a turnaround to address both declining sales and negative cash outflows of the group in recent years”.
In the announcement, the group also upgraded its forecast earnings for Poco Vino – a newly launched international brand announced earlier this year – from AUD8m (US$5.14m) to “conservatively over AUD10m” with “over” 4,000 distribution points already confirmed for launch.
“MadFish is currently one of the top Australian wine brands in the UK market and growing, while Howard Park is a premium brand from the distinguished Margaret River region,” said newly-appointed CEO Tom Dusseldorp.
“These brands will complement Australian Vintage’s existing stable of award-winning labels, providing increased volume and value without increased overhead. Australian Vintage continues to focus on advancing shareholder value by accelerating capital-light growth through partnerships and innovations.”
In February, the company reported a 7.4% fall in sales from the six months to the end of December. The group was also linked to a possible merger with Vinarchy in a local report this week.