Cheviot Bridge, the Melbourne-based virtual winemaking operation that recently spent $20 million on the acquisition of the Long Flat brand from Tyrrell’s, is in the third phase of a A$5 million fund-raising effort related to this purchase and for working capital requirements. Having approached its existing shareholder base for additional input, it is now selectively speaking to ‘a few sophisticated investors’, says director Hugh Cuthbertson. According to chairman Ray King, the task of reviving the Long Flat brand had started impressively. First quarter sales of Long Flat and Cheviot Bridge products suggest that the company is on track to achieve sales revenue and EBIT targets in 2003-04 of around $20 million and $2 million respectively. With a minimum acceptable sales volume and a powerful distribution infrastructure in place, the company will actively pursue further acquisitions next calendar year.
