With an 18% increase in revenue to A$126 million, McGuigan Simeon Wines reported an increase in net profit, after significant items, by 59% to A$14.8 million. Bottled wine sales domestically and overseas increased by 81% and 55%, based on the Miranda acquisition and improving distribution alliances in Europe. Bulk wine sales fell by 26% and 15% domestically and overseas respectively. Grape growers are however frustrated by MSW paying just $800 per tonne for chardonnay, while other wineries are paying $900-$1000 per tonne for inland fruit. The Murray Valley Winegrowers are angry that vineyard earnings per acre for the 2004 vintage are expected to be $3200 for cabernet sauvignon, $4000 for merlot and $4800 for shiraz. Target returns are of the order of $6000 per acre.
