Doug Lehmann, managing director of Peter Lehmann Wines, hopes the change in approach towards discounting in European markets will boost second half profits for this financial year. The 13% drop in half-year profit to A$2.9 million from the equivalent period last year of $3.4 million is despite a 6% increase in sales to A$22 million for the first half. Lehmann attributes much of the fall to discounting and the global over-supply. The company has sold less of its more expensive higher-margin wines, but a larger proportion of its cheaper Clancy and Weighbridge brands, which continue to deliver excellent value for money. General speculation concerning future corporate activity in the wine market, especially concerning new shareholder Allied Domecq, is helping to maintain PLW’s share price.
