It’s not all plain sailing for a number of Australia’s smaller publicly listed wine producers. Despite its steadily improving performance in the UK and in other European markets which saw overall sales increase by 9% to A$60.38 million, Cranswick Wine Estate only managed to halve last year’s profits. Having lost its contract to produce Cinzano vermouth and having sold its Haselgrove business, its profit was reduced to A$3 million. It is counting on its joint venture with Indian producer Chateat Indage to increase profits in the coming year. While rumours circulate in the wine trade about its future, WA-based producer Evans & Tate, which recently added Oakridge Estate to its assets, scored a profit increase of 13% to A$2.6 million. Giant South Australian bulk producer Simeon Wines just managed to squeak up its profit by 1% to A$15.4 million, while Barossa-based Peter Lehmann Wines managed a 24% profit increase to A$6.2 million based on a 15% increase in revenue to A$42.2 million. Much of Peter Lehmann’s growth has been offshore, with European sales doubling and US sales increasing by more than half. Just a shade over half of Peter Lehmann’s volume is now exported, with UK sales measuring around 30% of revenue. ‘If there is an approach from anyone (to buy the company) it would have to add value’, says managing director Doug Lehmann. Despite an increase in revenue of 27% and case sales volume rising by 18%, Petaluma’s after tax profit only increased by 8% to A$6.8 million in 2001. In the past year Petaluma has established its own domestic distributor, Distinguished Vineyards, which now handles the company’s entire portfolio of brands. Petaluma’s chairman, Brian Croser, identifies the development of strong brands and control of distribution as the key challenges for companies like Petaluma in 2002. He is also seeking a European joint venture along similar lines to that established with Washington-based Stimson Lane in the US.
