AUS: AWH lines up wine industry withdrawal - report

By | 13 June 2007

Australian Wine Holdings is set to pull out of the wine industry, according to reports.

The Perth-based company is looking for alternative investments outside the wine trade, WA Business News reported today (13 June). AWH has conditionally agreed to sell its wine distribution business, Wine Shack PTY, to a company associated with Mike Calneggia, its managing director, the news service said.

"It doesn't matter how great a wine company you are, no-one is interested in it," Calneggia was cited as saying.

The sale of Wine Shack, to Calneggia's Viticultural Asset Management, comes two weeks before AWH was due to repay a A$1m secured loan to VAM.

Last year, the company posted narrowing full-year losses on the year to 30 June. Net losses for the year hit A$3.4m (US$2.6m) from A$5.6m a year earlier. Revenues, meanwhile, rose 10.7% to A$6.3m.

Calneggia told just-drinks at the time that the company was looking to clear its debts through the sale of two assets, including the sale of its Hay Shed Hill vineyard. The vineyard was subsequently sold to a consortium including former Howard Park winemaker Mike Kerrigan.

Sectors: Wine

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