AUSTRALIA: Petulama’s future plans temper results

Pricing and distribution strategies, designed to ensure long-term sustainability had tempered Listed Australian premium producers 1999-2000 results, executive chairman, Brian Croser, said today.Petaluma’s EBIT of $A10.7m was only $A0.4m more than in 1998-99, revenues increased by 15.9% to $A41.4m with post-tax profit 9.5% greater at $A6.5m.”We could have continued with at least double digit growth but we bit the bullet, maintaining our prices and taking over our own distribution which is having an effect on sales,” Croser said.The strategies were aimed at allowing Petaluma to develop in its niche as a pure premium wine supplier to the global market during the next decade.He said the results were consistent with expectations, given global and domestic competitive pressures and increased market support costs.Growth of 4% in branded case sales and revenue growth did not take into account benefits of Petaluma’s joint venture with Stimson Lane of the US, or the purchase of Oregon-based Argyle Winery, which had been settled yesterday.