AUS: Dromana posts loss, to set up Chinese business

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Dromana Estate has reported a consolidated loss for the year of A$656,709, compared with a loss of A$4.99m in the previous year, despite being adversely hit by a one-off non-recurring overhead of A$125,000.

The company said it achieved a 23% increase in total revenue over the previous year due to the company assuming the export sales and marketing of Baptista Shiraz and an improved performance from the Tuerong Park Cellar Door.

The company also announced the proposed formation of Dromana Estate (China) and the appointment of Alan Reid as executive chairman of the operation.

A statement said the company had been recently considering various opportunities to enter the Chinese wine market and in the longer term to become a producer of wine in the region.

"It is anticipated that DEC will initially develop the distribution of the Dromana Estate range of Australian premium cool climate wines in China," said chief financial officer Chris Ritchie.

"In due course, it is planned that a joint venture using Dromana's Australian root stock would be used for the development of an Estate Winery producing cool climate premium wines in China for internal distribution and also for export."

Alan Reid is a law graduate of the University of Western Australia. He has lived and worked in China and Hong Kong since 1985 and has experience in conducting business in those places, Dromana said.

"The opportunities in China are vast and yet, to be successful, requires careful planning and application to achieve the desired result," Ritchie said.

Sectors: Wine

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