Australian Vintage’s chairman, James Williamson, has reinforced his confidence in the company’s future by purchasing 10.9 million shares for AU$1.36 million. Calling the stock a “screaming buy,” Williamson made the investment as soon as trading restrictions were lifted following the company’s latest financial results.
The move comes after a turbulent year for Australian Vintage, the country’s third-largest wine group, which struggled with industry-wide challenges and internal instability. The company was left at the altar in a failed merger with Accolade Wines, saw the abrupt departure and subsequent return of CEO Craig Garvin, and faced mounting financial pressure. At its latest share price of AU$0.13, Australian Vintage is valued at just AU$43 million—down sharply from AU$234 million in mid-2021.
Despite reporting an operating cash loss of AU$7.8 million for the six months to December 31 and a growing net debt of AU$73 million, Williamson remains optimistic. He has outlined a turnaround strategy targeting free cash flow neutrality by fiscal 2025, followed by AU$10 million in free cash flow in 2026 and AU$20 million in 2027. Analysts agree that if these targets are met, the stock would indeed appear undervalued.
CEO Craig Garvin sees growth opportunities in Asia, describing China and the broader region as key markets in the short to medium term. At the same time, Australian Vintage is banking on innovation to drive sales, particularly through the launch of Poco Vino, a single-serve wine format aimed at “mid-week wine occasions,” millennials, and lapsed wine drinkers. The company plans a “made where sold” strategy, sourcing wines locally for different regions—French and Italian wines for Europe, Napa Valley wines for the U.S., and Australian wines for Asia-Pacific.
While Australian Vintage faces an uphill battle, its restructuring efforts and strategic focus on emerging consumer trends could provide a path to recovery. However, with significant debt still looming and the broader wine industry grappling with shifting consumption patterns, Williamson’s investment is a bold bet on the company’s ability to turn things around.
