Business enjoys 79 per cent net profit and top placement in Advantage survey
Australian Vintage Limited (AVL) achieved its best result of the past decade with 79 per cent net profit after tax improvement for the 12 months to June 2021.
AVL's Chief Executive, Craig Garvin said, “The record result was very pleasing with continued growth in our portfolio of key brands. During the 12 month period, sales of our pillar brands of McGuigan, Tempus Two, Nepenthe and BVWC grew by 12 per cent to $195.1 million.
“This growth, together with the efficiencies generated from our recent capital spend, investment in our people and the favourable 2020 and 2021 vintages have underpinned the 79 per cent growth in NPAT. We are committed to our strategic plan, and it is showing positive signs for our future.”
Marketing spend was up by 46 per cent, mostly concentrated in the second half of FY21 with the business also making substantial investment in its staff and improving its customer focus. Ultimately this saw AVL awarded the position of number one wine supplier to the Australian retail industry in the Advantage Australia Engagement Program.
Mr Garvin noted, “This survey is a comprehensive balance scorecard rating of all suppliers across the marketplace as rated by the customer. On top of that award, we also received the Supply Chain Manager of The Year Award at the Drinks Association Australian Drink Awards. These awards are a significant achievement for AVL’s market reputation and credibility.”
AVL achieved a net favourable score of 49 + 38 in the annual Advantage Trade Engagement Program.
CEO of Advantage Australia, John McLoughlin said, “Retailers acknowledge the ‘step up’ in engagement and collaboration Australian Vintage has demonstrated to drive Supply Chain efficiencies and ensure ongoing supply throughout a challenging environment.”
AVL’s General Manager for Australia and New Zealand, Jeff Howlett (pictured below), said the significant improvement reflects a concerted team effort and is to be applauded.
“We’re really proud to receive this trophy and appreciate all the feedback we receive from Advantage. It’s evidence of all the hard work our incredible team has been doing and a reflection of the consistent, collaborative and innovative supply chain management within the business,” said Mr Howlett.
“Efficient supply chain management is key to company success and customer satisfaction. We are excited and committed to continuing to build a transparent and traceable supply chain that upholds high standards of business conduct and respect for human rights and the environment.”
Advantage Australia's Steve Andrews explained, “The award recognises excellence in the capabilities and behaviours for managing both short- and longer-term supply complexities in collaboration with retailers and wholesalers, as well as the ability to consistently drive high quality service outcomes and deliverables.”
Head of Operations Thomas Jung has worked at Australian Vintage Limited for more than twenty years alongside National Logistics and Customer Service Manager, Tim Green who has been there for 15 years.
Of the Supply Chain award, Mr Jung said, “This award recognises the immense hard work that has gone into aligning our supply chain with having our consumer at the heart of everything we do. I am so proud of our teams and our freight partner, GTS.
“To achieve this during a turbulent 18 months is a stellar result and shows the nimble, responsiveness and agility of our teams and partners. “
The business appointed its new site and supply chain manager, Mark Alexander in January this year. Together they lead the supply chain team to distribute some of Australia’s most recognised wines around the globe.
Mr Jung said that when Mr Alexander joined the business in January, he hit the ground running.
“We are all about continuous improvement and Mark helps us to drive this even harder. We will continue to work on all elements of our supply chain from dry goods procurement reviews, managing our stock on hand position and reviewing all avenues to further efficiencies. This also includes looking at packaging innovations with our partners. Watch this space, as we continue to drive our supply chain even harder into the future,” said Mr Jung.
The Supply Chain Management Award is sponsored by GS1, a Corporate Partner of the Drinks Association.