CANADA. Vincor International recently uncorked double-digit profit and sales gains for the year ended 31 March 2003.
Canada’s largest wine producer credited international expansion and an emphasis on higher-margin, premium brands for driving a +48% jump in profits to C$39.9 million (US$29.3 million). Sales rose +15%, to C$434.6 million (US$320 million).
“This was a year of significant achievements and solid progress for all our businesses,” said Donald Triggs, president and ceo of Vincor, North America’s fourth-largest wine producer, which has ambitions to become an even bigger player.
In November, Vincor expanded beyond North America with the acquisition of Goundrey Wines, one of the biggest producers of superpremium wine in Western Australia. The company also gained an excellent network of distributors combined with a dedicated Australian sales force. Last month, Vincor followed that up with the purchase of Kim Crawford Wines of New Zealand.
“Both of these acquisitions give us excellent brands and products to bring to the North American market,” Triggs said in a conference call with analysts.
In the US, sales of Vincor’s premium Toasted Head surged +54% last year and the brand is poised to continue growing at double-digit rates. “This brand is on a roll,” Triggs said. Overall, US sales were up +43% while sales in Canada were up +5.8%.
Triggs said Vincor continues to seek acquisition opportunities “that will accelerate our progress toward our goal of doubling our business and driving to become one of the world’s top ten wine companies within the next five years or sooner.”
The rise of the Canadian Dollar recently also had a big effect. As the currency rises against the US Dollar, Vincor’s profit from US operations shrinks.
Note: Vincor International is North America’s fourth largest producer and marketer of wines by volume, with leading brands in all segments of the market. The company has wineries in Canada, California, Washington State, Western Australia, New Zealand and markets other wines. Vincor’s premium brands include Inniskillin, Jackson-Triggs, R H Phillips, Toasted Head, EXP, Hogue, Goundrey, Sumac Ridge, Hawthorne Mountain, Kim Crawford, Ancient Coast and Sawmill Creek, which complement its popular priced wines such as Entre-Lacs, L’Ambiance, Sola Nero and Notre Vin Maison.
