CANADA. A standout showing by Inniskillin Icewine in duty free was one of the highlights of strong third quarter and nine-month results from wine company Vincor International.
For the three months ended 31 December 2004, Vincor’s sales increased by +53% to C$206.2 million, compared with C$134.7 million for the corresponding period a year earlier.
The increase reflects the acquisitions of Amberley Estate and Western Wines, as well as organic growth in the company’s business. Excluding these acquisitions, third quarter sales increased +11%. Net income increased by +21% to C$19.2 million.
“Our business continues to perform strongly overall, as evidenced by solid increases in sales and volume,” said Donald Triggs, President and Chief Executive Officer. “In addition, our key premium New World wine brands grew steadily during the quarter, outpacing the overall wine market. As we enter the final quarter of fiscal 2005, we continue to work hard to drive product, sales and marketing synergies from our acquisitions. We will also capitalize on our sales and distribution presence in New World wine markets to build global wine brands.”
On a regional basis, Canadian sales rose by +11% to C$89.4 million in the quarter and volume increased by approximately +10%. Excluding the effect of currency translation, Vincor’s sales grew by +9% in the US, +88% in Australia and +19% in New Zealand, “reflecting the continued success of the company’s strategy to focus on premium wines, the fastest-growing segment of the market”.
Vincor said the third quarter was particularly strong for its Australian operations. Amberley Estate, which was acquired in March, 2004, is now fully integrated with Goundrey Wines, and the performance of the combined business has improved significantly.
Inniskillin success
The three-month period was also highlighted by strong export sales, “which were driven largely by Inniskillin Icewine in the global duty free channel,” the company said. Inniskillin is handled in worldwide duty free by Imagination Unlimited International and has been one of the industry’s most glowing success stories of the past decade, across all categories.
In related news, Inniskillin Gold will be listed on Hong Kong carrier Cathay Pacific as of 1 March. Inniskillin has also been listed on Air Macau, underlying the brand’s growing strength in the greater China market.
MORE STORIES ON VINCOR AND INNISKILLIN
Provost assumes new post as Vincor International accelerates global growth ambitions – 22/11/004
Sweet victory for Inniskillin Vidal Icewine at London’s International Wine Challenge – 06/09/2004
Vincor acquires Western Wines – 05/08/04
Inniskillin’s inflight Icewine success story continues as China deal is struck with ISG – 28/07/04
