Placement gives Australian Vintage larger branded footprint in China

SYDNEY - Australian Vintage Limited (AVL), parent company of wine brands Tempus Two, McGuigan and Nepenthe, today signed an agreement with Vintage China Fund L.P., a new partnership established by the founders of China’s largest online wine retailer, YesMyWine.

The deal provides for the placement of 15% of AVL’s existing capital to Vintage China Fund, L.P to raise AUD16.5 million in capital for AVL.

AVL will an exclusive distribution agreement with Vintage China Fund, L.P, covering supply of specific AVL products (excluding the McGuigan brand) into China, to complement the company’s existing distribution agreement with COFCO W&W International Co. – part of China's largest food processing, manufacturer and trader, COFCO.

The total value of Australian wine exports is up 43% to AUD568 million, according to Wine Australia, making China leading export market for Australian wine.

Neil McGuigan, CEO of AVL, says the consistent growth of online wine sales in China is one of the many reasons that enticed AVL to partner with Vintage China Fund, L.P.

“The opportunity for Australian wine in China is unparalleled and unquestionable, but if you want to be a key player in the market, you have to invest in growing your brands and partner with like-minded businesses,” he said.

The AUD16.5 million in funds from AVL’s placement deal with Vintage China Fund, L.P. would be put towards a number of capital projects designed to drive the global growth of core brands, reduce the cost base and grow its presence in new export markets.   www.australianvintage.com.au (ATI).