Treasury Wine CEO Tim Ford,wholast year warned that input costs would force the company to implement some price increases,said further hikes had been scheduled for the 2023 financial year.
“The majority of our price increases are our luxury wines and on some premium wine brands,largely sauvignon blanc New Zealand brands like Squealing Pig and Matua,” Ford toldThe Sydney Morning Herald andThe Age.
“A few of our[Penfolds’] cabernet ranges will look to increase[in] price over the next 12 months because we’re in a fortunate position now where demand exceeds supply on some of our Penfolds portfolios,” he added.
Otherwise,the “majority” of the price increases on luxury wine would be outside of Australia,such as for the US market’s Stags’ Leap and Frank Family Vineyards brands.
Ford said greater efficiencies in the company’s supply chains had mitigated some of the costs from rising inflation,meaning it didn’t present a primary challenge to growth.
The company’s full-year results outlined a $25 million loss due to logistics and global supply chain issues that are expected to take another $25 million bite out of profits in 2023.
He made his comments as the Penfolds maker on Thursday revealed its focus on the American and Asian markets had underpinned a rise in profits and earnings. Net profit ticked up 5.3 per cent to $263.2 million for the year ended June 30,while the company’s preferred measure of profitability,earnings before interest,taxes and the cost of harvested grapes (EBITS) lifted 3 per cent to $523.7 million.