Company Interview / Australian Vintage raises a glass to a turnaround

Key points

Australian Vintage (ASX:AVG) targets sustained positive cash flow and further debt reductionPortfolio shifts towards lighter and zero-alcohol wines, with McGuigan zero cited as a key growth areaStrategy focuses on inventory reset, FX hedging and managing agricultural and demand risks

Australian Vintage (ASX:AVG) is, in CEO Tom Dusseldorp's view, executing a decisive turnaround, with a return to positive free cash flow and a sharper focus on inventory discipline. Dusseldorp states that baseline cash management is now under control after years of working-capital pressure driven by misaligned supply, heavy reds exposure and structural change in the global wine market. He notes revenue sits at $258 million, free cash flow at $2 million and net debt reduced to $89 million, which he frames as key milestones in positioning the group for growth into FY27.

Dusseldorp points to a clear shift in demand towards lighter, lower-alcohol and more versatile styles, alongside changing consumption patterns among younger drinkers. Retail data from Coles and Woolworths banners is cited as supporting evidence of a move from “big box” stock‑up trips to convenience-led, occasion-based purchasing. Within the portfolio, McGuigan’s core range is described as flat in Australia and under pressure in the UK, though zero-alcohol McGuigan products are reported to be growing strongly from a low base.

Dusseldorp outlines no further impairments or acquisitions, with the focus on consolidating the MadFish investment, paying down debt, active FX hedging and managing agricultural risks while continuing to rebalance supply from reds into whites.